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Customer Experience, conversational AI

Fact or Fiction: Debunking the Top Conversational AI Myths

Author: Akhil Ganji

Conversational AI is a powerful technology that has the potential to transform customer experiences across industries. However, there are still many misconceptions about it that can prevent businesses from taking full advantage of its benefits. 

By understanding the true capabilities of conversational AI and how it can be used, businesses can improve customer service, increase efficiency, and reduce costs. In this blog post, we aim to highlight some misconceptions about conversational AI and shed light on how Kore.ai is elevating  the Conversational AI space.

Myth #1: Conversational AI is just another term for chatbots

One of the most common misconceptions about conversational AI is that it is the same as a traditional chatbot. However, while they both facilitate some form of human-machine communication, they are not interchangeable. In fact, the term "chatbot" encompasses various types of chatbots that have developed over time. 

The most well-known type of chatbot is a rule-based chatbot, which follows a set of rules to respond to a user's inputs. These traditional chatbots primarily use a simple decision tree to reply to users, meaning they have a set of programmed questions and answers. Rule-based chatbots are exclusively designed for text conversations and can only be utilized on a single channel. They have restricted abilities and are scripted, meaning that businesses can only use them for specific use cases with limited functionalities. 

Two examples of rule-based chatbots are Dom by Dominos and Brie by HelloFresh. These chatbots present predetermined options for users to select from, and based on the option chosen, the bot generates a response.

Examples of Rule-Based Chatbots, Dom by Dominos and Brie by HelloFresh

On the other hand, conversational AI-powered chatbots are intelligent bots that understand human language and context to provide personalized responses. Unlike rule-based chatbots, these intelligent bots are more adaptable due to the use of AI. They can be leveraged for either text-based or voice interactions, or even a combination of both, offering a variety of use cases.

Intelligent bots also have omnichannel capabilities and can be deployed virtually anywhere - on websites, social media platforms, or even internal portals. With features like natural language processing, improved intelligence, and the flexibility to deploy anywhere, businesses can use these intelligent AI-powered chatbots to help customers with automated solutions.

Sounds great, right? NovaKBM certainly thinks so. With 94% automation rates and improved customer satisfaction, the results are astounding.

Niko by Nova KBM was able to achieve these results by helping customers create new bank accounts, get credit cards, and handle more repetitive, complex actions. The best part is that Niko can communicate with customers in their preferred language, in this case, Slovenian.

Example of a Conversational AI-Powered Bot, Niko by NovaKBM

According to the Kore.ai 2023 Customer Experience Benchmark Report, when an interaction gets more complex, consumers prefer intelligent bots over basic ones by double digits. Ultimately, it's essential to understand that while all conversational AI-powered chatbots are indeed chatbots, not all chatbots are powered by conversational AI.


Myth #2: Conversational AI can replace human customer service representatives

Throughout history, there has always been a sense of unease whenever there is a significant shift in our work methods. People often worry that technology will eliminate their jobs. This fear has persisted since the Industrial Revolution and continues to this day with the rise of AI innovation. 

However, there's no need to worry! Conversational AI isn't here to replace humans, but rather to support and empower them. 

Working in customer service is widely known to be one of the most stressful jobs, even ranking among the top 10 most stressful jobs worldwide. As a result, many companies struggle with high turnover rates, sometimes as much as 45%. This creates a talent shortage and is expensive for companies, as recruiting and training new employees is costly and negatively impacts customer satisfaction. However, conversational AI offers a potential solution to this issue. 

Conversational AI-powered chatbots can provide invaluable support to customer service representatives by handling routine tasks and freeing up time for employees to focus on more complex issues. The synergy between intelligent bots and human agents can create a seamless customer experience. The intelligent bot handles common inquiries, and the agents only need to step in when complicated tasks require human assistance. 

The Kore.ai AgentAssist platform is a good example of a conversational AI-powered solution for contact centers. AgentAssist can help contact center agents by automating repetitive tasks such as transferring balances, booking appointments, scheduling field services, making travel plan changes, and more. All this can be pulled off while the system acts as a sidekick to the agent, sifting through various systems for data and suggesting the next best action based on the customer's intent during a call. AgentAssist also makes post-call wrap-up effortless by summarizing calls for agents.


Tools and technology are so important to agents that 88% of them highlighted their importance in reducing customer frustration. The Kore.ai 2023 Contact Center Agent Experience Benchmark Report also found that 85% of the agents expressed their desire for a tool that can consistently provides them with up-to-date and comprehensive customer history information. 

In the end, while it is true that conversational AI-powered chatbots have the potential to replace some contact center representative tasks, they can not completely replace them. It is important to remember that only humans can replace humans. 


Myth #3: Conversational AI is only for big corporations

It was indeed large corporations that first implemented conversational AI since they were the ones who had the budget and resources to deploy and maintain an intelligent chatbot. However, that is not the case anymore.

Organizations of any size can now utilize conversational AI-powered chatbots, as they have become more affordable and accessible than ever. Various chatbot platforms and frameworks are readily available in the market, enabling organizations to choose one that suits their requirements and budget. The use of conversational AI-powered chatbots can benefit startups and small to medium-sized businesses the most, as they can automate their customer service to handle repetitive and 24/7 queries. 

