What are Virtual Agents? 15 Ways Businesses Can Use Them

Most companies are building AI agents wrong. While businesses rush to deploy sophisticated customer service bots, they’re missing a crucial insight: the most successful AI implementations aren’t about creating perfect digital employees—they’re about knowing when to let humans take over.

The difference between AI agents that actually work and expensive tech failures comes down to one thing: understanding that smart AI knows when to be dumb. Companies that grasp this concept are seeing real returns, while others watch customers hang up in frustration despite spending thousands on cutting-edge technology.

What is an AI Virtual Agent?

An AI virtual agent is a computer program that handles customer conversations like a human would. It picks up the phone, answers questions, books appointments, and knows when to escalate tricky situations to real people.

Unlike basic chatbots that follow scripts, AI virtual agents understand context and can have actual conversations. They use natural language processing to get what you’re asking for, even when you don’t say it perfectly.

Virtual Agent vs. Chatbot vs. Virtual Assistant

Chatbots are the simple ones. They follow pre-written scripts and break down when you ask something they weren’t programmed for. Think "Press 1 for hours, Press 2 for directions" but in text form.

Virtual Assistants like Siri or Alexa are built for personal use. They’re great at setting reminders and playing music, but they’re not designed to handle business conversations or integrate with your company’s systems.

AI Virtual Agents are the business-focused solution. They understand your industry, connect with your business apps, and know when to bring in human backup. They’re built to actually solve customer problems, not just chat. While AI voice assistants outperform traditional phone systems, the best ones achieve the perfect balance between AI and human agents.

There’s a reason 51% of consumers prefer talking to bots for quick answers - they get responses immediately without waiting on hold. Modern conversational AI capabilities pick up on context and tone, while natural language processing lets AI understand what you mean, not just what you say.

Tools That Dominate Every Industry

Shopping for AI feels like buying a car from someone who only speaks in technical specs. These tools can significantly enhance your tech stack, but choosing the right one is crucial. Here’s what these tools actually do and who should use them.

1. AI Receptionist from Smith.ai

A hybrid AI-human system designed for reliability in sectors where errors carry significant consequences. The platform combines AI-driven call routing with live agent intervention for nuanced decision-making.

Key Features:

• Multichannel Support: Handles calls, SMS, live chat, and social media messages via platform integrations
• Lead Qualification: Uses customizable scripts to screen leads, schedule appointments, and collect payments while syncing data to CRMs
• Spam Filtering: Blocks unwanted calls and redirects genuine inquiries to human agents during complex scenarios
• Bilingual Support: Offers multiple language support with call summaries logged in real-time

Ideal For: Law firms, medical practices, and service businesses prioritizing compliance and client trust.

2. ChatGPT

A versatile large language model adept at text generation, summarization, and coding. While powerful, it requires technical expertise to deploy effectively in business contexts.

Key Features:

• Content Automation: Generates drafts for blogs, reports, and marketing copy, though outputs may require fact-checking
• Code Assistance: Debugs and writes code snippets in multiple programming languages via plugins
• Multimodal Inputs: Processes images, voice, and documents for various tasks

Ideal For: Developers and technical teams building custom AI applications.

3. Google Assistant for Business

Optimized for voice-first interactions in environments where users are multitasking.

Key Features:

• Hands-Free Task Management: Sets reminders, initiates calls, and controls smart devices via voice commands
• Workspace Integration: Syncs with calendar and email systems to manage schedules and updates
• Custom Commands: Creates shortcuts for repetitive tasks

Ideal For: Logistics, field services, and retail sectors requiring voice-activated productivity.

4. Amazon Alexa for Business

A voice assistant integrated into Amazon’s ecosystem, widely adopted in hospitality and retail for its familiarity.

Key Features:

• Smart Office Controls: Adjusts lighting, temperature, and conference room bookings via enabled devices
• Guest Services: Provides voice-activated service requests and recommendations
• Cloud Connectivity: Links to cloud services for predictive maintenance and automation

Ideal For: Hotels, retail chains, and warehouses leveraging Amazon’s infrastructure.

5. Microsoft Cortana

A productivity tool deeply embedded in Microsoft’s ecosystem, ideal for enterprises using their suite of products.

Key Features:

• Email Integration: Schedules meetings, prioritizes emails, and generates summaries using natural language
• Analytics Integration: Answers data queries verbally for business intelligence
• Enterprise Security: Complies with enterprise-grade encryption and access controls

Ideal For: Organizations reliant on Microsoft products seeking voice-enabled workflow automation.

6. IBM Watson Assistant

An enterprise-scale solution with advanced NLP and integration capabilities, suited for complex customer journeys.

Key Features:

• Omnichannel Deployment: Embeds chatbots into websites, mobile apps, and call centers
• Contextual Awareness: Uses sensor data to personalize responses
• Cloud Integration: Scales with discovery tools for document analysis and detection

Ideal For: Financial institutions, healthcare systems, and telecoms requiring robust AI governance.

7. Salesforce Einstein

An AI layer within Salesforce CRM, automating sales pipelines and customer interactions.

