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What is RAG? A Deep Dive into Retrieval Augmented Generation

The field of AI is advancing rapidly, especially in large language models. Prominent models like GPT-3 and GPT-4 have impressive capabilities in generating coherent, human-like text. However, these models face a significant limitation: they rely solely on the data they were trained on, often leading to outdated or contextually incorrect information. As a result, the quest for more accurate, real-time, and contextually aware models has led to the emergence of Retrieval Augmented Generation (RAG).

RAG combines the generative power of large language models with the precision of information retrieval systems. By augmenting the generative model’s responses with real-time, relevant data fetched from external knowledge bases, RAG opens up new possibilities for generating accurate, up-to-date, and contextually rich information. In this article, we’ll dive into what RAG is, how it works, and why it is a game-changer in the world of AI.

What is Retrieval Augmented Generation (RAG)?

At its core, Retrieval Augmented Generation is a hybrid approach that fuses two powerful AI techniques: information retrieval and text generation.

Traditional language models, such as GPT-3, rely on vast amounts of pre-trained data. While these models are adept at producing fluent and coherent responses, they are limited by the static nature of their training data. As a result, they may produce factually incorrect or outdated information, often referred to as “hallucinations.”

RAG addresses this limitation by incorporating a retriever component that pulls in real-time, relevant information from external knowledge sources. The generative model then processes this information, producing responses that are linguistically accurate and grounded in factual, up-to-date content. In other words, RAG enhances the response generation process by accessing current data, reducing the likelihood of producing incorrect or irrelevant outputs.

The concept is simple: instead of solely relying on a model’s “memory,” RAG taps into a dynamic source of knowledge to improve the quality of its outputs. This combination of retrieving information and generating text leads to a far more robust, accurate, and context-aware language model.

Key Components of RAG

To understand how RAG achieves its enhanced capabilities, it’s important to break down its three core components:

Retriever

The retriever is responsible for fetching relevant content from external data sources. These sources could be anything from a curated knowledge base (like Wikipedia) to domain-specific repositories (like legal documents or scientific papers). The retriever scans the available information and identifies which passages or documents are most relevant to the query. This step ensures that the model can access up-to-date and contextually appropriate data.

Generative Model

The generative model works in conjunction with the retriever to synthesize responses. Unlike standalone generative models, which rely solely on pre-trained data, the generative component of RAG integrates the retrieved information into its output. This results in responses that are coherent and factually accurate, addressing one of the major challenges faced by traditional language models.

Knowledge Base

The quality and scope of the knowledge base are critical to RAG’s success. Whether it’s an internal database, a collection of documents, or an open-source platform like Wikipedia, the knowledge base serves as the retriever’s resource pool. The richer and more diverse the knowledge base, the better the retriever can perform in delivering accurate information to the generative model.

How Does Retrieval Augmented Generation Work?

RAG operates in two key phases: retrieval and generation. 

Retrieval 

The first step in RAG is retrieving relevant information. When a query is made, the system doesn’t immediately generate a response like a traditional language model would. Instead, it first identifies and pulls data from a vast pool of external sources, such as a knowledge base, a document repository, or even the web.

This retrieval process is powered by retriever models, typically trained using techniques like dense passage retrieval (DPR). These models learn to efficiently search through vast amounts of unstructured text to locate passages or documents that are most likely to contain relevant information. The key is that the retriever does not provide a final answer—it merely presents the most relevant chunks of data to the generative model.

Generation 

Once the relevant information is retrieved, the generative model steps in. The role of the generative model, often a transformer-based architecture like GPT-3 or GPT-4, is to synthesize a coherent, natural language response. It does this by combining the retrieved information with its own pre-trained knowledge.

The generative model takes into account the context of the query and the retrieved data, integrating them to produce a well-rounded response. This fusion of information retrieval and generation ensures that the model’s output is fluent, accurate, and up-to-date information.

Together, these two steps create a system that produces responses with higher accuracy and relevance than purely generative models. RAG effectively bridges the gap between static knowledge inherent in traditional models and dynamic, real-time information retrieval systems.

What Are the Benefits of Using Retrieval Augmented Generation (RAG) Over Standard Generative Models?

RAG offers several distinct advantages over traditional generative models, making it a powerful tool for a variety of applications. Some key benefits include:

Better Responses with Increased Accuracy

One of the most significant advantages of RAG is its ability to produce more accurate responses. By retrieving relevant data from external sources, RAG reduces the likelihood of generating incorrect or outdated information. This makes it ideal for applications that require up-to-date and factual content, such as customer support, research, and legal analysis.

Reduced Hallucination

Traditional language models sometimes generate information that seems plausible but is entirely fabricated. This phenomenon, known as “hallucination,” can be problematic in critical applications like healthcare or finance. RAG mitigates this issue by grounding its responses in real data retrieved from reliable sources, resulting in more trustworthy outputs.

Context-Awareness

RAG’s retrieval mechanism allows it to provide more contextually relevant responses. Instead of generating generic answers based solely on pre-trained knowledge, the model tailors its output based on the specific information retrieved from external data sources. This leads to a more personalized and context-aware user experience.

Dynamic Knowledge Access

Unlike traditional models that require retraining to incorporate new data, RAG can access dynamic, real-time information without the need for extensive retraining. This flexibility allows it to adapt to new developments, such as changes in legal regulations, market trends, or scientific discoveries, making it more suitable for industries where information is constantly evolving.

Conclusion

Retrieval Augmented Generation represents a significant leap forward in the evolution of AI language models. By combining the strengths of information retrieval systems with the power of generative models, RAG produces responses that are not only coherent and contextually relevant but also grounded in accurate, up-to-date information. This hybrid approach has the potential to revolutionize a wide range of industries, from customer support and legal analysis to research and education.

As the availability of large, diverse datasets continues to grow and retrieval mechanisms improve, RAG will likely become an essential tool in the AI toolkit. Its ability to dynamically integrate new information, reduce hallucination, and provide context-aware responses makes it a promising solution for the next generation of AI-powered applications. The future of language models is not just about generating text—it’s about generating the right text, and RAG is leading the way in this exciting new frontier.


Are you ready to take the next step toward call automation with Conversational AI? Schedule a free demo with one of our experts to learn more!

What Are the Most Important Integrations for a Conversational AI Platform?

You are ready to adopt a Conversational AI or Voice AI solution for your contact center, or you are in the process of adopting one—congratulations! Now is the time to think about integrations. In this article, we’ll discuss the benefits of integrating your Conversational AI platform with various tools and applications to transform your tech stack into an ecosystem, and we’ll offer some guidance on where to get started.

What Are Conversational AI Integrations?

Integrations are the systems and processes that connect the Conversational AI platform or software with other tools or applications you may be already using, so they can work together seamlessly. Integrations enable you to view, exchange, and control data from multiple sources; they augment your system’s capabilities, ensuring a more unified and efficient workflow, and enabling the automation of work that would otherwise have to be done manually.

There are different ways to build an integration—for example, via APIs or through RPA.

