AI Voice Chatbot: Definition, Use Cases, Benefits

‍The rise of artificial intelligence has transformed customer service.

AI chatbots, in particular, have surged in popularity - especially since the launch of OpenAI’s ChatGPT.

These systems save businesses time and money by automating customer interactions and tasks.

In the past, users primarily interacted with chatbots via text-based communication.

Since then, advancements in AI technology have made voice conversations with chatbots a reality.

AI voice bots and systems have gained significant traction in recent years.

In fact, 97% of mobile users now use AI-powered voice assistants (e.g. Siri for Apple iOS devices).

This means that most consumers are already familiar with the technology - making AI voice chatbots an ideal tool for automated customer service.

But what do businesses and contact centres stand to gain from AI voice solutions?

How can they use this technology to improve customer support and operational efficiency?

In this guide, we’ll explore these questions - and more. We’ll cover...

• What is voice AI, and how does it work?
• What are voice chatbots and voice assistants?
• Voice AI vs. Interactive Voice Response (IVR)
• Key use cases for voice AI in customer support
• Benefits of an AI voice bot for businesses and customers

What is voice AI?

Voice AI is the technology that enables machines to understand and respond to human speech.

It combines various advances in artificial intelligence, such as conversational AI, natural language processing (NLP), and generative AI.

This enables the creation of systems that can interact with users through spoken language in a conversational manner.

Voice AI is transforming industries and everyday life by making interactions with technology more human-like.

For businesses, it’s revolutionising AI customer service and automation.

For consumers, it allows users to interact with devices and control their environment hands-free.

As Voice AI continues to evolve, its potential applications and capabilities are continuing to expand.

How does voice AI work?

Voice AI chatbots work through a series of complex processes and technologies...

1. Automatic Speech Recognition: The system captures audio input and converts spoken words into text using Automatic Speech Recognition (ASR) technology.
2. Natural Language Processing (NLP): The transcribed text is analysed to understand the syntax and semantics of the language. NLP breaks down sentences to interpret context, intent, and meaning.
3. Natural Language Understanding (NLU): NLU delves deeper to comprehend the user's intent, even when faced with varied phrasing or ambiguous language. It helps the system handle nuances, slang, and different accents.
4. Dialogue Management: This component decides how the system should respond based on the interpreted intent and the context of the conversation. It manages the flow of the dialogue to make interactions coherent and contextually relevant.
5. Generative AI: The system formulates and produces an appropriate response in natural language, ensuring that the reply is clear and conversational.
6. Text-to-Speech (TTS): The generated text response is converted back into audible speech using TTS technology, allowing the system to communicate verbally with the user.

These steps occur rapidly, enabling real-time voice interactions that feel natural and seamless to the user.

What are AI voice chatbots & voice assistants?

AI voice chatbots and assistants are intelligent software programs that understand and respond to spoken language.

Although they’re both powered by AI voice technology, there’s a distinction in their purpose and functionality.

An AI voice chatbot is used by businesses and organisations to enhance customer support.

These automated systems are typically integrated into customer service software or platforms.

They’re implemented to engage and assist users via telephony or through a company’s website/app.

On the other hand, AI-powered voice assistants (e.g., Alexa, Siri, Google Assistant) are designed for personal use by consumers.

They’re often embedded in devices like smartphones, cars, and home appliances.

From setting reminders and playing music to controlling household gadgets and searching the web, a voice assistant can assist users with a wide range of tasks.

It can understand and execute voice commands, answer questions, provide personalised responses, and even offer suggestions.

Overall, while both voice chatbots and assistants leverage AI to help users, their roles differ in scope and complexity.

One specialises in automated customer support, while the other is a multifaceted tool for daily assistance and information.

Voice AI vs. Interactive Voice Response (IVR)

Interactive Voice Response (IVR) and voice AI are related customer service technologies.

However, they differ significantly in their capabilities and user experience.

IVR is a traditional telephony system that assists customers through pre-recorded voice prompts and keypad inputs.

Typically, when you call a business and are asked to “press 1 for sales” or “press 2 for support”, you’re using an IVR system.

IVR operates using a menu-based structure. Each option is predefined, and callers are guided through the system step by step.

Its capabilities are generally limited to recognising basic user inputs like numbers or a small set of specific voice commands.

While IVR systems are useful for handling very basic tasks, they can feel rigid and cumbersome.

