Top conversational AI use cases in 2024

Overview

Conversational AI, also known as conversational interfaces or chatbots, has rapidly evolved into a powerful tool for businesses across various industries. By simulating natural conversation, conversational AI solutions can enhance user experiences, streamline workflows, and unlock new opportunities. This maturing technology offers a multitude of use cases, promising to enhance customer service, streamline internal operations, and empower employees. 

As we outline some specific applications of conversational AI technology in 2024, it's important to understand how these advancements are shaping the way businesses interact with customers and employees. This technology, in all its recent advancements, is leading to a more efficient and user-centric future, but what exactly is conversational AI?

What is conversational AI?

Conversational AI utilizes a combination of Natural Language Processing (NLP), machine learning, and artificial intelligence to enable computers to understand and respond to spoken or written human language. This technology goes beyond simple keyword matching and aims to create interactive and engaging dialogues.

How does conversational AI work?

Conversational AI is a skilled conversation partner – by combining elements like natural learning processing (NLP), machine learning algorithms and data mining, conversational AI can engage in meaningful conversations, answer user queries accurately, and even offer proactive customer support, leading to a more efficient and user-friendly experience. 

Natural learning processing

NLP forms the foundation of conversational AI. It allows the system to understand the meaning behind human language. This includes:

• Speech Recognition: Converting spoken language into text for processing.

• Natural Language Understanding (NLU): Identifying the intent and sentiment behind user queries, even accounting for slang and informal language.

• Natural Language Generation (NLG): Formulating human-like responses tailored to the user's intent and the context of the conversation.

Machine learning

Machine learning algorithms play a crucial role in training and continuously improving conversational AI. Here's how:

• Supervised Learning: The system is trained on vast datasets of text and audio conversations with corresponding user intents. This allows the AI to identify patterns and learn how to respond appropriately.

• Unsupervised Learning: The AI can analyze vast amounts of unlabeled data to identify emerging trends and user behavior patterns, further refining its understanding of natural language.

Data mining

Extracting valuable insights from existing data sources is essential for effective conversational AI. This data can include:

• Customer service interactions: Analyzing past conversations helps the AI understand common issues, user behavior, and appropriate responses.

• Website analytics: Understanding user behavior on websites helps anticipate user needs and provide proactive support.

• Social media interactions: Analyzing social media conversations can provide insights into customer sentiment and emerging trends.

Proactive support

While not a core function of conversational AI, it's worth mentioning that some advanced systems can leverage the insights gained from NLP, machine learning, and data mining to automate proactive support. This could involve:

• Anticipating customer needs and offering solutions before they even ask.

• Identifying potential issues and providing preventative measures.

• Recommending relevant products or services based on past interactions and user data.

Why is conversational AI important in 2024?

Customer expectations are at an all-time high, demanding seamless interactions and personalized experiences across all touchpoints. Conversational AI is a rapidly evolving technology, emerging as a powerful tool with the potential to revolutionize the way businesses interact with their customers and employees. 

Given the direction of this trend, let's discuss why conversational AI holds such significance in 2024. We’ll explore how it can enhance efficiency, personalize customer experiences, and even help position businesses to thrive in today's competitive environment.

Benefits of conversational AI

Conversational AI offers a compelling list of advantages for businesses in 2024. Let's unpack some of the key benefits that are driving its adoption across various industries:

24/7 accessibility

Conversational AI chatbots work around the clock and offer an extension of support and connection outside of your regular business hours. They can provide instant assistance to users day or night, regardless of time zone or holidays. This ensures that customers can get answers to their questions, resolve issues, or place orders at their convenience, leading to higher customer satisfaction and loyalty.

Personalized communication

Conversational AI is programmed to leverage user data and past interactions to personalize communication, which is a plus for customers craving a highly curated experience. By understanding user preferences and purchase history, chatbots can offer targeted recommendations, suggest relevant products or services, and tailor their responses to create a more engaging and relevant experience.

Enhanced lead generation and sales

Conversational AI can play a crucial role in lead generation and sales processes. AI bots can qualify leads by engaging users in conversations, answering product-related questions, and even scheduling appointments with sales representatives. This frees up human sales teams to focus on closing deals while the AI handles initial interactions and lead nurturing.

Proactive customer service

Advanced conversational AI can go beyond reactive support by offering proactive customer service. By analyzing user behavior and past interactions, chatbots can anticipate customer needs and offer solutions before issues arise. Support on this level can include suggesting helpful resources, reminding users about upcoming renewals, or proactively addressing potential customer problems.

Types of conversational AI

Conversational AI comes in a variety of forms, each suited for specific needs and functionalities. Generative AI-powered chatbots act as virtual conversation partners, typically interacting with users through text messages on websites, messaging apps, or social media platforms. These chatbots can be rule-based, functioning with a predetermined set of responses ideal for answering FAQs or guiding users through simple tasks.