The Most Important Conversational AI Integrations

Integration with internal systems is the top criterion considered when selecting a Conversational AI platform provider, according to research by Gartner.

The most common types of integrations for Conversational AI are required for customer relationship management (CRM) systems, payment gateways, telephony platforms, speech analytics tools, and messaging tools. In this article, we’ll explain the role and importance of integrations and go over the most common types for various use cases.

What Are the Benefits of Integrating a Conversational AI Platform with Other Tools and Applications?

For a seamless collaboration between live agents and voicebots or chatbots, your business requires various tools that perform different functions while working well together. Through integration between tools, the entire process can be as smooth and efficient as possible.

The main benefits of integrating your Conversational AI platform with other tools and applications are:

  • Ensuring a better customer experience, as the virtual agent will be able to perform multiple tasks and better serve the user or consumer.
  • Maximizing the personalization of each interaction, as the virtual agent will be able to address users by name, easily access their records, and base its interactions on context.
  • Automating several tasks, freeing the contact center’s staff of the administrative burden.
  • Generating automated metrics and real-time analytics to track the performance of the calls and maintaining records of all consumer interactions.

3 Things To Consider When Thinking About Conversational AI Integrations

Stay lean at first. The number-one tip for companies adopting a Conversational AI solution is to avoid focusing too much on integrations at the beginning of the adoption process. This is because when you adopt a new technology, it’s important you focus on gaining experience with it and fully understanding how it can benefit your business before you invest a lot of time and money in integrating it with several other tools and platforms. First, implement the solution with the most necessary integrations, and then you can start investing in the heavier ones.

Flat-file transfers. Since integrations can be resource intensive, at first you might prefer to rely on flat-file transfers to execute your campaigns with the Conversational AI solution. Flat-file transfers via a Secure File Transfer Protocol (SFTP) are easy to execute and enable you to start using the solution immediately.

Data privacy. Data privacy and data protection are elements that you should always keep in mind when integrating different systems. You want to secure the data against unauthorized access, adopting processes like encryption, secure communications protocols, and relevant security policies.

The Most Important Integrations for a Conversational AI Platform

Conversational AI Integration with Customer Relationship Management (CRM) Systems

Companies use CRM software to gather, organize, and manage customer information. The primary benefit of integrating your Conversational AI solution with your CRM system is to easily personalize all calls, whether outbound or inbound, and automate them end-to-end.

For outbound calls, for example, the virtual agent can gather the customer’s information from the CRM and address them by name: “Hi John, this is a virtual agent calling from…” The CRM also feeds the AI solution more detailed information and context on the customer’s account and history based on the use case.

For a debt collection agency, for example, the virtual agent can gather information about the consumer’s debt and the outstanding balance.

Examples of CRM systems are HubSpot, Salesforce, Zoho, Finvi, InterProse, Latitude, Simplicity, Freshdesk, and Zendesk.

To avoid API setup, you can integrate your CRM via robotic process automation (RPA). You can learn more about robotic process automation (RPA) in our dedicated blog post.

Conversational AI Integration with Telephony Platforms

Every company with a contact center operation has a telephony system. Examples of telephony systems include TCN, LiveVox,  Twilio, Genesys, RingCentral, 8×8, and Five9. Integration of the Conversational AI platform with your existing telephony system is essential and can be accomplished with two different methods.

The first is SIP trunking, a method for making and receiving phone calls and other types of communication over the Internet. This is typically the preferred method to handle AI-powered calls, but some telephony systems may not be compatible with it.

The other one is PSTN call forwarding, i.e. the public switched telephone network, an advanced network of telephone lines, switching centers, and cable systems to enable connectivity between phone devices. This solution is less flexible than SIP trunking and presents several limitations, but it can be faster to implement. Some businesses may start with PSTN call forwarding and later upgrade to SIP trunking.

Conversational AI Integration with Payment Gateways

Integrating the voicebot platform with payment gateways or payment applications improves the customer experience and ensures the completion of various transactions during the call without the need to involve a human agent. Examples of payment gateways are Payscount, RevSpring, PayNearMe, Nuvei, and IntelliPay.

Consumers can easily pay a bill either on-call or via a link to a secure payment gateway.

For debt collection use cases, this integration can be very useful, as the AI solution can assist users in making payments. This integration makes the collection process fully automated, cheaper, and smoother.

Conversational AI Integration with Messaging Platforms and SMS Solutions

To provide an omnichannel solution that allows consumers to interact with your company through their preferred channel, you’ll need to integrate the Conversational AI platform with an SMS solution. This enables the AI solution to handle inbound and outbound interactions via text message in a compliant manner.

Messaging integrations can be used both for inbound and outbound messages.

Outbound messaging:

  • Payment reminders. The solution can send text messages to remind consumers of due balances and upcoming deadlines.
  • Confirmations and receipts. After a consumer has made a payment, the solution can send a payment confirmation and receipt via email or text message. Confirmations can also be sent for any other type of transaction or request, such as a travel reservation change or a callback request.
  • Payment link. The company can send a link to a secure online payment portal via text message (SMS) or email so the consumer can complete the payment.

Inbound messaging:

  • Consumers who prefer to interact with your company via text message will be able to exchange messages with the SMS bot and receive responses in real-time.

Are you interested in learning more about how Conversational AI can benefit your business? Book a demo with one of our experts.

How To Achieve A Positive Customer Experience in Collections with AI

Debt Collection and Positive CX: Is It an Oxymoron?

Customer experience and debt collection might seem like an oxymoron at first glance. After all, for most people, the thought of being reminded about an outstanding debt is far from enjoyable. The perception of collection calls as uncomfortable or even stressful is widespread. However, just because these calls aren’t the most welcome interactions doesn’t mean the customer experience (CX) has to be negative or impersonal.

At Skit.ai, we offer an effective and easy-to-deploy Conversational AI solution for debt collection use cases across multiple industries. There are many ways to make the interaction between a user and an AI solution efficient, easy to navigate, and painless. Enhancing the customer experience is particularly important when Voice AI is used in collection calls.

In this article, we’ll share the best practices for improving CX in automated collection calls, from multichannel communication to hyper-personalization and empathy.

How Does Omnichannel Communication Improve Customer Experience?

One key element that can significantly improve customer experience in debt collection is omnichannel communication. In an age where people are more active on digital communication platforms, consumers engage with brands and businesses through multiple channels, and debt collection should be no different.

By offering communication across various channels and platforms—such as voice calls, SMS, email, and chatbots—businesses give customers the flexibility to choose the method they feel most comfortable with. Omnichannel communication allows debt collectors to meet customers where they are, improving the likelihood of engagement and making the overall experience less invasive.

Imagine a scenario where a customer receives an SMS reminder about their debt and then follows up with an email. The customer might prefer to address the issue via email rather than a phone call, where they feel less pressured. By offering a variety of touchpoints, businesses can increase their chances of successful collections while also respecting the customer’s preferences.

