How Artificial Intelligence is Impacting Customer Service

How Artificial Intelligence is Impacting Customer Service

The blog post talks about how artificial intelligence is being used in call centers, and how it will impact customer service in the future. 

We further look at the possibilities that AI-powered chatbots and intelligent IVR systems can provide businesses – transforming the way customers interact with them, increasing efficiency, enhancing productivity, and eliminating resource waste.

How does AI fit into Customer Service?

Accenture states by 2035 Artificial Intelligence will create a 38% increase in profitability. This means that the way forward for brands must include improvements to their CX strategy. Customer loyalty and engagement can be greatly improved through better use of AI because it will learn about customers usage and buying behavior, which will further lead to improving the brand’s user engagement, retention, and conversions.

AI has revolutionized a variety of industries, and it’s no different in the customer service sector. Call centers have been using AI to automate customer service for years, but recent advancements have made it even more powerful and efficient.

Chatbots, for example, are software programs that can simulate human conversation. They can be used to provide customer service or manage customer accounts. They can also provide recommendations on products and services.

Using AI in Customer Service will Increase Efficiency :

With AI-powered automation, call center representatives can spend more time interacting with customers and less time processing transactions or routine calls. This leads to a smoother experience for customers and better response times. Chatbots can also help retain customers by providing them with relevant information and answering their questions quickly. In short, AI improves the overall customer experience by speeding up processes and minimizing disruption.

Improved Accuracy is Another Advantage of AI:

Automated systems are generally more accurate than human operators when it comes to detecting intent. This makes sense when you look at the differences between a conversation and a transaction of which humans and AI are capable of both.

A chatbot’s speech recognition capabilities can pick up deeper meaning nuances that are not readily apparent to human operators. The increased accuracy and experience level can lead to improved performance. AI also creates more transparency in data processes.

What does Artificial Intelligence Require for Call Centers?

In customer service, AI is used to process and interpret customer interactions in a way that improves the customer experience. For call centers, this means automating some customer interactions and relying on natural language processing (NLP) to understand the context of the conversation.

To fully implement AI in customer service, several key components are required. These include:

  • A scalable data management system that can accommodate large volumes of incoming data.
  • Machine learning capabilities for training and prediction.
  • An automated process for detecting customer sentiment and delivering optimized messages.
  • Robust human resources management systems to support the automation initiative.


Why do Customer Service Call Centers Want to Upgrade their Technology?

    • AI is helping customer service reps be more efficient and effective in handling calls.
    • AI is helping automate customer service processes so that call center employees can focus on higher-value tasks, such as addressing customer concerns.
    • AI is also improving the accuracy of customer contact data, which helps call center managers better target their marketing efforts.
    • Most importantly, though, AI provides a human touch to customer service interactions. This can make a big difference for customers who are often feeling frustrated and left out of the loop with traditional customer service channels.


How is AI Used in Call Centers?

Although AI has been around for years, it’s only recently that call center operators have started to explore its potential in the realm of customer service. Generally speaking, AI helps to streamline the service by automating routine tasks such as screening callers for eligibility and entering the requested data into an automated system.

This frees up human resources to provide more personalized service. In addition, AI-assisted call routing can help assign calls to the most appropriate agent based on factors such as caller location or telephone type. Furthermore, bots can provide recommendations and context-sensitive responses to questions (such as recommending a hotel in a destination city during the holiday season).

Overall, AI is proving to be an extremely efficient tool for handling customer service inquiries. By automating tasks and freeing up human resources, call centers can provide a more comprehensive and responsive experience to their clients.

Here’s how an increase in AI will improve customer service and boost efficiency:

    • Predictive Call Routing: is a call center technology that automatically routes calls to the right agent, based on the customer’s history, profile, preferences, and more. Predictive call routing is used by many call centers to improve efficiency, reduce costs and increase sales. It is important to choose a predictive call routing solution that fits your business needs and then train your agents so they can make the most of the technology.
    • Interactive Voice Response: (IVR) systems are computer programs that answer the telephone, play a recording, and transcribe the caller’s input, to route the call or provide information. IVRs are used for a range of applications, from gathering input for a database to running a full-scale business. IVR systems are used primarily in call centers to provide a layer of automation for simple transactions and to increase the capacity of call centers.IVR is becoming more common amongst companies that have a lot of customers who are calling in for routine, pre-service questions such as hours, eligibility, or bank statement information. This is because people tend to be less prone to argue with robots when it comes to getting their information. After implementing this type of automated service, the number of callers has doubled as well as the costs have dropped by two-thirds.

      The best thing about an artificial intelligence system is how fast it can accomplish tasks that would otherwise take several hours and result in unanswered calls.

    • Conversational AI: While chatbots were once known as ‘virtual assistants’, they have now been considered a type of Conversational AI. It is when a call center has an online chat option powered by AI that allows consumers to message the company. And it’s an essential form of customer service because 85% of consumers worldwide like messaging with brands, as per LivePerson’s 2020 Consumer Preferences for Conversational Commerce report.

The best part about chatbots is their ability to reduce call volume and simplify the process. Callers to the support department with non-technical issues can access the services of a virtual assistant, limiting the number of calls received by real, human representatives. This increases employee efficiency and saves costs that would have been spent on technology upgrades and/or staffing.

  • AI-Powered Recommendations:AI tools can help companies with customer support respond quickly and efficiently to different types of issues that customers might be having or want assistance with. After receiving feedback from a customer, this technology will analyze the sentiment behind the request and help provide suggestions on how to move forward as well as communicate what is required to resolve an issue.It reduces call times and provides a positive experience for customers. Technology can measure how often a customer has canceled an account over the phone, then provide an agent with a customer risk score based on the number of calls. When you answer certain questions over the phone on time, you can increase customer satisfaction and loyalty, which is a great way to build your brand’s reputation online and in people’s hearts.
  • Call Analytics: is a data-driven process of collecting and analyzing call data, to improve customer experience, staff productivity, and overall customer satisfaction. Call analytics is a practice that can be used to improve customer service and provide customer insight, but it is not a new concept at all.Call Analytics is an important part of a call center, used to identify and address issues. It can also be used to improve the quality of calls by analyzing the statistics of the calls or by helping you to understand the root of a problem.

    When you first start to use call analytics, it’s important to understand that not all call analytics are created equal. Some call analytics are only focused on the numbers. These types of call analytics are focused on things like answering time, abandonment rate, and average speed of answer. While these numbers are important, they don’t tell the whole story. Call analytics that are designed to help you understand the entire picture of your call center is what’s called holistic call analytics.

Final thoughts:

Artificial Intelligence has changed the game for customer service and made its efficiency remarkably better. By automating certain tasks, call centers can now provide even faster service to their customers. The result is increased profits and productivity, but it does not mean that AI will replace call center agents. However, AI could never handle all complex issues in conversations with clients.

AI is meant to enhance the customer experience by reducing human agents’ workload which means that human agents can respond more quickly and use more human-like responses to improve the quality of their interactions.

Author Profile

Varuna Raghav
Varuna Raghav
As a CX and marketing specialist, Varuna Raghav has more than 15+ years of experience to her name. Her enriching input has been valuable to the brands and organizations she's worked with.

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