Session AI that enables machines to simulate human conversations has become one of the most popular AI applications on the market today. IDC predicts that the dialogue AI software services market will continue its strong acceleration to 2024-2028, with revenue exceeding $31.9 billion by 2028. However, as more and more hype revolves around conversational AI, it begs the question: who actually needs it, who is using it, who is using it effectively, and who is at risk of falling behind?
Beyond Chatbot: What is What is What is ai (not)
Session AI is often reduced to chatbots and voice assistants, but that’s just the tip of the iceberg. Although chatbots usually follow preset scripts and decision trees, conversational AI uses natural language understanding (NLU) and machine learning to explain intent, context, and even tone. This allows it to go beyond simple Q&A to handle more complex, dynamic interactions that develop over time. In other words, a chatbot might answer a question, but conversational AI can hold conversations that adapt to users and learn from each exchange.
At the heart of conversational AI is to enable machines to have natural, meaningful conversations to drive actual results. It provides everything for everything from free device inspections on factory floors to proactive fraud alerts in banking apps. Not only is this a tool for customer service, it is a strategic layer that helps businesses operate faster, smarter and larger to support millions of interactions at once. When implemented effectively, it becomes a force multiplier for the team, automating repetition while demonstrating insights that drive decisions.
Here is an overview of some key features that set up conversational AI systems, in addition to traditional chatbots:
- In-depth integration with business systems – Draw real-time data from customer relationship management (CRMS) systems and enterprise resource planning systems (ERPs) and other tools to take action, not just provide information.
- Supports multilingual interaction – Communicate fluently across languages to help companies serve global audiences more effectively.
- Drive results, not just answers – Help close sales, schedule appointments, resolve support issues and trigger the next step without human intervention.
Interviewer AI is already working
Some industries have begun to accept conversational AI, and that is rewarding. In areas such as retail, healthcare and finance, the technology is particularly consistent with everyday needs: a large number of customer interactions, time-sensitive requests and demand for personalization. Thanks to this natural fit, these industries see real benefits in efficiency, customer experience and operational scale.
Let’s look at a real world example:
Bank of America’s Erica is more than just a chatbot, it is a virtual assistant powered by the conversational AI and has processed more than 1.5 billion interactions since 2018. Today, it interacts with customers 56 million times a month and has become a trusted tool for managing subscriptions, tracking spending, and key financial insights to transparent spending. It is worth noting that over 60% of the 1.5 billion interactions are driven by personalized and proactive insights, demonstrating how conversational AI can go beyond reactive support to deliver authentic, sustained value.
Erica shows what can happen when conversational AI meets the right use case. While some industries are naturally well suited and have seen room for upside, many others have just scratched the surface and potential growth remains open.
Emerging industries leveraging conversational AI
Some industries embrace dialogue AI very slowly, but they are now entering the game and the motivation is building. In fact, Gartner predicts that automation of proxy interactions will increase by 5 times by 2026, compared with 1.8% in 2022.
In the automotive industry, voice assistants are already reshaping how drivers interact with vehicles, making hands-free control safer and more intuitive. It is worth noting that Tesla leads here, while others are behind. In supply chains and logistics, AI-powered updates and voice-enabled inventory management are cutting manual work and reducing errors. Media and entertainment companies are exploring interactive conversational experiences that make content more engaging, while insurance companies are starting to use AI to simplify policy choices and claims processing.
At the same time, some industries are completely lacking in waves. Education, legal services, real estate and government agencies lag sharply behind in adoption, heritage systems, regulatory complexity or lack of quantity as barriers. But these excuses start to lose weight. Forward-looking players in these areas, such as agents using AI for virtual tours in real estate, have proven what is possible. The gap between innovators and shelving is widening, and for those who still resist change, risks are not just behind. It becomes irrelevant.
Once experimental, it is now fully moving and delivering measurable results. The challenge is that many companies are not aware of conversational AI for their needs until their competitors move first.
Hybrid Victory: The true power of conversational human AI is human + machine
So, should executives focus on bringing their teams into the age of conversational AI?
It starts with a strategic hybrid approach. Session AI is not replacing people here, but expanding them here. When deployed thoughtfully, it takes on repetitive and time-consuming tasks, so human teams can focus on what they can do best: critical thinking, creative problem solving and relationship building.
The doubts about this technology are understandable. There is insufficient headlines about AI replacement work. But that’s why hybrid models are important. They should not eliminate characters; they should promote them. According to Amazon researchers, effective conversational AI systems should aim to recognize their own limitations, return to human experts in uncertainty, and constantly learn through human feedback. If your AI system is not working properly, then this is not really a conversational AI. Session AI should not act as work displacement – it should act as work evolution.
Looking to the future: Why sound will become the new interface
Session AI is becoming the most common interface between humans and machines. This technology is here, although it may feel unfamiliar at first, but now the time (rather than being left behind). Soon, people will interact with everything from refrigerators to enterprise software through voice. Lead the transition by executives: reaching a position where conversation ai can drive value, where value can be driven, and taking power before the next wave of interfaces passes.
