May 12, 2022

Myths Versus Facts about Conversational AI-Powered Tools

By [24]7.ai

The adoption of chatbots as an integral part of the customer service experience has been picking up steam in recent years. More and more, businesses are realizing the power of chatbots as a tool to help them better manage and improve customer service. Conversational AI takes valuable, informational bots to the next level by increasing the quality of interactions between business and consumer. With the growth in popularity in conversational AI-powered chatbots comes an increase in misconceptions and fears about the rise in automation and level of data collection and control in customer service journeys.

These misconceptions are borne out of a lack of understanding of what conversational AI is, how it works, and its ultimate purpose – which is to make the customer service process easier. By broaching the myths with open mind and willingness to understand, even the biggest AI skeptic will come to understand the benefits of conversational AI-powered tools and the true nature of risks associated with interacting with one.

What is Conversational AI?

Conversational AI is a type of artificial intelligence that enables computers to have natural conversations with people. This type of AI is used to simulate human interaction, and it can be used for a variety of purposes, including customer service, marketing, and sales.

Conversational AI is based on natural language processing (NLP), which is a type of AI that enables computers to understand human speech. NLP is used to interpret the meaning of text and to respond in a way that is natural for humans. Conversational AI can be used to create chatbots, which are computer programs that can mimic human conversation.

Chatbots are used to handle customer service inquiries, and they can be used to provide information about products or services. Chatbots can also be used to collect data about customer preferences and behavior.

Conversational AI can also be used to create voice assistants, which are computer programs that respond to voice commands. Voice assistants can be used to control devices, such as smart TVs, and they can also be used to provide information about products or services. Voice assistants can also be used to collect data about customer preferences and behavior.

What is AI in Customer Service

Customer service AI is a type of artificial intelligence that is used to help customers with their inquiries and complaints. AI in customer service can help to automate the process of responding to customers, collecting customer data, and diagnosing and resolving customer complaints. It can also help to improve customer engagement and increase customer satisfaction by providing personalized recommendations and advice. It does this by using NLP and machine learning (ML) to understand customer feedback and query data.

Whether or not you are a fan of the idea of engaging with a chatbot, especially those powered by conversational AI, the reality is that they are here to stay, and detractors really don’t have anything to fear. Here we will dispel some of the biggest myths about conversational AI.

Myth: Privacy and data are at risk with conversational AI

One of the top concerns around conversational AI is privacy and data security. People don’t love the idea of a bot listening to what they’re saying and tracking the data it is getting through the conversation. There is, it seems, a ‘Big Brother’ feeling that people are being watched by an entity that seeks to influence them. However, this concern is largely unfounded.


When done properly, conversational AI can actually help to improve data security!

By using conversational AI to interact with customers, businesses can collect data in a MORE secure way. No longer do you need to share a secret word or pin number to an agent to confirm your identity. The benefit of conversational AI is that it helps to verify the identity of customers and securely collect data without the human intermediary. This helps to protect customer data from being stolen or compromised. Your information is safe, in fact, safer, thanks to a conversational AI chatbot.

Myth: Conversational AI will take jobs away from people

There is also a fear that conversational AI will take jobs away from people. People worry that the automation of some customer service inquiries will negate and replace the work of humans as the bots become more sophisticated and capable of handling inquiries. However, this is an unfounded fear.


Conversational AI will actually create more jobs by helping to automate certain tasks.

For example, many customer service functions (like sharing location and hours of operation information) can be automated with conversational AI. This will free up customer service representatives to work on more complex tasks and answer more in depth and nuanced queries.  

By making agents available to service these customers, customers will be and feel heard, managed and responded to. This increasing customer loyalty and thus, the need for more agents to handle customers who are confident if they reach out, there is a human there who can support them when needed. Greater customer loyalty leads to a greater reputation among the public, which leads to more business, and thus more need for customer service representatives.

Myth: Conversational AI will be used to manipulate consumers

There is some concern that conversational AI will be used to manipulate consumers. That it will use its technology to take advantage of unassuming people. For example, people might worry that a company might use chatbots to trick people into buying products they don’t want or need. However, this is not likely to be a significant issue with or use for conversational AI.


Most companies are interested in creating positive customer experiences, not manipulating them. That would be really bad for business. Plus, the truth is, no matter how high quality a chatbot it is, most consumers will be able to tell the difference between a human and a chatbot, and they will not be willing to engage with chatbots that are used for manipulation.

The best way to avoid this misconception and concern is for businesses to be transparent with customers about when they are speaking to a chatbot and when they are speaking to a human. This will ensure that customers are comfortable using the chatbot and that they trust the company in general, and engaging with a chatbot specifically.

Myth: Conversational AI takes away the human element in customer service

In our current reality, where there is still a large, though shrinking contingent of people who go into banks for the ‘human element,’ there remains a real need and desire among some people to interact with humans when it comes to customer needs. We want customer service to be helpful and kind, empathetic and resolution oriented. Taking away the human from the equation triggers concern that support won’t be as helpful, insightful and compassionate.


Conversational AI actually enhances the human element in customer service. By providing a natural interface for customers to interact with, conversational AI allows customer service reps to focus on more complex tasks, such as resolving issues and providing personalized support. This means they will be free when you need them for your larger challenges, rather than being on the phone answering simple questions a bot could have handled. Conversational AI-powered chatbots will reduce the time you wait on the line to speak to someone, making you feel important and prioritized, as you should be.

The power of conversational AI is that its data collection capabilities help it to learn and help agents learn how to best resolve problems. This reciprocal learning, through the collection and analysis of customer data, will improve service over time, which ultimately benefits the customer and their experience dealing with customer service.

Automation and AI can seem like a scary unknown entity for people who are unfamiliar with how it works and what its function is. By understanding the function, purpose, security and value of conversational AI, people can feel confident picking up the phone or using their computer to reach out to any company that employs a conversational AI-powered chatbot.

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