View of Customer Service Department of Walmart Supercenter, representing the opportunity to deploy customer service AI chatbots.
Editorial

Customer Service Chatbots: AI Can Enhance Your CX

6 minute read
Michael Podolsky avatar
By Michael Podolsky
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Integrating AI-powered customer service chatbots into your CS strategy can improve overall customer experience.

The Gist

  • Embrace AI as a customer service tool. Despite developing at a rapid and unwieldy pace, customer service chatbots can effectively enhance your CS operations.

  • Choose the best type of AI for your organization. Consider all elements of AI capabilities to determine what works best for your CS team.

  • Keep things human. Great CX stems from AI and human agents working together, in tandem.

In today’s competitive market, many businesses are recognizing the value of investing in ways to develop and improve customer service. Right now, the biggest advantages stem from AI integration, as it has unprecedented potential to optimize and streamline an abundance of operational processes across all industries and services — including customer experience (CX).

Let's take a look at how AI customer service chatbots can enhance your operations

Customer Service Chatbots: The Hot New Tool

Three months after Open AI debuted ChatGPT in November of 2022, Juniper Research analysts predicted that, by the end of 2023, chatbots would be involved in 70% of all customer service interactions.

Enabling efficient support at scale, customer service chatbots can revolutionize how a business interacts with its customers. With AI technology now influencing almost every sector, the potential for this technology to streamline and enhance customer service processes and increase the prospects of a successful business can’t be overlooked.

Naturally, the prospect of such a paradigm shift raises many questions: What are the benefits? What challenges will we face implementing these technologies? Are we actually ready to hand everything over to machine learning?

A man use smartphone to contact provider and talk with ai chatbot software program, suggesting the power of chatbots in customer service.
Customer Service Chatbotschinnarach on Adobe Stock Photos

Related Article: 10 Top Chatbot Providers to Keep an Eye on in 2023

How AI Can Empower Customer Service Processes

Despite their recent relevancy, chatbots have been put to use for a couple of decades now. Their integration with customer service processes has increased in the last few years. Employed as virtual assistants or an interactive FAQ, AI chatbots have enabled businesses to scale up their customer service operations without the need to hire new staff. And with the recent leap in AI abilities, AI-powered customer service chatbots have introduced generative and conversational AI, as well as many other new applications and considerations.

By assigning commonly asked and easily answered questions to an automated chatbot rather than a human employee, CS teams are spared the valuable time and resources that would otherwise be spent on such routine questions. This frees up lost time that can now be put to use concentrating on more complex tasks — like those that demand lateral thinking and human comprehension.

Furthermore, the ability for customer service chatbots to handle multiple requests simultaneously mitigates the impact of peak periods, allowing consistent, short waiting times for the vast majority of inquiries. This brings down costs and, importantly, the stress on human employees, who are then better able to deal with those aforementioned complex customer requests.

Learning Opportunities

Example of a human like AI chatbot on a messaging platform or website to assist customers realtime, on a pink background, suggesting the power of AI powered customer service chatbots.
An example of an AI-powered customer service chatbot. Mdv Edwards on Adobe Stick Photo

Adopting Chatbots in Customer Service to Enhance Customer Interactions

If you’re yet to integrate AI chatbots into your CS department, consider the following pointers when determining which route to follow:

  • Systems integration: Incorporate chatbots into all your CS contact channels to maintain unity and consistency across the board. Data from customer interactions should be universally accessible to all corners of your CS team; human agents must be able to step in at any point and continue the conversation without frustrating the customer by going over old ground or starting the conversation from scratch.
  • Training on the right datasets: Look for quality, relevance and accuracy when selecting the customer service interaction data that supplies your AI chatbot. By doing this, you’ll improve the chances of it providing contextually appropriate responses, thus receiving more valuable answers. It also enables it to handle a diversity of requests.
  • Suitability: With a variety of customer support chatbot options, take the time to discover which chatbot platform matches the demands of your customer service processes and goals. Consider factors like integration capabilities, sentiment analysis and natural language processing. Identify a chatbot solution that gives you the ability to continually adjust it to meet your evolving needs.
  • Assessment and feedback: Continually monitor chatbot interactions to assess performance (response times, etc.) and gather data on resolution rates and customer satisfaction. Utilize analytics to optimize chatbot performance and customer feedback to refine chatbot capabilities and responses.
  • Limited utility: The utility of chatbots is still limited by their inability to deal with complicated requests and comprehend empathy and abstract human needs. Remedy this by ensuring that human CS agents are on hand to take over an interaction when chatbots have exceeded their limitations. This can defuse potentially confrontational, emotionally charged situations.

How AI-Powered Chatbots Can Benefit Your CS Team

Bolstering your CS department with AI has distinct advantages. Here are some of the big ones:

Cost Savings

Introducing the ability to address common, routine inquiries with an automated chat AI reduces overheads by freeing human agents from the burden of answering simple inquiries and hence allowing them to focus on more complex requests and productive tasks.

Scaling Up

AI chatbots provide the ability to scale customer service operations without compromising quality. They can handle multiple inquiries simultaneously, ensuring prompt and consistent responses — even during the busiest periods. This scalability enables businesses to deal with more inquiries without the need to hire additional staff. Whether it’s accommodating a spike in customer numbers or a surge in inquiries, AI chatbots offer flexibility and efficiency in expanding your CS operations whilst maintaining good customer experience outcomes.

Boost Service Quality

While enabling human agents to put their focus on more challenging tasks, the data gathered from the increased number of customer interactions enabled by chatbot use can be analyzed and utilized to refine and optimize processes, run predictive analytics and make breakthrough improvements in CS operations and delivery.

Striking a Balance Between Automation and Human Input

The integration of algorithms and AI has burgeoned rapidly within a very short timeframe, which is why we should take caution. Concerns have been raised regarding the violation of consumer law through poor application of AI automation.

Despite these qualms, we should embrace the introduction of AI-powered chatbots into customer service processes and its staggering potential for improving customer satisfaction. Through a smart, informed and strategic adoption of AI technologies, businesses can streamline their operational efficiency and minimize overheads. Now, even small businesses can scale up their customer service operations without the prohibitive cost.

However, it is important to highlight how crucial it is that, beyond sentiment analysis, AI does not recognize and cannot (as yet…) replicate human perception and empathy. Subtleties in human communication are indispensable in almost all situations, including building strong customer relationships. Until technology can potentially replicate this, a core element of excellent customer service will remain inextricably human.

While we are indeed still in the nascent stage, there is a bright future ahead for our collaboration with AI customer service chatbots and other technologies.

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About the Author

Michael Podolsky

Michael Podolsky is an expert in customer service and leadership, currently working as the CEO and co-founder of PissedConsumer.com, a review and reputation management platform. Connect with Michael Podolsky:

Main image: M. Suhail