Five popular conversational AI use cases in 2024
Discover diverse conversational AI use cases transforming industries. Learn about key applications, success stories, and future AI trends.
Conversational AI is rapidly becoming one of the most popular technologies for B2C communication. Every day, more and more businesses are adopting it to improve their operational efficiency, elevate customer engagement, and enhance support—all while keeping up with the competition.
So, how can you effectively integrate conversational AI into your organization? Let’s explore some popular use cases of how conversational AI can be utilized to help you figure this out.
Conversational AI explained
Before we elaborate on the specific use cases of conversational AI, let’s clarify one thing—conversational AI, chatbots, and virtual assistants aren’t the same thing.
Conversational AI is a type of artificial intelligence (AI) that allows machines (chatbots or assistants) to respond to people in a natural way. It identifies service-related issues and assists customers by either executing a previously human-managed operation or connecting them with a live support agent for more complex matters.
There are three different types of conversational AI:
- AI-powered chatbot uses advanced technology and Natural language understanding (NLU) to efficiently address inquiries based on intents and engage in human-like conversations. These chatbots are generally used to enhance customer service efficiency and save time.
- Traditional chatbot is generally rule-based and programmed to address specific commands and keywords. They are optimal for handling FAQs, repetitive tasks, and basic customer interaction requirements.
- Virtual assistant is a sophisticated software program designed to understand and respond to natural language voice commands, helping users complete tasks. Popular examples include Siri from Apple, Amazon’s Alexa, and Google Assistant, which are mainly utilized for personal support, smart home management, and providing personalized information or services.
Businesses use “conversational AI” and “chatbots” interchangeably, as conversational AI technology allows for the creation of sophisticated AI-powered chatbots with advanced capabilities.
Now that we understand the difference between the three, let’s dig into some of the main business use cases for conversational AI used across different industries.
Five popular conversational AI use cases
1. Retail and eCommerce
Conversational AI is making significant strides in retail and mainly in customer service. Here’s how:
- Customer service automation: Conversational AI chatbots can handle repetitive customer queries, freeing support agents to handle more complex issues. These queries can range from product availability to store hours, location, and even recommendations. This in turn reduces the need for human intervention and improves agent efficiency.
- 24/7 customer support: Conversational AI enables uninterrupted, 24/7 customer support in multiple languages. Customers can get their queries answered anytime, anywhere, and over their preferred channels and chat apps. As a result, this improves customer satisfaction and boosts loyalty.
- Lead generation: AI chatbots can also be integrated into marketing campaigns to generate leads through click-to-ad links. By engaging with website visitors or social media users, chatbots can collect customer data, answer queries, and provide personalized recommendations. As a result, businesses can efficiently generate new leads and gather valuable data for targeted marketing campaigns.
Infobip partnered with Master of Code to create a Generative AI commerce chatbot for BloomsyBox to drive user engagement and personalized experiences on Mother’s day.
2. Marketing and advertising
Conversational marketing uses real-time interactions to move customers through every stage of the buying process in the most efficient and engaging way possible.
- Product recommendations. AI-powered chatbots can analyze customer behavior and preferences and act as personal shoppers that offer personalized product recommendations. This data lets you track customer interactions and purchases to understand their preferences and needs. Based on this analysis, the chatbot can suggest products the customer is likely interested in, increasing the chances of conversion.
- Personalized engagement: Use an AI chatbot for personalized marketing campaigns by sending product updates and informing loyalty club members about benefits and offers.
- Maximize Customer lifetime value (CLV): AI solutions provide you with a comprehensive view of every customer, including personal and transactional data. With this data, you can engage with customers using an AI chatbot at key times when they are close to making a repeat purchase or renewing a contract.
3. Healthcare
Use cases for conversational AI are increasingly impacting the healthcare industry by assisting in diagnosis, managing patient care, and analyzing medical data. Let’s explore these cases in more detail.
- Appointment scheduling: With an AI chatbot, patients can message your clinic asking to book, reschedule, or cancel appointments without the hassle of waiting on hold for long periods. Using an AI chatbot can make the entire experience more personal and give them the impression they are speaking with a human.
- Insurance claims: A conversational AI chatbot can significantly enhance the insurance claim process by answering simple questions regarding the policy and coverage and navigating personal insurance plans to help patients understand what medical services are available and how to submit a claim.
- Collect patient feedback: Not everyone has time to give you feedback on their experience with your healthcare center, but answering a few short questions with an AI chatbot does make the entire process easier. It provides you with more data on how to improve your patient experience.
The Megi Health Platform leverages conversational AI to streamline patient interactions and enhance overall healthcare experiences.
