This comprehensive guide explores the four most impactful conversational AI software tools shaping the future of customer experience and eCommerce, helping businesses deliver exceptional experiences while optimizing operational efficiency.
What is conversational AI software?
Conversational AI software represents a technology stack that enables machines to understand, process, and respond to human language naturally and contextually. At its core, it combines several key components:
- Machine Learning: Enables systems to learn from interactions and improve over time
- Natural Language Processing (NLP): Helps computers understand human language
- Natural Language Understanding (NLU): Interprets intent and context behind user inputs
- Natural Language Generation (NLG): Produces human-like responses
Clearing up the confusion between conversational AI vs. GenAI vs. agentic AI: Why are we using the former term?
Before diving into specific tools, it’s essential to understand the distinction between conversational AI, agentic AI, and generative AI (GenAI). There’s a lot of confusion between these three terms, in part because of how fast AI is developing.
Conversational AI enables natural language interactions between users and systems. In contrast, agentic AI autonomously makes decisions and executes tasks. In fact, Agentic AI can independently decide what actions to take, persist in completing tasks, and adapt its approach based on outcomes—similar to how a human employee would work through a problem.
Generative AI, on the other hand, creates new content based on existing data patterns.
Think about it like this: Conversational AI is like a back-and-forth conversation between two friends, like you are used to experiencing with chatbots. You say something like “Hi, how are you?” I reply, ‘Fine, thanks, how are you?’ and we go on and on until the conversation stops.
But with GenAI, it’s similar to a ‘speak when spoken to’ situation: It’s up to you to ask me questions you want responses to. Generative experiences are typically not programmed to ask clarifying questions. And agentic AI, well, it’s a workhorse!
Nowadays, the term “conversational AI” tends to describe previous-generation technologies, while “agentic AI”, which Quiq is the leader in, is currently next-generation. We are using “conversational AI” here for a couple reasons: 1) Many people use “conversational AI” to describe AI software, even if they technically refer to GenAI or agentic AI; 2) The tools described here are not agentic, or autonomous decision-making, by default. But we’ve highlighted how generative or agentic elements make it more effective.
I want to be clear about all this because many people use these terms interchangeably, but they’re quite different, which is important. Forrester released a trends report called The State of Conversational AI, too. I’d encourage you to download and read to dive deeper into how the technology has changed and is projected to continue changing.
Okay, with that out of the way, let’s dive in.
Comparison table: Conversational AI vs. traditional chatbots
Even though conversational AI is not the latest and greatest AI out there, it’s still miles ahead of the basic chatbots of yesteryear, and the technology can still do a lot. Let’s look at a side-by-side comparison of where conversational AI elevated the previous tech.
| Feature | Conversational AI | Traditional Chatbots |
| Learning Capability | Continuous learning from interactions | Static, rule-based responses |
| Language Processing | Advanced natural language understanding | Basic keyword matching |
| Contextual Understanding | Maintains context across conversations | Limited or no context retention |
| Personalization | Adaptive and personalized responses | Generic, pre-programmed responses |
| Complexity of Tasks | Can handle complex queries and tasks | Limited to simple, predefined tasks |
Benefits of conversational AI software
By combining natural language processing with machine learning capabilities, conversational AI can provide intelligent, automated solutions that enhance both the customer experience and eCommerce business operations. Here’s a detailed look at the key benefits across different areas:
Benefits for CX
The customer experience landscape has been dramatically enhanced through conversational AI implementation. Here are the biggest benefits for CX:
- Personalized experiences: Uses historical data and context to provide tailored recommendations and solutions.
- Quick issue resolution: Handles common queries immediately, reducing resolution time and customer frustration.
- Scalable support: Manages multiple conversations simultaneously, without compromising service quality.
- Language support: Communicates in multiple languages, making services accessible to a global audience.
- 24/7 availability: Provides instant support to customers around the clock, eliminating wait times and improving satisfaction.
- Consistent interactions: Delivers uniform responses and maintains brand voice across all customer touch points.
Benefits for eCommerce
In the eCommerce sector, conversational AI has become a crucial tool for driving business growth and efficiency. Here are the primary benefits of conversational AI software for eCommerce:
- Increased conversion rates: Guides customers through the purchase journey, addressing concerns in real-time to boost sales.
- Reduced cart abandonment: Proactively engages with customers, shows exit intent, and resolves checkout issues. This proactive approach extends to reducing cart abandonment, as the AI can engage with customers showing exit intent and swiftly resolve any checkout issues that might arise.
- Product discovery: Helps customers find relevant products through intelligent recommendations and natural conversation
- Upselling opportunities: Suggests complementary products and premium options based on customer preferences, directly impacting revenue growth.
- Cost efficiency: Reduces operational costs by automating routine customer interactions.
- Data collection: Gathers valuable customer insights and shopping behavior patterns for business optimization.
- Inventory management: Inventory management becomes more streamlined, with the AI providing real-time stock information and automated customer notifications about product availability.