Omnichannel communication also enhances customer experience by ensuring consistency across platforms. With AI-driven automation, every channel can carry the same messaging tone, verbiage, and information, ensuring the customer receives clear, concise, and friendly communication regardless of how they choose to engage.

Does Hyper-Personalization Help?

Yes, hyper-personalization does help, and it’s critical in improving customer experience in debt collection.

Generic, one-size-fits-all communication is not only impersonal but can also be perceived as insensitive, especially in a context where financial difficulties may be at play. Personalization goes a long way toward making customers feel respected and understood.

With AI-driven solutions, businesses can leverage data to hyper-personalize communication at scale. Instead of a standard message, imagine a conversation where the system addresses the customer by name, acknowledges their specific payment history, and offers tailored payment options that suit their financial situation. This type of personalization demonstrates a level of care and understanding that significantly softens the interaction.

Hyper-personalization also allows companies to provide a more humanized experience despite the conversation being led by AI. In debt collection, where emotions might run high, personalization can reduce friction and make the experience feel less transactional.

Can AI-Powered Collection Conversations Be Empathetic?

A key misconception about automated debt collection calls is that they can’t be empathetic. In reality, empathy is a cornerstone of positive customer experience, and it can absolutely be incorporated into AI-driven collection conversations.

Empathy in debt collection is not about avoiding the subject of payment—it’s about understanding the customer’s perspective and approaching the conversation with sensitivity. A well-designed AI solution can include language that acknowledges the customer’s situation and offers helpful solutions.

For instance, instead of a robotic, “You owe $X, please pay now,” an empathetic AI solution might say, “We understand that managing finances can be challenging. We’re here to help you resolve your outstanding balance in a way that works best for you.” 

This shift in tone not only makes the conversation feel more supportive but also increases the likelihood of cooperation from the customer. When customers feel that the company understands their challenges, they are more open to resolving their debt.

3 Essential Tips to Ace Customer Experience in Collections

Here are three essential tips for improving customer experience in debt collection communications:

Use Conversational AI to Personalize at Scale

Personalizing each conversation is crucial in making the interaction feel human. AI can gather and analyze data to tailor responses based on each customer’s specific situation, allowing businesses to deliver personalized communication at scale. 

For instance, instead of sending a generic reminder message, the AI can address the customer by name, reference their unique account details, and provide tailored options for resolving the outstanding debt. A message like, “Hi Sarah, we noticed that your last payment was on August 10th. Would you like to set up a payment plan to clear your remaining balance?” is much more engaging than a cold, “Your payment is overdue.” This simple gesture of personalization can dramatically improve the customer’s perception of the interaction and increase their willingness to cooperate.

In addition, AI can adjust its tone and language based on the customer’s previous interactions and responses. This adaptability ensures that customers feel understood and that the communication remains relevant and respectful, no matter where they are in their debt repayment journey. Personalized interactions also show the customer that their individual circumstances matter, which can help build trust and encourage more positive outcomes.

Incorporate Empathy in Your AI Conversations

Incorporating empathy into debt collection conversations is not just a nice-to-have; it’s a necessity for improving customer experience. Collections can be a stressful and emotional process for customers, and if the communication lacks empathy, it can feel cold, impersonal, and even confrontational. While many assume that AI can’t be empathetic, the truth is that empathy can be programmed into AI solutions, making the interactions feel more supportive and human-like.

Empathy in collections doesn’t mean avoiding the topic of debt—it’s about acknowledging the customer’s situation and offering constructive, respectful solutions. AI can be designed to recognize and respond to emotions, such as frustration, confusion, or anxiety, and modify its responses accordingly. For example, if a customer indicates they are struggling financially, the AI can respond with understanding and offer helpful alternatives, such as extended payment plans or reduced payment options.

For instance, instead of saying, “You are overdue on your payments,” an empathetic AI might say, “We understand that managing finances can be challenging. Let’s explore options that might help you with your current situation.” This shift in language not only makes the customer feel heard but also reduces the adversarial nature of the conversation.

Additionally, empathy can improve the likelihood of successful debt resolution. When customers feel that the company is genuinely trying to help them rather than simply collecting money, they are more likely to engage and cooperate. Empathy can turn a typically stressful interaction into an opportunity for the company to demonstrate care, which in turn, fosters customer loyalty and retention.

Offer Omnichannel Communication for Flexibility

Omnichannel communication is another essential strategy for improving customer experience in debt collection. Customers today expect the convenience of interacting with businesses on their terms across multiple platforms. By offering communication across various channels—such as voice calls, SMS, email, or chat—businesses can cater to individual preferences and make the collection process more comfortable and accessible for the customer.

For example, some customers may prefer the immediacy and directness of a phone call, while others might feel more comfortable responding to a less intrusive text message or email. Giving customers the choice of how to engage with the collection process enhances their sense of control and makes the interaction feel less invasive. The more flexible and convenient the communication options, the more likely customers are to respond positively.

Omnichannel communication also allows for a more seamless and consistent customer experience. Whether a customer interacts with a voicebot over the phone, sends a message via SMS, or replies to an email, the AI-driven system ensures that the same tone, information, and context are maintained across all channels. This consistency is key to building trust and ensuring that customers don’t feel like they are being bombarded with conflicting messages.

Omnichannel flexibility also provides a safety net for businesses. If one communication method is unsuccessful, the AI can follow up via another channel, increasing the chances of customer engagement. For instance, if a customer doesn’t respond to an email, the system can trigger an SMS reminder, ensuring the message gets across while maintaining a respectful distance.

Conclusion

Debt collection doesn’t have to come at the cost of customer experience. With the right tools and strategies, such as AI-driven automation, hyper-personalization, omnichannel communication, and empathetic language, businesses can turn even the most challenging conversations into opportunities to build trust and rapport with their customers.

At Skit.ai, we’re redefining the art of collection communication, ensuring that positive customer experiences remain a top priority, even during difficult conversations. Skit.ai is not just a leader in Conversational AI; we are innovators committed to empowering businesses with advanced AI technologies. By simplifying customer interactions with data-driven strategies and reaching users through their chosen communication channels, we help businesses achieve better collections and improve their operations. As we continue to evolve, we remain dedicated to driving success for our clients and setting new standards in the industry.


Are you ready to take the next step toward call automation with Conversational AI? Schedule a free demo with one of our experts to learn more!

Beyond Automation: Embracing Conversational AI for Smarter, More Efficient Debt Collections

Over the past year, debt collection agencies have started using Conversational AI as part of their AI adoption strategy to enhance their collection processes. Early adopters have already seen significant benefits from adopting this technology.

Recently, there has been a substantial advancement in the AI industry with the introduction of large language models (LLMs). These models and Generative AI-powered communications are enabling businesses to leverage Conversational AI solutions for even more strategic, personalized interactions with consumers.

This new approach to consumer communication stems from the need for a more focused and optimized collection strategy tailored to each account. By personalizing strategies based on an account’s payment and response behavior, agencies can achieve maximum results with minimal input. This strategy also guides agencies on which channels to use and the optimal times of day for engagement.

