Conversational AI Examples: Top 9 Tools and Use Cases [2024]  

According to Accenture, more than 80% of CEOs look forward to revolutionizing customer engagement by using conversational AI technologies. Moreover, the Cognizant report says that 69% of customers prefer chatbots for service-related queries due to their 24/7 availability and instant response features. 

Are these figures surprising? That's how conversational AI is transforming the entire business landscape. Conversational AI is not just a robot interacting with customers with predefined responses. It's programmed to analyze the user's search intent and provide context-informed, smart, and human-like answers. 

But what are some conversational AI tools that companies use? This blog post will guide you through the top conversational AI tools along with top use cases. Besides, we will also explore the use cases, applications, and examples of conversational AI across various niches. 

Top 9 Conversational AI Tools in the US

Nearly 91% of adults use some form of conversational AI technology daily. But what are some standard conversational AI tools in use today? Let's explore the top 9 types of conversational AI prevalent in the US market in 2023!

1. AI-Powered Chatbots

When users open an application or website, they often encounter a chatbot with a welcome message. But what is a chatbot? 

An AI-powered chatbot, or a conversational chatbot, is an AI-powered computer program that interacts with customers intelligently, much like humans. These bots are trained using natural language processing (NLP), which makes them capable of interpreting, understanding, and responding to human queries in a human-like way. 

They are quite advanced compared to traditional chatbots, which work on pre-programmed commands and responses. Moreover, these AI-powered chatbots personalize interactions based on the user's context and past activities on the web. 

Chatbots can perform various tasks intelligently, from answering basic queries to guiding users through complex and complicated processes without human assistance. The best part is they are easy to access and are available 24/7.

2. Button-Based Chatbots

 Button-based chatbots are trained to give specific outcomes for specific input. The interface of a button-based chatbot contains a structured menu. It will guide the customers with some options related to their queries. The customer can move forward by selecting the displayed options. 

It can be used to solve repeated or basic customer queries. The most common examples of conversational AI chatbots are in the feedback and survey section. It displays options like "Rate our service," "Provide feedback," "Request a callback," and "Skip survey." It is potent enough to solve more than 80% of the customers' support queries.  

3. Keyword Recognition-Based Chatbot 

 These chatbots are programs to identify and analyze keywords to address any query. Their answers are definite to keywords. Keyword recognition-based chatbots use Natural Language Processing to decide how to respond to the customers. 

As these chatbots depend on keywords, they often need help processing the answer if the customer makes any spelling mistake. Some advanced chatbots are programmed to pick the closest word from the misspelled words. The accuracy rate of these chatbots is between 80-90%, which is a potential number. 

4. Hybrid Chatbots 

 As the name suggests, hybrid chatbots are the product of rule-based chatbots and conversational AI technology. The best part about hybrid chatbots is that users will have the exact experience of interacting with a human assistant. 

They are context-aware and analyze the user's intent and emotions before delivering a personalized response, just like a human, besides providing rule-based answers to straightforward queries to more natural, empathetic, and flexible answers to emotional queries. 

Hybrid chatbots can work together with human agents on the same platform, using the agents to handle requests they fully understand. This ensures efficient and accurate responses.

5. Voice Assistants

Voice assistants like Siri or Alexa are conversational AI tools that listen to voice commands, mimic human conversations, and help users. They work by recognizing spoken words and turning them into commands for the machine. According to a survey conducted by PwC, more than 90 % of users are satisfied and have no problem with voice assistants. 

Voice assistants use speech recognition to understand the question and fetch the current weather information. These virtual assistants simplify tasks like accessing information, controlling smart home devices, or managing calendars. There is vast space in the usability of the articles, which businesses can take advantage of.  

Voice assistants can now work on the commands given by users. Work like booking tables, tickets, and shopping are perfect examples of conversational AI use cases. 

6. Virtual AI Agents

‍Virtual agents are also known as intelligent virtual agents (IVAs), virtual reps, chatbots, or conversational agents. These software programs blend scripted rules with artificial intelligence to offer automated help to you. 

Think of them like digital problem solvers. They're pretty clever. Virtual agents can chat just like real people when you have common questions. They're good at understanding how users talk and what they need. 

Virtual agents are mostly used in customer service. They're the ones who quickly answer the usual questions of customers, deal with everyday requests, and solve simple issues. 

But they're not just for customers - they also help employees at work. When virtual agents take care of those easier questions, human agents can step in and tackle the tougher ones. It's a team effort!

App0 is one such AI agent that goes beyond FAQS and can carry out complex tasks. Unlike traditional bots, AI-agents can understand the end goal and guide customers from start to finish to fully execute the tasks autonomously.

7. Virtual Assistants  

Who wouldn't want a virtual friend who assists them in their daily tasks? One of the most well-known examples of conversational AI tools is Siri, Apple's virtual assistant. Want to play music but too lazy to leave the comfort spot? No worries, Siri is here!

