The case for change in Conversational AI:

The Challenges | Hurdles in Self Service chat bots of yesterday

Rule Based Bot Rule-based bots operate within fixed flow and frameworks (intent identification and dialog flow), leading to unmet expectations.

Difficulty in managing intricate scenarios Conventional chatbots often falter with complex inquiries and necessitate human support. Not able to adapt during chat flow.

Challenges in scaling & maintenance: The rigid structure of rule-based systems makes it challenging to adapt to new use cases. Also difficult to maintain as complexity grows.

The Impact | Lost Revenue, Poor Employee and Customer Experience Deflection Rates are very low Most conversational AI solutions do not deliver the expected containment Subpar Customer Experience A higher rate of incorrect responses, frequent follow-up inquiries, and a deficiency in human empathy contribute to user frustration. Higher Cost of Operation Higher dependency on technical team and hence increases the cost of operation

The Need and Opportunity |

With the use of Agentic AI and sophisticated engineering, IBM Consulting is able to provide a solution which solves the challenges, and delivery the efficiency and effectiveness to make a self service chat solution truly next generation.

Length Understands and adapts to wide range of queries, answers with higher confidence and accuracy Value: High Deflection and reduce operational cost

Breadth Built to scale instantly, across languages, processes and regions. Value: Lower cost of build/manage, faster time to value

Depth Remembers. Understands. Solves. Just like your best agent Value: Superior Customer Experience, better NPS

Self Service AI: The Agentic Conversational solution for complex Enterprise Workflows

The solution enables scalable, cost-efficient, and hyper-personalized conversation across every business function, channel, and language.

It is built on Microsoft Azure using core Azure data and AI services. It can be deployed on your Microsoft Azure cloud and can be quickly configured to set to connect to your data sources. You also have the ability to configure and adapt the agents for your business function context, enable search across documents, structured data, online sources and also be configured for topics and multi modal content ( video, images).

App Overview • Powers intelligent conversations across business functions like HR, Finance, IT, and Customer Service • Understands complex queries by accessing structured and unstructured data across systems • Executes tasks autonomously, integrates with enterprise tools and APIs to take action • Reduces cost through hybrid model orchestration and efficient RAG pipelines • Scales across channels, personas, and languages with configurable workflows • Supports video, image, online search. Easily configure data sources and modes.

Capabilities Language Agnostic Multi Sources Retrieval Extracts relevant answers from enterprise data, documents, and APIs Muti-Modal Agentic RAG Combines hybrid search, real-time queries, and cached knowledge

Flexible Model Usage
Hybrid and configurable use of models

Reliable and Highly Accurate Agentic AI with recursive reasoning and fact-checking for reliability

Configurability Fully Configurable use cases, topics and retrieval methods.

Guardrails and Enterprise Compliance Built-in monitoring, privacy filters, logging, and governance guardrails

Features and Innovations Highly configurable – Use case agnostic • Seamlessly configure query types, retrieval strategies, and response logic • High configurability ensures broad coverage across products, services, and use cases

Low code, prompt-based Configuration

• Empower business users and citizen developers to handle change requests using natural-language interfaces • Respond rapidly to evolving business needs—no deep technical expertise required

Diverse Retrieval Mechanisms for broader Coverage • Advanced Agentic RAG Pipeline combining multi-agent orchestration, online, and cached search and handle multi-modal ( text, images, videos) • Hybrid Search: Integrates structured and unstructured enterprise knowledge • Cached FAQ: Enables ultra-fast responses via prompt-based pre-caching

Advanced Conversational AI • Adaptive, fluent, and context-aware interactions • Agentic state flow for intelligent query routing • Recursive retrieval and LLM-based validation • Multilingual support for global applicability

Architected for Performance • Intelligent orchestration engine (LLM as runtime OS) • Dynamic state routing across agents • Parallelized execution for low-latency performance at scale

AI Governance by Design

• Enterprise-grade content filtering and risk mitigation • Configurable guardrails and policy enforcement • Privacy, security, and regulatory compliance built in • Full observability with logging and traceability

Microsoft Cloud for Manufacturing

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