Multichannel Conversational AI platform powered by Generative AI represents the next significant leap for the collection industry. In this blog post, we’ll explore how this technology is evolving and how collections can benefit from these advancements.

How is Conversational AI Changing Debt Collections Forever?

Improved Collections with Enhanced CX: Creditors and collection agencies can increase contact rates and engagement levels by leveraging multiple communication channels. This improved communication strategy, in turn, fosters a positive customer experience, as debtors receive timely responses and can resolve their accounts more easily. Enhanced customer experience facilitates debt resolution and strengthens the agency’s reputation and strategic relationships.

Analytics for Optimized Scalable Outreach: With GenAI-powered communications, collection agencies can engage with consumers at scale using a strategy tailored to each account’s payment and engagement history. This approach guides agencies and creditors on the optimal channel and time of day for engagement.

Contextual Conversations Across Channels: Multichannel communications enable collection agencies to interact with consumers through various channels such as voice, SMS/text, and email. More importantly, with Multichannel Conversational AI, agencies and creditors can maintain context across all channels, ensuring consistent and coherent communication.

Compliance and Risk Mitigation: Utilizing a multichannel approach for debt collection not only promotes efficiency and effectiveness but also helps businesses comply with evolving regulations in a fast-changing industry. Every communication is documented and traceable and remains within regulatory limits with centralized consumer interactions.

Agencies can stay compliant in many ways with the multichannel approach for communication with consumers. For instance, the 7-in-7 rule mandates that debt collectors cannot contact consumers more than seven times within seven consecutive days. Similarly, the Mini Miranda rule stipulates that collectors must disclose their identity and the purpose of their communication during contact. 

Agencies can drive campaigns through various channels, stay compliant with these laws, or even efficiently track and regulate outreach frequencies with each consumer.

Managing Inbound Queries and Ensuring 24/7 Availability: Multichannel communication ensures that consumer queries are promptly addressed whenever they reach out, be it on weekends or after work hours. Whether it pertains to payments or other inquiries, AI software can answer consumer queries, ensuring zero wait times and seizing every collection opportunity. Chat options provide consumers with a self-serve menu, enabling them to address basic FAQs and clarify queries easily.

Cost of Collection: Multichannel Conversational AI significantly reduces the cost of collection by streamlining workflows, optimizing agent bandwidth, and minimizing manual intervention. By automating repetitive tasks and leveraging multiple communication channels, AI-driven software enhances operational efficiency and reduces overhead costs associated with debt collection processes.

Why You Should Consider Conversational AI

A Conversational AI platform comes with other remarkable benefits. Here are a few: 

Minimize Compliance and Legal Exposure

Conversational AI has the potential to improve compliance and reduce the risk of legal issues for agencies. The debt collection space is heavily regulated, and collectors must follow strict compliance rules. With our Conversational AI platform, compliance rules and guidelines such as call frequency, the Mini-Miranda, and other important regulations — both at the federal and state levels — are built into the technology to ensure the Conversational AI solution follows them. Conversational AI never goes off-script and never has a bad day, protecting both the consumers and the agencies.

Identify Underperforming Consumer Segments

With a Conversational AI platform, agencies can balance outreach efforts more effectively by identifying which consumer segments are underperforming. This enables businesses to allocate resources where they can have the most impact, increasing overall collection efficiency.

Establish Better Consumer Engagement

Businesses can identify the optimal channels and times to reach consumers, enhancing engagement. By understanding consumer behavior and preferences, the Conversational AI platform ensures that outreach efforts are more likely to succeed, leading to higher collection rates. 

Define Effective Strategies

The Conversational AI platform helps define optimal strategies for collection campaigns, whether through automation, human outreach, or a combination of both. This tailored approach ensures that each campaign is designed to maximize its effectiveness based on the specific needs and behaviors of the target audience.

Forecast Revenue and Recovery

The Conversational AI platform can accurately forecast revenue and recovery rates, helping agencies plan and budget more effectively. It also aids in reducing charge-offs by predicting which accounts are most likely to be collected and focusing efforts accordingly.

Unlock Unprecedented Automation

One of the main benefits of Conversational AI in debt collections is that it automates much of the manual work involved in the recovery process. Debt collectors can use AI to automate tasks such as calling consumers, sending out payment reminders, and recording consumer interactions. This saves time and allows collectors to focus on more complex tasks, such as negotiating payment plans and resolving disputes.

How to Choose the Right Conversational AI Platform for Your Company

Thanks to large language models (such as ChatGPT and Google’s Gemini), it’s never been this easy for Conversational AI providers to build new bots. Since these LLMs are available to all, conversational quality has become a simple function of cost.

Below are some of the things you want to consider when onboarding a Conversational AI platform for your collection operation:

The Conversational AI solution…

  • Speaks to Your Customer Base: An essential criterion for a Conversational AI platform is that it needs to be able to talk to your customers. If your customers are primarily Spanish-speaking, for example, you need to ensure that your provider has the capabilities to cater to a multilingual customer base.
  • Integrates to Existing Infrastructure: Personalization is crucial. Your AI provider needs to be able to integrate with your CRM platform, whether you are using Automaster or Dealersocket. Only then can it engage using your customer’s updated information. An integrated platform can also record details of customer interactions in CRM, removing a lot of agent effort.
  • Processes Payments Securely: The platform needs to integrate with your payment gateway and secure sensitive transaction information to collect payments from customers. The provider should be able to integrate with standard payment gateways such as PayNearMe. You can verify transaction data safety by ensuring that they have PCI-DSS certification.
  • Is Familiar with the Debt Collection Industry: A referral is always an excellent way to gain trust with the platform provider. You can always find out if your provider is working with any of your peers; either ask for feedback directly from your peers or ask the provider to arrange a reference call.
  • Offers After-Sales Service: Just like when you purchase a car, it’s important to check if there is an after-sales service for your Conversational AI platform. Ask for SLAs to understand the response time in case of any issues. You should verify if a Customer Success team will be assigned to you. Arrange a regular meeting with the Customer Success team to help them understand your expectations.
  • Provides a Timeline of Deployment: Before onboarding a vendor, explain your existing call center infrastructure (dialer, CRM, payment gateways) and ask for a timeline of deployment. It is critical to gauge any kind of IT effort or roadblocks to a seamless integration. Extended timelines and extensive IT effort increase costs and lead to loss of estimated value.

Make the Right Choice 

Conversational AI technology is remarkable and has proven invaluable in our industry and beyond. With the widespread availability of LLMs, numerous companies are now offering GenAI-powered Conversational AI solutions with various marketing buzzwords.

However, for a collection agency, choosing the right Conversational AI vendor is crucial. They must carefully evaluate their options to gain a competitive edge and achieve tangible results within weeks.

Conversational AI platforms powered by LLMs and Generative AI is poised to change how collections are done in the modern world — don’t miss out!


Are you ready to take the next step toward call automation with Conversational AI? Schedule a free demo with one of our experts to learn more!

