Glossary / Conversational AI (Business Use)
Conversational AI (Business Use)
Conversational AI refers to software built on a language model that can hold a natural, multi-turn text or voice conversation with a customer, rather than following a fixed menu of pre-written replies.
Why it matters
It lets a business handle the wide range of ways customers actually phrase requests, instead of forcing every inquiry into a narrow set of button choices.
Unlike simple chatbots that match keywords to canned answers, conversational AI can understand context across several messages: a customer who says "the water heater" in one message and "is it covered" two messages later is still understood as discussing the same issue.
The tradeoff is that conversational AI needs clear rules (what it can say, what it must hand off, what it must never invent) or it can sound confident while being wrong. See the guardrails guide for how to set those rules.
Example
A customer writes "it’s leaking pretty bad" after an earlier message about a water heater. A rule-based bot might not connect the two; a conversational AI assistant keeps the context and asks a relevant follow-up.
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