Microsoft Azure AI Fundamentals (AI-900) Practice Exam

What is the term for an automated chat system designed to answer queries about refunds and exchanges?

1. Natural language processing

2. Conversational AI

3. Machine learning model

4. Chatbot framework

The correct answer is: Conversational AI

The term for an automated chat system designed to answer queries about refunds and exchanges is "Conversational AI." This refers to a subset of artificial intelligence that focuses on enabling computers to engage in human-like conversations. Conversational AI systems, which often include chatbots, are designed to understand, process, and respond to natural language inputs from users, making them especially useful for customer service applications where users may have queries related to financial transactions, such as refunds and exchanges. Conversational AI encompasses advanced techniques such as natural language understanding and dialogue management, allowing these systems to provide more accurate and context-aware responses. As individuals interact with such systems, they expect a level of conversational flow and understanding that mimics human interaction, which is precisely what conversational AI aims to achieve. While other terms mentioned are relevant to AI development, they do not specifically encapsulate the functionality and engagement level provided by an automated chat system focused on customer inquiries. For instance, natural language processing is a technology that enables computer understanding of human language but does not by itself create a conversational agent. Similarly, a machine learning model might underlie the functioning of conversational AI, but it describes a broader concept involving training systems on data rather than the interactive dialogue focus of conversational AI. A chatbot framework typically refers