How AI Powered Customer Service Can Improve Customer Service?

According to statistics, the AI market is expected to grow by almost $2 trillion in 2030. Thanks to modern technology, rather than chatbots, different AI-powered customer service options are available to improve the customer experience.
Bashair Abdullah
min read

According to statistics, the AI market is expected to grow by almost $2 trillion in 2030. Thanks to modern technology, rather than chatbots, different AI-powered customer service options are available to improve the customer experience. 

From online ticket booking to providing personalized customer service, AI boosts sales and generates more leads. Keep reading to discover more about how you can utilize AI to enhance your customer service and many more. 

Let’s get started!

What is AI customer service?

AI customer service refers to the use of artificial intelligence technologies to assist, enhance, or fulfill queries of customers inquiries about your service or products. Technologies like chatbots, semantic analytics, product recommendation, and others help support teams to streamline their workflow, address consumer requests, and more.

With the help of AI customer support software that refers to computer programs, AI can be enhanced and automated to leverage customer service interactions. 

Are you eager to explore more successful implementation of AI in customer support? Check out below:

  • Airbnb utilizes AI technologies to broaden users’ lodging options, find potential matches, analyze price preferences, trip duration, and more. Its AI-driven customer experience algorithm helps both hosts and users. 


  • Amazon’s AI customer service includes chatbots for order tracking, pricing information, usage information, and customer reviews. All these help to improve customer satisfaction and reduce the response times. 


  • Netflix’s AI customer service helps analyze viewing habits and suggest personalized content. This increases user engagement and subscriber retention.  


  • Starbucks’ Deep Brew AI platform improves personalized customer interactions, optimizes store labor, manages inventory, and more. These digital initiatives enhance efficiency and provide better customer service.


The transformative potential of AI is reshaping industries and providing flexibility that helps them build a strong connection with customers. Let’s check out the benefits of AI in the next section!

Benefits of AI in Customer Service: Chatbots and Beyond

AI is everywhere to provide the best solutions to consumers and fulfill businesses' requirements perfectly. Here are a few ways in which AI for customer support help in:

  • Cost-saving: 

AI not only provides 24/7 customer support but also helps cut extra costs. From automating routine tasks to handling customers' most asked questions, timely responses, product suggestions, and more, reduce the need for a large customer support team. 


  • Reduce errors:

As you know, artificial intelligence automates tasks that are repetitive, accurate, and time-consuming. This helps businesses or brands to focus on more creative work to boost sales.


  • Reduce response time: 

AI-powered chatbots and other analytics tools focus on more complex tasks and respond quickly. That means they are beneficial in reducing response and average handling times in customer service. 


  • Provide personalized services: 

Like Amazon, eBay, and other giant eCommerce marketplaces, you can also add benefits to your online store by utilizing AI. It provides consumers with valuable insights and helps them find the best products. 


Are you curious to explore the best practices of AI for customer support? For providing the best AI solutions for customer service, check out the next section!

How AI can Improve Customer Service

With advanced AI-powered customer service technologies, businesses foster stronger connections and elevate customer experience. Currently, 65% use AI, and 64% offer customer self-service solutions. For more in-depth details, let’s check out the following ways to use AI in different areas:  

ai powered customer service & chatbots


  • Chatbots and virtual assistants

When we think about AI and customer service, chatbots come first in our mind. The tool is invented to communicate with customers more effectively and provide troubleshooting steps to resolve those issues. This saves a lot of time, responses are instant, automatic, and available 24/7. 

It is easily accessible across websites, mobile apps, and messaging platforms. From handling customer queries (product information, order status, etc.) to handling multiple conversations, AI plays a vital role.


  • Voice assistants and NLP

According to a Hubspot survey, around 57% of consumers prefer to contact customer service over the phone. Companies fulfill consumers' needs by utilizing voice AI that eases the automation of call center interactions. These tools are trained in predictive call routing and interactive voice response to provide the best response for customer inquiries.  

