Voice AI technology drives a $12 billion market projected to quadruple by 2029. Major companies such as Amazon, Apple, and Google have already demonstrated its potential. Today, voice AI is much more than simple command systems and preset responses — it handles complex conversations, grasps context, and provides human-like interactions at scale.

For business leaders and developers, this translates to automated customer support, multilingual communication, and accessible digital experiences. With 157 million users expected to rely on voice agents by 2026, companies need to integrate Voice AI to stay competitive.

Here's your guide to voice AI's components, applications, and business impact.

What is an AI voice?

AI voice is a technology that simulates human-like speech from text inputs or other sources using deep learning models trained on real voice data. It creates natural-sounding voices that can be customized based on gender, age, accent, and emotions.

Using AI voice agents in businesses means you slash support costs and offer 24/7 availability — like Bank of America's virtual assistant Erica, which handles over 2 billion customer interactions.

With AI voice, you can automate customer service, handle high call volumes, and provide consistent service quality across all customer interactions through voice bots and IVR systems. Modern AI voice tools analyze speech context, understand user intent, and generate appropriate responses without human intervention.

How do AI voices work: A detailed breakdown

AI voice systems convert human speech into actionable computer responses through five core components — each handles a specific task in the voice interaction chain. Here’s a walkthrough of these components.

Automatic speech recognition (ASR)

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ASR is the first step to speech-to-text conversion. When users speak to a voice assistant or call customer service, ASR converts their speech into text in a few steps:

• Audio capture: First, ASR captures audio through your microphone and splits it into tiny segments of 10-20 milliseconds. It then converts these segments into spectrograms — visual maps that show sound frequencies over time.
• Sound analysis: Deep learning models analyze these spectrograms and match them to phonemes (basic speech units). The system's neural networks break down the audio, compare it against existing speech patterns, and identify matching words from its data pool.
• Noise management: ASR filters out background noise and audio glitches that could affect accuracy before processing the text.
• Speech processing: Finally, a language model combines the identified phonemes into words and sentences. It checks the probability of word combinations to ensure that the transcription makes sense in the user's target language.

Modern ASR handles diverse accents, speaking speeds, and background conditions. The flexibility makes it effective for customer service, voice commands, and automatic transcription.

Natural language processing (NLP)

Next, NLP converts the text from ASR into meaningful actions. Here's how:

• Text breakdown: NLP splits user input into analyzable chunks and runs a syntactic analysis (checking word patterns and sentence structure). 
• Meaning extraction: The system collects the core meaning from text and analyzes it semantically (context and word relationships) to understand the user intent.
• Entity recognition: NLP spots and labels key information like customer names, account numbers, dates, and locations to process requests.
• Intent classification: The system identifies the specific action a user wants to take, whether it's checking a balance, scheduling an appointment, or filing a complaint.
• Sentiment analysis: NLP looks at word choice and phrasing to gauge user emotions and helps systems respond appropriately to satisfied or frustrated customers.

Dialog management

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Dialog management links the voice AI components together. It controls voice AI conversations through two core processes:

1. Dialog modeling

The system records essential information to maintain the conversation state. It tracks discussed topics, stores user-provided details and identifies missing information needed to complete requests. This data is often structured into slots in a form populated with values gathered during the interaction. 

For example, in a hotel booking conversation, it tracks check-in dates, room preferences, and guest information until all required fields are complete.

2. Dialog control

The system determines the next action based on the collected information. It decides when to request missing details, verify unclear inputs, or proceed with task completion. Confidence scores guide these decisions; high scores lead to task execution, while low scores trigger clarification requests.

For example, if the check-in date is unclear when booking that hotel room, the system will ask for confirmation before proceeding.

Natural Language Generation (NLG)

The process converts system decisions into human-friendly responses. It begins when NLG receives input from the dialog management system. This input contains the intent and relevant information needed for the response.

The system then structures this data into a logical sequence and applies grammar rules specific to each language.

For example, when recommending a product, the system converts structured data like: recommend(product="Premium Plan", features="24/7 support, unlimited calls") to natural responses: "Would you like to try our Premium Plan with 24/7 support and unlimited calls?"

Text-to-speech Synthesis (TTS)

Text-to-speech technology converts written text into spoken words. It follows these steps:

• The process starts with text analysis, where the system breaks text into processable units.

• Next, it converts these units into phonetic symbols that represent speech sounds.
• The system then adds prosody — the patterns of rhythm and sound in speech. This includes marking where to pause, which words need emphasis, and how to adjust tone.
• Finally, deep learning models generate audio waveforms that produce the actual speech output.

Modern TTS systems support different languages and voices and process thousands of requests simultaneously.Putting it all together: The voice AI workflowVoice AI creates a continuous cycle of speech processing and response generation. Here's how the components connect:

1. ASR captures user speech and converts it to text. When a customer asks, "What's my account balance?" ASR processes the audio and produces text output.
2. NLP analyzes this text to identify the user's intent — for example, checking account balance. It gathers key details like account references and command types.
3. The dialog manager takes this processed request and checks if it has all needed information, retrieves the account balance from the connected system, and decides how to present this information to the user.
4. NLG formats the response and turns raw data like "balance: $1,245.50" into a clear statement: "Your current balance is $1,245.50."
5. TTS converts this text response into spoken words delivered to the user through speakers or phone lines.

Plivo's Voice API lets you add call functionality across devices through server-side software development kits (SDKs) in multiple programming languages. You can create interactive voice response (IVR) menus with speech recognition, set up real-time coaching for agents, and detect answering machines for smart responses.The platform processes voice interactions in 28 accents across many languages and supports dual-channel call recording with encryption. Debug logs monitor performance, while webhooks keep you updated on on-call status.

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AI voice applications

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Voice AI is shifting business operations across industries with measurable impact. Let’s look at how these sectors leverage this technology.

Customer service

Voice AI balances automating interactions and conversation quality to deliver stellar customer services to businesses. The technology uses IVR systems to understand

natural language, route calls based on intent, and resolve common issues without human agents. These systems collect customer data, maintain conversation context, and transfer complex queries to live agents with relevant background information.

And the business impact — voice bots will reduce agent costs by $80 billion by 2026, with market growth projected at 23.3% through 2028.

Voice AI handles essential functions like intent detection, authentication, and technical troubleshooting. Companies see measurable results, too — 24/7 availability, simultaneous processing of thousands of conversations, and consistent response quality.

Plivo CX delivers these results with enterprise-grade IVR systems and voice bots that integrate with major platforms like Salesforce and Zendesk.  With this, you can:

• Integrate your voice AI with existing customer relationship management (CRM) systems.
• Monitor performance through real-time analytics, coach agents live, and optimize operations with 99.99% uptime.
• Deploy voice bots that process queries across 220+ countries and territories.

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Also read: How to Use AI to Analyze Phone Calls and Improve Customer Experience

Content creation

AI voice technology improves content production across multiple channels. For example:

• Podcasting creators use AI generated voices to convert written scripts to audio episodes without studio equipment.
• Marketing teams use AI voice generators for consistent brand messaging through video voiceovers, multilingual ads, and customer service greetings.
• Companies clone brand ambassador voices (with consent) for message consistency at scale.
• Publishers and authors turn books into audiobooks in days rather than weeks.

Accessibility

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Users with disabilities need more inclusive digital experiences. Yet, 98% of websites fail basic accessibility standards, which limits access to millions of potential users.

Businesses can fix this through AI voice to help users with visual impairments access digital content through advanced screen readers. Unlike traditional robotic voices, AI voice creates natural-sounding speech that improves comprehension and engagement. This matters for businesses because:

• Users spend more time with accessible content.
• Companies meet Web Content Accessibility Guidelines (WCAG) compliance requirements.
• More customers can access digital services independently.

AI voice converts written materials into audio formats for education and training to support employees with dyslexia or reading challenges.

Online retailers use AI voices to read product descriptions and reviews to make shopping accessible to visually impaired customers. The result? Increased sales plus brand loyalty among previously underserved groups.

Entertainment

AI voice helps reduce costs and speed up content delivery across multiple formats. The key applications are:

• Gaming: Create character voices and test dialog variations during development.
• Film and TV: Dub content in multiple languages and maintain continuity when human voice actors aren’t available.
• Advertising: Produce regional ad variations with a consistent brand voice.
• Animation: Generate character voices without multiple studio sessions.

Benefits of AI voice for businesses

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Here’s what AI voice means for your business:

• Streamlined customer support: Customer support teams handle cases faster through smart voice routing. The system qualifies leads, sorts urgent cases, and directs conversations to specialized agents based on intent recognition.
• Refined customer experience: Support teams receive prioritized call queues based on real-time voice sentiment analysis. The NLP engine learns from each interaction to refine responses, boosting customer satisfaction (CSAT) scores.
• Personalized and automated customer interactions: The platform learns to build customer profiles from each interaction. Voice patterns and conversation history shape responses so each conversation feels natural and informed.
• Reduced customer support costs: Voice automation cuts training costs and agent onboarding time. As the system manages routine conversations through NLP engines, new team members handle complex queries sooner.
• Used by differently-abled customers: Screen reader integration and voice commands make your services work for everyone. Customers with different abilities complete transactions independently using ASR technology.

Also, with Plivo-powered context-aware AI Voice Agents trained on knowledge base of choice, businesses can effortlessly manage everything from scheduling appointments and sending reminders to offering tailored financial advice. Boost your sales with AI-driven shopping assistance, break down language barriers in education through real-time translations, and provide outstanding customer support without a hitch. The possibilities are endless!

