“We’ve trained a model called ChatGPT, which interacts in a conversational way. The dialogue format makes it possible for ChatGPT to answer follow-up questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests,” announced AI research company OpenAI around two years ago in November 2022.
Since then, the technology has not just been a “disruptor-in-chief” and a “sensation,” but a transformative force, with millions globally testing it in two months. Two years later, it has not just lived up to the hype, but emerged as a powerful tool for business growth, inspiring a wave of optimism about its potential.
IBM defines conversational AI as “refers to technologies, such as chatbots or virtual agents, that users can talk to. They use large volumes of data, machine learning, and natural language processing to help imitate human interactions, recognising speech and text inputs and translating their meanings across various languages.”
Krishna Tammana, the chief technology officer(CTO) at Gupshup, discusses the adoption of Conversational AI in APAC, how essential the technology is for businesses, and a future of possibilities for the technology.
Conversational AI in APAC
Tammana emphasizes that the high smartphone penetration and the rise of mobile-first economies have significantly accelerated the adoption of conversational AI in the Asia-Pacific (APAC) region in recent years, making it a key player in the global AI landscape.
“A recent report by Insight reveals that the Conversational AI market size globally is set to reach $40 billion by 2031. Out of this, the APAC market will contribute significantly owing to the integration of advanced technologies like natural language processing and machine learning, which enable more human-like interactions through chatbots and virtual assistants,” he said.
Conversational AI for businesses
Tammana posits that customers in today’s fast-paced environment increasingly expect immediate responses that conversational AI can provide. He said businesses with a global customer base can use the technology to eliminate the need for round-the-clock staffing while maintaining service quality.
“By handling routine inquiries, Conversational AI assistants allow human agents to focus on more complex tasks. This not only reduces wait times for customers but also boosts employee productivity and job satisfaction,” he said.
Tammana said conversational AI enables personalised interactions through customer data and preferences analysis.
“This personalisation fosters stronger customer relationships and loyalty, as clients feel understood and valued. The technology also facilitates data analysis, providing insights into customer behavior that can inform business strategies,” he said.
Conversational AI, with its versatility, can also be functional in other use cases besides the usual help desk and customer service or customer experience, opening up a world of possibilities and exciting opportunities.
“Conversational AI has a huge scope in the HR domain, where AI assistants can streamline processes such as onboarding, answering employee queries about benefits, and facilitating training sessions. This automation not only enhances efficiency but also improves the overall employee experience by providing instant access to information,” Tammana said, highlighting its role beyond customer service.
In sales and marketing, Tammana shared that Conversational AI “can engage potential customers through personalised interactions, guiding them through the sales funnel and offering tailored product recommendations based on their preferences and behavior. This capability can significantly boost conversion rates and enhance customer engagement.”
Conversational AI can assist in managing inventory inquiries, tracking orders, and providing personalised shopping experiences in the e-commerce industry. Businesses can also expand their reach by integrating the technology with social media platforms and messaging apps.
“Additionally, conversational AI can enhance multilingual support by providing real-time language translation, making it easier for businesses to serve diverse customer bases across different regions. This capability not only improves accessibility but also fosters a more inclusive customer experience,” Tammana said.
Guidelines
“There is no AI without data. So first and foremost, businesses must manage data privacy and security responsibly. Robust data protection measures, including encryption and secure storage, to safeguard sensitive user information and policies on data handling must be established,” Tammana advised business leaders considering deploying Conversational AI in their businesses.
There is no AI without data. So first and foremost, businesses must manage data privacy and security responsibly.
He also highlighted the importance of transparency: "Businesses should provide users with straightforward information regarding data usage and allow them to opt in or out of data collection practices to build trust.”
In addition, Tammana underscored the importance of complying with regulations “to avoid legal repercussions and enhance user confidence”, continuously monitoring AI systems, and adhering to ethical standards.
Future of possibilities
“We see self-learning AI systems as a significant trend in times to come, allowing conversational agents to autonomously improve their responses by analysing real-time customer data. This capability will reduce the need for constant manual updates, making AI more adaptive and relevant. Enhanced natural language understanding (NLU) will also play a crucial role, enabling AI to accurately interpret nuanced human language and manage complex inquiries more effectively,” Tammana shares about the possible innovations surrounding Conversational AI.
Tammana also believes Conversational AI will be able to accommodate multimodal interfaces using voice and visual elements.
“This integration will cater to diverse user preferences and enhance accessibility. We will also see a rise of cross-platform agents that will ensure seamless continuity across various communication channels, providing a unified customer experience regardless of the platform used,” he said.
