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AI agents, also known as intelligent virtual assistants (IVAs), digital employees, or virtual agents, enable businesses and customers to engage in natural, conversational interactions. Powered by advanced AI and machine learning technologies, these conversations are designed to be fluid and human-like, offering a seamless experience. Unlike traditional chatbots, which often rely on scripted responses and have limited understanding of user intents, AI agents can comprehend a wide range of intents from a single interaction. While chatbots typically operate based on predefined menus and lack flexibility, AI agents utilize natural language processing (NLP) to understand and respond to inputs, even those they haven’t been specifically programmed to handle. Leveraging machine learning (ML) and deep learning, AI agents continually improve, expanding their vocabulary and understanding of colloquial language. This enables them to deliver more accurate and contextually appropriate responses over time. Furthermore, AI agents can personalize interactions by drawing on user data, such as segmentation or profile information, to tailor responses. They are typically designed to specialize in specific tasks or use cases, such as customer service, sales, or marketing. These agents go beyond simple interactions—they can drive automation by using human input to trigger actions, such as updating customer relationship management (CRM) systems. By performing such tasks autonomously, AI agents streamline business processes without the need for explicit programming for every action.