For your customers, this means:

• Self-serve: Customers get things done through simple voice commands. They check order status, update accounts, and solve issues without ever touching a keypad or screen.
• One-time data collection: Customers share information once, and you use it everywhere. The voice system securely stores customer data and shares it across your support channels so no one repeats their story.
• Less friction in communication: Voice AI removes communication barriers by letting customers speak in their language. They get instant answers 24/7 without navigating complex phone menus or facing language problems.

The future of AI voice technology and ethical considerations

Voice AI now combines multiple technologies to solve real business challenges. Some emerging voice AI trends include:

• Advancements in NLP create systems that learn your preferences and work habits, making every interaction count. Support teams can now communicate globally as these systems handle multiple languages, accents, and dialects.
• Voice systems work with cameras and motion sensors to understand what you see and do. Visual AI and gesture recognition let you control devices naturally in smart environments.
• The technology reads vocal patterns to detect your mood through tone analysis and deliver empathetic responses.
• The system learns your work patterns and routines through user profiling to respond based on contextual awareness (user location, schedule, and recent activities).
• Voice cloning lets you customize how the system speaks — use your own voice or choose from a library of options. The voice adapts to match different situations and conversations.
• Edge computing processes voice commands directly on your device, giving you instant responses and offline functionalities. Your data stays local instead of going to cloud servers, protecting privacy.
• Internet of Things (IoT) integration predicts what you need based on your habits and responds without you having to activate it first. One voice interface controls all your smart devices.

For those building and deploying these systems, privacy is crucial. Voice data needs data security protocols and consent policies. Voice cloning and sentiment analysis need guidelines to protect users and their data.

Your success with voice technology depends on getting this balance right. Build in privacy and security from the start, set clear guidelines, and you'll create systems your users trust and value.

Transform your communication strategy with Plivo Voice AI

With Plivo, there’s no room for privacy and security concerns. The enterprise-grade Voice AI platform provides the security protocols and infrastructure to launch context-aware voice bots while protecting customer data. You get immediate access to:

• AI integration: Connect with any STT, TTS, or LLM provider through simple APIs for maximum flexibility.
• Rapid recovery: Switch to backup networks in less than two seconds during outages to maintain operations.
• Dialog management: Maintain conversation context and natural flow across all interactions.
• Performance analytics: Track and optimize voice bot performance through detailed metrics and insights.
• Crystal-clear audio: 16kHz high-quality audio for smooth interactions.
• Unmatched reliability: 99.99% platform uptime for uninterrupted service.

Automate your support operations with Voice AI. Contact us to build your voice AI strategy.

Voice Artificial Intelligence (AI) is no longer just a futuristic concept — it’s here, reshaping how businesses engage with customers. With the conversational AI market set to jump from $13.2 billion in 2024 to $49.9 billion by 2030, voice integration is transforming industries.

From handling customer queries to automating workflows, voice AI redefines e-commerce, healthcare, finance, and many industries. It’s not just about commands anymore; voice AI now delivers context-aware, natural interactions that transform customer experiences with real-time assistance and a sense of personal touch.

In this article, we’ll discuss how voice integration in conversational AI drives change, its industry applications, and the advantages it offers for businesses and customers.

What is conversational voice AI?

Conversational voice AI focuses on voice-based interactions between users and machines under the umbrella of conversational AI. It uses speech recognition and natural language processing (NLP) to understand and respond to voice commands. Speech recognition converts spoken words into text, while NLP uses algorithms to understand the intent of the converted text.

The response then reverts to speech through speech synthesis.

Various devices, such as smart speakers, mobile apps, interactive voice response (IVR) systems, and even in-car voice systems, use conversational voice AI to improve user engagement and operational efficiency.

Sneak peek of conversational AI: The OG

Conversational AI comprises technologies and algorithms that create lifelike conversations between machines and users. Users interact with these technologies via:

• Customer support chatbots found in apps or on websites
• Smart assistants like Google Assistant or Amazon Alexa
• Customer support voice bots that handle queries over the phone

Conversational AI systems process voice commands, understand user queries, and provide relevant responses using NLP, machine learning (ML), and speech recognition.

The rise of voice technology in conversational AI

🗣️: Ok Google, navigate to the closest gas station.

🗣️: Hi Siri, remind me to pick up groceries at 10 AM.

🗣️: Alexa, set a timer for 5 mins.

Google, Amazon, and Apple have transformed voice-based interactions using conversational AI.

Voice integration in conversational AI provides a natural and intuitive way to interact compared to traditional text-based methods. It mirrors human conversation, making it faster and easier for users to communicate with AI systems.

With 97% of mobile users relying on AI voice assistants, voice-based conversational AI is now a regular part of daily life. Businesses are adopting voice AI to offer seamless, hands-free experiences as consumers grow familiar with voice commands.

Looking under the hood: Conversational voice AI and customer service

Conversational AI in customer service helps businesses offer instant support to customers and handle routine tasks with ease. Voice-enabled conversational AI answers queries, processes requests, and speeds up customer interactions. This improves efficiency, reduces wait times, and lets agents focus on complex issues.

Let’s explore the different applications of conversational AI that can amp up the game of customer experiences across the board.

Smart call routing

Voice assistants with conversational AI analyze customer inquiries and route calls to the right department.

Unlike traditional IVR systems that rely on keywords, voice AI maximizes IVR menu efficiency through natural language understanding (NLU), allowing customers to speak naturally.

Voice assistants also capture customer details, like names, account numbers, and requested services, giving agents all information upfront. This saves time for both customers and agents.

Omnichannel support

While text, email, and chat are standard communication channels, voice adds immediacy and a personal touch to customer service interactions, which other channels often lack.

With voice AI in their omnichannel support system, businesses can offer seamless platform transitions. For instance, a customer might use voice commands in-store to check product availability and continue the conversation online later.

This unified experience provides a smooth customer journey and boosts customer satisfaction and brand loyalty.

Pro Tip: Add customizable voice IVR to your omnichannel support and build a better brand perception.

Streamline authentication

Automating customer authentication with voice technology and conversational AI reduces time and costs. Additionally, voice authentication using NLP is a more cost-effective alternative to voice biometrics authentication, providing an equally smooth experience.

Simplify troubleshooting

Voice assistants powered by conversational AI and chatbots can handle much of the troubleshooting process, automating common issues and often resolving them without involving an agent. This reduces agents' time on repetitive tasks and boosts customer service operations.

If the bot can’t resolve the issue, it transfers the customer to a human agent. It also gives the agent a detailed record of already taken troubleshooting steps to ensure a smoother handoff.

More agent efficiency = Better customer experience.

Better security and reliability

In industries like finance and healthcare, security is paramount.

Voice AI integration provides robust security measures, such as encrypted voice recordings and secure data transmission. It protects sensitive customer data while meeting industry regulations.

A dependable voice platform with voice AI reduces downtime and ensures continuous service through a well-designed IVR system. For example, banking IVRs improve security and customer interactions and ensure a smooth, secure flow of information.

Multi-language support

Voice technology with conversational AI allows businesses to support multiple languages and create a more inclusive and accessible customer experience. For example, Plivo’s AI voice agents support speech recognition in 27 languages and their regional variants.

Using speech recognition technology, businesses can engage with diverse customer bases worldwide and offer personalized support in various languages. It helps companies enhance customer interactions and improve overall satisfaction.

Hands-free experience

98% of websites don’t provide basic accessibility features, limiting access to millions of users with disabilities. Voice-enabled conversational AI supports Web Content Accessibility Guidelines (WCAG) and allows more customers to access digital services independently.

Voice technology powered by conversational AI uses advanced speech synthesis to support users with visual impairments. It enables interaction with content through natural-sounding speech, making information easier to understand and more engaging.

These systems convert text into audio, providing access to online shopping, education, and training in a more inclusive way.

Personalization

Conversational AI platforms leverage customer data like browsing history and purchase behavior to offer highly personalized recommendations in real-time. For example, voice assistants can narrow down a general query about a mobile phone to a specific model based on the customer's preferences and budget.

Voice-enabled AI bots, like Plivo-powered voice agents, also guide customers from discovery to checkout, helping them:

• Compare products
• Suggest complementary items
• Offer specific discounts
• Upsell based on past purchases

Unlike text-based bots, voice agents are more personalized, adding a human touch to customer interactions.

Conversational voice AI for different industries

When a customer calls, they want to feel valued and understood. Conversational AI with voice recognition technology puts the customer at the center of the experience.

Here’s how voice AI transforms industries and enhances customer interactions across sectors.

E-commerce

Caption: Personalize customer’s shopping experience with Plivo-powered voice agents

Alt text: Image depicting Plivo-powered AI bots recommending products based on user input

E-commerce customers want quick responses and 24/7 support. If they don’t get it, they may choose a competitor.

While chatbots work well for tasks like answering FAQs or checking order status, voice integration in conversational AI transforms customer service and creates standout shopping experiences by:

• Assisting customers with product selection
• Offering personalized recommendations
• Automating the sales process

Integrating voice agents in customer relationship management (CRM) systems also provides real-time updates, such as order status, with just a voice command. Businesses are better suited to provide a 24/7 personalized shopping experience with quicker response times and higher customer engagement.