- Streamlined returns: Simplifies the returns process by guiding customers through procedures and policies.
These automated solutions continue to evolve, offering increasingly sophisticated capabilities that benefit both businesses and their customers. By implementing conversational AI, organizations can significantly improve their customer service operations, while driving sales and efficiency in their eCommerce platforms.
The 4 best conversational AI tools
Now that we’ve properly defined conversational AI and outlined the main benefits for CX and eCommerce, here are the four best conversational AI services and tools across both sectors.
Tool #1: Conversational eCommerce assistants
A conversational eCommerce assistant is a virtual tool designed to enhance the customer shopping experience by providing real-time support directly on your website through web chat or other business messaging channels. These assistants can help facilitate sales and improve customer engagement by offering a range of valuable features. Even last-generation conversational AI eCommerce assistants are equipped with capabilities such as:
- Personalized product recommendations: Tailored suggestions based on a customer’s browsing history, preferences, or past purchases, helping them find exactly what they need.
- Intelligent cart abandonment prevention: Proactively engaging with customers to remind them about items left in their cart and encouraging them to complete their purchase.
- Real-time inventory updates: Ensuring customers have accurate information about product availability, reducing the chance of disappointment or frustration.
- Seamless payment processing integration: Simplifying the checkout process with smooth and secure payment options, minimizing barriers to purchase.
However, while traditional conversational AI is effective, GenAI-powered tools take these capabilities to the next level. GenAI excels at contextualizing conversations, understanding customer needs in greater detail, and delivering offerings that feel more natural and personalized.
This enhanced ability to adapt and respond to individual shoppers makes GenAI an even more powerful tool for driving sales and creating positive customer experiences. (By the way: Check out how we’re harnessing both GenAI and agentic AI via next-generation AI agents).
Tool #2: Voice-activated AI bots
If you’re leading eCommerce, you’ve likely explored Voice Commerce, with tools like Amazon Alexa and Google Assistant leading the charge. Lots of people love the shopping experiences these robust bots offer, enhanced with AI.
Key features include:
- Hands-free shopping experience
- Natural language order processing
- Voice-based product search and comparison
- Integration with smart home devices
On the customer experience side, multimodal voice AI harnesses the latest tech in speech recognition with LLM-powered AI to create incredible, modern voice experiences with major cost reduction benefits for businesses. Not conversational AI, but impressive and worth checking out:
Tool #3: Multilingual AI chat solutions
For global businesses handling a high volume of support inquiries across multiple markets, AI-powered translation has become an invaluable tool. These solutions allow companies to break down language barriers while maintaining efficiency and quality in customer interactions. With the help of conversational AI tools, businesses can enjoy features such as:
- Real-time translation in over 100 languages, enabling seamless communication with customers worldwide.
- Context preservation, ensuring that the nuances and intent of conversations remain accurate across languages.
- Automatic language detection, eliminating the need for customers to select their preferred language manually.
- Consistent brand voice across languages, aligning your messaging and tone, no matter where your customers are located.
Thanks to advances in GenAI, these tools have evolved into far more powerful solutions, offering faster, smarter, and more accurate translations. For businesses aiming to expand globally, multilingual AI chat solutions are critical for delivering exceptional customer experiences while reducing operational challenges.
Tool #4: AI-powered training assistants
AI-powered training assistants transform the way employees learn and grow within organizations. While rule-based tools may work in certain applications, such as HR benefit matching, understanding-based tools take training to the next level by leveraging advanced AI capabilities.
These tools revolutionize employee training by offering:
- Personalized learning paths: Tailored to each employee’s strengths, weaknesses, and learning pace, ensuring more effective skill development.
- Real-time feedback and assessment: Providing instant insights to help employees understand their progress and areas for improvement.
- Interactive scenario-based training: Simulating real-world situations to equip employees with practical skills and better decision-making abilities.
- Progress tracking and reporting: Monitoring individual and team performance over time, allowing managers to identify trends and adjust strategies as needed.
According to Forrester’s report on The State of Conversational AI: “Conversational AI can reduce new-hire onboarding time from days to hours.” By combining AI technology with interactive and personalized learning, these tools enhance employee engagement and make training more impactful across various industries.
Interested in learning more? Check out how Quiq’s employee-facing AI assistants work—and discover how our technology helped one National Furniture Retailer Reduce Escalations to Human Agents by 33%.
Final thoughts on conversational AI software
Conversational AI might be a last-gen term, but conversational AI platforms can still be valuable for businesses aiming to deliver exceptional customer experiences while maintaining operational efficiency.
To stay competitive and future-proof your operations, consider strategically implementing these tools or any of their next-gen successors, starting with areas where they can provide the most immediate impact. Remember, the key to success lies in selecting the right tool, proper implementation, and continuous optimization.
If you need help with conversational AI, let us know. Or we’d be happy to get you up to speed with GenAI, and then agentic, depending on your organization’s needs.
Interested in exploring the next-generation of AI? Learn about AI Studio and agentic AI.
