Power of AI in Customer Service

Power of AI in Customer Service
02/06/2023

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Artificial Intelligence (AI) in customer service is one of the more prevalent examples
of how this technology can truly transform an entire industry.
By 2030, we are most confident that the technology will have impacted process
automation, including the elimination of simple tasks. Companies rate the
anticipated impact on process automation at 3.96 on a scale of 0-5, with 0
representing “no impact” and 5 representing “major impact.”
Customer Service using AI and technology like machine learning (ML) to power
decisions about the customer service journey and behind-the-scenes tasks that
impact profit margins and efficiency. AI Solutions like BOTS easily recognize the voice
triggers and provide relevant information and guidance without human agents.
AI in customer service makes human agents’ work much smoother by solving
fundamental problems while support agents focus on complicated cases that require
human knowledge, empathy, and attention.
As artificial intelligence becomes more advanced, customer service bots are
becoming exceptionally fast learners. An AI bot can collect relevant data about
customers and improve customer satisfaction, resulting in better customer service.
Personalized and targeted support, fast response times, 24/7 availability, and
multilingual support are some of the things that improve customer experience and
bring new levels of customer loyalty.
Introduction

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How AI and Machine Learning changing Customer Service Landscape
1. The AI can adapt
to changes in
customer behavior
2. It can help in
identifying new
service groups
3. Can predict when
customers will
abandon
4. Can create a single
unified view of the
customer experience
across any channel
5. It can assist the
agent with
information and
insights related to
customer
6. It can instruct the
agent on how to
handle different
customer situations
7. It can reduce
employees’ workload
by focusing on high-
priority situations
8. It can analyze large
amounts of data to
make better
decisions

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Key Dimensions of AI
A biologically-related paradigm helps machines go through
the process of deep learning. They then become able to breed
and nurture results. Speed recognition is one aspect of neural
network and deep learning. Language processing is another
dimension. Google voice is one example which is an
application based on neural networking.
It’s the analytical aspect of artificial intelligence. Computers
can interpret data and observe algorithms, images, figures.
Computers are good learners; they can perceive a set of
instructions for an appropriate action.
A single image or a sequence of images is interpreted by a
computer. The computer has the power of seeing through an
image, highlights the important aspects, perceives and
encodes the various hidden patterns and performs
accordingly. Face recognition, biometrics, and forensic science
are all outcomes based on the principle of “visionary
computers”.
Cognitive is closely related to intelligence coefficient (IQ).
Modern day computers are intelligent enough to resemble
human brains in some respects at least. Artificial intelligence
has become a driving force because of its ability to make
modern day computers more productive, thought-provoking
and more sustainable than ever.
Artificial intelligence has reoriented and mastered the chat
and messaging, software and applications.
Software’s and programs like Siri, Alexa, and Google now
help you sort your day-to-day activities by reminding you of
your interactions. Electronic brain is now becoming an
exciting feature to make the tech industry rock and roll and is
gaining momentum in all spheres of life. You cannot just
explore the advantages associated with Artificial intelligence.

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AI Trends that are changing the face of Customer Service
AI to Reduce Errors
• AI-based automated responses are a great way to
do away with human customer service errors,
leading to an excellent customer experience.
• Sync between AI and service agents will deliver a
magnificent customer experience
AI Powered Chatbots: Humans
vs. Robots
Predictive Analytics : The Third
Eye of AI
Virtual Reality : Look Up Close,
from Afar
• Personalized assistants are a game changer for
agents in improving customer journey
• Almost every business uses AI-Powered BOTs
to provide fast customer support
• Chatbots may not be the latest innovation, but
they are the most popular in all websites as
they are up and running 24/7
• A Simple BOT can help automate everyday
tasks including complicated tasks. They can
also use sentiment analysis, and gather and
analyze data to provide insights into consumer
trends
• Predictive analytics use machine learning and
other data analysis techniques to predict the
future. For every business, this translates into
insight for the most important piece of
information for the industry: consumer
behavior
• By predicting what consumers are interested
in, companies can offer automatic suggestions
to increase engagement and conversions
• Conducting competitive research and
monitoring trends and product demand
• Uses of VR in customer service are multifold.
• With Advancements in AI and Speech Technologies,
the Virtual Agent has become a key solution to
deliver quality self-service experiences that boost
CSAT, reduce agent burnout and bring significant
cost savings.
• A partnership with a social platform or a native app
could be helpful in attracting and retaining your
customers.
• AR in customer service promises to improve digital
experience
Anticipate customer needs and pro-
actively address them
Personalized
Recommendations
• Automated customer services offer personalized
recommendations to customers
• Personalized recommendation function offers
convenience to consumers
• One of the biggest needs for customers is getting
personalized experience and AI plays an important
role to make this happen
• While consumers benefit from AI customer
service with personalized recommendations,
companies also benefit from the technology since
it can automatically anticipate customer needs
and address them in advance.
• Predictive Analytics of AI allows businesses to
design sales strategies, prepare future campaigns,
make priorities and balance demands and
supplies before problem shows up.
Predict Customer Behavior and
Needs
AI Improves Customer Retention
Efforts
• Predictive personalization is an AI technology
that can make a customer’s experience feel as if
it was crafted for them.
• By assessing from past activities and behaviors,
AI can help predict what customers are
interested in
• As AI advances by leaps and bounds, so does
your ability to retain customers. ML algorithms
can now effectively help businesses identify and
head off problems that could lead to churn by
helping to identify pain point.

