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Mehmet Mutlu07.06.202417 min read

What is conversational AI? Why is it important for training?

What is conversational AI? Why is it important for training?

Based on IBM's benchmark insight[1], companies using AI-sourced technology see a 12% increase in their customer satisfaction.

In today's rapidly evolving digital landscape, artificial intelligence continues to transform the way businesses operate, particularly in the realm of employee training and development. One of the most impactful advancements in this field is conversational AI, a technology that enables machines to interact with humans using natural language.

If leveraged conversational AI correctly and efficiently, companies can create more engaging, personalized, and efficient training programs that create a culture of learning in a psychologically safe environment.

Today, in this blog post, we will explore what conversational AI is and delve into its significance in enhancing corporate training, ultimately helping organizations create a more skilled and adaptable workforce.

Table of contents


Key insights
  • Conversational AI enables real-time interactions, providing immediate feedback and support to employees, which accelerates the learning process.
  • Conversational AI training finds versatile applications across various platforms to enhance learning experiences and customer satisfaction and optimize employee skill development.
  • A significant advantageous result of conversational AI in training is the creation of a safe and supportive learning environment. Employees can practice their skills, make mistakes, and learn from them without the fear of real-world repercussions.


What is conversational Artificial Intelligence?


Definition of conversational AI

Conversational AI refers to the technologies that enable computers to simulate and engage in human-like conversations. This technology encompasses a range of advanced artificial intelligence and natural language processing techniques that allow machines to understand, process, and respond to human language in a way that is both meaningful and contextually relevant.

Unlike traditional chatbots that rely on scripted responses, conversational AI systems use machine learning algorithms to learn from interactions and continuously improve their ability to communicate. These systems can be found in various applications, such as virtual assistants, customer service operations, and interactive training programs to provide users with seamless and intuitive interaction experiences.

Key components

Some of the key components of conversational AI are Natural Language Processing (NLP), machine learning, dialogue management, etc. NLP is the cornerstone that enables the system to comprehend, interpret, and generate human language by breaking down text or speech into understandable units and recognizing the context. Machine learning algorithms empower conversational AI to learn from past interactions, improving its responses and accuracy over time.

This continuous learning process helps the system adapt to new phrases and nuances in language. Dialogue management is the component responsible for maintaining the flow of conversation, ensuring that interactions are coherent and contextually appropriate.

Additionally, integrations with backend systems allow conversational AI to perform tasks and retrieve information, enhancing its utility and functionality. These components work together to create a robust conversational AI work system capable of delivering intelligent, responsive, and engaging interactions.

Natural language processing

Natural Language Processing is a pivotal component of conversational AI solutions, focusing on the interaction between computers and humans through language. NLP combines computational linguistics and machine learning to enable machines to understand, interpret, and respond to human language in a natural and meaningful way.

It involves several subfields, including speech recognition, sentiment analysis, and language generation. Through processes such as tokenization, and part-of-speech tagging, NLP systems break down sentences into their constituent parts, identify grammatical structures, and determine the semantic meaning of words and phrases.

This intricate analysis allows the conversational AI system to comprehend user inputs, answer questions, derive context, and generate appropriate responses. By mimicking human language comprehension, NLP enhances the ability of conversational AI tools to provide relevant, accurate, and personalized interactions, making it a critical technology in modern AI applications.

Machine learning

Machine learning is a key element of conversational AI technology that helps systems get better at understanding and responding to users over time. It works by using data to find patterns and improve performance without needing constant updates from programmers.

Essentially, machine learning allows conversational AI models to learn from previous interactions and adjust their responses based on what it has learned. This process includes analyzing conversations to grasp the subtleties of language and the user's intent.

Through continuously learning and adapting, machine learning ensures that conversational AI becomes more accurate and effective in its interactions, making it seem more intelligent and human-like.

Additionally, machine learning enables the system to handle a wider range of user input and queries, and provide more relevant answers. Over time, as the system is exposed to more data and interactions, it becomes more proficient, leading to improved user satisfaction and engagement. This adaptability is what makes machine learning a crucial component in the evolution of conversational AI.

Two employees discovering AI training

Conversational AI coaching gives the opportunity to complete the training anywhere, anytime. This reduces the stress of traditional training which then improves employee retention.


How does it work?

As a regular human being would do, Conversational AI is similar to having an intelligent computer that can communicate with you and comprehend your words.

