What are AI Voicebots?

Prashanth Kancherla

May 6, 2024 | 11 mins read

Know Everything about Voicebots and AI Voicebots

According to Microsoft, 96% of consumers feel that good customer service is an important factor that drives their brand selection and loyalty. At the same time, 80% have switched brands due to poor customer service. What does this mean? That you need to be on top of the trends that streamline your customer service process, making it quicker and more accessible for customers.

Also, for 66% of consumers, if a firm wants to provide a positive experience, it should simply appreciate their time and not force them to wait in a call queue for a long time. So, how do you ensure that your organization offers this level of customer service?

The solution lies in voicebots. By rapidly and efficiently handling a high volume of frontline support jobs, this technology minimizes the need to hire a large number of customer service professionals, lowering staffing expenses. Furthermore, the bot can identify the caller and answer simple, repeated queries, freeing up time for your employees.

Continue reading as we discuss more about AI Voicebots, including its features, and why businesses should invest in them.

What is an AI Voicebot?

A voice bot is an intelligent software that allows computers to communicate with people in natural language. It employs a variety of technologies, including natural language understanding (NLU), automated speech recognition (ASR), and text-to-speech (TTS).

Amazon’s Alexa, for example, is a voice-activated virtual assistant that responds to user instructions and questions by offering information, operating smart home devices, playing music, and other functions.

AI voicebots have the ability to understand human speech and respond naturally using voice recognition, translation (speech-to-text or STT), and text-to-speech (TTS) technology. They offer personalized greetings, predict client needs, and engage in human-like conversations, resembling interactions with live agents.

So, if customers face an inquiry that they are unable to resolve, automated speech systems redirect the caller to the most appropriate agent, along with all of the conversation’s context to date.

How Do AI Voicebot Work

How Do AI Voicebot Work?

Generally, voice recognition technology encodes spoken messages to understand human language. It consistently provides more accurate responses by automatically improving its data and algorithms through machine learning.

A fully functional AI-powered voice bot follows this sequential procedure before it responds to a customer’s question:

  • Capture input: The bot uses automated speech recognition (ASR) technology to sift through background noise so that it can concentrate on comprehending the user’s spoken language, intent, and accent. The vocal input from the users is divided into informational groupings that are simpler to understand than complicated human speech.
  • Eliminate background noise: When speaking into a microphone, ambient noises like people chatting, automobile horns, and other distractions are inevitable. But AI can distinguish between accurate information and background noise thanks to a neural network that works similarly to the human brain. 
  • Compile data: AI-powered speech bots classify the de-identified data so that you can understand each component again. Based on user intent, sentiment analysis, and use cases unique to a particular industry, they employ trained natural language processing (NLP) and natural language understanding (NLU) models to determine the true meaning contained in the communication. In this manner, bots can select rational and valuable answers.
  • Process Data: A semantic analysis system aids in the bot’s ability to understand the implicit meaning that lies behind words and sentences spoken by people. The syntactic approach simultaneously examines and supports the messages with grammatical rules.
  • Reduce the final response: After evaluating the customer’s voice input, the voice bot comes up with a limited list of possible reactions. After that, the voice bot assesses and narrows down those possible answers to determine which best addresses the customer’s question impartially and accurately. 
  • Forward the answer: Using a text-to-speech system, an AI voice bot translates the proper response into an audio format. This system can be trained to speak more in line with use cases relevant to a given sector. The voice bot may continue a customer’s previous discussion where it left off in the future thanks to these pre-built, specially taught intentions, guaranteeing a smooth and customized relationship.

Importance of AI Voicebots

Not only can a voice bot direct clients to the appropriate staff, but it can also expedite service. Conversational interactive voice response (IVR) can be used, for instance, to respond to client inquiries, notify them of the progress of a purchase, or let them change personal information like their address or phone number.

A few more reasons why AI Voicebots are essential are:

  • Provide round-the-clock help: Because a voice bot never sleeps, you can provide 24-hour support to your consumers. This is especially significant if you have consumers in several time zones or work in an industry where quick reaction times are critical.
  • Improve efficiency: Voicebots can also free up your human agents’ time to focus on more complex issues that require human knowledge. Voicebots can help your workforce be more productive and effective by handling common questions and tasks.
  • Handle large call volumes: If your company receives a significant volume of client questions and support requests, a voice bot can assist you in managing your workload. A voice bot, unlike human workers, can handle an infinite number of calls simultaneously without becoming fatigued or overwhelmed.
  • Easy Integrations: Voicebots can easily synchronize real-time information with your current technological stack. These integrations enable your speech bot to provide self-service, personalize interactions, and engage in contextual conversations. A well-integrated system improves customer satisfaction, saves time, and boosts team productivity.
  • Allow Self-Service: Self-service clients are happy customers. You can utilize conversational IVR to assist clients in gathering information and adjusting, such as replacing an old password or terminating a service subscription. Customers will feel more empowered and self-sufficient and avoid time-consuming talks with customer support representatives.