However, the true power lies in AI-powered chatbots. These intelligent systems leverage natural language processing and machine learning to comprehend user intent and deliver more dynamic and nuanced responses. This allows them to handle a broader range of tasks, from qualifying leads and scheduling appointments to offering product recommendations and basic troubleshooting assistance. On the other hand, virtual assistants (VAs) take conversational AI integrations a step further, offering a more hands-free and interactive experience. Let’s compare two of the most common examples of conversational AI:

AI-powered chatbots

These are virtual conversation partners that interact with users through text messages on websites, messaging apps, or social media platforms. They can be:

• Rule-based: Operate on a predetermined set of rules and responses, ideal for answering frequently asked questions or guiding users through simple tasks.

• AI-powered: Utilize natural language processing and machine learning to understand user intent and provide more dynamic and nuanced responses.

AI-powered chatbots can handle a wide range of tasks, including:

• Answering customer service inquiries

• Qualifying leads and scheduling appointments

• Providing product recommendations

• Collecting user feedback and data

• Offering basic troubleshooting assistance

Virtual assistants

Virtual assistants (VAs) are intelligent AI systems designed to assist users with a broader range of tasks through voice commands; they go beyond simple chat interactions, offering a more hands-free and interactive experience through voice commands. They are constantly learning and adapting based on user behavior, providing a personalized and convenient way to manage daily tasks and access information.

They are commonly found in smart speakers and mobile devices, offering features like:

• Setting reminders and alarms

• Controlling smart home devices

• Playing music and podcasts

• Making phone calls and sending messages

• Searching the web and providing information

• Integrating with other smart devices and services

Use cases of conversational AI

Conversational AI applications are rapidly transforming various industries, beyond customer service, by automating tasks, enhancing communication, and personalizing user experiences. In marketing and sales, chatbots can engage website visitors, qualify leads through interactive conversations, and even schedule appointments with sales teams. The financial services sector is also embracing conversational AI, with chatbots offering 24/7 account management, personalized financial advice, and even fraud detection capabilities. Here's a zoomed-in glimpse into some of the most impactful use cases in 2024:

Customer service

• 24/7 Support: Chatbots provide instant assistance, answer questions, resolve basic issues, and direct complex inquiries to human agents.

• Personalized Interactions: AI personalizes support by understanding user history and preferences, and offering targeted solutions and recommendations.

• Increased Efficiency: Chatbots handle routine inquiries, freeing human resources for complex issues, leading to faster resolution times.

Marketing, sales and retail

• Lead Generation and Qualification: Chatbots can engage website visitors, qualify leads through conversations, and schedule appointments with sales representatives.

• Personalized Recommendations: Conversational AI applications like these can analyze user data and purchase history to suggest relevant products or services, increasing conversion rates.

• Virtual Shopping Assistants: Chatbots can guide customers through their e-commerce journey, answer product questions, and offer real-time purchase assistance.

HR and internal processes

• Onboarding and Training: Chatbots can guide new employees through onboarding processes, answer basic HR questions, and provide access to training materials.

• Employee Self-Service: AI assistants can answer employee questions about benefits, payroll, or company policies, reducing the workload on HR teams.

• Internal Communication: Chatbots can be used for internal communication, disseminating company announcements, conducting surveys, and facilitating feedback collection.

Financial services

• 24/7 Account Management: Chatbots can answer basic banking questions, handle account inquiries, and facilitate secure transactions.

• Financial Advice and Planning: AI assistants can provide personalized financial advice, recommend investment options, and help users track their budgets.

• Fraud Detection and Prevention: Chatbots can analyze transactions for suspicious activity and flag potential fraud attempts, safeguarding user accounts.

Social media

• Community Management: Chatbots can manage social media interactions, respond to comments and messages, and address customer concerns on social media platforms.

• Brand Awareness and Customer Engagement: AI assistants can engage with followers, answer product questions, and participate in social media conversations to build brand awareness.

• Social Listening and Insights: Chatbots can analyze social media conversations to understand customer sentiment, identify emerging trends, and inform social media strategies.

Optimize your conversational AI usage in 2024 with Freshworks!

Conversational AI integrations present a wealth of opportunities to enhance customer interactions, streamline operations, and gain a competitive edge. As we've explored, this powerful technology can be applied across various industries, transforming the way businesses connect with customers and employees. But is your business equipped to enter into the conversational AI forum or need help implementing this innovative software solution?

Freshworks’ Freshdesk Omni leads the way in software solution innovation and offers robust conversational AI integrations designed to empower your business. Our user-friendly platforms and expert support can help you seamlessly integrate conversational AI into your workflows, unlock its full potential, and achieve remarkable results in 2024 and beyond.  Let Freshworks be your partner in harnessing the power of conversational AI to propel your business toward success.