Conversational AI uses technologies like chatbots and virtual agents to enable user interaction through speech and text. It combines natural language processing (NLP) and machine learning (ML), improving through interactions and data analysis. Key components include input generation, analysis, dialogue management, and reinforcement learning. Developers identify user FAQs, set intents, and define relevant entities to create conversational AI. Benefits include cost efficiency, increased sales, and scalability, though challenges involve language input issues, privacy concerns, and user apprehension. Overall, conversational AI enhances customer experiences and business processes.