Through an interactive chatbot delivered via WhatsApp, Megi Health:
- Provides continuous support throughout the journey
- Streamlines diagnosis with patient data
- Automates administrative process like appointment scheduling and general communication
4. Finance and banking
Conversational AI has the potential to become a game-changer in the finance and banking sector, offering various applications and use cases. Let’s review how:
- Customer service automation. AI chatbots can provide account balance information, assist with account setup, answer simple FAQS, and engage with customers in a natural, conversational manner. As a result, this makes the banking service more accessible and user-friendly.
- Fraud detection and security. Conversational AI plays a crucial role in enhancing the security measures of banks and financial institutions. Advanced AI algorithms can analyze user behavior and real-time transaction patterns to detect fraudulent activities. This adds an extra layer of security and enhances the overall user experience.
- Satisfaction surveys: AI chatbots allow banks and financial institutions to boost their CSAT scores and maximize positive reviews by requesting customer feedback directly after transactions
Croatia’s first fully digital insurance provider, LAQO, wanted to improve customer service with 24/7 availability, accessibility, and personalized support.
Together with Infobip’s chatbot building platform Answers and Azure OpenAI Service, LAQO was able to launch a generative AI-powered assistant that elevated their customer engagement to newer heights.
5. Transportation
The future of transportation and ride-sharing is conversational. Integrating an AI chatbot brings a lot of benefits to the transportation industry. Here’s how:
- Driver and user registration: Conversational AI can help you engage with customers and enable driver and user registration through Ads that click to chat where customers get a direct link to sign up. Signing up for a service the old-fashioned way was no fun.
- Booking a ride: Integrating an AI chatbot with a ride-sharing app can simplify the ride-booking process by easily finding a ride and confirming pick-up location directly from a chat app. Riders and drivers can communicate effortlessly throughout the entire journey. Users can book a ride and track its arrival in real-time with just a few taps on their smartphones.
- Ride tracking and updates. An AI chatbot can also provide real-time ride tracking information, offering updates on location, estimated arrival time, and live alerts on possible delays.
See how Bolt used a conversational WhatsApp chatbot to optimize their driver sign-up process and increase conversion rates by 40%.
Benefits of conversational AI
Conversational AI offers major business benefits such as increased productivity, better customer experience, higher customer engagement and satisfaction rates. Here we list a few:
Transforming customer interactions
One of the biggest advantages of conversational AI is that it never sleeps. Customers can get help at any time of day or night, which is super convenient. It offers round-the-clock support with personalized responses.
For example, customers can get support with their banking account, product information or insurance policy during weekends or holidays when your team is off duty.
Plus, it’s scalable and cost-effective, which helps businesses grow while saving money. The best part? These systems continually learn and improve, leading to happier customers and stronger, long-lasting relationships.
Boosting operational efficiency
Businesses can achieve higher operational efficiency and cost savings by using conversational AI to automate routine tasks and streamline workflows.
For example, Conversational AI can handle simple, repetitive tasks like scheduling appointments, answering frequently asked questions, or processing orders.
This automation frees up employees’ time to focus on more complex and valuable tasks, which boosts overall productivity, reduces support costs, and enhances their performance.
Enhancing marketing strategies
Conversational AI can be a game changer for your marketing strategy. By analyzing conversations and engagement patterns, conversational AI can provide valuable insights into customer preferences and behaviors. This information can inform marketing strategies and help tailor campaigns and ultimately drive personalized customer experiences.
For example, when a customer interacts with a chatbot, it can suggest products based on their previous purchases or browsing history, making the experience more relevant.
Additionally, an AI chatbot can engage with potential leads by asking specific questions to determine their interests and needs. This helps in filtering and nurturing leads, allowing marketing teams to focus their efforts on the most promising candidates.
The future of conversational AI starts now
Conversational AI will continue to evolve, making itself indispensable to various industries such as retail, healthcare, marketing, finance, customer support, and more.
And as Gartner predicts that around 14% of customer interactions will be managed by conversational AI by 2027, it’s important for businesses to start planning their AI support chapter and introducing new customer engagement strategies.
Using conversational AI can help you create dynamic and proactive work environments allowing your employees to focus on what truly matters.
Our dedicated CX consultants and AI experts are ready to provide a clear development roadmap that outlines every aspect of your project—what to expect, how it will unfold, and when it will be completed.
With us, we will co-create tailored AI solutions to effectively meet the needs of both end users and stakeholders and ultimately help you:
- Grow your business and reach new customers
- Create new cross-sell and up-sell opportunities
- Extend your product capabilities and enhance your portfolios with value-added services
If you’ve envisioned conversational AI to support your team and streamline your processes, let’s talk and kick off this exciting journey together.
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