Education

AI voice integration with multilingual support can empower inclusive learning experiences in the education sector with personalized tutoring. Voice agents can instantly support students by providing real-time translations and remove language barriers by clarifying complex terms in their preferred language.

This integration reduces the need for multilingual staff, making learning more accessible for global students.

Healthcare

No industry values prompt responses more than healthcare.

Voice integration in conversational AI healthcare sectors improves customer experience, provides timely care, and improves operational efficiency. It simplifies patient care and delivers personalized support through:

• Medication reminders 
• Appointment scheduling
• Preliminary health assessments

In addition, voice agents help healthcare providers automate tasks, improve medication adherence, and lighten their workload, making services more efficient and patient-focused.

Finance

Conversational voice AI supports financial sectors with a forward-thinking approach. Voice agents improve the customer experience by offering quick, accurate responses without wait times. Banks use voice agents to:

• Automate routine tasks
• Provide instant account updates
• Process payments
• Deliver personalized financial advice 24/7

Approaches to deploying conversational AI for voice integration

When you're ready to implement voice-integrated conversational AI, you'll discover several ways to design, build, and deploy a voice assistant. Some approaches may appear cost-effective at first but quickly turn into obstacles, complicating deployment or causing user dissatisfaction.

Here are three primary methods for deploying conversational AI for voice:

1. Partner with a voice-first vendor

Partnering with a voice-first vendor like Plivo is the most efficient and effective way to deploy conversational AI for voice applications.

One of the key advantages of working with a vendor like Plivo is the speed and efficiency it brings to deployment. Instead of building a voice assistant from the ground up, businesses can leverage Plivo’s pre-built solutions and technical expertise. This accelerates time-to-market and reduces the burden on in-house development teams.

Plivo's platform is designed to handle the complexities of voice integration, such as managing call flows, ensuring compliance with global telecommunication standards, and delivering high-quality audio. Additionally, its APIs are highly customizable, allowing businesses to tailor their solutions to fit specific use cases.

2. DIY with a third-party platform

Another approach to deploying conversational AI for voice is using third-party platforms like Google DialogFlow or Amazon Lex. They can handle natural language processing and speech algorithms for your applications.

However, this option may limit control. Performance can vary based on language or application needs, especially in voice-heavy use cases.

3. Port chatbot technology into voice

Many businesses start with chatbots and attempt to convert them into voicebots.

Doing so involves integrating speech recognition and text-to-speech capabilities with the chatbot’s existing NLP engine. This allows the system to understand spoken input, process it, and deliver relevant responses through audio.

Nevertheless, transitioning from a text-based chatbot to a conversational AI voice agent can be challenging.

Chatbots are primarily designed for text-based communication, and the conversion process often leads to issues with speech recognition and intent detection, resulting in subpar performance. It also requires careful attention to voice-specific nuances, such as accommodating variations in accents, ensuring accurate speech synthesis, and optimizing dialogue flow for spoken interactions.

Note: While porting chatbot technology to voice can save time and resources compared to building a voice assistant from the ground up, it may lack the full customization and voice-centric features provided by dedicated voice-first solutions.

Get started with Plivo

Whether integrating AI features into your existing systems or considering third-party solutions, conversational voice AI empowers teams, drives efficiency, and enhances customer experience.

Plivo’s Voice API offers flexibility and seamless integration with your preferred speech-to-text, text-to-speech, and language model providers. It connects directly with OpenAI’s RealTime API through simple integration endpoints for instant deployment. Context-aware AI Voice Agents trained on custom knowledge bases support businesses to:

• Schedule appointments and send reminders
• Offer personalized financial advice
• Boost sales with AI-driven shopping assistance
• Break language barriers with real-time translations
• Deliver exceptional customer support with accurate responses

Plivo’s platform also offers industry-leading performance metrics, including 99.99% uptime reliability and low-latency global connectivity.

To explore the potential of Plivo-powered AI voice agents, contact us today.

Delivering great customer experiences requires quick responses, personalized interactions, and communication through the customer’s preferred channels.  Yet, managing high call volumes, addressing complex requests, and meeting ever-growing expectations can make this a significant challenge.

Modern contact center technologies can bridge this gap with tools that streamline operations, improve customer communication, and empower contact centers to meet customer expectations.

In this blog post, we’ll explore the top 12 contact center technologies transforming customer interactions and how they can benefit your business.

1.VoIP

A Voice over Internet Protocol (VoIP) system lets businesses make and receive phone calls over the Internet, removing the need for outdated landlines, desk phones, mobile devices, and computers. However, the benefits of switching from legacy landline systems to VoIP go beyond cost savings and improved call quality.

A reliable VoIP system:

• Eliminates the need for desk phones and outdated systems.
• Offers add-ons like two-factor authentication (2FA) to verify callers and reduce fraud calls, smart interactive voice response (IVR) scripts for streamlined self-service, and call routing to connect customers with the right agents.
• Minimizes dropped calls and ensures crystal-clear communication.

If your contact center manages a high volume of customer inquiries, use a reliable VoIP system to ensure consistent communication and reduce call drops. Apply best practices to improve implementation and achieve better communication outcomes.

2.CRM integration

A Customer Relationship Management (CRM) system houses detailed information about previous customer interactions, their preferences, purchase history, and more. When you integrate this rich data into your contact center, agents get a comprehensive view of each customer to provide highly personalized assistance.

With this data readily available, agents can quickly identify previous issues or anticipate future needs, leading to faster resolutions and a better overall customer experience.

3.Call recording

You can capture customer interactions with call recording tools and gain valuable insights from them. For example, if customers frequently complain about a specific product, the tool captures this feedback. You can then use this data to improve the product’s quality, determine whether the issue is with marketing or product design, and train your staff accordingly.

Moreover, you don’t need to worry about customer data privacy as these tools encrypt the recordings.

To further improve customer experience, opt for an automated call transcription feature tool. Transcribing calls improves customer insights with more accurate analysis, helping you identify trends and address issues more effectively.

Analyze call recordings alongside contact center performance metrics and agent productivity tools to pinpoint areas for improving agent training or call-handling strategies.

4.Call queuing

Customers dislike waiting, however, call queuing systems make the experience more manageable. They inform customers of their expected wait times, play custom messages, and offer callback options. It’s one of the most effective contact center technology trends, especially when managing a surge of customer calls.

Such transparency reduces caller frustration and improves agent productivity. Some cloud-based contact centers also have automated callbacks, allowing customers to hang up without losing their spot in the queue.

You can even customize queues with maximum wait times and personalized messages or music with providers like Plivo. It further optimizes your call queuing strategy with insights into average wait times, dropped calls, and peak hours.

5.Smart IVR systems

An IVR is one of the most important self-service options in contact centers, helping manage customer requests efficiently while enhancing service quality. It routes customers to the appropriate agent based on input or responds to queries given there's a script for that particular use case.

However, smart IVR systems don't require traditional training. They use machine learning to process customer interactions and provide context-based resolutions. 

The system captures the customer's audio input and an AI bot analyzes and processes the request, generates a context-aware response, and delivers it in real-time to the customer. 

They provide dynamic routing, proactive customer engagement, speech recognition, real-time transcription, and call analysis to create a more intuitive customer support experience. 

You can use IVR systems to:

• Accept payments securely.
• Localize services with multiple language options.
• Route calls effectively based on customer input or intent through voice prompts or keypad input.
• Conduct surveys and gather feedback.
• Assign and prioritize inbound leads for sales calls to the right agents.
• Confirm customer availability for service or delivery dispatch through automated calls.

Pro tip: You can build a smart IVR using Plivo-powered AI voice agents to enhance your customer experience. 

6.Automatic Call Distributor (ACD)

Automatic call distribution systems intelligently route users to the right agents, making it an important part of contact center automation. This ensures that customers are connected with the right agents at all times.

The system routes works based on:

• Skill-based routing: Routes callers to agents with particular skills or training based on their needs
• Time-of-day routing: Routes calls to agents depending on their time zone.
• Priority-based routine: Routes callers with urgent issues to the top of the queue.

ACD eliminates the need for manual call forwarding or transferring, reducing wait times and improving overall customer experience.

7.Chatbots

The adoption of artificial intelligence (AI) in contact centers is on the rise, and AI-powered customer service chatbots are leading the charge. These virtual assistants for contact centers handle routine customer queries without the need for live agents, significantly reducing agent workload. They serve as round-the-clock virtual agents who are ever-ready to field queries, convert leads, and reduce customer support costs by up to 30%.

Use it to perform straight-forward tasks such as:

• Scheduling appointments.
• Answering FAQs.
• Taking meal orders.
• Offering discounts and offers.
• Identifying promising leads.
• Streamlining helpdesk operations and ticketing systems.

If a chatbot fails to answer a query, it will transfer the call to an agent for a more contextual response.

8.Omnichannel customer service 

The best customer experience comes from consistent support across multiple channels like SMS, voice, video, and live chat. Omnichannel customer service empowers agents to engage with customers across these various channels, providing a cohesive experience. They can easily transition between channels or even manage multiple channels at once.

Without integrated contact center channels, agents may have to switch between different platforms to review past interactions. This leads to repetitive questions, frustrated customers, and a negative impact on the experience.

9.Call analytics

Real-time and historical call analytics provide insights into performance metrics like call quality, resolution times, and call drops. AI in contact centers can even interpret the tone and emotions behind customer interactions — whether frustration, satisfaction, or confusion — and personalize responses accordingly.

