Conversational Commerce

Conversational AI: Overview, Insights and Uses

Conversational AI solutions can help you analyze and understand the buyer’s profile, and preferences and send relevant content and assistance that’s catered to their needs.

Conversational AI is an effective tool that can improve customer interactions across all touchpoints.

Customers, today, want real-time assistance whether it’s an enquiry about a product, looking for the nearest store, or addressing an issue.

A recent report found that the global conversational AI market, including chatbots and intelligent virtual assistants, is expected to grow at a CAGR of 22%, during 2020 to 2025, reaching almost US $14 billion by 2025.

With so many advancements, it goes without saying that businesses can use AI to drive better targeting and conversion for their marketing and sales efforts.

But what is it exactly?

What is Conversational AI?

It is a technology that enables computers and humans to communicate in an effective manner.

The technology usually uses speech or text recognition to ascertain the users’ intent and respond with an adaptive automated script.

It has made major advances in many industries. It helps deliver personalized conversations at scale across multiple channels in real-time.

Whether a customer is approaching your business via messaging apps or live chats they will experience a highly personalized interaction throughout their buying journeys.

The benefits of conversational AI solutions are limitless. It can help you analyze and understand the buyer’s profile, preferences, tastes and send relevant content and assistance that’s catered to their needs. This can ultimately drive conversion and create meaningful interactions.

What is the Difference between Conversational AI and a Chatbot?

Although chatbots and conversational AI are often used interchangeably to mean the same thing, there are significant differences that are worth mentioning. A chatbot can be powered with a AI but vice versa is never the case. Some of the distinctions between the two are as follows:

Difference between conversational AI and chatbots

How does Conversational AI work?

It is important to understand how conversational AI works in order to use it effectively.

How does conversational AI work?

This diagram depicts how AI uses an input from an user to deliver relevant output.

Components of Conversational AI
Components of Conversational AI

Now that we know how it works, some of the conversational AI examples can include chatbots and virtual assistants such as Siri, Alexa, Cortana etc. These AI powered bots use NLP and user intent to deliver personalized responses.


1. 74% of consumers like to interact with AI chatbots when they need quick answers to queries.

2. 67% of millennials in the USA accepted they are expecting  to buy products and services with AI chatbots

3. 58% of companies that use chatbots are B2B

4. Chatbots handle 68.9% of chats from start to finish

5. 41.3% of consumers use conversational marketing tools for purchases

6. 33% of consumers would like to use chatbots for reservations

7. Chatbot e-commerce transactions are predicted to amount to $112 billion by 2023

8. Using cart abandonment alerts via messenger boosted e-commerce revenue by 7-25%

9. 55% of businesses use chatbots to generate high-quality leads

How to use Conversational AI in Ecommerce?

Reports suggest that almost 60% of e-commerce shoppers will leave a site if they can’t find what they are looking for.

Adoption of AI is on the rise and ecommerce businesses are starting to leverage it to reduce acquisition costs, improve landing page conversion rates, increase AOV, drive repeat purchases, and more.

Conversational commerce is proving to be useful in every part of the buyer’s journey. Some of the use cases can include:

#1. Product Recommendations

Product recommendations using conversational AI

Use AI to send product recommendations without requiring human intervention. For instance, a customer enquires about a shoe on one of your social channels. While conversing, the AI can send complementing recommendations such as dresses or pants that may look good with the shoe.

The AI can also send recommendations based on the customer’s purchase history. This can ultimately increase your AOV and sales. Conversational AI platforms like Vizury can help you drive such conversations across channels and personalize customer experience.

#2. Cart Abandonment Alerts

Abandoned cart alerts using conversational AI

Send targeted alerts to high-value shoppers who abandon their carts by sending them personalized messages across channels. For instance, Mary just abandoned a red shoe in her cart.

You can send a personalized message incentivizing her to complete her purchase by saying “ Hey Mary, looks like you’ve forgotten the red shoe in your cart. Would you like to view your options to complete your purchase?”

Upon conversing, you can send a 10% discount to incentivize her to complete the purchase.

#3. Personalized Offers

Personalized offers using conversational AI

Send personalized offers and discounts by segmenting your customers based on their intent, purchase history, preferences, and more.

For instance, using conversational AI solutions can segment your frequent customers and offer them discount coupons. This can help drive repeat purchases and more conversions.

#4. Feedback Reports

Feedback reports using conversational AI

Keep a track of how your business is performing by rolling out a survey to your customers and collecting feedback.

For instance, you can send a message saying, "Hey John, we are glad you shopped with us. Rate your shopping experience with us on a scale of 1 to 5.”

The New Age of AI

Customers, today, demand an exclusive and highly personalized shopping experience. With customers becoming comfortable with AI-based interactions, having greater conversational automation is gradually becoming the new normal.

Hence, adopting AI solutions can help transform your customer’s experience to the next level. It’s time to leverage this powerful tool to enhance your marketing and sales efforts.

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