What is a Key Differentiator of Conversational AI?


what is a key differentiator of conversational ai

You’ve probably noticed that your customers are impatient. When they search your website for answers or reach out for customer service or support, they want answers now. Chatbots help you meet this demand by allowing your customers to type or ask a question and get an answer immediately.
But the relevance of that answer can vary depending on the type of technology that powers the solution. Conversational artificial intelligence (AI) enables a natural exchange — much like talking to a customer service rep — that helps time-strapped customers get the information they need quickly and with minimal frustration.

What is Conversational AI?

Although some chatbots are rules-based and only enable users to click a button and choose from predefined options, other solutions are AI chatbots. Artificial intelligence gives these systems the ability to process information much as humans do.

So, what is the key differentiator of conversational AI? It uses natural language processing (NLP) and natural language understanding (NLU) to simulate human conversations.

  • NLP gives machines the ability to understand natural language. NLP combines rules-based modeling of human language with machine learning (ML) and deep learning technologies to understand text or voice data. NLP takes unstructured text and converts it to a format that a computer can understand and uses an algorithm and training model that teaches the computer to process language data. Then, with natural language generation (NLG), a computer can create an “output” that’s a relevant response to the user.
  • NLU is a type of NLP that also gives computers the capability to understand the meaning of questions or other communications. People take for granted that words can have different meanings in different contexts and that the order of words matters. But without training, this isn’t something a machine can do. NLU algorithms learn from different sources to develop an understanding of a person’s intent when they ask a question or make a statement.

Chatbots that leverage NLP and NLU process language and comprehend sentiment more effectively than those that don’t. When powered by these technologies, a chatbot works more like a conversation with another person rather than a search engine. Furthermore, AI learns from each interaction and follow-up question and constantly refines its responses. It becomes “smarter” the more it “talks” to people.

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Why Conversational AI is a Good Fit for Customer Service

Although conversational AI has applications in a variety of industries and use cases, this technology is a natural fit for customer support. Not only does it solve the problem of how to answer questions quickly and avoid increasing frustration the longer a customer is on hold or waiting for an email, but it also provides businesses with these advantages.

Works around the clock

Chatbots powered by conversational AI can work 24/7, so your customers can access information after hours or when your customer service specialists aren’t available.

Covers the easy answers

Customer service and customer support specialists often have a heavy workload, whether they’re taking calls or answering emails. Conversational AI can easily manage questions about accounts, and payment history with knowledge base articles, and more, so your team can focus on more complex issues that require a personal touch.

Provides reps with a smart handoff

When a customer has an issue that needs special attention, a conversational AI platform can gather preliminary information before passing the customer to a customer support specialist. Then, when the customer connects, the rep already has the basic information necessary to access the right account and provide service quickly and efficiently.

And, since the customer doesn’t have to repeat the information they’ve already entered, they have a better experience.

Scales automatically

Conversational AI solutions are designed to manage a high volume of queries within a short time. Even if your business receives an influx of inquiries, conversational AI can handle them and still provide quality responses that reduce ticket volume and increase customer happiness.

Communicates in multiple languages

Global or international companies can train conversational AI to understand and respond in the languages their customers use. This feature can help businesses control labor costs by not having to hire a large team of multilingual customer support specialists — their intelligent chatbot can address the inquiries that come in from lots of locations around the world.

Gives customers a self-service option

Some people simply prefer self-service. They’d rather avoid a phone call or an email chain and simply access information on their own, without help from a customer service specialist.

Solutions like Solvvy meet this demand. Solvvy is the leading conversational AI platform for support. Companies using Solvvy see an average self-service rate of 41% within a week of deployment.


When considering the benefits of chatbot AI for customer service teams, it’s also important to consider the return on investment (ROI). Retail Dive reports chatbots will represent $11 billion in cost savings — and save 2.5 billion hours — for retail, banking, and healthcare sectors combined by 2023. Conversational AI enhances interactions with those organizations and their customers, which can benefit the bottom line through retention and greater lifetime value.

Conversational AI Examples

Businesses are using conversational AI in a range of ways when it comes to support. The first thing that comes to mind may be handling routine inquiries to the customer support team, such as, “Where’s my order?” “Is your business open over the holidays?” or “How do I change my subscription?” But a key differentiator of conversational AI from other technologies is its agility and breadth of use cases it can address.

Today, conversational AI works for businesses in use cases including:

E-commerce customer experiences

E-commerce has skyrocketed this decade. Global retail e-commerce increased from $3.5 trillion in 2019 to $4.2 trillion in 2020, and analysts predict it will total more than $6.5 trillion by 2023. Conversational AI can help ecommerce enterprises ensure that online shoppers can find the information they need. Additionally, conversational AI creates personalized, convenient, and loyalty-building experiences.

Sales Experience

The sales experience involves sharing information about products and services with potential customers. Of course, telephone sales are nothing new, but businesses can now use chatbots capable of automation speech recognition to engage people in effective dialogs via voice or text, or even function on marketing sites to increase sales.

Subscription box customer experiences

Businesses that build successful subscription revenue streams develop strategies that effectively minimize churn. Enhancing experiences can help retain customers, and one way to always provide customers with the information they need and quickly address issues is to deploy a conversational AI solution. With this technology, you can always provide clear information on purchases, payments, shipping, and returns — as well as messaging that lets customers know you appreciate and value their business. That will only improve the lifetime value (LTV) of a customer.

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Customer loyalty

One element of building customer loyalty is giving people the ability to engage on the channels that they choose. Solutions powered by conversational AI can be valuable assets in a customer loyalty strategy, optimizing experiences on digital and self-service channels.

Customer feedback

To provide customers with the experiences they prefer, you first need to know what they want. Collecting customer feedback is a great way to gauge sentiment about your brand. Data from conversational AI solutions can help you understand your customers better and whether the products and services you provide are meeting their expectations.

Knowledge base

Every business has a list of frequently asked questions (FAQs), but not every answer to an FAQ is simple. Conversational AI can help customers find the information from a knowledge base in a conversational chat — and ask if the information answered the question, helping the platform learn and provide the most relevant information in the future.


Conversational AI also offers value beyond customer-facing processes. Businesses can also leverage it to train new customer support specialists, familiarizing them with frequently asked questions and answers that customers make during their buying decisions or while resolving issues.


Interested in a Conversational AI Platform For Support?

Businesses across a range of industries are enhancing customer service and support experiences with conversational AI. For example, e-commerce businesses use conversational AI to make product recommendations and collect data that can help them personalize service and improve marketing ROI. Fintech and other companies in the finance and banking sector use conversational AI to power virtual banking assistants that can process transactions, check account status, and contact customers about suspicious transactions to prevent fraud.

Conversational AI also improves Software as a Service (SaaS) company interactions with customers, augmenting information on the website when users are researching solutions, providing additional information during onboarding, and making information readily available with just a click on an ongoing basis.

If you have a customer service or support team, conversational AI can benefit your business as well. Solvvy offers a powerful conversational AI platform for intelligent customer service and support. Solvvy’s natural language platform intuitively detects what customers need and responds with personalized answers 24-7 across every channel. In addition, Solvvy has the ability to pass smart handoffs to agents to help them deliver faster, smoother assistance for delightful customer experiences.

Request a no-risk demo today to try Solvvy for yourself and explore how conversational AI can benefit your operation.