Here's what conversational AI actually does:

Comprehending the vocabulary:

The conversational AI system carefully listens or reads to understand your purpose when you speak or type a message. It takes apart your words into tiny parts in order to analyze and interpret them. Through this approach, the AI can converse meaningfully and answer with accuracy.

Adding it all up

The conversational AI uses natural language processing to understand your words after it has grasped them. It can comprehend the context of your communication and recognize trends to make sense of what you're saying. It also has the ability to read emotions from your speech. This allows the AI to react in a way that seems more humane and sympathetic.

The response

The conversational AI quickly considers what you say and determines how to reply. It looks up the optimal response using its memory. To gather more information or provide you with useful advice, it of course could ask you more questions.

Self-improvement is what makes it special

Conversational AI gets smarter with every chat by using machine learning. Each conversation gives it new information to learn from, helping it spot patterns and understand language better. This helps it fix mistakes and improve its responses. The more it talks with you, the better it gets at having natural, human-like conversations.

This is especially crucial for enterprises that want to implement conversational AI into their training initiatives: the more conversations, the better the coach.

End-to-end personalization of conversational agents

Retorio  What is conversational AI? Why is it important for training?6-2
As challenging to achieve as it is, personalization of the specified AI agent is crucial for the accuracy and impact it has on the other end. Here's an infographic by Deloitte[2] to demonstrate the steps:

Benefits of conversational AI in enterprise training

With AI, courses can become designed for each user's learning journey. Imagine curated, unique courses that address each individuals needs, not just what was convenient to put in the LMS. --Yen Tan[3]

Conversational AI offers numerous advantages for enterprise training by enhancing the overall learning experience and efficiency. It enables real-time interactions, providing immediate feedback and support to employees, which accelerates the learning process.

Additionally, the technology supports data-driven insights, allowing organizations to track progress and identify areas for improvement. By integrating conversational AI into training programs, enterprises can ensure that their employees receive up-to-date and relevant information. This leads to better-trained employees who are more knowledgeable and productive.

Here's a table to understand the benefits of conversational AI in detail:

Element Benefits


Conversational AI allows training content to be tailored to each individual employee's needs and learning style, offering personalized recommendations and feedback based on their performance and preferences.


With conversational AI, training materials are accessible anytime, anywhere, on various devices, making it convenient for employees to engage in learning activities at their own pace and convenience.


Conversational AI platforms enable organizations to scale their training programs easily to accommodate a growing workforce or changing training needs without significant additional resources or infrastructure.


Consistency in training experiences and information delivery is ensured by leveraging conversational AI, allowing all employees to receive uniform learning experiences regardless of their location or the time they access the training materials.


Conversational AI creates interactive and engaging training experiences through natural language interactions, quizzes, and simulations, keeping employees motivated and involved in their learning journey.


Implementing conversational AI for training can lead to cost savings by reducing the need for physical training facilities, materials, and instructor resources, while also increasing training efficiency and effectiveness.


Here's an educational video on conversational AI by IBM Technology:


Applications of conversational AI training

Conversational AI training finds versatile applications across various platforms to enhance learning experiences and customer satisfaction and optimize employee skill development. Here's a glimpse into how conversational AI is revolutionizing training in three key areas:

1. Leadership and management training

Conversational AI technologies offer dynamic leadership and management training by providing personalized coaching and real-time feedback to aspiring leaders. Through interactive simulations and scenario-based learning, employees can develop crucial skills such as decision-making, effective communication, and conflict resolution.

These AI-driven training programs present leaders with complex, real-world scenarios, allowing them to practice and refine their responses in a risk-free environment. The conversational AI model also facilitates continuous development by offering on-demand access to training resources and mentorship opportunities, enabling leaders to receive guidance and support as they navigate their career progression.

Furthermore, this technology adapts to individual learning styles and needs, ensuring that each training experience is uniquely tailored. With the utilizatiın of conversational AI tools in leadership training, companies can cultivate a new generation of competent, adaptable leaders who are well-equipped to drive the company’s success and navigate the complexities of modern business environments.

2. Customer service training

As well as leadership training, conversational AI also revolutionizes customer service training by providing employees with interactive, hands-on learning experiences that simulate real customer interactions.

Through these simulations, employees can practice and improve their communication, empathy, and problem-solving skills in a controlled, supportive environment. Conversational AI also offers personalized feedback and coaching, helping customer service representatives to refine their techniques and address specific areas of improvement.

In addition, AI-driven training programs can deliver up-to-date product knowledge and service protocols on demand, ensuring that employees are always equipped with the latest information. This continuous learning approach not only enhances the competency of customer service teams but also boosts their confidence and ability to provide exceptional customer experiences.

