Why Conversational AI is Becoming Essential for Customer Service


It seems pretty clear that the future of customer support hinges on the availability of AI-powered technology – but that still doesn’t tell us why so many businesses are investing in AI. AI is changing how we perform at our jobs, how we interact with brands, and even contributing to the growing class of superhuman workers. That said, the role of AI in customer support is particularly noteworthy – especially because smart technology has so many different uses within the realm of support.

Is AI the future of customer service?

Artificial intelligence (AI) is the next big thing in customer service and it can solve a problem that many businesses face: large volumes of data. Augmented Intelligence technology is sweeping across the customer service landscape and transforming it into a more efficient, cost-effective, and productive environment.

Not only would this go a long way in increasing customer satisfaction and providing excellent customer service, but also improve brand reputation and drive higher customer loyalty. Businesses already use chatbots of varying complexity to handle routine questions such as delivery dates, balance owed, order status or anything else derived from internal systems. By transitioning these frequently asked questions to a chatbot, the customer service team can help more people and create a better experience overall — while cutting operational costs for the company. Firms in all industries see artificial intelligence and automation as a means to improve operational quality and customer experience , reduce costs and increase margins.

What positive impact will Conversational AI bring in customer service?

It gives brands the power to strengthen customer engagement, improve retention rates, and promote brand loyalty. While AI isn’t a replacement for human support, it can increase efficiency by automating repetitive tasks and reducing the burden on customer service teams. Today, AI can assist in ways that actually help human customer support agents perform their tasks better ai for customer service and streamline their workflow. It also helps companies understand what their customers want, and, thanks to AI advancements, it provides human-like communication through conversational platforms such as chatbots, IVRs, and visual bots. A customer service chatbot uses artificial intelligence , machine learning, and natural language understanding to mimic human speech.

  • In the same way AI tools can be used to provide customer self-service, agents can benefit from finding answers quickly.
  • When it comes to handling customer queries, most organizations face challenges like scaling up the number of agents to handle the increased customer traffic.
  • As we discussed, by leveraging AI, businesses can collect data about customer behavior patterns (for instance, retail spending, purchasing cycles on a credit card, previously browsed items, etc.) and predict behavior accordingly.
  • Finding the right metrics to measure the return on investment of automation and AI requires a careful assessment.
  • The tremendous impact these AI customer service technologies are making – on both customer-facing and back office applications – has already been felt by companies across multiple industries.
  • Put our partnerships with world-class digital experience platforms to work for you.

In fact, research by Gartner predicts that by 2020, we can expect to see 85% of all customer interactions handled by AI without the involvement of a human support agent. Discover how artificial intelligence can hugely embrance the customer support service for your business. Right now, the biggest obstacle for businesses is the cost of AI solutions to ensure they get them right. For example, a member of staff could cost $35,000 per year, need weeks of training, benefits like pension and health cover, holidays and so on. A $50,000 investment in an AI solution like CommBox can last a lifetime and continue to develop on its own over time.

What are the benefits of using AI for customer service?

For consumers, chatbots provide a refreshing and more convenient service, which requires less waiting time and provides personalized recommendations. AI powered chatbots for customer support is pushing the envelope of innovation and revolutionizing the way customers are assisted. AI means high-quality customer experience, personalized support, speed & efficiency and cost saving. Of all business segments, customer service is the one where Artificial Intelligence is hugely embraced and companies are confident about how chatbots can efficiently handle first-level queries and significantly minimize operational cost. We are most likely to experience further innovations in AI-powered applications for improving customer service solutions.


As biometrics become more reliable and cost-effective, more companies can be expected to take advantage of their benefits. Artificial intelligence – the science that deals with the creation of human-like learning and reasoning capabilities – has been catapulted into the spotlight in recent years. It seems like every company in every industry wants to harness the power of AI to enhance operations and positively impact the lives of their customers. The goal should be to improve human interaction and not to disorient customers by removing the human touch. If you want to get rid of repetitive tasks Layerise has a solution for you.

Ways AI is Changing Customer Service

Modern customers are busy and picky, preferring to solve their problems quickly and independently. Using AI in customer service is cheaper than hiring customer service representatives as your business grows. Chatbot pricing varies from tool to tool, and every business can find its optimal solution. All in all, AI usually doesn’t require a large initial investment if you plan to use it for customer service.

CBP updates its records of who has departed the country, and customers are free to travel to their final destination. Customs and Border Protection to develop a first-of-its-kind biometrics boarding program, available to customers traveling direct to an international destination out of certain U.S. airports. Contributor Yifei Zhao graduated from New York University with a Master’s degree in Media, Culture, and Communication. She is passionate about content writing and helping to build partnerships to promote how AI brings benefits and interacts with human society.