What to Look for When Purchasing a Conversational AI Solution for Collections

You’ve been exploring Conversational AI as a possibile solution to automate your debt collection agency’s operations; you’re considering adopting AI to scale outbound and inbound calls and other interactions for collections. Congratulations—you’re in the right place. What next?

A Conversational AI solution can significantly reduce your business’ collection costs and improve the success rate and duration of your collection campaigns. However, not all AI vendors are the same. How do you choose the right vendor for your company?

Given our extensive experience in the accounts receivables industry and our tech expertise, we’ve put togehter a list of criteria to consider when meeting with providers and choosing the best one to move forward with, from the understanding of your business operations to technical capabilities.

If your Conversational AI vendor doesn’t fully understand the collections space, you’ll end up being heavily involved in every step of the process, causing delays, higher costs, and a disappointing return on investment.

Compliance with Debt Collection Regulations Based on Region

Collections are a highly regulated and litigious industry. The first thing to look for in any AI provider that handles collections is the company’s level of understanding of the existing laws related to collections in your region.

An AI-powered digital assistant handling outbound collection calls and messages can be designed to comply with consistency and precision that human agents can hardly achieve. However, it’s important to check whether the provider is up to date with the current laws.

For example, some of the collections-related regulations in the United States are:

  • Telephone Consumer Protection Act
  • Fair Debt Collection Practices Act (FDCPA) and Reg F
  • Payment Card Industry (PCI) compliance
  • Health Insurance Portability and Accountability Act (HIPAA)

Some of the regulations for Canada-based collections are:

  • Personal Information Protection and Electronic Documents Act (PIPEDA)
  • Canada’s Anti-Spam Legislation (CASL)
  • Canadian Radio-Television and Telecommunications Commission: Key Unsolicited Telecommunications Rules

Provider’s Understanding of the Collections Space

This point goes beyond regulations: How well does the Conversational AI provider know and understand the collections space as a whole? Their understanding of the structure and overall operations of a collection agency will be a helpful factor in the collaboration between your business and the provider.

The provider should understand the agency’s structure, the challenges related to employee retention and call scalability, and the best practices for outbound collection calls. This way, you can trust that they will design an optimal conversation flow to facilitate your collection efforts.

Different factors, such as the type of debt and the age of the debt, may affect the conversation design.

Ability to Handle End-to-End Conversations

The Conversational AI solution needs to be able to handle interactions with consumers from start to finish, without any human intervention, from verifying the user’s identity to completing, to answering frequently-asked questions and completing a transaction.

The solution must be able to handle human-like, two-way conversations; its capabilities should include:

  • Right-party contact (RPC) verification
  • Promise-to-pay (PTP) capture
  • Payment collection, either on-call or via SMS link to payment gateway
  • Dispute handling
  • Settlement and payment plans negotiation

Whenever the consumer requests it or the AI solution is unable to assist, the interaction should be transferred to a live agent; however, whenever that’s not needed, the solution should be capable of handling a variety of scenarios.

Seamless Omnichannel Capabilities

To offer an outstanding customer experience and maximize recoveries, collection agencies nowadays must offer omnichannel communications, empowering consumers to interact through their preferred channels, such as voice, chat, text messaging, and email. The best practice is to meet consumers where they are, offering the convenience of self-service they expect from financial services organizations.

Voice AI is the most engaging medium among automated communication channels, and can automate phone interactions optimizing the frequency and timing of each engagement.

AI assistants can also be deployed via SMS, chat, and email, offering cost-effective solutions for businesses and convenient channels for consumers. Many consumers nowadays prefer to interact via text messaging, as they enjoy the convenience of responding whenever they want.

Omnichannel capabilities enable collection agencies to identify the best channel to contact various segments of consumers and leverage a mix of channels in a strategic manner. The solution must be able to retain context across channels, so that a consumer can start a conversation on one channel and continue it on another without losing any context.

Comprehensive Integration Ecosystem

When you adopt Conversational AI, you need to ensure it fits into your tech stack to streamline rather than complicate your collection operations. You should therefore be able to access a wide range of integrations with your other tools, such as your CRM, telephony system, SMS provider, payment gateway, and spam monitoring solution. This ensures a smooth, unified approach to consumer interactions, enhancing efficiency and effectiveness across all channels.

Actionable Analytics

Once the Conversational AI solution goes live, will you be able to easily visualize and analyze its performance and results?

As more and more users interact with the digital agents across various channels, you can gather precious data that you don’t want to waste. Your Conversational AI vendor should give you access to a dashboard to monitor the effectiveness and quality of the conversations. Actionable analytics will empower you to optimize your recovery strategy and improve your success metrics.

After Go-Live: Continued Voice AI Training

After your Conversational AI platform goes live and begins interacting with your consumers, the work is far from finished. The solution must be maintained and the technology should be further optimized to improve the conversational experience. Monitoring the solution, especially at the beginning, is needed for quality assurance purposes.

According to a recent Gartner report, failing to monitor automation tools in post-production is one of the most common mistakes companies make when implementing automation.

Additionally, it’s important to note that Conversational AI solutions are typically rolled out in multiple phases: with time, additional capabilities and use cases may be added.

Therefore, your agency will want to work with an AI provider wthat hasa clear plan for post-go-livetraining and handling.


In conclusion, watch out for these key questions to ask your Conversational AI vendor.

For more information and a free demo, you can schedule a call with one of our experts. We’ll be happy to help!

How Conversational AI Helps Collection Agencies Prepare for Tax Season

Tax season is the busiest time of the year for collection agencies. According to a recent report, at least 29% of Americans say they plan to use their tax refunds to pay off their debt. With a majority of U.S. residents receiving a tax refund from the government during this season, the number of people who will wisely take advantage of the reimbursements to pay off their debt is high.

In 2024, the average tax refund for individuals in the U.S. was $2,869.

Creditors and debt collection agencies know it’s important to take advantage of this window of opportunity to maximize their recovery rates and agency margins. During tax season, the industry usually experiences a peak in payments, paired with a general openness of consumers to engage with collectors. Many consumers will be relying on tax refunds to pay off their debt at this time of the year.

Now is the perfect time for agencies to prepare for tax season and the surge in outbound and inbound calls. In this article, we’ll explain how Conversational AI (the technology behind voicebots and chatbots) can transform tax season for the better, making it a less stressful and more profitable time for businesses performing collections.

The Challenges Collection Agencies Face Before and During Tax Season

While tax season undoubtedly represents a window of opportunity, it also presents several challenges for collection agencies. The best way for executives to tackle these challenges is to prepare in advance and to involve their collectors on the floor in these preparations.

Here are some of the most common challenges collection agencies face before and during tax season:

Hiring new collectors: To handle the surge in call volume, collection executives often seek to hire new collectors to join their staff. Hiring takes time and resources; over the last few years, it’s become more challenging to find new talent, as people are inclined to seek more flexible jobs, and salaries have become more competitive. You’ll need ample time to find new talent and train new hires.

