The Emergence of AI in the Customer Service Industry

Aston Carter

AI Usage in Customer Support Is Growing Quickly

Whether online shopping or trying to get answers about an insurance billing question, customers have likely gotten assistance from a new source: artificial intelligence (AI). The use of chatbots and other AI-powered support has become increasingly common in the customer service industry. One study showed that 88% of customers had at least one interaction with a chatbot in 2022, with an estimated 1.5 billion people total using chatbots around the world.

User response to chatbots is generally positive, with 62% saying they would use a chatbot over waiting to speak to a human agent and 69% reporting being satisfied by their last conversation with a chatbot.

With the global chatbot market expected to surpass $994 million by 2024, it seems more than likely that the use of AI in customer service will become more prominent over the next few years. Companies need to weigh the benefits of incorporating AI into their workforce and determine how they can best be utilized alongside customer service teams to support their customer base.

AI Usage Promises Big Benefits

Using AI offers many customer experience benefits to both clients and companies. It can increase efficiency, create more personalized content for customers during their user journey and lead to greater financial savings for companies.

Efficiency

Efficiency is a key part of effective customer service. Shorter hold times have been shown to directly enhance customer experience. Chatbots allow customers to quickly find answers to common questions without having to wait on hold for a human agent. Chatbots can also operate 24/7, allowing customers to access the information they need when they need it — without forcing companies to staff a call center 24 hours a day.

Personalization

Customers expect personalization, and they reward companies that provide it. Seventy-two percent expect the businesses they buy from to know their interests and wants, and 78% said receiving personalized content from a business made them more likely to make a purchase.

Enter artificial intelligence. AI can quickly access historical data, including past purchases and chat history, and consult similar user profiles based on factors like demographics or spending habits to guide the customer journey and recommend products and services users may want. Studies have shown that this practice can lead to a 10 to 15% revenue lift for businesses.

Financial Savings

Greater efficiency and increased personalization for customers can lead to a better bottom line for businesses. One report found that chatbots could save businesses and consumers a combined 2.5 billion hours. Allowing chatbots and AI to take on some of the customer service workload can lead to big savings for companies that no longer need to employ as many human agents to get the same amount of work completed.

Using AI Solutions to Support a Customer Service Team

Despite the benefits of using AI in customer service, relying solely on chatbots isn’t the best strategy for customer support teams. One study found that older generations, despite being reliant on online shopping, didn’t find chatbots beneficial to their overall experience. Eighty-five percent of those over age 65 wanted to talk to a customer service representative over the phone — with only 16% willing to use a chatbot or other app to communicate with a business.

Even users who are comfortable with chatbot technology don’t perceive them as being the best option for every interaction. Research shows that users are willing to turn to chatbots for low-complexity tasks, but prefer working with a human agent for tasks they consider to be more complicated. And some industries, like healthcare, require customer support workers to respond to challenges with a deeper level of empathy than AI is currently able to provide.

Chatbots and other AI are unlikely to replace all customer service representatives. Instead, AI is a good candidate to replace the entry-level customer service jobs that employers are struggling to fill. Chatbots can perform tasks like providing customers with basic information or handling queries that can be resolved with FAQ-style answers. Human agents can then be upskilled to handle requests that are more complicated or require additional expertise. Representatives can also be trained to program and oversee chatbots that are handling entry-level issues and inquiries. This allows for a blended approach that mixes human expertise with the lower-cost and efficient nature of AI.

Planning for the Future of AI in Customer Service

Introducing AI technology into a customer support strategy takes time and strategic planning. Workforce solutions partners like Aston Carter can help companies look holistically at their customer support teams and see where AI can best be integrated. This can include helping companies build out an AI strategy that identifies what customer support talent will still be needed, where AI can be used to its greatest effect and what a company’s long-term customer support goals are. Aston Carter can also help connect companies to technology partners that can match them with the AI platforms that are most compatible with their business goals.

Contact us so we can help identify where AI could be a useful solution to your business challenges.

*Original article featured on Aston Carter's website.

*I provided content support for this piece.