Everything you need to know about virtual agents

What is a virtual agent, and what does it do?

A virtual agent is a software program that uses AI to talk with people, answer questions, and complete simple tasks across chat and voice.

• It handles common requests on its own, around the clock.
• It can take actions, like booking a slot or starting a refund.
• It passes harder issues to a human agent when needed.

Today’s market pushes businesses to work smarter and serve people better. So many firms keep improving their processes and customer service.

More and more, they turn to AI-powered virtual agents. These tools lift the user experience. In addition, they free up support staff to focus on harder work.

A virtual agent does more than share basic facts. For example, it can answer queries in plain language. It can also route a customer to a human agent when an issue gets complex.

What is a virtual agent?

A virtual agent is a software program that mixes natural language processing with trained AI models to help people online. Virtual agents are also known as intelligent virtual agents (IVA), virtual reps, or chatbots.

Modern virtual agents go beyond scripted replies. Many now run on large language models. As a result, they understand context, hold a conversation, and keep track of past messages across chat and voice. To see how this works, read our guide to conversational AI.

Companies use virtual agents as a brand voice, a customer guide, or a help desk. Chat-based tools are the most common example. However, voice agents that speak with callers are now widely used too.

Virtual agents vs. virtual assistants

People often use the terms virtual agent and virtual assistant in the same breath. The two are closely linked. Still, it is easy to tell them apart.

Virtual assistants are human workers. Virtual agents, by contrast, are software programs.

A virtual agent usually sits inside customer service or staff support. It talks with people in smart, natural ways. In addition, it answers their questions on the spot.

A virtual assistant, on the other hand, is a person who works from home for a company. For example, they may book appointments and manage calendars.

Uses of virtual agents

There are two major uses of virtual agents for a company. First, they handle customer service. Second, they give technical support for minor issues.

Customer service

Companies use virtual agents to free up live agents’ time. A virtual agent can share the facts a customer needs and offer quick insights. Many firms pair this with customer service outsourcing for full coverage.

It also helps with minor actions. For example, it can cancel a transaction or start a refund.

Virtual agents work well for first contact too, such as click-to-chat. So people can reach your business fast by clicking a “Click to Chat” button.

In addition, virtual agents support multilingual self-help. As a result, they deliver strong service to a global audience.

IT support

Like customer service, virtual agents can cut IT service desk ticket volume. For example, they complete standard requests and fix simple problems.

The best part is their timing. They give round-the-clock help to staff and customers. In addition, they can deliver IT support at the corporate level.

Benefits of having virtual agents

Virtual agents bring real value to your customers, staff, and company. Here are some of the main benefits of using virtual agents. Still, the strongest results come when you blend them with people, as our take on the human touch in AI-powered customer experience explains.

Acquire and convert better leads

Virtual agents help a solo founder or a large team win and convert better leads. For example, they qualify leads, run cold outreach, and send follow-ups.

In addition, round-the-clock service matters for firms that work across many countries.

Scalable and profitable

Virtual agents help your staff serve customers better. So they can be cost-effective, scalable, and profitable for your company. Best of all, you gain this without extra hiring or training.

Reduces the cost of labor

Hire a full-time worker, and you must cover pay, benefits, and a monthly salary.

Another option is to hire a virtual agent. This tool runs much like an independent contractor. However, it mainly needs time and money up front.

Automates various routine jobs

Virtual agents can automate repeat work. Still, a good mix of human and virtual agents leads to steadier growth and higher ROI.

For example, a virtual agent can book a meeting, cancel an order, sign a user up for a webinar, or upgrade an account. Compared with manual work, this saves a lot of time.

As a result, routine tasks move off your team’s plate. So your customer service grows faster and more responsive.

Collects marketing information

Chatbots and other voice agents are a great way to grow your marketing database. If you want more ideas, see the best chatbots for your website.

For example, you can ask for an email and phone number to build your lists.

As your list grows, you can run more targeted campaigns.

Assists customers to find products

With the right virtual agent in place, clients find what they need fast. They do not have to dig through the whole site. As a result, they enjoy a better buying experience than they would by clicking around alone.

How do modern virtual agents work with human teams?

The best setups blend AI speed with human judgment. For example, a virtual agent handles common, simple requests first. Then it hands off hard or sensitive cases to a person.

Clear disclosure also matters. So tell users when they chat with AI, and make it easy to reach a human. In addition, strong setups ground answers in your own policies and account data. As a result, replies stay accurate and on-brand. For complex programs, many firms lean on AI in customer service run by trained support teams.

Frequently asked questions about virtual agents

Are virtual agents the same as chatbots?

Not quite. Every chatbot is a virtual agent, but modern virtual agents go further. For example, many use AI models to hold context and take real actions, not just send canned replies.

Can virtual agents handle voice calls?

Yes. Voice agents now talk with callers, answer questions, and complete tasks. So they work across chat, phone, and messaging, not text alone.

Will a virtual agent replace human staff?

No. A virtual agent handles routine work, while people take on complex, high-stakes cases. In practice, the strongest teams pair the two.

What tasks should a virtual agent handle first?

Start with high-volume, low-risk tasks. For example, use it for FAQs, order status, password resets, and simple bookings. Then expand as trust grows.

How do virtual agents keep answers accurate?

Good setups ground replies in verified sources, such as policy docs and account data. As a result, the agent pulls from trusted facts instead of guessing.