What is Conversational AI?

Conversational AI combines several capabilities: speech recognition to turn spoken words into text, language understanding to interpret what someone wants, a system for generating a response, and, for voice, speech synthesis to speak the reply. Modern conversational AI is often powered by large language models, which make conversations more flexible than older menu-based phone trees and scripted chatbots.

Small businesses use conversational AI in website chat, text messaging, and AI phone receptionists. It can answer common questions, collect details about a job or appointment, and book time on a calendar at any hour, which helps when the owner and staff are busy or the office is closed.

Quality depends on configuration. The system should be given accurate, approved information about your business, clear rules about what it should not answer, and an easy path to a human. Being transparent that customers are talking to an automated assistant is widely recommended and may be required in some places.