Training staff to prepare for the season: Whether newly hired or seasoned, all collectors should receive the appropriate training before the beginning of tax season. All training materials should be easily accessible, focusing on the challenges and skills specific to this time of year.

Updating the agency’s compliance management system: Every agency should have a compliance management system, often found within the collections management software. This system is used to store and organize the current laws and regulations of the ARM industry. Before tax season begins, the agency’s compliance officer or manager should ensure that the system is up to date with the latest regulations, including state laws; outdated regulations should be removed. Additionally, this system should be easy to access and browse for collectors.

Planning a successful settlement campaign: The surge in collection volume encourages some agencies to offer small discounts for a limited time; other agencies take it to the next level by planning a wide-scale settlement campaign. For a settlement campaign, the agency focuses on a specific group of accounts, typically consumers with higher recovery rates and debt whose age falls within a specific timeframe. If the agency services third-party debt, then it also must coordinate the campaign with the original creditors. Executives must decide what balance reduction they are going to offer those consumers and the running time of the campaign. The entire process can make the agency extremely busy, and things are likely to get hectic for the collectors on the floor.

How Conversational AI Can Make Your Life Easier During Tax Season

How Conversational AI Helps Collection Agencies Prepare for Tax Season

Conversational AI, the technology behind voicebots and chatbots, has become one of the favorite automation technologies in the accounts receivables industry. Conversational AI enables creditors and collection agencies to automate both inbound and outbound conversations with consumers across multiple channels—such as voice, text, chat, and email—making it much easier for executives to scale their collection campaigns without the need to hire additional or seasonal agents.

Skit.ai’s Conversational AI solution:

  • Initiates thousands of calls and messages to consumers within minutes;
  • establishes right-party contact;
  • reminds them of the outstanding balance;
  • provides information about the debt, and
  • encourages them to make a payment or captures promise-to-pay.

The solution easily transfers calls to your live agents when needed, so they can speak to the most engaged consumers and collect payments on-call.

It’s important to note that Voice AI is not IVR (interactive voice response), an outdated and unpopular solution commonly used in customer service. Unlike IVR, Voice AI can handle intelligent, two-way conversations with consumers.

Automation of consumer interactions with Conversational AI is transforming collections across the board, as it enables collection agencies to handle many more accounts simultaneously, recovering payments at a fraction of the cost. Additionally, this technology augments the work of live collectors, who are empowered to handle more complex cases and focus on more revenue-generating accounts; whenever agents get a transfer from the AI solution, they receive the context on the consumer’s previous interaction with the voicebot in real-time.

While this technology is helpful all year round, during tax season it becomes particularly essential. Here’s why:

Make it super easy for consumers to pay. Any roadblock in the payment process can significantly hinder the recovery of the debt. That’s why customer experience plays an important role, and making the payment as easy and frictionless as possible is a priority for your agency. Multichannel Conversational AI enables consumers to use their preferred mode of communication, making the recovery process smooth and pleasant.

No need to hire additional collectors during tax season: Conversational AI enables executives and managers to scale their operations, without the need to hire additional collectors during this busy season. This way, they can continue to rely on their trusted team and get the extra help they need from the virtual agents, which are unlimited in number and can handle thousands of conversations simultaneously. Collections with Conversational AI are significantly cheaper; additionally, bots don’t take a commission!

Fewer concerns about compliance thanks to AI: Executives can worry less about ensuring compliance with laws and regulations since the platform is fully trained to comply with regulations at the state and federal levels thanks to rigid guardrails and compliance filters. Unlike live collectors, the automated agent is always compliant and does not go off script.

Execute a smooth settlement campaign at scale: With Conversational AI, collection agencies can execute a settlement campaign at scale, reaching thousands of consumers in a very short amount of time to offer the settlement and collect the payments.

What Industry Leaders Are Saying About AI for Tax Season

“We were seeking a way to boost collections cost-effectively and without the need to add additional workforce. We began by leveraging Skit.ai to run a settlement campaign during tax season this year, with the technology adapting to our seasonal needs and business model,” said Daniel Klein, CEO of Uown Leasing, a Florida-based provider of lease-to-own, flexible payment solutions for consumer products.

Klein continued: “I don’t think technology will eliminate people, but having the right point of intersection between technology and human capital is how you can scale operations and make your business successful.”

After implementing Skit.ai’s solution, the company experienced a significant surge in self-serve consumer payments directed through its online payment portal, facilitated by the AI solution.

When Should You Start Preparing for Tax Season?

While it’s never too early to get started, many agencies evaluate partners and vendors before Thanksgiving, just as the holiday season approaches and many U.S. residents are known to use their credit cards for holiday spending.

However, make no mistake: it’s also never too late! At Skit.ai, we pride ourselves on our fast and efficient implementation process. From the moment you adopt our Multichannel Conversational AI solution, you can go live and start using the platform in as little as 48 hours.


Are you ready to take the next step toward call automation with Conversational AI? Schedule a free demo with one of our experts to learn more!

How ARM Companies Can Automate Right-Party Contact with Conversational AI

What Are Connect Rate and Right-Party Contact (RPC)?

Making contact with the right consumer—right-party contact—is crucial for debt collection agencies, but it’s often more challenging than it seems. One might think a simple phone call is all it takes to speak to the consumer who owes the debt; but oftentimes, the phone number is wrong, the consumer does not answer the phone, or the wrong person picks up the phone, leading to wasted time and resources.

Connect rates and right-party contact rates are two metrics that significantly affect the outbound contact operations of a collection agency. What are these metrics?

The connect rate measures the percentage of calls that are picked up over the total outbound calls initiated. The right-party contact rate is the percentage of calls where an agent is able to connect with the target consumer, which could be either the debtor or a relative who has been given permission to handle the debt, as opposed to reaching the wrong person (wrong-party contact) or leaving a message.

Automate Right-Party Contact with Conversational AI

Right-party contact (RPC) is the most accurate measure of the effectiveness of an agency’s outbound calling efforts.

In this article, we will explore how Conversational AI technology in its various forms can efficiently automate right-party contact verification, leading to significant time and cost savings for collection agencies.

Automate Right-Party Contact with Conversational AI

Why Right-Party Contact Can Be a Challenge for Collection Agencies

Collectors know it very well: reaching consumers can be tricky.

Given the limitations imposed by local regulations—such as the TCPA and the FDCPA in the U.S. and Canada’s Key Unsolicited Telecommunications Rules—collectors can’t call debtors at any given time of the day. While timing is everything, even a well-staffed agency can only contact consumers so many times in order to reach them, as the number of available collectors is limited and you don’t want them to spend too much time trying to reach the same numbers too often.

Right-party contact can be a serious challenge for collection agencies. Collectors (and their managers) want to spend as much time as possible actually speaking to consumers and collecting payments — and as little time as possible trying to reach people on the phone. Calls not resulting in RPC don’t lead to a collection and result in an overall waste of resources.

