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Decoding the Jargon

Conversational AI

AutomationTerm

Technology that lets software understand what people say or type in everyday language and respond in a natural way. It combines language understanding with machine learning, and powers modern chatbots and voice assistants.

Example

A customer types 'kuch cotton ka hai for office, under 2000?' on Meera's WhatsApp. A rule-based menu would fail; a conversational AI assistant can understand the mixed Hindi-English request and suggest cotton kurtas under ₹2,000.

How you'll hear it

“The old bot only understood button taps; we need conversational AI so people can just type.”

Don't confuse it with

  • Chatbot: the interface; conversational AI is one way to power it.
  • Generative AI: creates new content; conversational AI is about dialogue, and may or may not use generative models.

In India: Indian customers often mix languages, such as Hindi and English in one message, so test any conversational AI on real messages from your customers.

Related terms

Sources

  1. What is Conversational AI?, IBM
  2. What Is a Chatbot?, IBM

Checked 1 October 2026. Examples use a fictional business; figures are illustrative.

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