10 Ways Conversational AI Is Improving the Customer Experience

Neeraj Shukla
By Neeraj Shukla | Last Updated on March 2nd, 2024 7:35 am

Today’s companies are more motivated than ever to offer a modern customer experience (CX) that helps them retain customers and build loyalty. A modern customer experience leverages AI and other intelligent tools, often through a no-code AI platform, to deliver a highly personalized CX. A chatbot is one of the primary applications of conversational artificial intelligence (AI). Its potential to facilitate effective communication, provide prompt assistance, and efficiently handle routine tasks has positioned it as a pivotal tool for companies aiming to foster enhanced user experiences and optimize their workflows.

A survey by NTT conducted two years ago, revealed that approximately one-third of U.S. organizations leverage conversational AI chatbots to manage their 30% customer experience. This suggests that many of U.S. businesses had adopted AI-powered chatbots to interact with customers and manage a substantial part of their customer service interactions and support.

Here's an in-depth look at how conversational AI contributes to improving user experience:

  1. Conversational AI Facilitates Natural Conversation
  2. Just like a human agent, conversational AI tools like chatbots are designed to facilitate natural and engaging conversations with users. AI-powered chatbots created with Appy Pie Chatbot Builder leverage advanced natural language processing (NLP) techniques to understand user input, context, and intent. They can interpret and respond to text or speech inputs in a way that closely resembles human communication. For example, consider a scenario where a streaming service customer chats with a support center to inquire about new television shows or to make adjustments to their subscription. These dialogues flow intuitively, maintaining a natural and customized tone. Conversational AI is also equipped to identify slang terms and regional expressions, enabling the IVA to communicate with customers using language familiar to them. This skill ensures that the communication remains relatable and easily comprehensible to customers.
  3. Understand Customer Sentiment
  4. Customer sentiment, often referred to as the voice of the customer, encompasses a customer's requirements and interactions with your company. This incorporates their persona, expectations, and perceptions, forming a crucial dataset for businesses aiming to enhance customer experience. By pinpointing areas that require enhancement, conversational AI helps businesses in honing their strategies for improving CX. According to Bain & Company, in 2020, 54% of companies adopted AI conversational tools to analyze customers' sentiment from their reviews or social media, a number expected to exceed 80% in 2023.
  5. Round-the-Clock, Round-the-Year Support
  6. Conversational AI offers the advantage of providing 24/7 customer support, irrespective of time zones or business hours. Traditional customer support relies on human agents, leading to limited availability and potential delays in addressing customer queries. With conversational AI, businesses can offer instant assistance at any time, enhancing user experience by reducing response times and increasing customer satisfaction.

    For example, consider an e-commerce platform that uses a chatbot to assist customers with product inquiries, order tracking, and issue resolution. With AI-powered chatbots, customers can get quick answers and support even outside regular business hours. This not only improves user experience but also helps in building brand loyalty and trust.

  7. Seamless Omnichannel Experience
  8. Chatbot built with conversational AI enables businesses to provide a consistent experience across various communication channels, such as websites, social media, messaging apps, and more. Users can start a conversation on one platform and seamlessly continue it on another without losing context. This omnichannel approach ensures that users can interact with a brand in a way that's convenient for them, contributing to a unified and enhanced user experience.

    For example, a user might initiate a support inquiry through a website chat widget and later continue the conversation through a messaging app on their smartphone. The AI-powered system would maintain the conversation history and context, ensuring a smooth transition and avoiding repetition.

  9. Data-Driven Insights for Continuous Improvement
  10. Conversational AI-enabled chatbots collect a vast amount of data from user interactions, which can be analyzed to gain insights into user behavior, preferences, pain points, and commonly asked questions. These insights provide valuable feedback to businesses, enabling them to identify areas of improvement and refine their offerings, services, and support strategies.

    By examining user queries and the effectiveness of AI responses, businesses can identify information gaps, areas where the AI may struggle to understand user intents and emerging trends. This data-driven approach supports ongoing optimization, ensuring that the conversational AI system evolves to better serve users over time.

  11. Enhanced User Onboarding
  12. AI-powered chatbots contribute to improved user experience by serving as a friendly guide during the onboarding process for new users. Whether it's helping users set up their profiles on a social media platform or navigating through the features of a software application, chatbots can provide step-by-step instructions and answer questions in real time. This personalized assistance not only reduces the learning curve but also fosters a positive first impression, setting the stage for a smoother user journey.

    For example, when a user signs up for a financial management app, the conversational AI can walk them through linking bank accounts, creating budgets, and setting financial goals, ensuring that users grasp the app's functionality quickly and effectively.

  13. Efficient Self-Service and Knowledge Base Access
  14. Conversational AI empowers users to access information and troubleshoot issues through self-service. By integrating with a comprehensive knowledge base, chatbots can instantly retrieve relevant articles, guides, and resources to address user queries. This self-help approach reduces the need for users to wait for human support, streamlining the resolution process and fostering user independence.

    Imagine a scenario where a user encounters a technical problem while using a software tool. The chatbot can instantly provide a link to a troubleshooting guide in the knowledge base, enabling the user to resolve the issue without any delay.

  15. Smoother Transactional Interactions
  16. Conversational AI isn't limited to providing information; it can also facilitate transactions seamlessly. Businesses can integrate payment gateways with chatbots to allow users to make purchases, book services, or complete reservations directly within the conversation. This reduces friction in the user journey, providing a one-stop-shop experience.

    Consider a restaurant chatbot that not only assists users in making reservations but also lets them browse the menu, select dishes, and place their orders—all within the same conversation. This streamlined process eliminates the need to navigate between different interfaces or websites.

  17. Continuous Learning and Adaptation
  18. Conversational AI systems can learn and adapt based on real-time user interactions. As users engage with the chatbot and provide feedback, the AI can refine its responses, expand its vocabulary, and better anticipate user needs. This ongoing learning process contributes to a more dynamic and effective user experience.

    For instance, a travel agency's chatbot may initially struggle with understanding complex travel itineraries, but over time, as it interacts with more users and processes diverse queries, it becomes proficient in providing accurate and relevant travel suggestions.

  19. Engaging in Marketing and Promotions
  20. Conversational AI can play a role in engaging users through marketing campaigns and promotions. AI-Chatbots can initiate conversations about new products, upcoming sales, or exclusive offers, creating interactive and personalized experiences that drive user interest and conversions.

    For instance, a fashion retailer's AI chatbot could introduce users to a limited-time discount code, provide styling suggestions based on their preferences, and guide them through the purchase process, resulting in an engaging shopping journey.


In essence, conversational AI is an instrumental technology that transforms user experience by offering natural dialogue, understanding sentiment, and leveraging data-driven insights. Its multi-faceted capabilities span from seamless support to proactive engagement, bridging gaps, and enhancing interactions across diverse platforms and industries. Appy Pie exemplifies the power of conversational AI as an instrumental technology. This innovative chatbot builder lets you create an AI-powered chatbot that seamlessly transforms your customer experiences by offering natural and dynamic dialogues.

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Neeraj Shukla

Content Manager at Appy Pie