A system provides multi-modal user interaction. The system is configured to detect acoustic events to perform context-sensitive personalized conversations with the speaker. Conversation or communication among the speakers or devices is categorized into different classes as confidential, partially anonymous, or public. When exchange with cloud infrastructure is needed, a clear indicator is presented to the speaker via one or more modalities. Furthermore, different dialog strategies are employed in situations where conversation failures, such as misunderstanding, wrong expectation, emotional stress, or memory deficiencies, occur.