But what is Siri? Both Siri and Alexa are examples of virtual assistants. Virtual assistants can cut down the operating costs of a business by about 78%. Now, what are virtual assistants? 

Virtual assistants, based on conversational AI technology, are software-based programs designed to assist us personally in our daily tasks. They are pretty similar to voice assistants in functioning. However, unlike voice assistants, they interact with users by voice, text, and graphical interface. 

While individuals can use virtual assistants for their day-to-day tasks, businesses can also use them to automate regular customer interaction and some mundane tasks. 

8. AskAI 

 AskAI is an AI-driven tool with conversational features. It acts like a Q&A tool that responds to customers according to the most asked queries and their responses. 

It offers potential customization, and users can craft their own AI-powered Q&A system with tailored content for their users. This feature distinguishes AskAI from other conversational AI tools. It's a user-friendly conversational AI tool that helps businesses improve information retrieval and boost customer engagement via chatbots. 

9. Smart Devices  

As of 2023, smart devices are used by about 60.4 million U.S. households. Smart devices such as Amazon Echo and Google Home are prime examples of conversational AI tools that come with voice-integrated technologies. 

These devices assist individuals like personal assistants, thus automating regular tasks and improving their overall efficiency. 

These devices act like an information hub, thus allowing users to access a plethora of information on a wide variety of topics. Not only this, they will also keep you updated about important events. 

Most importantly, these smart devices are used for home automation. It's because they seamlessly control home components such as lights, switches, and thermostats. They also perform functions like setting timers, playing music, and delivering weather updates, etc. 

Best Use Cases and Examples of Conversational AI in 2024

Conversational AI tools such as chatbots can boost sales by 67%. With conversational AI becoming the vanguard of the technological revolution, how are they being used by various industries? Here's a brief overview of the examples of conversational AI tools, along with their use cases across multiple industries.

1. Retail & eCommerce 

Conversational AI has the potential to revolutionize the retail and e-commerce sectors. It boosts customer engagement, streamlines operations, and drives sales. Examples of conversational AI in e-commerce include virtual shopping assistants that help users find products and make purchase decisions. Let's explore some key applications:

1. Personalized Shopping: Customers can leverage AI-driven recommendations. For instance, if a customer has a history of buying sports gear, conversational AI in eCommerce will suggest related products like workout clothing or fitness equipment.
2. Payment Support: It assists customers with payment queries. For example, if someone encounters an issue with their card payment, provide step-by-step guidance to resolve it securely.
3. Returns Made Easy: It simplifies return and refund processes. When a customer initiates a return, it automates initial inquiries and offers clear instructions through chatbots or messaging platforms.
4. Voice Shopping: Devices like smart speakers or virtual assistants enable customers to place orders effortlessly by using voice commands, such as, "Order a large pepperoni pizza."

2. Healthcare 

In the healthcare sector, conversational AI can help diagnose a patient's underlying health conditions or diseases just by guiding them through an online questionnaire or survey. Not just this, it can also act like a human therapist available for the patients 24/7. Virtual therapists are emerging examples of conversational AI that offer mental health support through text or voice interactions.

Moreover, it also helps patients schedule their appointments. It also acts like a virtual assistant, reminding patients of basic information such as medicines to be taken at a particular time. With personalised daily reminders and recommendations, it evaluates a patient's lifestyle and helps them change it gradually. Babylon Health and Ada Health are some perfect examples of conversational AI assisting symptom checking and medical advice.

Conversational AI tools instruct patients on when and how to take a medicine. They also track the medicine usage, reminding them when it needs to be restocked. 

Besides individuals, healthcare and pharmaceutical companies also use conversational AI for regular patient engagement and insights. They are also used for collecting feedback from the patients.

3. Finance and Banking 

Conversational AI tools have gained immense popularity in the finance and banking industry. They revolutionize finance and banking by delivering convenient, self-service, and personalized experiences to you, our valued customers. 

They serve various purposes, enhancing the overall customer experience. HSBC Bank, Tata Mutual Fund, and UnitedHealth Group are some finance and banking institutions where you will get tons of examples of conversational AI use cases. Here are some use cases of conversational AI in banking and finance: 

1. Automated customer support: Conversational AI simplifies customer support by handling common queries and aiding in transactions.
2. Customer onboarding: We streamline the customer onboarding process, collecting necessary data and assisting with any setup issues you may face.
3. Account management: With these tools, customers can effortlessly check account balances, transfer funds, and manage payment methods.
4. Payments and transactions: These tools guide users through payment processes, offering help when issues crop up.
5. Fraud detection: Conversational AI is instrumental in spotting potential fraud on banking cards, notifying customers, and advising on the next steps.
6. Personalized notifications: Customer data powers tailored notifications and recommendations, elevating the overall experience.
7. Video banking: Conversational AI facilitates face-to-face interactions with banking representatives through video services.