3. Sales training

This technology significantly enhances sales training by creating immersive and interactive learning environments that mimic real-world sales scenarios. Through these simulations, sales reps can practice and hone their skills in areas such as pitching, negotiation, and objection handling, allowing them to develop and refine their techniques in a risk-free setting.

Conversational AI also offers personalized feedback and targeted coaching based on individual performance to enable salespeople to identify strengths and areas for improvement. This technology also tracks progress and adapts to the learner’s pace to ensure a tailored and efficient training experience.

What's more, advanced conversational AI technologies can analyze past sales interactions to uncover insights and patterns, helping to identify successful strategies and common pitfalls. This data-driven approach allows for the creation of customized training modules that address specific challenges and opportunities relevant to the sales team.

In addition to this solution, conversational AI provides on-demand access to training resources, such as best practices and product information all while ensuring that sales professionals are always equipped with the latest knowledge. By integrating conversational AI into sales training programs, companies can create a more skilled, confident, and effective sales force that is capable of driving increased revenue and building stronger customer relationships.

Employee taking a real-life role-playing trainingIn today's fast-paced market, conversational AI coaching with real-life scenarios could be the solution to increase the efficiency of employees.

Expected results of conversational AI

Implementing conversational AI in training programs yields several significant results that can transform the learning and development landscape within organizations. These advanced systems not only streamline the training process but also provide a more engaging and effective learning experience for employees. Here are the key expected results of integrating conversational AI into enterprise training:

Faster results

Conversational AI accelerates the training process by providing real-time feedback and personalized learning pathways tailored to each employee's unique needs and pace. This immediate responsiveness allows learners to quickly identify and address their weaknesses, leading to more rapid skill acquisition and improvement.

AI-driven training modules can adapt on the fly, presenting more challenging scenarios as the learner progresses, thereby optimizing the time spent on each training session. This efficiency ensures that employees can apply their new skills and knowledge more quickly in their day-to-day roles, leading to faster overall improvements in performance and productivity within the organization.

Safer environment

A significant advantageous result of conversational AI in training is the creation of a safe and supportive learning environment. Employees can practice their skills, make mistakes, and learn from them without the fear of real-world repercussions.

This aspect is particularly valuable in training scenarios that involve high-stakes situations, such as customer service interactions or sales negotiations. The AI provides a risk-free platform where employees can build confidence and competence by repeatedly engaging in simulated interactions.

This safe practice space helps to reduce anxiety and fosters a culture of continuous learning and development, where employees feel more comfortable taking risks and experimenting with new approaches.

Enhanced retention

Enhanced retention is one of the standout results of using conversational AI in training programs. The interactive nature of AI-driven learning, combined with personalized content and immediate feedback, helps to reinforce information and improve memory retention.

Unlike traditional training methods that may rely heavily on passive learning through lectures or reading materials, conversational AI engages learners in active participation. This engagement, coupled with the ability to revisit and review content as needed, ensures that employees retain information more effectively.

In addition, the use of real-life scenarios and practical applications in AI training helps to solidify knowledge and skills, making it easier for employees to recall and apply what they have learned when faced with similar situations in their work environment.


Different versions of conversational AI

Retorio  What is conversational AI? Why is it important for training?6Conversational AI is taken in three categories: rule-based chatbots, AI-powered chatbots, and voice assistants.


According to the AI insights by Deloitte[4], 90% of companies reported faster complaint resolution and over 80% of them reported higher call numbers processing using conversational AI solutions, according to a recent survey.

Rule-based chatbots

These chatbots operate based on predefined rules and scripts. They are programmed to recognize specific keywords or phrases and respond with set replies. For instance, a rule-based chatbot on a retail website might guide customers through common inquiries like store hours, return policies, or product availability. While they are efficient for straightforward tasks, they can struggle with more complex or nuanced conversations.

AI-powered chatbots

Unlike rule-based chatbots, AI-powered chatbots use machine learning and natural language processing to understand and respond to a wider range of queries. They can learn from each interaction and improve over time. For example, a customer service chatbot might handle various issues such as billing inquiries, technical support, and account management by analyzing past interactions and adapting its responses to better meet user needs.

Voice assistants

Voice assistants like Siri, Alexa, and Google Assistant are advanced versions of conversational AI that interact through spoken language. These assistants can perform a multitude of tasks, such as setting reminders, providing weather updates, controlling smart home devices, and even engaging in casual conversation. They rely on sophisticated speech recognition and natural language understanding to process voice commands and respond appropriately, offering a hands-free, convenient user experience.