This is where automation and artificial intelligence come into play.

How Conversational Voice AI Solves the RPC Issue for ARM Companies

With shrinking margins, high attrition rates, high inflation, and an overall competitive landscape, accounts receivables companies performing collections are looking at digital transformation and automation as valid solutions to their operational challenges.

Contact centers in all industries have been relying on automatic dialing systems (or auto dialer software) for decades. These systems make the dialing process faster and easier, boosting agent productivity; in addition to queueing calls and dialing the target number automatically, they also screen out inactive numbers, busy lines, and answering machines, drastically improving the contact center’s connect rate.

But what about right-party contact?

Once the collector reaches a consumer on the phone, they must establish whether the person they are speaking to is the right party (the consumer or debtor) or not. The right party could also be a third party (a person authorized to handle the debt or an attorney representing the debtor). This process can take a few minutes.

A Conversational AI solution can handle the actual call — rather than just the dialing process — and interact directly with the consumer, easily verifying their identity.

Once the consumer picks up the phone, the virtual agent confirms right-party contact and authenticates the consumer through their zip code, date of birth, or the last four digits of their social security number. Once the authentication is complete, the solution engages with the debtor, offering ways to pay off their debt. If needed, the solution will negotiate a payment plan or transfer the call to a live agent.

The entire process is faster and cheaper, allowing the collection agency to save on resources. It also enables live agents to focus on more complex calls and engage with consumers who are already authenticated.

You Can Automate RPCs Across All Communication Channels

Nowadays, consumers prefer to interact with businesses through various communication channels. It’s become essential for financial services institutions to offer multiple channels, such as text messaging (SMS), chat, and email, in addition to traditional phone calls.

A Multichannel Conversational AI solution can establish RPCs via any channel. As you can see in the graphic below, Skit.ai’s SMS bot establishes RPC via text message:

Automate Right-Party Contact with Conversational AI

Are you interested in learning more about how Conversational AI can streamline your collection strategy? Schedule a free demo with one of our experts.

Are You Still Using an IVR Menu for Debt Collections?

What is IVR for Collections?

IVR stands for “Interactive Voice Response,” a legacy technology that enables companies to automate both inbound and outbound calls. IVRs use a pre-recorded voice that interacts with consumers and guides them through a pre-set menu, which can be navigated by inputting DTMF (dual-tone multi-frequency) from the phone keyboard.

Virtually everyone has interacted with an IVR system at some point in their lives. Whether you’ve called a business, a bank, a pharmacy, a doctor’s office, or a phone service provider, you are certainly familiar with prompts like: “For hours of operations, press 1,” or “For Spanish, press 2.”

Call automation for call centers and businesses is not a new concept. IVRs became popular in the 1980s when they emerged as an essential customer service technology. Debt collection agencies have been using IVR for over a decade, for both outbound calls (such as payment reminders) and inbound calls (such as consumer inquiries).

However, the fact that IVR is so common does not mean that it’s an optimal solution. In this blog post, we’ll go over the limitations of IVR and explain why adopting a Conversational Voice AI solution is a far better option for collection agencies.

Why IVR Is Overwhelmingly Unpopular

Are You Still Using an IVR System for Debt Collections?

IVR reduces wait time for consumers, but it does not eliminate it, as it forces users to listen to lengthy menus that are for the most part irrelevant. At least 61% of consumers think that IVR systems make for a poor customer experience (CX).

A survey conducted by Vonage with Opinion Matters in 2019 revealed that having to listen to seemingly endless, irrelevant menu options is the primary factor contributing to consumers’ negative experiences. Additionally, the respondents complained that IVR menus are usually too long, that the reason for their call is sometimes not even listed, and that the system prevents them from speaking directly to a live customer representative.

Building the right IVR for your company can be tricky. If the system is not designed well, users will get frustrated and abandon the call. IVR is notoriously difficult to navigate, especially when a business offers different services or targets various sets of consumers.

In one sentence: consumers don’t like IVR. So what’s the alternative?

IVR vs. Voice AI: Which One Is the Best Option?

Conversational AI is the technology behind what is commonly referred to as a “voicebot.” It enables companies to automate both inbound and outbound calls with consumers without the involvement of a live agent. In recent years, SaaS platforms offering Conversational AI solutions have become more affordable and easier to deploy; additionally, some of these solutions are now trained with large language models (LLMs), which enable them to be even more effective at handling complex interactions.

In the accounts receivables industry, Voice AI can transform creditors’ and collection agencies’ recovery strategies by providing an infinitely scalable team of voicebots that can handle the vast majority of consumer calls. The solution can handle the most repetitive and mundane calls, empowering live agents to focus on more complex and revenue-generating accounts.

Skit.ai’s solution can handle intelligent, personalized, and effective conversations with consumers, eliminating wait times and significantly cutting costs for the company adopting it. The solution retains the context of previous interactions and will tailor the service it offers based on the specific needs of the user. The technology not only understands what the user says but also the semantics of the conversation.

Are You Still Using an IVR System for Debt Collections?

Conversational Voice AI for Outbound Collection Calls

Collectors are usually expected to go through thousands of accounts per month; a large number of those accounts remain untouched because it’s impossible for a human collector to contact and engage so many consumers. This process leads to substantial losses in potential revenue for the creditor or agency.

Artificial intelligence does not have this problem. When fed with large quantities of accounts, an AI platform can initiate and handle an extraordinarily high number of calls or interactions through a variety of communication channels, and they are available 24/7. These are some of the solution’s capabilities:

The solution can easily transfer the more complex calls to a live agent when it cannot reach a satisfactory resolution. When agents see that a call is being transferred from the voicebot, they know the consumer is usually inclined to make a payment or reach a settlement.

Why You Should Not Use IVR for Outbound Collection Calls

Using IVR for debt collection calls is limiting and is unlikely to lead to a successful debt recovery on a consistent basis. The system can’t capture dispositions and is capable of performing a limited number of actions. Let’s say the consumer refuses to pay or disputes the debt—can your IVR capture the reason? Let’s say the consumer is willing to pay but can only pay off part of the debt at this time; can your IVR handle a negotiation? If the consumer is busy right now, is your IVR able to schedule a call-back at a time that’s convenient for the consumer? Probably not.

Conversational Voice AI for Inbound Queries

When a consumer calls a creditor or collection agency, they probably don’t want to deal with a frustrating and lengthy IVR menu. An intelligent voicebot is a much more welcome alternative!

The voicebot picks up the call right away, eliminating the wait time of a regular call; additionally, the user does not have to patiently listen to a long list of options. The voicebot typically authenticates the caller’s identity and, if relevant, informs them of their due balance. Here the customer gets to have an intelligent, effective, multi-turn conversation with the Voice AI solution.

In revenue-generating inbound calls, the voicebot can help the consumer make a payment. In non-revenue-generating inbound calls, the solution will answer the consumer’s questions based on the information it has on file and will transfer the call to an agent when needed.

