By skyforbes 
AI-powered:
Automatic Speech Recognition (ASR), Natural Language Processing (NLP), Text-to-speech (TTS), Large Language Models (LLMs), RAG (Retrieval-Augmented Generation)
Rule-based:
traditional telephony, pre-recorded audio, Dual-Tone Multi-Frequency (DTMF) / touch-tone inputs, basic keyword recognition
Interaction style
Conversational:
can understand the user’s intent and context and respond naturally, allowing for a two-way, free-flowing dialogue
Menu-driven:
users navigate a pre-recorded phone menu by pressing buttons on their phone keypad (e.g., ‘Press 1 for support’) or by voice commands
User experience
Natural:
can handle interruptions intelligently, respond in a human-like way, and provide a highly personalized experience
Rigid:
users are often forced to listen to a long list of options; the experience is impersonal, frustrating, and may feel robotic
Graceful:
can recognize when it doesn’t understand, ask clarifying questions, and transfer to human agents with full context
Poor:
if a user’s input isn’t recognized or a button isn’t pressed, the system often repeats the menu
Advanced:
can integrate with CRMs, calendars, and other business systems to retrieve data and perform actions
Basic:
typically has limited or static integrations with back-end systems; data retrieval is often basic
Complex queries:
can handle complex, multi-turn conversations, troubleshooting, and transactional tasks (e.g., scheduling, processing returns)
best for simple, routine tasks like routing calls, checking account balances, or providing static information (e.g., store hours)