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Re-Define Customer Service with AI
AI is a great tool for support teams to provide exceptional customer service. AI in customer service means 24/7 availability which inevitably attracts new
customers and increases customer satisfaction.
• AI within customer service serves as a channel to identify trends and pain points of users
• AI makes it easy to analyze browsing history of customers to determine what customers are
looking for and guide them what they need
Improve Lead Generation
• AI in customer service makes human agents work much smoother by solving fundamental
problems while support agents focus on complicated cases that require human knowledge
and attention
Streamline Workflows
• As artificial intelligence becomes more advanced, customer service bots are becoming
exceptionally fast learners.
• AI Bot can collect relevant data about customers and improve customer satisfaction, resulting
in customer service.
Facilitates stellar customer
service
• Using AI in customer service is cheaper than hiring customer service representatives as your
business grows.
• You can even use free AI solutions for mundane tasks.
Saves Budget
• AI customer support can continuously work to support and replace human teams as needed.
• AI can help employees solve simple tasks and provide them with a good work-life balance.
Prevent Employee Burnout

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Future of AI in Customer Service
Today’s artificial intelligence (AI) systems can
handle most smaller tasks independently,
giving employees more time for higher
priority jobs.
AI is expected to be a $36.8 billion market
by 2025. AI has penetrated many industries
including retail, healthcare, and financial
services, but this technology hasn’t been
widely adopted in the customer service
industry. AI in customer service allows for
immediate, on-demand assistance and self-
service. AI can be used to automate the
tracking of customers’ issues and queries
without the need for human intervention.
This allows companies with large customer
service teams to save on costs and increase
efficiency.
Handle Large volumes of
Data
Reduce Customer Handling
Time
Pinpoint Customer Needs
and Expectations Better
Deliver Pro-Active Support
Easier Performance Tracking
Adapt to changing
situations
Service & Product Personalization
More time to focus on Complex
Problems
• Artificial intelligence (AI) is the next big thing in
customer service and it can solve a problem
that many businesses face: large volumes of
data.
• Augmented Intelligence technology is sweeping
across the customer service landscape and
transforming it into a more efficient, cost-
effective, and productive environment.
When it comes to handling customer
queries, most organizations face challenges
like scaling up the number of agents to
handle the increased customer traffic. At
the same time, all customer queries need to
be addressed in an efficient and effective
manner. Businesses with large volumes of
individual customers would rather spend 5
minutes on hold with a human agent than
20 minutes waiting for an automated
callback.
One of the biggest challenges in customer
service is trying to meet increasingly high
standards of customer satisfaction. Even
when you’re doing a good job, it’s never
enough. The solution is Personalization.
Personalization gets better with AI.
Today, most customer support software applications
are designed to provide reactive support—that is,
they help customers when they have an issue or
problem. But, in reality, the best time to solve a
customer’s problem is before they experience it. AI
can be a powerful tool to solve problems proactively,
providing proactive support.
With AI, you can:
• Compare previous conversations and interactions to
determine the root cause of an issue.
• Identify patterns in customer inquiries across all
channels.
• Automatically prioritize cases based on urgency and
customer issues.
• Deliver proactive alerts when a customer is unhappy
or facing an issue.
Many companies that are using human
resources for customer support have to deal
with a high volume of service requests and
therefore have to hire more and more
people. There are several ways that artificial
intelligence (AI) and machine learning (ML)
are changing the customer service
landscape.
In the work environment, performance tracking
and measuring are essential to assess how
you’re doing as a team. AI platform offers a wide
range of data, graphs, and metrics, which you
can use to assess your team’s performance.