4. Marketing and Sales  

In marketing and sales, engagement is the most crucial factor. According to Oracle, 50-60 % of the purchases are done when customers successfully engage with the brand. One of the few conversational AI examples are where AI engages with the customer that lands on the website or sales portal. It converses with the visitors, answers all its queries and turns them into potential leads. 

Conversational AI can bring potential leads to the sales portal and help customers in selecting products. It can act as a guide, and help them to select the best product after knowing their requirements. IBM, Ford, and Sephora are big brands that use AI-driven chatbots as examples of conversational AI in their marketing and sales.

More than 40% of small businesses drive a huge chunk of their revenue from social media. Conversational AI can help the business in managing social media. Conversation AI can be incorporated with social media to reply to comments, answer queries, or provide assistance. 

5. Internet of Things (IoT) Devices 

Conversational AI can act as a different or additional interface for IoT gadgets. Instead of the usual buttons or screens, people can talk or type to interact with their devices, which makes it all more intuitive. For instance, imagine having a smart thermostat that responds when you say, "Make it warmer in here," rather than pressing buttons to adjust the temperature. This is what conversational AI can bring to the table for IoT devices.

1. Voice Control and Interaction: IoT devices can now understand your voice commands. Conversational AI processes these commands, figures out what you want, and takes the right actions. For instance, you can say, "Turn off the lights," and your smart home system will do just that.
2. Enhanced User Interfaces: Conversational AI can be a new way to talk to your IoT devices instead of buttons or screens. Imagine telling your thermostat, "Make it warmer in here," instead of adjusting it manually. It makes using these devices much easier.
3. Data Insights: IoT devices create tons of data. Conversational AI can help you make sense of it. It can chat with you like a friend, explaining what the data means, summarising it, and even suggesting actions. For example, it might say, "Your energy usage is high this week. Consider adjusting your thermostat to save money."

6. Education 

Students need assistance regularly for their academic work, which conversational AI excels at. From doubt clearing to concept explanation, it is a potential asset in the educational industry. The global education and training expenditure is about to leap $10 trillion by 2030. So, the use case of conversational AI is not a big deal. 

Conversational AI will be revolutionary in language learning needs. It can guide the learner to improve their language skills and allow them to practice. Applications like Duolingo use conversational AI-powered technology to help learners learn new languages. 

Apart from this, it has a big role in the administrative sector of education institutes. Educational institutions leverage conversational AI for student services. Examples of conversational AI in these institutions are chatbots that answer all students' queries related to enrollment, course schedules, and campus facilities. 

7. Customer Service

About 95% of customer service interactions will be replaced by AI in 2025. Not just this, people today prefer interacting with conversational AI chatbots over humans due to their instant 24/7 availability. 

 Conversational AI in customer service does everyday tasks automatically, giving reliable and correct answers, and letting human support agents handle more intricate problems.

 Generally, conversational AI is used by businesses to help customers with common queries. Customer service chatbots are becoming increasingly common examples of conversational AI for businesses. This frees up employees to focus on other important tasks. Besides the regular FAQs, it also provides personalized responses to users after analyzing their pain points and problems. 

Apart from this, conversational AI also helps customers diagnose and resolve common problems or issues they might encounter with any product/service. These are a few conversational AI examples for customer service

Moreover, voice-based assistants assist customers in a variety of tasks. The voice search feature in shopping websites and applications is an example of conversational AI. Similarly, it also helps customers make reservations and book tickets upon their request. 

8. Travel & Hospitality

Travel and hospitality businesses can incorporate conversational AI in their website, where customers can get information from interactive AI tools. Examples of conversational AI in travel industry applications include booking flights, hotels, and car rentals. It can be used for room services where customers can order food and services directly from their room. 

Conversational AI can become a bridge for communication with tourists and can offer real-time translation. Furthermore, post-stay surveys and feedback related to hospitality can be automated through conversational AI.  

The application of conversational AI can be seen in the popular travel-planning website Expedia. It works as an assistant that helps the customer with travel plans.

Conclusion 

The world of conversational AI is an ever-evolving landscape. The above-mentioned top conversational AI tools have showcased their prowess through various examples of conversational AI applications. From enhancing customer support with chatbots that provide quick and accurate responses to creating engaging virtual assistants capable of streamlining business operations, the potential is boundless.

So, conversational AI is a must-have for your business, whether you're looking to automate tasks or provide exceptional customer service. 

If you're looking forward to integrating conversational AI into your business, we suggest you check out App0. We allow enterprises in various markets to launch conversational AI-agents in order to put all their customer interactions on autopilot.

Request a demo with App0 today and embark on a journey towards streamlined workflows and enriched client interactions.

Examples of Conversational AI: FAQs