This is what the Public Service Credit Union was able to do. They automated their contact center processes and saw a decrease in the number of calls they received by 24% with the assistance of Kore.ai's intelligent AI-based solutions, BankAssist and SmartAssist.

Read more on how Public Service Credit Union reduced agent-serviced calls by 24% in just 30 days

With the introduction of free trials and startup-specific programs, companies like Kore.ai have made conversational AI more accessible to startups and small to medium-sized businesses. Now everyone can access the same technology used by PNC’s, Coca-Cola’s, and AT&T’s of the world at an affordable price. 

Myth #4: Conversational AI is impersonal and people are not comfortable talking to bots

According to research, Gartner predicts that by 2027 chatbots will become the primary customer service channel for about a quarter of organizations. In the context of customer service, rule-based chatbots, while useful in some cases, can feel impersonal and cold to customers. Conversational AI-powered chatbots, on the other hand, are becoming increasingly popular for customer service due to their ability to personalize experiences. The advancement of the capabilities of an intelligent bot makes this misconception fiction. 

Why is conversational AI a better solution to offer personalized experiences? Advanced Natural Language Processing algorithms allow the intelligent conversational AI-powered bots to understand context and interpret nuances that feel like human conversations. Adding in a generative AI capability provides quick and personalized responses based on customer and product data. 

2023 CX Benchmark Report (1)

People are increasingly comfortable interacting with chatbots to receive fast and accurate responses. Surprisingly, when comparing customer service options between humans and intelligent bots, the results showed only a 7% variance in expected performance ratings for intelligent bots (70%) compared to all live agent modes (77%). The Kore.ai CX Benchmark Report also shows that more individuals are choosing to use intelligent bots for simple and complex interactions.


Myth #5: AI-powered chatbots are only available on a handful of platforms

Many businesses implement chatbots to automate tasks, improve customer experience, and offer self-service options to instantly resolve issues. However, for chatbots to be beneficial to businesses, they need to be available on more channels than just the company website. With the average person spending an average of 2 hours a day on their favorite platform, social media has become a go-to source for brand recognition and decision-making. By integrating a conversational AI-powered chatbot with social media and other messaging apps, businesses can be present where their customers are most active and accessible. 

Are you curious about why businesses must have a presence where their digital customers are? Well, by using a conversational AI-powered chatbot on their preferred platform, businesses can enhance their social media and e-commerce experiences. These intelligent bots provide immediate and consistent responses, resolve issues, and establish an engaging tone around-the-clock, leading to increased engagement and brand loyalty. Furthermore, intelligent bots can assist in generating leads and sales by offering helpful and timely suggestions, upselling and cross-selling products, and guiding users through the purchasing process.

Screenshot 2023-10-23 at 4.50.08 PM

Kore.ai offers many integration options, allowing businesses to choose the right social media or e-commerce platforms for their target audience. 

Myth #6: Conversational AI bots are not secure

To help answer queries accurately and in a personalized manner, intelligent bots frequently need access to enterprise systems to gather and modify data to perform these tasks. As a result, businesses need to  establish proper precautions to safeguard confidential information and should handle AI integration with care. However, with the tight privacy regulations and safety precautions that conversational AI platform companies have in place, these concerns are often just misconceptions.

Here are some of the ways that Kore.ai makes conversational AI-powered chatbots secure and safe for enterprises to use:

  • User authorization and authentication - A chatbot must have authorization when it works with a user's sensitive data. User authorization ensures the right person has access to the correct data and services. Authentication, on the other hand, helps defend users' data and devices from being misused.
  • Data redaction - A user's private information, such as their contact number, social security, and credit card details, is automatically deleted after a designated period. This feature applies to both the user and the chatbot.
  • End-to-end encryption - This security feature ensures that only the communicating parties can read messages within the chat window. The conversation is encrypted in a way that only the intended recipient can decrypt it, and no one else can access it.
  • Security Audits and Compliance - Regular security auditing ensures that the platform maintains required security features and complies with regulations such as GDPR, HIPAA (for medical use cases), and others. 

It's important to note that chatbots do not pose a greater security risk than other technologies. However, to ensure the successful implementation of the technology in your business and to maintain user trust, it's crucial to prioritize the safety of the platforms used to build the AI-powered chatbot.

The latest CX Benchmark Report is here! Want to dive into the report?
Read the Report  


Debunking Conversational AI Myths with Kore.ai 

In a world where customer engagement is the key to success, the time to invest in conversational AI is now. With these common misconceptions cleared up, businesses can feel more assured when implementing AI-powered technology and benefit from better agent productivity while increasing customer satisfaction. 

With Kore.ai, you're stepping into a world where technology and humanity coexist harmoniously. The Kore.ai XO platform uses cutting-edge technologies such as Large Language Models (LLMs) and Generative AI to build human-like conversations that create lasting customer experiences.

Want to learn more about Conversational AI and Generative Language Models? See how the XO Platform accelerates intelligent bot development with generative AI.

Ready to embrace the dawn of a new era? Book a consultation and start your conversational AI journey today. 

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