Plivo provides an in-depth analysis of potential issues, both reported by users and identified through system checks. This data helps improve agent training and streamline contact center operations.

10.Cloud-based solutions

Cloud-based contact center software solutions ensure high availability, automatic updates, and integration with CRM, agents' productivity tools, and other customer experience tools. They also facilitate remote working as long as there's a stable internet connection.

Many cloud solutions complement your existing system rather than replace it outright.

For example, you could improve your current infrastructure by integrating channels like live chat, SMS, or video calls into your traditional phone systems.

11.Conversational AI

Conversational AI is transforming how contact centers operate.

A survey in the 2024 State of the Contact Center Report found that 30.4% of users said 'Yes' and 69.6% said 'Maybe' when asked if they’re considering using AI tools to improve contact center operations.

Launching context-aware voice bots that mimic human interactions ensures natural conversation flow by detecting speech onset and end. These AI-powered chatbots preserve the emotional nuances and tone of the customer, giving agents more access to deeper customer insights.

12.Sentiment analysis

Sentiment analysis empowers contact centers to gauge customer intent and recommend actions in real-time to meet their needs.

Say you’re a retail contact center receiving a call from a customer frustrated about a delayed delivery. The system integrates audio streaming via WebSocket, AI-driven transcription, and sentiment analysis to capture audio and transcribe it in real-time

AI tools analyze the conversation and detect frustration in the customer’s tone, tagging it as negative sentiment. The system then alerts the agent in real-time, prompting them to prioritize empathy and offer an immediate solution, like expedited shipping or a discount.

This proactive approach not only boosts call quality assurance but also improves overall customer satisfaction.

Future of contact centers

Conversational AI will be the key driver of customer service in the next decade.

Chatbots are already moving from straightforward query resolution to contextual resolutions. It’s clear that as AI evolves, its focus will shift from reactive problem-solving to proactive engagement. It’ll predict customer behavior, anticipate issues, and provide solutions in real-time.

However, there’s a flip side to this.

With AI addressing routine queries, support agents will handle complex and emotionally charged situations. This requires specialized training in empathy and creative problem-solving, areas AI cannot replicate.

Data privacy is another key concern. AI systems must comply with strict regulations like the General Data Protection Regulation (EU) and the California Consumer Privacy Act (CCPA). Businesses must develop robust data governance policies and provide employee training to guarantee compliance and customer trust.

As AI brings efficiency and scalability, human empathy remains vital. The future of contact centers lies in a hybrid model where AI improves, not replaces, human agents, encouraging valuable and meaningful connections.

Integrate these call center technologies with Plivo

To deliver a standout customer experience, you need to understand your customers' needs and meet them where they are. Plivo's Voice API is the perfect start to this. It lays the foundation for advanced, intelligent communication systems — empowering contact centers to operate more efficiently.

It easily integrates into your CRM and Business Intelligence (BI) tools to create a unified system. This ensures every interaction is backed by customer history and insights. Moreover, smart IVR scripts are among the best customer self-service options in contact centers.

Rely on Plivo to take care of routine queries like bill payments, appointment scheduling, or order tracking. You can automate these queries and free agents to focus on complex, high-value issues.

Plivo also offers real-time call analytics. You get detailed insights into performance metrics such as average resolution time, call quality, and sentiment analysis. This way, you can identify peak call times, optimize staffing, and address service bottlenecks proactively.

These benefits stem from Plivo's commitment to ensuring reliable connectivity, low latency, and exceptional call quality across 220+ countries and territories. Plivo’s seven global points of presence guarantee 99.99% uptime, crystal-clear 16kHz voice quality, and rapid rerouting in under 2 seconds during failovers.

Ready to take your contact center to the next level? Start by integrating Plivo’s Voice API and progressively incorporate these contact center technologies to drive automation.

Contact us to create a smarter, more efficient, and customer-centric contact center.

A voice API is a tool that software developers use to make and receive phone calls programmatically. With a voice API, they can use various channels, phones, browsers, and virtual assistants.

 It connects web or mobile applications to the Public Switched Telephone Network (PSTN), enabling seamless voice communication without needing extensive telecom expertise, time, and developer resources.

Voice APIs are highly configurable, easily integrated, and scalable tools, providing cost-effective communication for businesses.

‍How much does a voice API cost? 

A voice API costs typically range from $0.003 to $0.014 per minute for outbound calls and $0.003 to $0.022 per minute for inbound calls, depending on call type, provider, and features. 

Prices may differ due to factors like infrastructure, service quality, and additional features like real-time analytics or automated routing. 

Using a voice API makes more financial and logistical sense for businesses than investing resources into developing advanced voice calling features from scratch. By choosing a best-in-class voice API provider, companies can integrate various voice capabilities with a shorter development span and achieve a better ROI. 

Plivo offers cost-effective solutions with competitive pricing while maintaining high-quality services.

Here’s a quick comparison of pricing for each type of voice call between Plivo and Twilio to give an idea of voice API cost structures and offerings.

‍How can a voice API give customers a better experience? 

Integrating a voice API enables businesses to offer personalized, efficient customer support services on browsers or apps with advanced voice features. It can help reduce voice call traffic and wait times in contact centers. These APIs can route calls efficiently through the phone network, including toll-free phone numbers, ensuring smooth call handling.

Unlike older inflexible phone network systems, a programmable voice API supports AI-powered virtual assistants that can receive calls 24/7, understand user requests, and guide customers through their queries as effectively as human agents. With voice recognition and text-to-speech features, customers can express themselves naturally and receive the assistance they need without delay.

The voice bot can also record calls and collect contextual data to prepare agents to resolve the issue when they take over quickly. This streamlined process saves time and preserves the unique, personal touch of voice calling.

Features like click-to-call, voice control, and hands-free interactions also increase flexibility, allowing users to have an interactive and engaging call. 

Wouldn’t it be nice to simply say the query out loud and receive a clear response instantly?

A voice API makes this possible by enabling your company to answer customers' questions instantly without navigating through endless clicks. Voice API seamlessly integrates voice solutions into browsers or apps to transform the customer experience. 

There’s more to it:

• Interactive and hands-free features: Customers can use click-to-call, voice commands, or hands-free interactions, enhancing convenience.
• Personalized customer support services: Offer tailored assistance with AI-powered virtual assistants and voice recognition features. These tools help customers articulate requests naturally and get relevant responses.
• 24/7 availability: AI-powered virtual assistants answer calls anytime, providing immediate assistance, even outside business hours.
• Enhanced agent support: Voice bots can record calls, gather context, and equip agents with the information they need to resolve issues swiftly when human intervention is required.

Voice APIs streamline communication and create a memorable, user-friendly experience that fosters trust and loyalty.

How can a voice API streamline communication processes?

A voice API makes interactions more efficient and aligned with business goals and needs. Here's how:

• Makes it easy for customers to connect: Unlike traditional voice calls confined to phone networks, a programmable voice API extends voice capabilities to an app or website. Users can use a click-to-call feature directly within an app or site.
• Adds efficiency to your team: Automating routine customer interactions allows voice bots to handle a significant portion of inbound calls. This reduces call traffic in the contact center, freeing human agents to manage complex or high-priority cases.
• Scales with business: As businesses grow, you can seamlessly expand voice-enabled services, ensuring consistent voice call handling without sacrificing quality. For example, businesses can use voice APIs to automate phone calls for marketing campaigns or appointment reminders.
• Supports developers: From a developer's perspective, a voice API integrates smoothly with other APIs and communication platforms. 
• Offers robust security: Programmable voice APIs often come with robust security features, including encryption and secure call record storage, in compliance with regulations like GDPR or HIPAA. 

Take, for example, CallHub.

They use Plivo's voice API to simplify communication for political campaigns, offering tools like power and predictive dialers. These features let campaigns reach voters efficiently, connecting them directly with representatives or leaving messages without manual effort. Browser-based calling also ensures volunteers' privacy, making it secure and straightforward for customers to interact.

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Choosing a voice API provider

Programmable voice APIs can range from basic functionality to feature-rich platforms that handle complex voice call flows and integrations. Here’s what to look for when evaluating a voice API provider:

Comprehensive call management features

A strong voice API should include fundamental voice call management functions to make, receive, and record calls, and global audio conferences. To ensure effective communication, look for APIs that offer configurable conference experiences, such as muting/unmuting participants, automatic call termination, and host controls.

Text-to-speech and accessibility options

Text-to-speech (TTS) is essential for both accessibility and user convenience. It converts text into spoken output, making automated systems more user-friendly, especially for multitasking or on-the-go customers. 

Ensure your provider's TTS capabilities support multiple languages and accents to cater to diverse customer needs.

Smart interactive voice response (IVR) systems

A voice API should enable the creation of intelligent, multi-level interactive voice response (IVR) systems that route calls efficiently. 

Smart IVRs can handle straightforward customer service tasks autonomously, incorporating:

• AI technologies for interactive experiences
• Intelligent call routing
• Integration with multiple channels
• Call recording and TTS capabilities

These capabilities help build customer-first IVR solutions that guide users seamlessly to the right department or agent.

Real-time call handling and notifications

Real-time features such as Answering Machine Detection (AMD) are invaluable for optimizing call strategies based on the type of response received. 

AMD helps identify whether an outgoing call is answered by a human or voicemail, which is especially beneficial for tasks such as lead follow-ups, customer updates, and automated voice surveys.

Integration with existing systems

The right voice API should facilitate integration with communication systems, including SIP-enabled hardware and software. 

