What is conversational AI?

Conversational AI refers to artificial intelligence systems that are specifically designed to engage in dialogue with users, often through natural language processing and understanding. These systems can take the form of chatbots, virtual assistants, and other interfaces that allow users to interact conversationally, using text or speech. Their primary purpose is to facilitate communication and create an interactive experience, enabling tasks such as customer service, personal assistance, and information retrieval.

While the other choices mention applications of AI, they do not encapsulate the unique interactive function that defines conversational AI. Financial advice systems may use AI but are not primarily conversational in nature. Data analysis AI focuses on interpreting data rather than engaging in dialogue, and database management systems do not pertain to conversational interaction at all. Therefore, the focus on dialogue and user engagement solidifies the definition provided in the correct answer.