Easier scalability and administration of customer support requests

“AI can extend this capability to predict emotion and intent to make the perfect match and discover the best opportunities for downstream automation,” explains Traba about this use case. And this learning can extend to deliver a great experience, even to those customers who never interact directly with a customer service agent. Was a “0” due to a negative experience with a call center rep, or just general frustration from someone with too many annoying administrative to-dos on their list? Was a “10” a reflexively polite response, or did something superior happen during the customer service experience?

How do you use AI for customer experience?

AI can help you identify and segment your customers based on their behavior and psychological profiles. You can gain a better understanding of the needs and interests that drive them to purchase and then create targeted messaging that's more likely to persuade and motivate them.

It places AI in the role of advisor, collecting all the information and sorting through it, while still allowing the support agent to decide what to pass on to the customer and how to do it. Delta sends a customer manifest for each flight to CBP, which then creates a photo gallery based on that manifest. Intelligent chatbots can do more than just chat; they can be programmed to complete certain transactions.

Machine learning models

This blog delves into the subject a little more to convey how AI-powered customer service can possibly help customer support agents online. If a customer asks an agent a question, they sometimes must review several process documents and manuals to work out how to resolve the query. In the same way AI tools can be used to provide customer self-service, agents can benefit from finding answers quickly. For example, an agent can use bot technology to find are answers matching a customer question, finding the information quicker than ever before. That’s why we’ve built a customer service platform with artificial intelligence at its core. Our platform allows you to automate customer service processes and offer immediate, personalized responses at scale.

ai for customer service

AI customer service automation platforms, such as Hoory, come with an integrated chatbot that helps businesses reduce costs, increase interaction quality, establish customer loyalty, and reduce employees’ workload. Moreover, AI chatbots don’t need vacations; they are available 24/7 with prompt customer support. Putting AI at the frontline of every interaction streamlines service, better equips agents, and enhances the overall experience with personalized, precise, and empathetic care. It helps brands quickly and responsibly use data to understand and predict customer needs and arm agents behind the screen with the right message and offers.

Unbabel provides real-time, AI-driven multilingual support for live customer service agents – VentureBeat

Unbabel provides real-time, AI-driven multilingual support for live customer service agents.

Posted: Thu, 17 Nov 2022 08:00:00 GMT [source]

Then add the invisible layers of the experience – the technology and processes that enable or hinder steps of the journey. Once you have a complete service blueprint, highlight pain points for all actors that are part of it. Now that we’ve learned why and how businesses can use artificial intelligence in customer service, let’s look at why it’s so critical to do so now. Conversational AI platforms can be used to achieve world-class customer service experience through automatic call routing to appropriate departments and seamless agent hand-off.

  • Machine learning is now an indispensable part of practically every corporate development.
  • AI can be a powerful tool to solve problems proactively, providing proactive support.
  • McKinsey’s global survey on The State of AI in 2021 indicates that AI adoption is continuing to increase with 56% of respondents reporting AI adoption in at least one function, up from 50% in 2020.
  • Of all business segments, customer service is the one where Artificial Intelligence is hugely embraced and companies are confident about how chatbots can efficiently handle first-level queries and significantly minimize operational cost.
  • Similarly, intelligent data analysis can help customer support teams deliver personalized, predictive support based on a specific customer’s history, channel preference, and previous support requests.
  • Chatbots can help businesses cut customer service costs by speeding up response times, freeing up agents for more challenging work, and answering up to 80% of routine questions.

Customer service is a good place to employ such technology as it’s both a major expenditure and a driver of customer experience. AI and automation can help at every step of the customer service journey. Customer service has clearly benefited from bots as these virtual assistants can store endless amounts of data, predict customer behavior and access relevant information in real time.

ai for customer service

Additionally, the number of tools on the market today is overwhelming, and every business can find something to suit their needs. The risks depend on your business’ specifics, the purpose of using AI, your customers, and many other factors. Simply put, common concerns revolve around potential privacy issues, maintenance of AI solutions, and tool limitations. You can customize how you spend money on customer service AI to suit your unique needs. The expansion of data collection and customer touchpoints allows companies to get more insight into the customer experience than ever before.

Why Artificial Intelligence Is Taking Over Contact Centers – BizTech Magazine

Why Artificial Intelligence Is Taking Over Contact Centers.

Posted: Tue, 15 Nov 2022 08:00:00 GMT [source]

The field of AI in customer service is expanding on a daily basis, but views about its expansion and use are divided. Some people are concerned that AI chatbots can lead to unemployment within the customer service industry, which is why some view its expansion and development negatively. It’s no surprise that64% of businessesbelieve that chatbots allow them to provide a more customized support experience for their customers. Companies that embrace AI’s diverse customer service capabilities can reduce costs while improving experiences. We chose Aisera to provide Medallia employees great employee experiences as we moved campuses in the Bay Area and continue to scale and increase our global facilities footprint.

ai for customer service