Before delving into the future of Conversational AI, it is essential to understand what it is. At its core, Conversational AI is a set of technologies that enable machines to understand, process, and respond to human language in a natural and meaningful way. These technologies include Natural Language Processing (NLP), Machine Learning (ML), and deep learning. Conversational AI can take various forms, from text-based chatbots to voice-enabled assistants like Amazon’s Alexa, Google’s Assistant, or Apple’s Siri.

There has been a lot of buzz around conversational AIs for the last few years, and the origin of ChatGPT fueled these conversations further. The release of ChatGPT 3 gave brands like Google and Bing the motivation to release their conversational AIs faster. Apart from ChatGPT 3.5 and ChatGPT 4, the conversational AI industry also talks about BardAI and Bing AI in parallel. Learn from this article about the future of conversational AI.

Observing the rising popularity of conversational AIs, an Allied Market Research report stated that the global conversational AI market, valued at $5.78 billion in 2020, is expected to surpass a threshold of $32.62 billion by 2030. The rate at which conversational AIs are rising in popularity is projected to have a compound annual growth rate (CAGR) of 20% from 2021 to 2030.

Where are conversational AIs heading?

Conversational AI is rising across mobile apps, websites, and other digital products. To understand the growth rate more precisely, let’s explore some numbers we have gathered from various sources. 

The above image by Deloitte showed the analysis of conversational AI-based patents filed in the USA. Deloitte insights also reflect the rise in the popularity of conversational AI, which is expected to dominate the industry. The same report showed that use cases of AI chatbot vendors have also shown a rise of 250% in multiple industries. 

The future of Conversational AI: Some additional insights

• An Accenture report says approximately 80% of CEOs from several industries have shown interest in modifying their client management technique using conversational AI. 
• In a report, Gartner predicted that 70% of white collars are expected to interact regularly with conversational AIs.
• In an Insider Intelligence report, it was mentioned that the top three reasons why US-based consumers prefer chatbots are customer service requests (16%), product information (17%), and business hours (18%).

Chatbots are dominating the market as conversational AI-based solutions

Conversational AIs are used by various products, including chatbots, virtual assistants, voice assistants, gaming apps, etc. The customer service industry has been using conversational AIs to improve customer service experience quality. 

The technology helped industries tone down the burden of customer queries on human agents while reducing the overall waiting time for customer assistance. And with time, these chatbots have adapted models like Natural Language Processing (NLP), Large Language Models (LLM), and more to deliver a more sophisticated interaction between chatbots and users.

But that’s not all; chatbots supported by conversational AIs are also being deployed in apps meant to deliver entertainment or an AI companion. Replika is one such name that leverages conversational AIs to offer users a personalized AI companion. 

Replika has 3D chatbots that users can choose from. These chatbots have personality and characteristic options. Depending on the user’s choice, the app optimizes the experience, and as app users use Replika more, the AI keeps getting smarter.

ChatGPT became the torchbearer!

A Conversational AI-based chatbot built and managed by OpenAI, ChatGPT 3 became a sensational product as soon as it was released. Within two months, 100 million users onboarded the platform, making it a leading name in the chatbot industry. Post ChatGPT 3, ChatGPT 3.5, and ChatGPT 4 versions were also launched. 

ChatGPT 3.5 is an open-source variant that users can access without a subscription fee. However, its database is only updated until 2021, making it an unuseful tool to gather the latest data. ChatGPT 4, on the other hand, is a platform updated with the latest data and resources. It is the current best current chat brightly value conversational AIs like ChatGPT due to their ability to deliver a human-like response. Thhumanlikeveral technologies are involved in making this possible. A short breakdown might help you better understand these assistive technologies of conversational AIs.

• Natural language processing (NLP)– NLP is used to deliver a human-like conversation, human license, and conversational AIs like ChatGPT, Bard AI, etc., are leveraging it well. The technology leverages techniques such as tokenization, language modeling, etc.
• Machine learning (ML)- A massive amount of text data is used to train conversational AIs like ChatGPT. Machine learning helped the tech use many inputs and outputs as references to learn and generate results.
• Cloud-computing- To keep its abilities accessible all the time, ChatGPT uses a cloud-based infrastructure. Its database is filled with a massive amount of literature, conversations, graphics, etc, to teach it to respond.
• Large Language Models (LLM)- LLMs optimize the quality of responses to make them sound more humanlike. ChatGPT uses human liked understanding prompts to resume conversations and understand the intent.

Can ChatGPT build apps?

The competitiveness of the modern app market is making developers experiment with new technologies to build apps faster. Some app development companies in the USA, UK, India, and other corners of the world see ChatGPT as a solution for the same. But honestly, ChatGPT should be called an assistive technology to build apps rather than a full-fledged app builder. Here’s why!

• ChatGPT can build your app prototype: ChatGPT can give you ideas to prepare a perfect UI and UX for your apps. From colors to features, icons to texts, ChatGPT is perfect for building an app prototype before kickstarting the actual project.
• ChatGPT can test your app codes: Developers have started using ChatGPT to find possible bugs or compatibility issues hiding in their app codes. 
• ChatGPT can write your texts: Texts are essential to an app development strategy, and ChatGPT can help you with them. You can generate catchy taglines, UI texts, etc.., using ChatGPT to build an intuitive app.
• ChatGPT can give ideas: You can ask ChatGPT for ideas to build your app apps. It can also give you insights into tentative costs. For example, asking for “a breakdown of the cost to develop an app like”ChatGPT” made the tool give me a phase-wise breakdown” that can be useful for budget planning. The below image can help you understand this better:

Wrapping up: The future of conversational AI.

Conversational AI is becoming a boon for several industries and speeding up processes where it is involved. For instance, chatbots can handle many customer queries and respond to them faster in parallel without getting impacted by the emotions of the customer asking queries. To reduce the burden on human resources, reduce the probability of human errors, and reduce the time and costs associated with people, conversational AI is turning out to be a good alternative. 

While the prospect may evoke apprehension among some individuals regarding the future job market, it is undeniable that conversational AIs will play a pivotal role in sectors dedicated to user assistance. However, humans will still be needed to build and train new models, so thanks to conversational AIs, it is safe to say that people in the future will be forced to upscale their skill sets to meet the demands of newer markets. 

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