This is because users must follow a specific path to complete their request, often leading to errors and a frustrating user experience.

Voice AI, on the other hand, is far more sophisticated and flexible thanks to artificial intelligence.

It uses advanced technologies to interpret and respond to speech in a more fluid, human-like way.

Unlike IVR, Voice AI doesn’t require users to stick to rigid prompts or choose from a limited menu of options.

Instead, users can ask questions or make requests in their own words, which the system can understand and respond to accordingly.

For example, a customer might say, “I need help with my internet connection”.

AI voice could instantly identify the issue from this one statement and route the call appropriately without needing specific words or actions (e.g. pressing a button).

This makes voice AI much more dynamic and user-friendly, offering a seamless, efficient, and positive experience.

In short, while IVR relies on predefined menus and precise wording, voice AI allows for free-flowing conversations and more complex inquiries.

That said, the integration of AI can make traditional IVR more powerful, enabling businesses to offer a blend of both technologies.

Customer service use cases for AI voice chat

Now that we’ve covered the main basics of AI voice technology, let’s examine it in action.

Below, we’ll explore 5 key cases of AI voice bots in customer service.

1. AI-driven call routing

One key challenge for contact centres and customer service departments is effective call routing.

Calls need to be routed to the right team or agent for efficiency - but this process can be a pain point for customers.

As we’ve covered, traditional IVR routing requires callers to navigate through multiple layers of menus with very limited or restrictive options.

This often leads to friction, extended wait times, and a poor user experience.

In fact, 55% of customers feel frustrated by IVR as they feel it makes them jump through hoops to get support.

What’s more, 51% will abandon a call entirely to avoid navigating an IVR system.

AI-driven call routing offers a solution to this problem.

Voice AI systems can analyse a caller’s voice, language, and intent to streamline the routing process.

This means customers can describe their needs or requests in natural language rather than pressing buttons or using pre-set words/phrases.

In turn, the AI can listen to a customer query, identify the meaning, and transfer the call to the appropriate department in real time.

This not only reduces the time spent on the phone but also offers a much smoother and more efficient customer service experience.

2. Answering customer inquiries

AI-powered voice bots are increasingly being deployed to handle routine customer inquiries.

These interactions often account for a large volume of customer calls in many industries.

Routine queries can range from asking about product/service availability or pricing details to troubleshooting common technical issues and more.

By leveraging natural language processing (NLP) and generative AI, voice chatbots can comprehend a variety of questions and provide accurate, real-time answers.

AI voice bots can also be integrated with your knowledge base, giving them access to a wealth of information about your business, products, services, and processes.

This enables the voice chatbot to become a brand-trained expert capable of answering countless customer questions.

As a result, the number of calls requiring human intervention decreases, reducing agent workloads.

It means your human agents will have more time for high-value interactions or complex tasks.

3. Order updates & information

For retail and ecommerce brands, it’s common to experience high volumes of queries related to online orders.

Phone lines are often flooded with customers requesting order status updates, shipping/delivery times, return policy information, etc.

Handling these repetitive queries manually is very time-consuming for human agents, leading to slower service, burnt-out agents, and decreased efficiency.

AI voice solutions are an ideal fit for these frequent yet essential interactions.

Customers can simply ask a voice chatbot any order-related questions, such as "When will my package arrive?" or “Where is my order?”.

The AI can then request the order number in its response, retrieve the relevant information from your CRM or API, and provide an instant update.

This automated process cuts down wait times and enables 24/7 order updates, ultimately increasing service quality and customer satisfaction.

4. Appointment scheduling

Scheduling appointments can be a tedious task for businesses when it’s done manually.

AI voice chat simplifies this process by allowing customers to manage appointments quickly and efficiently.

With a voice bot system, customers can self-serve to find available time slots, book appointments, reschedule, or even cancel if needed.

The AI can access your calendar and databases in real time, checking availability and making sure there are no conflicts.

This use case is valuable for a number of industries, for example:

• Travel & Hospitality: Consumers can arrange and manage restaurant reservations, hotel bookings, transport, consultations with travel agents, etc.
• Healthcare: Patients can schedule doctor’s appointments, dental visits, therapy sessions, etc.
• Beauty: Clients can book haircuts, manicures/pedicures, consultations, and other beauty services or treatments.
• Public sector: Citizens can make appointments for various public or government services, such as passport applications and visa renewals.
• Financial Services: Clients can schedule meetings with bankers, financial advisors, tax consultants, etc.

