In our fast-paced and digitally connected world, Artificial Intelligence (AI) is playing an increasingly important role in customer service. From automated chatbots to sophisticated speech recognition systems, AI technologies are revolutionizing the way companies interact with their customers. In this blog post, we therefore take a look at current trends, successful application examples, challenges and future developments in the field of AI in customer service.

AI increases productivity in customer service 

A recent study on Artificial Intelligence conducted by Stanford University and the Massachusetts Institute of Technology (MIT) reveals that AI is particularly beneficial for less experienced customer service employees. The study, in which over 5,000 customer advisors from an unnamed top 500 US company took part, revealed that employees with little experience in particular benefit from AI support. Highly qualified employees, on the other hand, benefited less from the AI tool as they were already familiar with many of the solutions suggested by the AI. 

It was found that customer service agents who used a generative AI-based conversational assistant during the study experienced a 14 percent increase in productivity compared to colleagues without this technology. In particular, the least qualified and experienced employees were able to increase their work efficiency by an impressive 35 percent through the use of AI tools. Customer service employees with only two months of experience who used the AI assistant achieved the same work efficiency as colleagues with six months of experience who worked without AI assistance.

The results underline that AI technologies in the area of customer service are particularly beneficial for less experienced and qualified employees, with the benefits for this group being disproportionately high. Further studies on the use of AI in customer service also showed that AI is able to process customer inquiries faster and more accurately than human advisors. In this context, AI can also recognize patterns in customer data and thus make better recommendations for products and services. And it can also do this for customer inquiries in different languages.

Chatbots are one of the most prominent examples of the use of AI in customer service. Companies such as Amazon and Zalando are already using them successfully to process customer inquiries efficiently and provide personalized recommendations. Thanks to advanced algorithms, the bots can conduct dialogs in natural language and are constantly learning. 

Another example is speech recognition, which is used in call centers. Companies such as Vodafone and Deutsche Telekom use speech recognition systems to automatically identify callers and quickly route them to the right service employee.

Application example 1:

AI-controlled chatbot in the customer service department of an online retailer 

Scenario: 

An online retail company wants to make its customer service more efficient and increase customer satisfaction at the same time. The company therefore decides to integrate an AI-driven chatbot into its website and mobile app.

Implementation:

  1. Setting up the chatbot 
    The chatbot is trained with an extensive database of frequently asked questions and corresponding answers. It learns to understand and respond to customer queries in natural language. 

  2. Integration into the platform 
    The chatbot is integrated into the company’s website and mobile app so that customers have access to immediate support at all times. 

  3. Personalized recommendations 
    By analyzing customer interactions and purchase history, the chatbot provides personalized product recommendations and support.

Use case:

A customer visits the website to search for a specific product, but does not immediately find what they are looking for. He interacts with the chatbot by entering his query. The chatbot understands the query and immediately directs the customer to the products they are looking for or offers alternative options. 

If the customer has additional questions, for example about shipping options or returns, the chatbot can answer them immediately. This reduces the need to call customer service or send an email.

Advantages: 

  • Customers receive fast and efficient responses to their inquiries, resulting in higher satisfaction. 
  • The chatbot takes over routine inquiries, allowing customer service staff to focus on more complex cases. 
  • The chatbot is available around the clock, which improves the response time to customer inquiries outside of business hours. 
  • Through interactions with customers, the chatbot collects valuable data that can be used to improve customer service and product offerings. 

Result:

The use of the AI-driven chatbot enables the online retailer to provide a higher level of customer service while increasing efficiency and saving resources.

Application example 2:

AI-based voice assistant for telephone support in a telecommunications company 

Scenario: 

A large telecommunications company wants to optimize the efficiency of its telephone support while maintaining a high level of customer satisfaction. The company decides to use an AI-based voice assistant with Natural Language Processing (NLP).

Implementation:

  1. Development of the voice assistant 
    The voice assistant is developed using advanced NLP technologies to understand and respond to spoken language. It is also trained with a variety of customer scenarios and corresponding responses. 

  2. Integration into the existing telephone system 
    The voice assistant is integrated into the company’s telephone system so that callers interact with it first when contacting customer service. 

  3. Ongoing learning 
    The assistant is continuously fed with new data to improve its ability to deal with a wide range of customer queries.

Use case: 

A customer calls customer service to report a problem with their internet connection. The AI-based voice assistant answers the call and uses NLP to identify the issue. It asks specific questions to identify the problem more precisely and suggests solutions, e.g. restarting the router or checking the cable connections. 

If the assistant is unable to solve the problem or human intervention is required, it forwards the call to a qualified customer service employee. In doing so, it passes on all relevant information to enable the employee to seamlessly join the conversation.

Advantages: 

  • Customers receive immediate support for standard problems, without long waiting times. 
  • The voice assistant handles simple queries autonomously, freeing up staff for more complex cases. 
  • The assistant provides consistent and precise answers, resulting in improved customer satisfaction. 
  • By pre-filtering calls and gathering advance information, the customer service team’s resources are used more effectively. 

Result:

The use of the AI-based voice assistant enables the telecommunications company to increase the quality of its customer service while improving efficiency. Customers benefit from faster response times and high-quality support for more complex issues.

Advantages and disadvantages of AI in customer service 

Advantages: 

Increased efficiency: AI can process a large number of inquiries simultaneously, resulting in a faster response time. 

Cost reduction: In the long term, the use of AI can lead to a reduction in personnel costs. 

Personalization: AI makes it possible to personalize customer experiences and thus increase customer satisfaction. 

Disadvantages: 

Lack of human empathy: AI systems cannot (yet) offer the same emotional intelligence as humans. 

Data protection concerns: The handling of personal data by AI systems raises questions about data protection. 

Dependence on technology: Disruptions in AI can lead to impairments in customer service.

The future of AI in customer service looks promising. With the emergence of technologies such as machine learning and natural language processing (NLP), the ability of AI systems to understand and handle complex customer queries will continue to grow. In addition, more and more companies will use AI-based analytics to better understand customer feedback and improve their service. It is also to be expected that AI systems will be able to penetrate the emotional realm even more in the future and show more empathetic reactions. This could then further close the gap between human and AI-based customer service. 

Conclusion  

Artificial Intelligence has the potential to fundamentally change customer service – both in terms of efficiency and customer experience. While there are challenges, particularly in terms of emotional intelligence and data privacy, the benefits cannot be overlooked. Companies that are able to use this technology effectively will be able to provide a faster, more personalized and better service to their customers. 

Contact our experts to learn more about the benefits of AI-based customer service in your business.

Tags:
#Digitalization #Trends #UseCases

About the author

Mathias Herrmann

CEO at ALLEHERZEN

Mathias Herrmann is an internet entrepreneur going back to the Internet’s early days with a deep interest in digital and future technologies. For over 20 years, he has been helping companies make the most of their data by forging innovative solutions – without forgetting the people behind the data.

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