Why You Should Not Use IVR for Inbound Queries

Whenever a consumer is interested in making a payment and resolving their debt, they might be turned off by the poor customer experience offered by the IVR. In non-revenue-generating inbound calls, the IVR system is often incapable of resolving the query and will, therefore, transfer the call to a live agent.

U.S. debt collection agencies report that their agents spend about 20% of their time answering inbound calls! Many of these calls are not revenue-generating, so they consume time and resources that could be allocated to collection calls.

A disadvantage of relying on live agents for inbound calls is their limited availability; they are not available 24/7. As a result, when consumers have queries or wish to make payments during off-hours, it is not possible, causing collection agencies to miss out on collection opportunities. 

The Benefits of Adopting Multichannel Conversational AI for Debt Collection Agencies

Here are some of the benefits reported by collections agencies that have adopted Skit.ai’s Voice AI platform:

Are You Still Using an IVR System for Debt Collections?
  • Eliminate wait times: Say goodbye to long wait times, Beethoven symphonies, and lengthy IVR menus.
  • Augment collections: Thanks to total account penetration within minutes and automatic file segmentation, you’ll get much better clarity into your portfolio.
  • Empower your agents: Because AI can take care of the most repetitive and mundane tasks, your live agents can focus on the most revenue-generating calls.
  • Minimize compliance risks: The Conversational AI solution is built to be fully compliant with local laws and regulations.
  • Improve CX: By offering multiple communication channels available 24/7—voice, SMS, chat, and email—you empower consumers to engage using their preferred method.

Interested in learning more about how Conversational AI can help you streamline your collection strategy and reach your full potential? Schedule a free demo with one of our experts.

6 Unexpected Capabilities of Conversational AI for Collections

For anyone working in the accounts and receivables industry, it’s unlikely not to have heard of Conversational AI for collections. Whether you’ve attended an industry event or visited an industry news site, you’ve likely encountered this technology. Many collection agencies and creditors across North America are adopting it to accelerate and enhance their collection strategies and processes.

There are many known benefits to using Conversational AI for debt recovery. Contact center automation, rigid compliance guardrails, business growth, and cost-effectiveness are some of the ways different organizations benefit from it.

Many executives have reported that, since integrating voicebots and chatbots, they’ve been able to acquire larger debt portfolios, thanks to the increased outbound and inbound consumer engagement they’re able to handle. Others have reported that the technology’s consistency and reliability have been game changers; after all, artificial intelligence “never has a bad day.”

But what are some of the lesser-known benefits of adopting Conversational AI for collection calls and interactions?

6 Unexpected Capabilities of Conversational AI for Collections

Traffic Boost

This is every collector’s dream—increasing the inbound traffic from consumers who want to speak to an agent and resolve their debt. Thanks to Conversational AI, which acts as a first line of communication with consumers, you can automate most of your outbound traffic across multiple channels (voice, text, etc.), establish right-party contact, and even collect payments. The solution can easily transfer calls to your live agents, informing them of the relevant context and previous interactions.

“Skit.ai is helping us optimize agent bandwidth, as it enables our agents to spend more time answering high-value inbound calls,” said one of our clients, a collection agency’s chief operating officer based in Michigan. “With Skit.ai as our first filter, our long-term goal is to ramp up call automation and increase inbound calls. The Voice AI platform has already helped us take steps in that direction, with the 40% boost in inbound traffic as a testimony to the solution’s efficacy.”

Intelligent Conversations

Both our clients and the consumers interacting with our Conversational AI solution are positively impressed with how intelligent and humanlike the bot sounds. No matter what the user on the call says, the solution knows how to handle it, offering relevant and timely information and finding ways to solve problems in real time; it also ensures the conversation does not go off-topic. Whenever the consumer asks to speak to an agent or the solution is unable to help, the consumer gets transferred to one of your live agents or can request a callback.

The solution is context-rich, meaning that it tracks previous interactions to offer the user the best possible experience.

Positive Customer Experience (CX)

Consumers who have interacted with one of Skit.ai’s virtual assistants—chatbots, voicebots, email bots, etc.—can testify to its ability to deliver a positive customer experience.

First of all, with Conversational AI, consumers don’t have to wait—they get the assistance they need right away, without having to listen to a Mozart symphony or a time-consuming IVR menu.

With Multichannel AI, consumers can choose to interact via their preferred channels. Our research shows that different consumers and demographics have different preferences; some prefer texting, others speaking on the phone.

Conversational AI establishes right-party contact (RPC) in less than a minute; if the call is transferred to a live agent, consumers won’t need to repeat the RPC step, as their identity has already been authenticated.

According to industry data, the vast majority of consumers (88%) expect organizations to provide self-service support. We’re not surprised: the back-and-forth with AI is easy and painless.

Rigorous Compliance

With a multitude of ever-evolving federal and state regulations, collection executives and collectors often struggle to keep up with the changes. Compliance is one of the most serious pain points and concerns for the industry, as non-compliance can result in major financial losses for creditors and agencies.

Artificial intelligence can make your compliance more rigorous and your collection strategy more secure. Skit.ai’s Conversational AI solution has built-in filters designed to adhere to all telephony, data security, and collection-related regulations, such as the FDCPA, Reg F, and TCPA, among others.

With the appropriate guardrails, Conversational AI never goes off script or forgets a regulation; you can trust that, with all the correct compliance filters in place, the solution will rigorously follow every rule, including the Mini-Miranda and call frequency restrictions.

Perfect Timing

You can always count on artificial intelligence to be timely and precise.

An important aspect of the regulatory environment for debt recovery is call frequency, as outlined by Reg F and other state-level laws. Conversational AI always complies with those rules, initiating calls only at the right time of day and never exceeding the maximum number of call attempts allowed by the applicable regulations.

Additionally, follow-up timings with AI are always precise. If a consumer tells the AI that they’re not able to speak at a given moment and asks the solution to call back at a different time, you can be sure that the AI will call back at the exact time requested by the consumer.

Context Retention Across Channels

Going multichannel doesn’t only mean offering multiple communication channels, such as voice, text messaging, email, and chatbots. It also means that the technology is capable of retaining context across different channels. The solution remembers prior interactions, allowing for seamless transitions between channels. Let’s say a consumer interacts with the voicebot; if they start texting with your agency the following day, the SMS bot will pick up the conversation where the voicebot had left it.

This capability greatly enhances the customer experience by ensuring that users don’t have to repeat themselves or re-explain their situations, fostering a sense of understanding and trust. Additionally, with context retention, live agents can be better informed when they step in to support complex cases, leading to a more effective resolution.


By leveraging complex conversational capabilities and context retention, Skit.ai’s Multichannel Conversational AI solution not only adheres to regulatory requirements but also cultivates a more personalized experience for consumers. As the debt collection landscape continues to evolve, embracing these technological advancements will be key to fostering trust and satisfaction among consumers, ultimately leading to more successful outcomes for both consumers and collection agencies.

Are you interested in learning how Conversational AI can accelerate your collection strategy? Schedule a free demo with one of our experts.