For example, Siri, Alexa, and Google Assistant are becoming more popular, and they leverage AI's Natural Language Processing (NLP) to respond quickly and effectively. These voice assistants can answer place orders, control other devices, and more based on the user's history and preferences.


  • Advanced analytics

AI-powered predictive analytics are a valuable tool for analyzing a wide range of customer data, including demographics, transaction history, website behavior, social activities, and more. This comprehensive approach allows businesses to identify trends and patterns, ensuring they can effectively meet consumers' demands. 

However, AI can analyze text, such as customer reviews, emails, social media posts, and others. These help businesses identify areas for improvement and consumers' feelings about products or services. 


  • Omnichannel service

Artificial intelligence supports your omnichannel service strategies by guiding the audience to the right support channels. For example, if all your customer support team members are busy handling clients, the AI can suggest that customers use live chat for a quicker response. 

On the contrary, when a customer has many questions about services or others, AI can suggest that they call for more personalized support within a certain time. In short, the technology can integrate with different sources, including online, in-store, mobile, and other platforms.


  • Data management

AI offers a range of tools that seamlessly integrate with your core software, not just for customer-focused purposes. For instance, AI can be integrated with CRM to retrieve and utilize customer data such as purchase history and browsing patterns. 

The support team can provide the best possible service that builds customer loyalty and enriches engagement by utilizing AI-generated information. However, AI can also predict customers' future behavior based on their usage patterns.

Pro tip: Systematic AI helps your customer team reach potential and loyal customers if they haven't engaged with you in a while.  


  • Call routing and queue management

AI-powered call routing and queue management is a highly efficient solution for reducing overall wait times and redirecting customer inquiries to the most suitable agents. By analyzing a caller's phone number, call timing, or the customers' language, AI ensures that the best possible solution is provided to consumers, instilling confidence in the system's capabilities. 

The technology also informs customers about their queue position and provides alternatives like callbacks or self-service options that help build a strong customer relationship. 


  • Multilingual support

There are different AI chatbots and conversational tools that help generate content in different languages. These attempts help brands and businesses that want to operate globally. AI can also detect a customer's language and translate the message that helps the support team the most.

However, to learn more about your target audience, you can review their customer profiles or run a survey to get their preferred language insights. After that, you can incorporate those through AI.


  • Product innovation

The last but most important part is that AI opens up more marketing opportunities, such as new product suggestions, in-stock item showcases, and more. It saves customers time and increases productivity. AI effectively manages large volumes of customer inquiries and reduces waiting time. 

For example, Amazon's product recommendation system opens up a revolution in eCommerce shopping. The system recommends products by analyzing customer behavior, shopping cart items, and more.   

FAQs about AI Powered Customer Service

Are AI chatbots secure?

Yes, AI chatbots are secure if they are managed perfectly and security measures are in place. You need to take security precautions like encryption, strong authentication methods, secure protocols, and regular security audits. 

How much does it cost to develop an AI chatbot?

The AI chatbot's prices depend on complex features and extensive customization. However, the possible range will be approximately $5,000 - $18,000 per month or more.  

How do businesses measure AI chatbots success?

AI chatbots' success can be measured by customer satisfaction rates, resolution times, the volume of inquiries handled, efficiency, and many other metrics. 

What are the top AI tools for customer support?

Different AI customer service tools exist, i.e., ChatGPT, Zendesk, Hubspot, and more. 

What are the challenges of AI in customer service?

AI chatbots for customer service open up a new era in this digital technology. From 24/7 support to personalizing solutions, they play an important role. However, there are some challenges of AI, including:

  • Cost of implementing AI (investment in technology, software, and infrastructure).
  • Train AI on specific business models (fine-tuning, labeled data, and continuous updates).
  • Maintaining customer data privacy and security (businesses must ensure GDPR or HIPAA regulations).
  • Workforce adjustments, and more.    

The future of AI in customer service can't be denied. Due to its flexibility, efficiency, and speed, AI is becoming more popular every day. So, discover the Triggers Academy webinar about AI-Enhanced Customer Service (Chatbots and Beyond) to elevate your business like other top brands and deliver a memorable customer experience.

Good luck!

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