This adaptability allows your business to maintain flexibility as communication needs evolve.

Audio streaming

Audio streaming, or media streaming, is a vital feature that sets advanced voice APIs apart. This functionality allows your application to deliver calls while duplicating call media to multiple recipients. It also enables real-time analysis and enhances features like sentiment analysis, conversational AI, call transcriptions, fraud detection, and voice biometrics.

Plivo stands out by offering all of these essential voice API capabilities. Moreover, it offers advanced features, such as:

• Play audio prompts: Plays pre-recorded audio files during a call, making it useful for IVR menus or announcements. This feature facilitates caller engagement and delivers professionalism in communication.
• Text to speech: Converts text into natural voice messages in various languages. It supports real-time updates like notifications, reducing dependency on pre-recorded audio and increasing flexibility.
• Dual channel call recording: Captures conversations with separate audio tracks for each participant. This allows for detailed analysis of interactions, making it ideal for call centers or compliance needs.
• Custom caller ID: Displays a specific phone number during calls, which builds brand trust and increases the likelihood of calls being answered. It’s particularly helpful for global and region-specific outreach efforts.
• Get digit input: Collects user responses via keypad entries, making it useful for gathering information such as account numbers or confirming choices during calls. It simplifies customer interactions and integrates effectively into IVR systems.
• Advanced call control: Gives businesses detailed control over call functions like transfer, mute, and hold. This capability supports smoother call handling and enhances customer support operations.
• Supervisor coaching: Allows supervisors to listen in on live calls and provide guidance without the caller being aware. This feature supports agent training and improves call outcomes as they happen.
• Call whisper: Plays a short message to the agent before connecting the call, providing context about the caller or the purpose of the call. It helps agents prepare better, leading to more tailored and effective support.

How does Plivo's voice API work?

Plivo's voice API is a robust framework that enables developers to manage voice communications programmatically with REST APIs to allow comprehensive control over call flows—from initiation to termination. 

Throughout a call's lifecycle, Plivo sends webhooks at various stages, prompting your application to respond with specific commands. This dynamic exchange between webhooks and responses provides granular control over call behavior, facilitating the creation of customized and efficient voice communication solutions.

What makes a good voice API?

A good API is easy to build. It offers flexibility and customization options to cater to different users’ needs and tailor a top-notch experience for your customers. 

Here’s what to look for:

SDKs and robust documentation 

A good voice API provider should offer developers comprehensive Software Development Kits (SDKs) and robust documentation to ease the development process. 

Plivo offers client SDKs for browser (JavaScript) and mobile (native iOS and Android) with no upfront costs. Plus, access extensive product documentation with quickstart guides, tutorials, and product overviews to cover various use cases.

Connect and control calls to any device 

Voice API should allow developers to build powerful voice workflows and integrate voice calling into web and mobile apps. 

With Plivo, you can connect phone calls over the PSTN to more than 200 countries without managing complex telecom carrier interactions. This flexibility extends to SIP-enabled devices and software, allowing seamless connection to your existing SIP infrastructure and enabling advanced communication features in the cloud.

Premium network

A premium network is essential for a voice API to deliver clear, uninterrupted audio quality, as it minimizes delays, reduces jitter, and ensures stable call connections. 

Plivo ensures premium voice quality through its Regional Points of Presence (PoPs), which reduce latency and maintain high call quality using one-hop, in-country carrier connections. 

Great developer support

Sometimes, a voice API can be complicated and needs assistance; make sure your provider offers 24x7 premium support backed by a consultative customer success team that provides the technical guidance and industry expertise developers need. 

Those additional support resources can  include:

• Extensive documentation and a rich knowledge base
• Up-to-date service status and product updates
• Regular product improvements and enhancements

Upgrade your business communication with Plivo's voice API

We've covered what a voice API is and what to look for in a provider—now it's time to put that knowledge into action. Upgrade your business communication with Plivo's voice API, a powerful, flexible voice API that meets your business needs.

If you'd like to receive customized rates with guided onboarding and premium support, get our volume prices. A team member will contact you to help determine whether an annual agreement suits you based on your personal use case.

Plivo’s simple, usage-based pricing model ensures that businesses only pay for what they use, making it a cost-effective choice.

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Cybersecurity threats are evolving daily, and a particularly dangerous scam is on the rise: SIM swapping fraud.

In 2023, the Internet Crime Complaint Center (IC3) reported more than $48 million in losses from SIM swapping fraud affecting both individuals and businesses. This type of fraud allows criminals to take control of your phone number, granting them access to sensitive information. A single SIM-swapping fraud attack can result in unauthorized access to personal data, significant financial loss, and long-term damage to your company’s reputation.

SIM swapping fraud targets businesses that rely on SMS-based authentication to secure accounts. In 2024, authentication use cases will account for over 50% of all SMS traffic. The growing reliance on SMS-based user verification increases the risk of SIM swapping correspondingly. However, solutions with built-in fraud protection, such as Plivo’s Verify API, make it possible to mitigate fraud risk with little effort. Here’s how to prevent SIM swapping fraud by following a few best practices to protect personal and organizational data. 

What is SIM swapping?

SIM swapping, also known as SIM jacking or the port-out scam, is a type of fraud where cyberattackers transfer a victim's phone number to a new SIM card.

Mobile networks rely on unique IDs embedded in each SIM card to route calls and text messages to the correct device. When a SIM swap occurs, all incoming network traffic, including calls, text messages, and verification codes, is redirected to the fraudster’s SIM card. The fraudster can then access any and all messaging traffic intended for the victim’s inbox. 

The main aim of SIM card swapping fraud is to exploit two-factor authentication (2FA) and gain access to valuable information, such as bank accounts, email, and social media platforms. SIM jacking intercepts one-time passwords (OTPs) and security codes, compromising all accounts that use 2FA.

How does SIM swapping work?

SIM swapping commonly occurs by tricking a mobile carrier into transferring a victim’s phone number.

Fraudsters first gather personal details about their target, such as their name, address, or answers to security questions, often through phishing attacks, data breaches, or purchases on the dark web.

The attacker uses this information to contact the victim's mobile carrier, impersonating them and claiming that their SIM card was lost or damaged. The fraudster then requests to port the number to a new SIM card. If the carrier fails to properly verify the fraud, the phone number is successfully transferred.

Once this happens, the fraudster receives all calls, texts, and verification messages meant for the victim.

SIM swapping can also occur through other methods, such as directly hacking a victim’s carrier account and updating their contact information. In some cases, insider threats come into play, where rogue employees at mobile carrier companies facilitate the swap for the attacker.

What is a SIM farm?

A SIM farm is a setup consisting of special hardware and software that manage multiple SIM cards simultaneously.

While SIM farms may be used for lawful objectives, such as testing mobile services or sending bulk marketing messages, fraudsters often utilize them to simplify illegal operations, such as:

• Sending fraudulent texts en masse
• Making fraudulent calls
• Conducting other fraudulent operations across several phone lines

SIM farms enable large-scale fraud by regularly switching between SIM cards and distributing activities across multiple numbers. This makes it challenging for cell carriers and law enforcement to detect suspicious patterns or ban offending numbers. Additionally, they allow attackers to bypass international phone charges and take advantage of weaknesses in SMS-based authentication systems.

A SIM farm typically operates using two key devices: a SIM box and a SIM bank. Here’s how each functions:

SIM box vs. SIM bank

How does a SIM farm work?

Here’s how SIM farms operate to conduct large-scale SIM swapping fraud:

1. Acquiring prepaid SIM cards from various carriers to avoid detection by a single telecom provider.
2. Integrating a SIM bank to centralize management for countless SIM cards, enabling remote access and automatic SIM switching based on usage patterns or network thresholds.
3. Connecting to SIM boxes to handle call routing, send bulk SMS messages, or make large volumes of calls from different numbers without physically handling the SIM cards.
4. Switching SIM cards dynamically to avoid detection and prevent any single SIM from exceeding traffic limits or drawing attention.
5. Automating international call/SMS routing to bypass local restrictions, preventing the likelihood of detection by telecom providers.
6. Monitoring and managing blocked SIM cards or those with connectivity issues to maintain a steady flow of fraudulent activity.

How does SIM swapping fraud affect businesses?

SIM swapping fraud poses serious risks for businesses, causing operational and reputational harm. Some key effects include:

• Security breaches: SIM swapping can bypass SMS-based 2FA, making businesses vulnerable to unauthorized access.
• Compromise customer data: Hackers can obtain sensitive customer information, leading to identity theft and data breaches.
• Reputation damage: A single SIM swap attack can erode customer trust, leading to bad publicity and loss of credibility.
• Financial loss: Fraud-related costs include direct financial theft and indirect expenses, such as customer compensation and legal fees.
• Network infiltration: Attackers can use SIM swapping to breach internal systems, exposing critical business data and intellectual property.

How to detect a SIM swap attack

Detecting a SIM swap attack early is crucial to mitigating its impact. Here are some key signs to watch for.

• Sudden loss of phone service: This could indicate that your SIM card has been deactivated and transferred to another device.
• Unusual account activity: Unauthorized logins or notifications from banks, social media, or email accounts could mean your phone number has been compromised.
• Inability to access accounts: If you can’t access services that use SMS-based authentication, such as online banking, it’s a strong indicator that your phone number has been hijacked.
• Unrecognized alerts from your mobile carrier: Notifications about changes to your SIM card or account, such as a new device activation you didn’t initiate, are red flags of a potential SIM swap.

