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Why Conversational AI is the future of 2021?

Conversational AI

Did you notice the surge in communication with AI-Based Technology? Yes, That’s Conversational AI. Check below to learn why it will lead martech in 2021

“Hey, Alexa!” “Hi, Siri!”

I am sure you might have heard these terms and might be aware of them, even if you don’t use Amazon Alexa or Apple products. With the introduction of Google Home/Nest, Microsoft’s Cortana, Apple’s Siri (Homepod), and Amazon’s Alexa have risen the popularity of Virtual Assistants.

Additionally, the outbreak of the COVID-19 pandemic has led to the wide acceptance of digital technologies with a huge rise in the digital transformation numbers. In fact, it is estimated by Gartner that 15% of all customer service interactions by 2021 will be handled with the help of artificial intelligence (AI).

Can you believe that around 10 to 15 years ago, there was no Siri or Alexa, people hardly knew about voice assistants or virtual assistants? Chatbots were very rare sights and computers that held smart and intelligent conversations were only seen and read about in fiction stories and movies. As we have recently entered a new decade with AI at the heart of technological innovation, it’s no surprise that businesses are willing to adopt Conversational AI platforms to maximize their business efficiency and deliver a better customer experience.

Conversational AI empowers businesses to employ chatbots, virtual assistants, or messaging applications to develop highly engaging and valuable relationships with customers. This leading-edge technology is spreading rapidly across various industries and more excitingly, providing companies with a huge potential to accelerate their innovation and growth.

Leveraging conversational AI in these uncertain times will help you in strengthening your business growth and improve customer experience. The year 2021 will be an exciting period for Conversational AI trends as AI chatbots come together with other advanced technologies to enhance customer experience like never before. So, let’s dive in to know why Conversational AI is the future of 2021.

Conversational AI Chatbots


In an era of increasing connectivity through digital experiences, no company can afford to underplay how essential effective customer service is in boosting customer engagement and fostering brand loyalty.

Although rule-based chatbots have been traditionally utilized as digital support to customers for many years, businesses are quickly upgrading to Conversational AI chatbots to revolutionize customer experiences. While it might appear as if all the chatbots are the same, but rule-based chatbots and Conversational AI chatbots are quite different from each other in terms of composure, functionality, and level of impact.

Decision-tree chatbots or Rule-based chatbots are simple in infrastructure, function, and ability. As the name suggests, they utilize a series of predefined rules installed by human agents to interact with customers. Because rule-based chatbots follow a scripted guideline, their responses to user queries are limited, making the majority of interactions with customers bland and useless. These fruitless interactions drive customer satisfaction levels down, making customers unlikely to return for future resolutions.

Real-Time Conversations

Presently, we are becoming conventional towards instant response. If you have a user on your website ready to engage and you are unable to answer their queries, they will move on to someone who can respond immediately. If you are driving lead generation, The Future of Customer Engagement and Experience found a 50% rise in the number of responses when following up in real-time.

Customer Experience

The outcomes of companies are vast but most importantly, you will be able to service your customer in real-time and round the clock, even outside of standard working hours. In the world of “instant,” this will help drive your Net Promoter Scores and overall customer loyalty.

AR in Conversational AI


Augmented Reality in chatbots is a unique technology that can take customer engagement level and usage to all new heights.

AR is a relatively new technology for mobile and web applications and the users are not habitual to the usage of AR. A chatbot within an app can facilitate the use of this technology. On the basis of the behavior of users and their stage in the buying cycle, they can be prompted with the help of AR by the bots.

Brands like Amazon, IKEA, Zara, Loreal, and many more are testing the potential of AR in Conversational AI and customer engagement and experience.

Voice Assistants

The utilization of bots is made more convenient when we can interact with them rather than typing our requests. Millennials and Generation Z today prefer hands-free conversations to text-enabled bots. The utilization of Voice assistants such as Amazon Alexa or Google Home/Nest has a CAGR of 41% and will reach 8 billion in the next few years.


We looked at what is behind the rise of conversational AI to enable you to strategize a highly-effective strategy that drives business growth. The conversational AI technology has been broadly embraced in 2019, 2020 and is set to escalate in 2021. Some experts say that the full potential of AI-powered conversational technology is still on the way while others believe that brands can benefit from this technology even in its early days. Conversational AI helps marketers in streamlining lead acquisition and conversion, provide improved customer experience, and perform effective budgeting analysis.

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Aashish Yadav
Content Writer, Martech Cube
Aashish is currently a Content writer at Martech Cube. He is an enthusiastic and avid writer. His key region of interests include covering different aspects of technology and mixing them up with layman ideologies to pan out an interesting take. His main area of interests range from medical journals to marketing arena.

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