Key Features:

• Predictive Lead Scoring: Ranks leads based on historical conversion data
• Automated Follow-Ups: Sends personalized emails and reminders using past interaction patterns
• Service Analytics: Identifies trending support issues and recommends solutions

Ideal For: Salesforce users aiming to enhance CRM efficiency without third-party tools.

8. Intercom

A conversational platform specializing in real-time customer engagement across multiple channels.

Key Features:

• AI Agent: Resolves common queries using generative AI and escalates complex issues to agents
• Product Tours: Guides users through software features with interactive walkthroughs
• Unified Inbox: Manages conversations from various platforms in one interface

Ideal For: SaaS companies and e-commerce brands prioritizing live chat support.

9. Zendesk Answer Bot

Focuses on reducing support ticket volume by resolving repetitive inquiries autonomously.

Key Features:

• Knowledge Base Linking: Directs users to help articles using AI-curated suggestions
• Escalation Protocols: Transfers unresolved queries to human agents with full conversation history
• Multilingual Support: Answers questions in multiple languages

Ideal For: Companies with extensive documentation seeking ticket deflection.

10. ManyChat

A social media-centric tool automating conversations on major social platforms.

Key Features:

• Visual Flow Builder: Designs chatbots with drag-and-drop templates for promotions and surveys
• Broadcast Campaigns: Sends bulk messages to segmented audiences based on engagement history
• Payment Integration: Collects subscriptions and payments via payment processors

Ideal For: Influencers, small businesses, and e-commerce stores targeting social media audiences.

11. Dialogflow

A developer-centric NLP platform for building custom voice and text assistants.

Key Features:

• Intent Recognition: Maps user phrases to predefined actions
• Phone Gateway: Routes calls to AI agents with text-to-speech capabilities
• Cloud Integration: Leverages speech and AI services for advanced model training

Ideal For: Tech teams creating branded chatbots or voice assistants.

12. Rasa

An open-source framework offering full control over chatbot logic and NLP models.

Key Features:

• Custom ML Pipelines: Trains models on proprietary data for industry-specific terminology
• Dialogue Policies: Manages multi-turn conversations with conditional branching
• Self-Hosted Deployment: Ensures data privacy by hosting on-premises servers

Ideal For: Enterprises with unique compliance requirements or niche use cases.

13. Botpress

A low-code alternative with pre-built modules for common workflows.

Key Features:

• Modular Design: Adds features like sentiment analysis or payment processing via plugins
• Live Chat Handoff: Switches between bots and human agents during escalations
• Analytics Dashboard: Tracks conversation completion rates and user satisfaction

Ideal For: Mid-sized businesses balancing customization and development speed.

14. Landbot

A no-code chatbot builder focused on converting website visitors into leads.

Key Features:

• Conversational Forms: Replaces static forms with interactive quizzes and surveys
• A/B Testing: Compares chatbot versions to optimize conversion rates
• Integration Support: Connects to email marketing tools and CRM systems

Ideal For: Marketing teams aiming to capture and nurture leads.

15. Voiceflow

Specializes in designing voice assistants for smart speakers and phone systems.

Key Features:

• Voice Prototyping: Simulates conversations with text-to-speech previews
• API Toolkit: Integrates with communication platforms and custom APIs for deployment
• Team Collaboration: Allows multiple developers to co-edit dialogue flows

Ideal For: Contact centers and developers creating voice-first experiences.

Most of these tools solve specific problems really well. But AI-led, human-backed models work better for businesses that need reliability over features.

Industries Getting It Right

Law firms need AI that understands confidentiality. AI virtual agents handle client intake and scheduling while following strict protocols, because legal mistakes are career-ending.

When someone’s water heater breaks at midnight, they’re calling the first company that picks up. AI phone receptionists manage schedules and know which problems need immediate attention.

Healthcare AI walks the tightrope between helpful and compliant. It handles appointment scheduling and basic information while following HIPAA rules and reducing administrative work.

The results speak for themselves: 71% of customers are satisfied with AI-powered support when it actually works. Bad AI makes customers angrier than no AI at all, but when done right, customers don’t even care if they’re talking to AI or humans - they just want their problem solved.

How to Actually Succeed

Most businesses shop for AI features instead of solutions to actual problems. Hybrid AI-human strategies work best for companies that can’t afford to get customer service wrong.

Choose the Right Model

• If your business depends on trust and relationships, you need AI that knows when to bring in human receptionists
• Consider your pain points: What questions do you answer repeatedly? What calls come at inconvenient times?

Setup Smart

• Plan for 2-4 weeks to get everything working properly
• Start with your most common scenarios first, then expand as the AI learns your business patterns

Train Continuously

• AI gets smarter by handling real situations, but bad training creates bad habits
• Human-backed systems work better because professional receptionists catch problems before they become patterns

Ready to Get Started

The hardest part about implementing AI isn’t the technology. It’s admitting that your current customer service probably isn’t as good as you think it is.

Book a free consultation to see how the AI Receptionist from Smith.ai handles your specific situation. Or email hello@smith.ai to discuss what you need. The goal isn’t to replace human judgment, but to make sure every customer gets help when they need it.