The text discusses the limitations of generic Automatic Speech Recognition (ASR) systems in accurately processing speech for Conversational AI. It highlights that while human brains can easily understand context and intent, ASR systems struggle with this due to their lack of noise filtering capabilities and difficulty in determining important words within conversations. The text uses an example of a robot waiter at a pub trying to comprehend multiple conversations happening around it, emphasizing the challenges faced by Conversational AI in understanding intent and context accurately.