Features of AI Voicebots

Features of AI Voicebots

To guarantee a seamless discussion, a voice bot needs to include the following essential features:

  • Agent accessibility: One of a voice bot’s goals is to assist agents in meeting client requests. There is no agent substitute in the form of bots. A customer can choose to speak with an agent during a call. This need occurs in some situations but must be predicated on previously established user-oriented fallback policies.
  • The ability to wait and listen: The debate over intent understanding makes it clear that the bar for AI assistants such as Voicebots is relatively high. The client wants the bot to be a ‘good listener’ so that while the customer on the other end is speaking, it can determine what to do next or stop, but you also want the bot to communicate clearly why it is calling.
  • Constant Learning: Understanding human speech is a complex and seemingly never-ending process. Humans frequently misunderstand and misinterpret one another’s language. Voicebots have accomplished a lot in this regard. For instance, an AI-driven voice bot knows this and always learns new things. Based on past performance, it continuously improves its accuracy and predictability.
  • Reaction time: As with most other technology, speed is critical to a positive, productive experience. A good voice bot should be able to comprehend and respond to users at the same speed that they speak. Slow responses and delays irritate customers and give the wrong impression of the company.
  • Identify meaning: Understanding and subtext are essential during a conversation. Sadly, we don’t always go right to the point when we speak as humans. In light of this fundamental human dilemma, a voice bot needs to perform intent analysis or the capacity to deduce the meaning behind our words.

Voicebots vs Chatbots

People often get confused between chatbots and AI Voicebots. So, let’s look at a few differences between them so that you can better understand them.

Mode of interactionInteracts with users through text.Interacts with users through spoken language.
Underlying technologiesRelies on text processing, including tokenization, intent recognition, and machine learning models.Uses NLP, Automatic Speech Recognition (ASR), and Text-to-Speech (TTS) technologies.
Platforms & devicesCommonly found on websites, messaging platforms, and some mobile apps.Commonly deployed on smart speakers, smartphones, and other voice-activated devices.
User experienceProvides visual feedback and options to choose from.Offers an entirely auditory experience; does not include any visuals.
AccessibilityAccessible to anyone who can read and type.Particularly beneficial for visually impaired individuals.
Development considerationsFocuses on text processing and dialogue management.Needs to handle potential issues like background noise and varied accents.

Types of Voicebots

Types of Voicebots

After all this information, you might think that all Voicebots are created equal! Not really; while they share the core functionality of voice interaction, their capabilities and applications can vary greatly. Let’s explore the different Voicebots available, each catering to specific needs and offering unique advantages.

  • Rule-based Voicebots: Rule-based or simple Voicebots use predefined sets of questions and rules to provide answers or perform tasks within predetermined limits. They excel at handling FAQs and routine tasks but cannot learn or adapt beyond their programmed capabilities, leading to a more robotic conversational voice bot.
  • AI-assisted Voicebots: AI-assisted or smart Voicebots leverage machine learning to analyze natural language input and learn new rules for interpreting conversations. They can use contextual cues to better understand the speaker’s intent, enabling more natural and flexible responses. Examples include Alexa, Siri, and Google Assistant.
  • Voice bot conversational AI: Conversational Voicebots are designed to carry on natural, human-like conversations using AI and natural language understanding capabilities. They often prioritize applications that emphasize open-ended dialogue and may combine rule-based and AI-assisted features.
  • Personal Voicebots: Personal Voicebots are rule-based and designed to assist with specific practical tasks. They can answer a predetermined range of questions and perform limited functions, making them suitable for supporting online customer service and sales operations by automating routine procedures.
  • Voice-activated Assistants: Voice-activated assistants are AI-assisted Voicebots that use NLP to help users answer questions and perform daily chores. However, they have more flexibility than personal Voicebots to adapt to users and customize tasks, often serving as virtual assistants on mobile devices like Siri.

Application of AI Voicebots

Voicebots have the potential to be incredibly valuable for businesses of all sizes since they can reduce the time necessary for customer care. The following are some industry-specific use cases for Voicebots.

Banking and Financial Services

In the banking and financial services industry, Voicebots can be leveraged to provide proactive financial insights and recommendations based on customer data. They can assist with account-related inquiries, such as checking balances, transaction history, and payment due dates. Voicebots can also handle common customer service tasks like password resets and fund transfers, streamlining the overall experience for clients.

Call Centers

The COVID-19 pandemic accelerated a major shift in consumer behavior, with an increasing number of people turning to the Internet to meet their everyday demands. This resulted in a considerable boost in customer engagement. Hiring more agents to handle the increased volume of client inquiries can put significant pressure on a company’s OpEx. This is where Voicebots come into play.

Voicebots can automate monotonous operations and handle large volumes of requests independently. Their accuracy, quickness, and availability 24 hours a day, seven days a week boosts call center response rates. It also increases client happiness and converts them into brand evangelists.


