A technique for allowing an automated participant in a telephone conversation, such as an Interactive Voice Response (IVR) system or a voice browser, to react to the placing of the conversation "on hold." When a conversation between an automated participant and a human participant is placed on hold, a signal is provided to the automated participant indicating that the voice circuit between the two participants has been broken. In response to the signal, the automated participant may take appropriate action, such as suspending its participation in the conversation, extending the time for which it awaits a response from the human participant, continuing the conversation in a "visual" mode using the keypad and display on the human participant's handset, or some other appropriate action.