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Conversational AI

AI chatbots and dialogue systems enabling natural human-computer interaction

Fig. 77 · Speaking tube

The field

At a glance

Definition

AI chatbots and dialogue systems enabling natural human-computer interaction

Technologies

Retrieval-augmented generation (RAG) grounds responses in company knowledge bases. Intent classification routes complex queries to appropriate AI or human agents. Voice AI with speech-to-text and text-to-speech enables phone conversations. Sentiment analysis detects customer frustration for escalation. Multi-turn conversation management maintains context across long interactions.

Applications

AI agents resolve 50-80% of customer support tickets without human involvement. Voice AI handles appointment scheduling, order status, and account inquiries by phone. Internal AI assistants answer employee questions about HR policies, IT troubleshooting, and procurement processes. Sales AI qualifies leads and schedules meetings through conversational interaction.

Market and funding

The global conversational AI market is projected to reach $30+ billion by 2028. Enterprise chatbots, virtual assistants, and voice AI serve customer service, sales, and internal operations across every industry. The economic case is straightforward: AI resolution costs $0.10-0.50 per interaction versus $7-12 for human agents.

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