How to prevent SIM swapping

Protecting your business from SIM swapping fraud requires vigilance and strong security measures. Here are some best practices to safeguard your accounts and data:

1. Set a PIN or passcode with your carrier: Most carriers offer the option to add an extra layer of security. Use a strong, unique code that makes it difficult to guess, as this will be required for any changes, including SIM swaps.
2. Monitor your accounts regularly: Watch out for anything unusual with your bank accounts, email addresses, and social media accounts. Ensure notifications are set up for logins from new devices or changes to account information.
3. Be cautious with public information: Fraudsters often exploit personal data from social media to answer security questions. Limit the amount of personal information you share publicly.
4. Review and secure account recovery options: Ensure backup emails, phone numbers, or security questions are robust enough to prevent attackers from easily exploiting them.

Prevent SIM swapping with Plivo

A strategic combination of technology and proven methodology can deduct SIM-swapping attacks and protect your business from becoming more vulnerable. 

With Plivo, you can validate phone numbers without interrupting the user flow. So, even when a SIM swap has occurred, the perpetrator doesn't have an opportunity to capitalize on it.

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Use Plivo’s Lookup API

The Plivo Lookup API, with its phone number validation and real-time analytics features, provides companies with the means to detect SIM swaps. You can improve your risk management with a reliable API call that will assess the phone number and return critical information about:

• Current network and original network details
• Roaming status and network changes
• Risk scores and unusual patterns that may indicate fraud

Checking these analytics can indicate any suspicious activity that occurred recently for a particular number, raising red flags.

Plivo’s pattern-based alerts

Even if the phone number is verified, there is a chance of fraudulent and illegal activities. Lookup includes built-in Fraud Shield, an AI-driven algorithm that helps monitor your messaging patterns, establish message thresholds, and send automatic alerts if an unusual pattern emerges. When a SIM swap is detected, you can put the account on temporary hold.

When discussing pattern-based alerts and how it helps detect SIM swaps, here’s what happens:

Spikes in traffic

A SIM swap fraudster usually tries to quickly take advantage of the victim’s phone number before the fraud is detected. This often involves sending or receiving many messages in a short amount of time to authorize access to accounts (e.g., bank logins, resetting passwords, or verifying transactions). This would cause an unusual surge in SMS traffic — far more than what a normal user would generate.

Low conversions

When a SIM swap happens, the original owner loses access to their phone number, but systems still try to send OTPs to the legitimate phone number. However, because the fraudster now controls the SIM, these OTPs fail to reach the original user, and the system may detect low conversion attempts and flag as suspicious.

Fraud thresholds for message control

To mitigate risks, you can use fraud thresholds for message control. If the threshold is exceeded, you have customizable options:

• Block and alert: Messages are blocked for 12 hours after a breach, and an alert is triggered.
• Alert only: An alert is sent, but messages are not blocked.

Plivo's dynamic controls will notify you of any unusual traffic patterns or surges when customized.

Protect your business with Plivo

Plivo's Lookup API, in conjunction with pattern-based alerts, can be a powerful tool for detecting fraudulent SIM swaps. Doing so can prevent your business from being vulnerable to further damage or associated risks and take needed measures.

Safeguarding your organization from SIM-swapping fraud is vital for protecting consumer security and retaining their trust. With Plivo’s advanced number validation solutions and Fraud Shield, you can secure critical accounts and improve overall communication security.

Contact us today to request a trial and protect your business from SIM swapping and other cybersecurity threats.

The VoIP market in the US, growing at a compound annual growth rate (CAGR) of 12.1%, will reach $151.21 billion in 2024. This upward trend will continue until 2028, when the market value is expected to hit $236.25 billion.

This growth is due to the fact that Voice over Internet Protocol, or VoIP, offers cost savings, flexibility, and advanced features that traditional phone systems simply can't match.

In this blog post, we will discuss what VoIP is and how it works to help you decide if it’s right for your business.

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What is VoIP?

Voice over Internet Protocol (VoIP) is a technology that allows you to make phone calls over the internet instead of using a traditional analog phone line. It converts your voice into a digital signal that can be transmitted over the internet.

How does VoIP work?

VoIP turns your voice into digital data, compresses it, and sends it over the internet.  Your VoIP provider manages the call setup much like your internet provider connects you to the web.

Here's how it works:

• Your phone connects to your home internet network through a switch or router.
• When you dial a number, your IP phone signals your VoIP service provider to connect the call.
• The provider sets up the call and exchanges data packets with your phone.
• Your phone then converts that data into the sound you hear.

During a VoIP call, your conversation is broken down into tiny data packets that travel across the internet instantly. Your phone and the VoIP provider constantly exchange these packets to keep the conversation flowing.

VoIP services help you completely bypass traditional analog systems. You'll have no technical problems as long as you have a decent internet connection.

VoIP vs. traditional phone systems

The biggest difference between landlines and VoIP is how they connect calls. Landlines use physical copper wires, so they’re limited to specific geographic locations. In contrast, VoIP works on an internet connection and works globally wherever the internet is accessible.

Cost is another factor. Landline systems are expensive to set up and maintain. Analog systems require laying down miles of copper wire and switching equipment.

VoIP is much more cost-effective in comparison. Because VoIP is managed through the cloud, it eliminates the need for on-site installation or maintenance. Adding or changing users is as simple as updating the software: no technician required.

Here are some more key differences between VoIP and landline systems:

Types of VoIP services 

VoIP comes in a variety of forms. Here's a quick look at some of the most popular business VoIP phone services available today.

1. Device-based VoIP services

This option involves users purchasing a VoIP device from the provider and plugging it into their landline. They can then make and receive calls within a specified country for free. This set-up eliminates monthly bills and allows users to enjoy a VoIP phone number with their existing phone set. 

2. Software-based VoIP services

This popular VoIP service is accessed online via a user's browser or installed as software on their desktop. Their PC's audio input and output devices serve as their phone.

Zoom and Skype are great examples. They offer features like video conferencing, instant messaging, and screen sharing, all while using your computer as the communication device.

3. Mobile VoIP services

Mobile VoIP is essentially software-based VoIP adapted for a user's smartphone or tablet. Users can make and receive calls from anywhere after installing the app and ensuring a stable internet connection. 

4. Business VoIP services

Business VoIP services offer two deployment options: on-premise and cloud-based. Both of these are cost-effective compared to traditional phone lines. 

Both options come with features like call forwarding, call transfer, call recording, and much more. These services are designed to grow with your business. Leading providers should offer good technical support.

On-premise VoIP involves purchasing and maintaining all the necessary hardware within the office space. This is a significant upfront investment, especially compared to cloud-based VoIP, which is hosted by the provider. 

5. Analytics-based VoIP services

The latest VoIP advancements analyze agent and customer speech to provide valuable insights. With top-tier speech analytics software, businesses can understand user mindsets and perceptions while evaluating agent resolution effectiveness.

What equipment do you need to set up VoIP?

Generally, a VoIP-compatible computer or laptop, a softphone, and a headset is sufficient for home use. 

Businesses, however, might need additional hardware, such as:

• A VoIP adapter or digital voice adapter (ATA): This small device converts analog signals to digital ones. This allows you to use your existing analog phone for VoIP calls.
• A VoIP phone: This phone connects directly to your router with an Ethernet cable.
• A headset: Especially important for office use, headsets with microphones ensure clear communication.
• A router and modem: Essential for connecting to the internet.
• A firewall: To protect your system, a VoIP-specific firewall can identify and report VoIP threats.
• A session border controller (SBC): A session border controller handles the signaling and media streams associated with setting up, conducting, and ending calls.

Advantages of VoIP

VoIP's widespread adoption across businesses of all sizes is driven by several key advantages as outlined below. 

Affordability 

Businesses switching to VoIP typically save between 30% and 50% of their telecommunications costs. VoIP cuts out expensive line rental fees and charges less per minute you talk, especially for long-distance calls.

Plus, many providers let you keep your existing numbers, so you don't have to spend money on new local or toll-free numbers. They also offer the option to combine calls, faxes, chat, and video conferencing into a single VoIP/UCaaS plan. This can be more affordable (and effective) than relying solely on phone-based communication.

No need for new equipment 

Aside from savings on software, VoIP solutions rarely require businesses to buy new equipment. You can often use the service with your existing internet-connected devices. If you prefer traditional desk phones, you choose tor rent them as needed.

Easy setup and use 

Businesses prefer VoIP services because setting up a new account is usually simple and fast. Enter all the necessary account and billing information yourself or work with a sales representative who can handle the setup process. 

Either way, the VoIP setup is typically completed the same day, if not within minutes. 

Wider reach for your brand 

With the right VoIP service plan, your brand's reach extends far beyond local boundaries. VoIP allows you to capitalize on the potential to reach customers globally without connectivity issues or expensive long-distance phone bills. Not only can you target new markets, you can also contact suppliers around the world who may be able to streamline your operations and help you reduce overhead costs. 

High-quality audio

VoIP systems provide clear voice quality with the help of audio codecs. These codecs compress the audio to transfer it over the networks easily. Due to its small size, the transmission takes place instantly and reduces the chances of any interruption that can affect clarity. 

Some modern codecs, like Opus, also use advanced audio processing techniques that can further improve clarity. These techniques include noise reduction, echo cancellation, and audio enhancement algorithms that help to make voice quality much better.