6 steps to creating a conversational AI training program

6 steps Description
Step 1 Setting long-term goals: Clearly define the objectives you aim to achieve with AI training, such as improving productivity or enhancing customer service. Establish measurable milestones to track progress and ensure the goals align with your overall business strategy.
Step 2 Identifying the target employees: Determine which employees will benefit most from AI training based on their roles and responsibilities. Focus on those who can leverage AI tools to enhance their job performance and contribute significantly to organizational goals.
Step 3 Pick the correct AI platform: Research and select an AI platform that best fits your organization's needs and technical capabilities. Ensure the platform is scalable, user-friendly, and compatible with your existing systems.
Step 4 Build your conversational AI coach:  With the picked AI platform, develop a conversational AI system tailored to train employees, providing them with interactive and personalized learning experiences. Incorporate realistic scenarios and feedback mechanisms to enhance learning effectiveness.
Step 5 Analyze data to observe performance: Collect and review data on how employees are interacting with the AI training system to assess its impact. Use this information to identify areas for improvement and make data-driven adjustments to the training program.

Retorio provides you with top-notch AI coaching to help you stay resilient in a competitive market!

Retorio's AI training dashboard

Retorio's online AI coaching platform analyzes participants based on their speech patterns and behaviors to identify the pain points and offer the necessary training.

Emerging trends in conversational AI training

Conversational AI training is rapidly evolving, with several emerging trends shaping its future. One significant trend is the integration of Retorio's advanced natural language processing techniques, which enhance the AI’s ability to understand and generate more nuanced and contextually accurate responses.

Additionally, there is a growing emphasis on personalization, where AI systems tailor training content to individual learning styles and progress. The use of AI-driven analytics is also on the rise, providing deeper insights into employee performance and training effectiveness.

This is where Retorio's AI coaching platform comes into play. Retorio is at the forefront of integrating emerging trends in conversational AI to revolutionize corporate training.

With the utilization of advanced NLP and behavioral intelligence techniques, Retorio’s AI coaches can understand and respond with remarkable accuracy, ensuring more meaningful and contextually appropriate interactions. Our platform prioritizes personalized learning, tailoring training programs to fit each employee’s unique learning style, pace, and progress, thus enhancing engagement and as a result effectiveness.

What's more, Retorio uses AI-driven analytics to offer in-depth insights into employee performance and training outcomes. This data-driven approach allows organizations to identify strengths and areas for improvement to ensure continuous development. Additionally, Retorio's use of multimodal interactions, combining voice and visual elements, creates a rich, immersive training environment that keeps learners actively engaged.

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Generative AI focuses on creating new content. It can produce text, images, music, and other types of media by learning from existing examples. For instance, a generative AI model can write a story, generate realistic images, or compose music by understanding patterns and structures in the data it has been trained on. This type of AI is like a creative artist or writer, capable of generating original content based on what it has learned.

Conversational AI, on the other hand, is designed to interact with humans in a natural, conversational manner. This includes technologies such as chatbots, virtual assistants, and customer service bots. Conversational AI uses natural language processing and machine learning to understand and respond to human language, enabling it to hold meaningful and coherent conversations. Conversational AI focuses on understanding user inputs and generating appropriate responses, making interactions with machines and conversational interfaces feel more like talking to a human agent or a real person.

Conversational AI is preferred because it enables natural and intuitive interactions between humans and machines. It allows users to access information and perform tasks using everyday language, making it more accessible and convenient for a wide range of people.

This technology also offers personalized experiences by understanding user preferences and providing tailored responses. Additionally, conversational AI improves efficiency by automating repetitive tasks, freeing up human resources for more complex work. It scales easily to handle increasing demand and continuously learns from interactions to enhance its performance.

Conversational AI training is employed in a variety of industries, including the insurance industry, automobile industry, and telecommunications. In the insurance industry, AI training helps employees improve customer interactions and streamline claims processing. The automobile industry uses conversational AI training to enhance sales operations and improve customer service at dealerships. In telecommunications, AI training is used to optimize customer support employees, prepare future leaders, and provide technical assistance.


Mehmet Mutlu

I specialize in writing educational and compelling narratives that explore the transformative impact of AI-powered coaching within sales, customer service, and leadership. I focus on creative writing to share my insights on Artificial Intelligence and the future of L&D.