Overall, AI voice chat streamlines appointment requests and the booking process, saving time for both you and your customers.

5. Multilingual customer service

For global brands or those serving a diverse customer base, the ability to provide support in different languages is crucial.

AI voice chat excels at this by facilitating seamless multilingual customer service.

By leveraging real-time translation technology, an AI-powered voice bot can automatically detect a user’s language and respond accordingly.

This eliminates language barriers and reduces miscommunication, ensuring an inclusive and seamless customer service experience.

It also empowers you to serve a wider audience without hiring human translators or multilingual agents.

Additionally, multilingual support boosts overall customer satisfaction by providing a more personalised and empathetic touch.

When customers can speak in their native language, they feel more at ease, understood, and valued.

Ultimately, real-time translation is a powerful voice AI use case that expands reach, improves accessibility, and ensures clear communication.

Benefits of a voice AI virtual assistant chatbot

As the above use cases show, an AI-powered voice bot can be a valuable tool for customer service.

Below, we'll cover the key benefits you can enjoy by leveraging voice AI.

Humanised automation

One of the standout benefits of a voice AI chatbot is its ability to humanise automated support.

Unlike traditional chatbots or IVR menus that can feel robotic or impersonal, AI-powered chatbots are designed to engage in natural, human-like interactions.

They can interpret and respond to speech in a way that mimics human conversation, creating a more palatable and personalised user experience.

Another key humanisation feature is the ability to customise your AI’s voice.

Businesses can choose from a diverse library of pre-configured voices or clone the voice of a specific person (e.g., a staff member or brand ambassador).

This allows you to match the tone, gender, and accent of the AI bot with your brand’s identity or customer preferences.

Whether it’s a calm and soothing voice for healthcare services or an energetic, friendly tone for retail, this customisation helps foster a stronger connection with users.

Efficiency gains & cost savings

Efficiency is an area where AI excels.

As we’ve covered, voice AI chatbots can handle a variety of customer service use cases.

This boosts efficiency by automating interactions and tasks that would otherwise require human intervention.

Moreover, unlike humans, one AI system can manage hundreds or thousands of calls concurrently.

This means you can scale your customer support operations without hiring more agents, also increasing chatbot ROI.

These efficiency gains and labour savings create a far more cost-effective support system.

Case in point, contact centres across industries experience up to a 50% reduction in operational costs by using voice AI.

Improved customer experience

AI voice bots improve the customer experience by providing fast, accurate, and convenient solutions.

They minimise the frustration customers endure when navigating through complex IVR menus or waiting on hold for extended periods.

Instead, customers can ask their questions naturally and receive immediate responses.

Voice AI systems also offer sophisticated and accessible self-service.

From providing real-time information to troubleshooting common issues and booking appointments, AI empowers customers to resolve many inquiries themselves.

And in cases where a customer does need human support, AI-powered routing ensures seamless escalation to the most appropriate agent or team.

This ensures that customers are always directed to the right resource without unnecessary delays.

By providing exceptional automated service in a humanised way, voice AI enhances telephony experiences, service quality, and customer engagement.

The takeaway

Voice chatbots offer an innovative and humanised approach to AI customer support.

From intelligent call routing to conversational self-service, this technology can significantly boost efficiency and enhance customer experiences.

That’s why we’re releasing our own voice AI chatbot by the end of 2024.

Designed to deliver a seamless, accurate, and friendly experience at every voice touchpoint, Talkative’s voice AI offers...

• Humanised AI conversations: Choose from a library of voices or use your own to automate a personalised customer experience.
• Easy setup & management: Build, customise, and train your voice AI chatbot with an intuitive drag-and-drop interface and private AI Knowledge Bases.
• Multilingual support: Serve customers in over 135 languages at any time of day or night, freeing your agents up for cases that need the human touch.
• AI analytics & reporting: AI-generated transcripts, AI interaction summaries and reports, chatbot analytics, knowledge base insights, and more.

With our solution, you can replace clunky IVRs, dramatically reduce interaction costs, and provide 24/7 support with the warmth of a human voice.

In addition to chatbots and AI solutions, we offer a complete suite of customer contact channels and capabilities - including live chat, web calling, video chat, cobrowse, messaging, and more.

Want to learn more?

Book a demo with Talkative today, and check out our interactive product tour.