Conversational AI in 2022

AI has been improving over the years and is now more valuable than ever. Many companies are now investing heavily in AI.

AI has been used by businesses to enhance customer experience. AI is able to reduce the time taken by customers to obtain help, especially when it is something that can easily be handled by AI. AI also allows employees to save time and allow them more time for other tasks.

The 18.6 trillion USD market for conversational AI will be reached by 2026. It is rapidly growing. More than half of companies also believe that conversational Ai is disrupting industries, and that their competitors will likely implement such technology.

As you can clearly see, conversational Ai is becoming a vital part of many businesses ‘s marketing strategies.

It’s essential to grasp conversational AI and implement it in your company. This is why we’ll be reviewing the ultimate guide for conversational AI in 2022.

What is conversational AI?

Conversational artificial intelligence is like a sophisticated chatbot. It’s used for sending automated messages and having conversations between computers. It is still a chatbot. However, it can communicate with you in a more humane way.

They communicate like a real human by understanding the intent and responding to queries in a manner that mimics human communication. These conversational chatbots are intended to be used to engage customers and make them feel as if they’re talking with a real human.

This allows them to feel more valuable and ensures that their experience is personal .

A chatbot also works faster and can address smaller issues that might take a person longer to solve.

Chatbots: Who invent them?

ELIZA was 1994’s first chatbot. Joseph Weizenbaum of MIT made it. It was at this place that the term “Chatterbox”, as it is commonly known, was invented.

ELIZA identified keywords or phrases from the input. Then, it used those keywords to send a preprogrammed answer back. This is a sign that ELIZA wasn’t personalized and wouldn’t often respond to different sentences or phrases.

Example: If you mention your family and say, “My dad is a fisherman,” ELIZA could reply, “Tell us more about your father.”

ELIZA recognizes the term “father” so it has an automatic response. It will give the same answer every time the word “father”, “dad” or is written.

I need to know the difference between conversational Ai and traditional chatbots.

It’s easy for conversational Ai to be confused with a normal chatbot. But there are enough differences to differentiate them.

Conversational AI lies at the heart of chatbots and virtual assistants.

ConversationalAI uses Machine Learning to enable it to read and understand the writings of humans. It can then respond to user’s writing.

Chatbots are able to use conversational A.I., but there’s plenty more. Chatbots can be programmed with rules or pre-determined responses to help them answer questions.

Conversational AI is not rule-based. Instead, it responds to the context in which the user has responded.

Recent research indicates that the conversational AI market could reach 32 billion dollars in 2030. It is being used by many companies and there is no end to its potential.

How does conversational AI work

Conversational Artificial Intelligence uses a network of structures that can send outputs based on the input.

Conversational AI can continue learning by using machine-learning to expand the range of questions it can answer or respond to. This happens because every time a user speaks to the AI, it can analyse the context and intent, which allows it to identify new questions that may be required.

While it might appear simple at first, machine-learning is more complex than simply answering questions. It is important to have the correct AI structure .

Here are the components of conversational artificial intelligence’s natural-language processing.

Machine Learning (ML). Machine learning (ML) is an AI component built around algorithms and data that are continuously improving. These algorithms draw on previous conversations with humans to determine the response of humans to specific questions or answers. They also learn the correct answer to human responses.

Natural Language Processing, (NLP). This method of language acquisition works together with machine-learning. While it is being used currently, deep learning will soon be available to most conversational AI to aid in understanding the language.

Analyzing Received Data. This is where AI analyzes the input from the user and scans it to determine context and intent.

Dialogue Management. Once NLP is complete and input has been analysed, the AI should reply with a relevant response. Dialogue Management is where the AI uses the information from the previous process to determine the most suitable answer for the user.

Reinforcement Learning – Finally, the AI and user’s responses to the query are saved. The output and input are then analyzed by machine learning to verify that they match. Machine learning can then check that the user’s intent matches the AI’s answer and learn to answer the next similar input.

What can conversational artificial intelligence be used for?

Most people have experienced some form conversational AI in their lives. But, you might not have known that they were talking to an AI agent instead of a human. Some chatbots may be easy to spot while others can be difficult.

Customer service

There are many applications for conversational artificial intelligence. It is possible that a chatbot was used to assist customers who have spoken with customer service via a messenger on their website. You can use it to help customers, manage bookings, schedules, cancellations, and other tasks.

IT desk service

Conversational AI can also serve as an IT desk service. It assists with basic queries and fixes. Chatbots will help people find simple solutions and not keep IT workers busy. Chatbots will still connect users to a human if the problem isn’t solved.


The use of conversational AI for advertising and selling products is also possible. These bots can offer sales or promotions and be sent to a audience. You should have a chatbot that can address people by their names and maybe know basic information about them if it is well-set up.

These bots will get users to sign-up for subscriptions, or lead them down the funnel to your product pages.

Data Collection

Many companies overlook the possibility of using conversational AI to collect data.

Your conversational AI program needs to be able handle countless conversations per day.

Keep track of all calls and messages.

Search all conversations so customers can find the issues they are having.

Track keywords relevant to specific issues on all calls or messages and look for customer responses.

Collect vital data such as call times, number of daily responses, and the outcome of the reactions for each day.

Example of conversational AI in different industries

Conversational artificial intelligence is used in many different industries to achieve different purposes. Here are three examples that show how conversational AI is used in different industries.


SmarAction software for scheduling automation has built-in conversational Ai that can understand queries regarding bookings. It can also answer questions about the booking process, which can be more complicated then just giving a day and time and booking it.

This AI excels in understanding natural language, and can handle any scheduling questions or requests a user may have.

Watson Assistant

IBM created Watson Assistant. Who better than IBM to create a conversational artificial intelligence that can help customers with their transactions?

This AI assistant works in many industries such as fashion or healthcare.

It can answer simple queries, execute transactions, or contact agents when necessary.

Watson Assistant has been shown to improve customer satisfaction by reducing handle time by 10% according to a study.


Cognigy is a conversational AI tool that facilitates efficient customer service, 24 hours a week.

Cognigy’s best use is for customer support. This optimizes the time it takes for customers to ask questions and get the right answers.

Many airlines use this program. This is especially true after Covid. Airlines had to deal numerous customer service-related issues with cancellations and refunds. Cognigy is an AI tool that can be used to refund and reschedule eligible customers without needing to contact customer service.

Check out this list of the most conversational AI Tools.


Conversational AI has many applications, so it’s not surprising that it’s slowly taking over particular business sectors. Although it’s unlikely that you’d ever need to speak with a human, simple tasks are possible with conversational AI.