Disadvantages of VoIP

While VoIP offers numerous benefits, it's important to be aware of its potential drawbacks. 

Stable internet speed

Smooth VoIP calls rely on a stable internet connection. Slow speeds, frequent outages, or high latency (signal delay) can frustrate call quality. Aim for at least 100 kbps upload speed per device. Thankfully, VoIP is bandwidth-efficient, so a reliable internet plan is usually enough.

Latency and jitter

Besides internet speed, latency and jitter can also impact your calling experience. High latency causes noticeable lag, while high jitter makes the connection feel jumpy and unreliable. 

Online communication involves data packets traveling smoothly to their destination. However, latency and jitter occur when these packets face delays or get lost during transmission, leading to slower information arrival and potential retransmission. 

Several factors, including network congestion, outdated equipment, and worn cables, contribute to these issues.  

Emergency calls have less accurate location tracking

Unlike traditional phone lines, VoIP doesn't automatically give precise location data during emergencies. Cell phones use cell tower data for accurate tracking, but VoIP relies on IP addresses, which can be less specific. 

This detail is important in case of an emergency. Make sure your emergency information is always updated with your current address. This way, even when using VoIP, emergency services can find you quickly when needed.

Key features of VoIP

So, when choosing the right VoIP service for your business, what should you look for? 

Here are some essential features to keep in mind.

Auto attendant

An auto attendant greets your callers with a menu of options.

For example:

• Press 1 for Sales.
• Press 2 for Support.

While basic auto attendants are helpful, VoIP providers like Plivo take this a step further with their advanced IVR (Interactive Voice Response) system. With Plivo’s IVR, you can:

• Create multi-level menus with audio or text prompts.
• Use automatic speech recognition to understand caller requests.
• Route calls intelligently based on caller input or other criteria.

Mobile and desktop apps

With phone and computer apps, you can use your VoIP phone service even without a special phone. Perfect for people on the move or working remotely, these apps ensure everyone's reachable.

Since some prefer headsets or mobiles anyway, check who needs a desk phone before switching to VoIP. You might save some money.

HD call quality

Thanks to high-quality codecs, every VoIP call over a stable internet connection has HD audio. You'll enjoy clear, easy-to-understand conversations with colleagues and customers.

Unified communications

Unified Communications as a Service (UCaaS) combines different communication methods,  like instant messaging, calls, and video conferencing. Plus, with extras like call recording, reporting, and voicemail, UCaaS takes VoIP to the next level.

Switching to VoIP sets you up for better teamwork. VoIP is a great way to start if you're thinking about using video calls more, or like the idea of instant messaging.

Call encryption and VoIP security

The internet can have security risks, so any call made online needs to be safe. With VoIP, everything's scrambled and protected, both during the call and when it's stored. No one can listen in: they only see basic info like when the call happened and how long it lasted. 

For example, imagine you have a conference call with your sales team. The call log will show the date and duration of the call,  but the actual discussion will remain private.

Call recording

VoIP lets you record calls to track quality or comply with regulations. It offers simple call recording, where calls are saved online and ready to download later.

You can also choose advanced call recording with features like sentiment analysis to spot unhappy customers or find opportunities to sell more.

How much does VoIP cost? [2024 pricing guide]

VoIP is surprisingly budget-friendly, considering all it can do. Expect to pay around $20-$50 per person per month for VoIP. That's a considerable saving compared to traditional phone systems. 

To give you a better idea, here's a quick cost breakdown for VoIP:

• Upfront costs: Anywhere from $0 to $50 per line.
• Monthly fees: Between $19 and $45 per line.
• Phone costs: $80 to $600 for each special VoIP phone.
• International calls: Start at $0.01 per minute.
• Taxes and fees: These depend on where you are.

Traditional phone systems have hidden costs you might not think about:

• Installation fees: $50 to $100 per phone line.
• Deposit: Can be $100 to $500.
• Maintenance contract: Often $1000 or more every year.
• International calls: Start at $1.00 per minute.
• Credit check: They might check your credit.

Choosing a VoIP provider

While most VoIP providers cover the basics, it's smart to pick one that aligns with your business needs.

When picking a VoIP provider, make sure that they offer:

• Expert setup assistance: Full support to set up advanced features (like auto attendants and call queues), get your phones working, train your team, and advise you on any extra hardware or software you might need.
• Network compatibility: Seamless integration with your current network setup or the ability to adjust to fit your needs.
• Industry experience: A track record of helping similar companies to yours, with success stories to back it up.
• Top-notch customer service: 24/7 or at least quick customer support, especially for switching your phone number, on-site setup, and ongoing help.
• Reliability and security: A proven track record of being reliable with minimal downtime.

When choosing a provider, scalability is also an important factor. Your VoIP solution should easily handle increasing call volumes and expanding communication needs as your business grows.

CallHub, a leading voice and text messaging platform for political and advocacy groups, is a perfect example of this. During the last US midterm elections, CallHub facilitated over 9 million calls. This highlighted the need for a strong and adaptable VoIP infrastructure. 

Plivo handled CallHub's massive call volumes, ensuring seamless communication even during peak periods.

As CallHub's CTO, Chetan Giridhar, notes, "Even with the growth in volume and load, Plivo has really been able to scale with our customer needs. One day a campaign actually reached a rate of 600 calls per minute or 36,000 per hour, and it was only possible with Plivo’s scalability.

Upgrade your business communication with Plivo

VoIP has evolved far beyond just voice calls over the internet. Today, it helps businesses use voice, video, and multimedia content to streamline their communication.

Plivo’s Voice API platform seamlessly integrates voice calling into your applications. This enables features like conference calls, voice alerts, surveys, and more. 

Plus, you can connect and control calls to any device, build VoIP calling into your mobile and browser apps, and use powerful call management features.

Plivo also ensures exceptional call quality with its advanced call insights. This feature helps you to:

• Proactively monitor call quality
• Quickly identify and troubleshoot issues
• Gain detailed call statistics
• Gather user feedback

Plivo is your trusted partner for secure, reliable, and scalable communication solutions. We're SOC 2 certified and meet top privacy and security standards like GDPR and HIPAA.

Ready to take control of your call quality? Try Plivo's voice API trial today and see how you can improve your communication strategy.

Okta will sunset its SMS and voice verification service on September 15, meaning all Okta users need to bring their own provider (BYOP) to continue offering one-time passcode (OTP) verification using these channels. Okta will focus on password-less options like FastPass or FIDO2 WebAuthn. 

While FastPass and WebAuthn undeniably offer advanced security features, we believe SMS and voice authentication methods remain relevant in enterprise environments. There are compelling reasons enterprises should continue using Plivo with Okta for SMS and voice OTP authentication. Not only that, but Plivo makes it easy to integrate with Okta and make sure your customers never experience a delay, miss an OTP, or get frustrated trying to log in. 

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Here are some key benefits and considerations that make these channels both a viable and valuable choice for businesses today.

6 SMS and voice OTP advantages

1. Universal accessibility and compatibility

The wide user reach makes SMS and voice verification a good option for global enterprises. SMS and voice authentication methods are not limited by the type of device a user has. Whether someone is using a basic feature phone or a high-end smartphone, SMS and voice work seamlessly across all mobile devices. Users don’t need to install specific applications, possess hardware tokens, or have smartphones.

Using multiple channels for OTPs also creates redundancy that fosters greater reliability.  SMS and Voice OTPs serve as reliable backup methods when primary authentication methods fail or are unavailable due to technical issues or user device problems. This redundancy ensures continuity and reduces the risk of access interruptions.

Did you know? Plivo also supports WhatsApp, with email and RCS messaging coming soon!

This inclusivity ensures users can participate in secure authentication processes regardless of their technological capabilities or resources.

2. Ease of integration

On the business side, most enterprises already support SMS and voice OTPs, making these methods easy to maintain and expand. This established infrastructure reduces the need for significant investment in new systems, allowing businesses to continue leveraging their existing resources. Plivo’s Verify API integrates seamlessly, allowing developers to slash implementation time by 90%.

3. User familiarity and convenience

Because OTPs enjoy global reach, the process is straightforward and familiar to most users. The simplicity of receiving and entering a code into a system makes SMS and voice OTPs convenient for users of all ages and technical proficiency levels. This familiarity reduces the need for extensive training and support, enabling smoother adoption and fewer usability issues.

For developer teams, unlike advanced authentication methods that may require setup, enrollment, or understanding of new technologies, SMS and voice authentication can be deployed immediately. Plivo’s Verify API is ready to go in just one sprint.

4. Support for non-corporate users

Not all users interacting with an enterprise's systems have corporate-managed devices or can install apps like FastPass or use WebAuthn’s advanced features. Contractors, remote workers, and temporary workers still need a way to secure their accounts without requiring corporate IT involvement. OTPs allow for secure authentication without complex device management policies, making them ideal for BYOD and hybrid work scenarios.

5. Affordable and scalable

OTPs have low initial investment costs: enterprises do not need to purchase and distribute hardware tokens or ensure all users have compatible devices. This reduces the upfront costs associated with more advanced authentication methods.

SMS and Voice services can be easily scaled up or down based on demand, allowing businesses to adjust their authentication capabilities without significant additional costs or logistical challenges. Plivo offers flexible pricing models, enabling organizations of all sizes to adopt these methods economically. Plus, Plivo Verify comes with:

• Zero authentication fees
• Fraud Shield for free
• No regulatory overhead
• No need to purchase numbers
• Reduced technical support costs
• No monthly phone number rental fee

Supporting advanced authentication methods can increase technical support needs due to issues like setup, device compatibility, or app installations. SMS and voice-based methods, however, are simple and intuitive, requiring little to no user guidance and reducing the burden on IT support.