A voice bot can replace the usual method of filling out an insurance policy application more effectively, saving the user time while filling out a lengthy list of inquiries for a policy. Furthermore, in the typical first notice of loss (FNOL) process, a consumer contacts the insurance company and speaks with their agent, providing all the information; if the agents are busy, the customer must wait. 


When travel laws or timings change, having a dedicated voice bot to deliver flight details and updates helps prevent consumers from missing their flights. Implementing a bot for bookings and cancellations can also dramatically speed up client operations.


Voicebots can play a significant role in the retail industry by giving customers real-time updates on order status, delivery estimates, and options for modification or returns. They can provide product information and recommendations and assist with purchase decisions, helping to enhance the shopping experience. Additionally, Voicebots can help customers locate nearby stores and check inventory availability, improving overall convenience.


In the healthcare sector, Voicebots can help patients find and schedule appointments with healthcare providers based on their location and medical needs. They can offer information on symptoms, medications, and treatment options and provide updates on prescription refills and insurance coverage, ensuring a more informed and efficient patient experience.


In the hospitality industry, Voicebots can assist with hotel reservations, check-in/check-out, and room service requests. They can provide information about amenities, local attractions, and dining options, as well as handle common inquiries and complaints promptly and efficiently, enhancing the guest experience.

How Ozonetel Voicebots  are Helping India’s Top Banks & NBFCs

Ozonetel’s Voicebots are AI-driven solutions empowering businesses to automate customer interactions via voice channels. Ozonetel Voicebots can seamlessly integrate with your existing systems and are capable of analysing intent and giving contextual responses. Our bot solutions are used by some of India’s top banks & NBFCs to make critical announcements and automate collections.

Let’s understand this better through a few case studies. 

Automating Reminders for Leading Rural NBFC 

The IVR dialer component of the software then automatically placed calls to customers and relayed these personalized repayment reminders. 

Personalized loan repayment reminders for 5 million customers monthly.

50% faster turnaround compared to manual reminders.

The entire process was fully automated, with every call featuring the customer’s name and the specific amount due. This resulted in a 50% faster turnaround time compared to manual reminders. 

Transforming Collections for India’s Top Private Bank 

A leading private bank fully automated its collection calls by deploying Ozonetel’s AI-based voice bot, which intelligently handled the end-to-end process. Here’s how: 

The bot prompts payment reminders, records responses, and schedules payments based on customer feedback.

If the customer reacts positively, the voice bot closes the call and tags the disposition. 

If the customer is hostile, it relays statutory warnings, tags the disposition, and marks the account for follow-up.

As a result the bank could save three man-hours per agent daily, resulting in major cost savings and improved operational efficiency. 

Muthoot Gold Improves Collection by 8% 

Gold loan NBFC Muthoot Gold used Ozonetel’s voice bot solution to optimize its payment processes for its jewelry vertical. 

The voice bot made over 43,500 calls in just five months, leading to significant cost savings

Agents previously responsible for this task were successfully reassigned to other roles.

Through this automated approach, Muthoot Gold was able to improve collections by 8%.

Wrapping Up

Companies all over the world are increasingly combining their existing IVR systems with smart speech bots. Voicebots use cutting-edge AI technologies including Natural Language Understanding (NLU), Automatic Speech Recognition (ASR), and Text to Speech (TTS). This combination allows them to comprehend, speak, and produce speech that nearly resembles human interaction.

Ozonetel’s GenAI-powered voice bot, which is designed to engage in conversations and complete activities in a human-like manner, advances this concept. Businesses can provide predictive, personalized, and proactive customer experiences using GenAI-powered Voicebots, resulting in increased customer satisfaction and business growth. Furthermore, their capacity to give 24/7 support to large numbers of consumers reduces effort and frees up time for customer service representatives.

Want to see what Ozonetel can do for your company? Sign up today for a free 21-day trial.

Frequently Asked Questions

Voice bots are advanced tools that enable communication with users through spoken language. They make it easy to interact naturally with apps, devices, and platforms, understanding and responding to spoken commands. AI voice chatbots comprehend user requests through a combination of key components: Automatic Speech Recognition (ASR), Natural Language Understanding (NLU), Text-to-Speech (TTS), and Conversation Module.

Conversational IVR refers to an interactive voice response system that allows customers to interact with a computerized voice using spoken language. On the other hand, a voice bot is an AI-powered technology that uses natural language processing to comprehend and respond to voice commands. While conversational IVR is typically used for phone-based interactions, Voicebots can operate across various devices and platforms, including smart speakers, smartphones, and IoT devices.

The primary difference between a voice bot and a chatbot lies in the medium of interaction. A voice bot interacts with users through spoken language, utilizing speech recognition and natural language understanding technologies to process voice commands or queries. Conversely, a chatbot interacts with users via text-based communication, typically through messaging platforms, websites, or mobile apps.

Prashanth Kancherla

Chief Product Officer, Ozonetel Communications

Over the past decade, Prashanth has worked with 3000+ customer experience and contact center leaders...

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