Conversational AI

An AI agent is software that resolves a customer request end to end, taking actions in connected systems rather than only answering questions. Unlike a scripted chatbot, an AI agent can look up an order, issue a refund, or update a record, then confirm the completed outcome back to the customer.

Natural language understanding is the layer that maps free text to intents and entities so a system can act on what a customer wrote. It answers what the customer wants and which values are involved; generation is a separate step deciding what to say back.

A large language model is the model class behind modern conversational AI, summarisation, and reply drafting. Trained on broad text corpora, it predicts language fluently but holds no inherent knowledge of a specific business, which is why grounding and retrieval are required before answering customer questions.

Voice AI is automation that handles spoken conversations using speech recognition, language understanding, and speech synthesis. It carries constraints text automation does not: recognition errors on names and numbers, sensitivity to accents and dialects, and a much lower customer tolerance for response latency.