6. Meet compliance standards  

In some industries, such as finance and healthcare, and in certain regions, SMS and voice OTPs are recognized and accepted methods for multi-factor authentication. These methods help enterprises meet regulatory requirements without the need to adopt newer technologies that may not yet be standardized.

Plivo is HIPAA, GDPR, and PCI DSS compliant, with SOC 2 and ISO 27001:2022 certification.

Get started with Plivo

While modern authentication methods like FastPass and WebAuthn offer enhanced security, SMS and voice OTPs remain relevant and valuable for all businesses. Their universal accessibility, ease of use, cost-effectiveness, and role as a reliable backup make them indispensable in various enterprise contexts.

Okta users can integrate Plivo in five minutes or less. Our off-the-shelf API is designed to “go live in one sprint.” With a 95% OTP conversion rate and the lowest costs per conversion, Plivo’s Verify API is well suited for businesses of all sizes. Learn more to ensure secure, inclusive, and resilient access for all users, regardless of their technological capabilities.

In today's fast-paced business environment, customer interactions play a pivotal role in determining success. Imagine a scenario where a call center receives hundreds of calls daily. Each call contains valuable insights about customer preferences, pain points, and overall satisfaction. However, without the right tools, these insights can remain untapped, buried within the raw audio of customer interactions. This is where Plivo’s Audio Stream comes in, transforming how businesses can leverage real-time audio data.

Plivo’s Audio Stream allows businesses to stream raw audio from active calls to applications or third-party systems over WebSockets. This feature empowers organizations to capture and analyze customer interactions automatically, thereby enhancing the overall customer experience.

Getting Started with Audio Stream

In this blog, we’ll outline the key highlights of this feature and offer tips for making the most of Audio Stream.

How Does Audio Stream Work?

Plivo’s Audio Stream, part of Plivo's Voice API, represents the next generation of real-time access to raw audio data. When coupled with AI-based tools, businesses can leverage audio streaming to offer enhanced voice-based services, extract valuable insights, and elevate customer interactions.

To get started with Audio Stream, establish a WebSocket connection to stream raw audio from active calls in real-time to applications or third-party systems. With this connection, you can play audio, interrupt and clear buffered audio, and send a checkpoint event to indicate the completion of playback. Refer to our API and XML documentation for detailed instructions on establishing and managing this connection.

The illustration below shows how a call center could use audio streaming to document key details from a customer interaction — data points that can later improve the customer experience.

Other Real-Life Use Cases:

• Healthcare Services: In a healthcare setting, audio streaming can be used to transcribe patient calls in real-time, ensuring accurate record-keeping and immediate access to patient information for better service delivery. Additionally, by utilizing audio streams, healthcare providers can develop AI-based virtual assistants or bots that assist patients in booking appointments, refilling prescriptions, and answering common medical inquiries, thereby reducing the burden on human staff and improving patient satisfaction.
• Financial Services: For financial institutions, audio streaming can help monitor and analyze conversations for compliance purposes, ensuring that all regulatory requirements are met while also enhancing customer service. Additionally, AI-based virtual assistants can be integrated to assist customers with routine banking inquiries, and streamline tasks such as loan applications and account management. This not only improves operational efficiency but also elevates the customer experience by offering prompt and accurate assistance.

These are just a few examples of how audio streaming can be used across industries. Audio streaming can be applied in various use cases across different sectors.

Bidirectional Audio Streaming

Upon establishing the audio stream via WebSocket, Plivo forks and transmits raw audio over the WebSocket in real-time, ensuring high quality. With bidirectional audio streaming, Plivo offers the functionality to transmit audio from your application back to Plivo, enabling real-time conversational use cases. During the call, Plivo will then relay this audio back to the caller or end user.

What Can I Build with Audio Streaming APIs?

Audio streaming opens up numerous opportunities to enhance customer satisfaction by providing deeper insights into customer interactions. Here are some potential applications:

• Conversational AI Bots: Integrate raw audio captured by Audio Stream with AI bots via Amazon Lex or Google Dialogflow to create AI virtual assistants that engage with your customers.
• Real-Time Transcriptions: Use services such as Amazon Transcribe or Google Speech-to-Text for real-time transcriptions in multiple languages.
• Sentiment Analysis: Monitor conversations between your customers and agents to analyze service quality and improve training by identifying high and low performers.

Getting started with Audio Stream

It’s easy to get Audio Stream up and running — simply follow the steps below.

1. Sign up with Plivo.
2. Purchase a number from the console or via API. 
3. Attach the purchased number to the application which returns the audio stream XML instruction.
4. Dial the number. 
5. Return the following XML instruction to start getting raw audio from Plivo and enable a conversational AI bot (bidirectional audio stream).

<Response>
	<Stream bidirectional="true" keepCallAlive="true">wss://yourstream.websocket.io/audiostream</Stream>
</Response>

6. Send audio back to Plivo via the same Websocket connection with the format highlighted below.

{
  "event": "playAudio",
  "media": {
    "contentType": "audio/x-l16",
    "sampleRate": 8000,
    "payload": "base64 encoded raw audio.."
  }
}

7. Plivo relays the audio back to the call.

Clear Audio

In scenarios where you need to interrupt or halt audio that you've sent to Plivo, use the clear audio command to seamlessly interrupt and clear buffered audio. Send the following instruction via WebSocket:

{
  "event": "clearAudio",
  "streamId": "b77e037d-4119-44b5-902d-25826b654539"
}

Pricing

Audio streaming is priced at $0.003 per minute per stream, in addition to the charges for voice minutes associated with a call. Pricing is subject to change, so check our pricing page for the most up-to-date information.

‍Sign up with Plivo today to try this powerful new capability for your calls.

One time you can be sure to have your customers’ attention is when they call you. Many callers spend a few moments on hold on their way to getting their questions answered. Don’t waste those precious seconds — use them wisely by giving callers information they can use.

It’s a rare business nowadays that keeps a human receptionist on the payroll to answer customers’ phone calls. Instead, most companies use interactive voice response (IVR) — automated technology that speaks a menu of options and lets users make choices by speaking or pressing a phone keypad key.

Plivo makes it easy to create an IVR menu tree in a couple of ways. Our PHLO visual workflow design tool lets you drag components onto a canvas and use them as building blocks for your menu tree; we wrote a blog post that walks you through the process. Or you can write an IVR menu with your favorite SDK and Plivo XML documents. It’s not drag-and-drop, but it’s pretty easy — and it’s what you need to do to take advantage of this tip.

From IVR to OIC

When you forward a call to an extension, sometimes it gets queued up waiting to be answered. If you had a customer’s attention, even if just for a few seconds, what would you communicate to them?

PreAnswer lets you specify what happens after a call is transferred but before it’s picked up. Some companies squander those seconds playing inoffensive music. But there are better possibilities.

For instance, suppose you’re a restaurant and you have a daily special, or maybe you’re a retailer with a one-day sale. You can put text that describes the deal into a file that your application can open and read out using text-to-speech.

Or suppose you’re transferring a call to a department that gets the same questions over and over. You could record answers to common questions and play them to callers. If you answer a customer’s question with recorded information they’ll hang up satisfied, and you’ll have freed up an employee’s time.

Tech specs

Here’s how it works on a technical level. Plivo lets you control call flows with XML code. The PreAnswer XML element lets you embed any of three other elements:

• Speak plays specified text using text-to-speech. The Speak XML element tells Plivo to generate spoken audio, powered by Amazon Polly. We support 27 languages and more than 40 voices, and by using Speech Synthesis Markup Language (SSML) you can control pronunciation, pitch, and volume to make the spoken words sound more natural and less machinelike.
• Play plays audio in MP3 or WAV format.
• Wait waits silently for a specified number of seconds.

When you forward a call, you can specify the PreAnswer element with an embedded Speak or Play element.

Speak friend and enter

Here’s a little Python code that shows how to use the Speak element. Suppose you put the messages you want spoken in a text document called speak_input.txt:

Thanks for being patient. To compensate you for your time on hold, we’re offering a 50% discount on a yearly subscription. Use the discount code “hold50” when you sign up. Someone will be with you shortly.

This code opens that file, reads the text, and adds it to the Speak element.

from plivo import plivoxml

preanswer_message_file = open("speak_input.txt", "r")

preanswer_message = preanswer_message_file.read()

response = plivoxml.ResponseElement()

response.add(plivoxml.PreAnswerElement().add(plivoxml.SpeakElement(preanswer_message)))

Play on words

Alternatively, you could record your message (in this example in a file called sales_discount.mp3 that lives on Amazon S3) and use the Play element.

from plivo import plivoxml

preanswer_play = “https://s3.amazonaws.com/sales_discount.mp3”

response = plivoxml.ResponseElement()

response.add(plivoxml.PreAnswerElement().add(plivoxml.PlayElement(preanswer_play)))

Wait a moment

Sometimes you might want a few seconds of silence before you speak or play a message. This code uses the Wait element to pause for 10 seconds.

from plivo import plivoxml

response = plivoxml.ResponseElement()

response = (plivoxml.PreAnswerElement().add(plivoxml.WaitElement(None).set_length(10)))