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Business Benefits of AI
Artificial Intelligence is driving massive change for retailers, especially in-store. Retailers who want to stay on top of their game are increasingly turning to Artificial
Intelligence. AI gives them access to streams of data that improves speed, efficiency and—ultimately—their business decisions.
Efficiency and Productivity
gains
Improved Customer
Satisfaction
Improved Speed of
Business
Reduced Cost
• Efficiency and productivity gains are two of the
most-often cited benefits of implementing AI.
• AI allows organizations to minimize the costs
associated with performing repeatable tasks
that can be performed by technology while
maximizing the talent
• AI can help business provide the best possible
customer experience. Improvements range
from reducing time spent in repeatable tasks
with automation to offering round-the-clock
customer service with BOTS.
• AI enables shorter development cycles
and cuts the time it takes to move from
design to commercialization and that
shortened the time and in turn delivers
better ROI to business.
• AI can certainly save you from
unnecessary costs, including advertising
and marketing.
• AI can identify and prevent fraudulent
activities and improve compliance and
reduce operating cost
New Capabilities and
Business Model expansion
Improved Monitoring
Better quality and
reduction of human error
Bolstered Security
• Business can use AI for Business Model
Expansion
• As we deploy data and analytics into enterprise,
it will open for new opportunities for businesses
• AI's capacity to take in and process massive
amounts of data in real time means
organizations can implement near-
instantaneous monitoring capabilities that
have the capacity to alert them to issues,
recommend action and in some case, even
initiate a response
• Organizations can expect a reduction of
errors as well as stronger adherence to
established standards when they add AI
technologies to processes
• When AI and machine learning are
integrated with a technology like RPA,
which automates repetitive, rules-based
tasks, the combination not only speeds up
processes and reduces errors but can also
be trained to improve upon itself and take
on broader tasks.
• Using AI , businesses can analyze and
identify unusual data movements in
real-time, then flag risks
immediately. Using Computer vision,
camera can spot suspicious activity
to detect potential theft in the store.

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Application of AI in Customer Service
Sentiment Analysis based
on Customer Surveys
Learning Customer
Behavior Patterns
Speeding Up Response
Times
Enhancing Human
Interaction
Embracing Speech Analytics
Capturing Large Amounts of Data Messaging Customers on Time
If you have open-ended responses in your customer
surveys, you can analyze their sentiment. The most
straight-forward categorization you can do here is to
see if a response is:
• Positive
• Negative
With Sentiment Analysis, you can find out which
components of the customer experience have the
biggest emotional effect.
For example, AI-powered Sentiment Analysis of a
customer survey could uncover that users are
‘dissatisfied’ with one of your core features.
Build intelligent customized experiences. AI can
be used to learn patterns of customer behavior
and then to forecast behavior accordingly. When
the customer then contacts the organization,
these patterns can be used to intelligently offer
the most likely service options or information
based on the time and date of previous activities.
The best utilization of AI is not to replace
human interaction, but to enhance human
interaction and decrease the friction in the
customer experience. As an example, if there
are tech questions such as resetting
passwords that can be directed through AI
responses, that is a great use of the resource.
However, businesses need to be careful to
not underwhelm the customer by removing
the human touch.
As an AI company as well, we see a lot of value in
the customer service use case. I'm an advisor to a
SaaS company that leverages AI to speed up the
response time of customer support agents. They
use AI to clearly identify the need of the customer
and display the right information to the agents,
thus bringing best-in-class customer service.
Organizations must be specific about who AI
“serves.” In healthcare, human interaction is critical
to providing patient care, while AI is best suited to
serve physicians. For example, a common complaint
is the amount of data required to meet quality
metrics and risk coding. AI can capture data with its
mining and recognition capabilities from workflows
allowing physicians more time for patient care.
One of the most interesting paths to leveraging AI
in customer service is speech analytics. It’s a very
hot space with major cloud players (Microsoft,
AWS, Google) investing. Speech analytics gives
management insight into which calls are more
effective, which CSRs are the best and what
training and operational changes can make
customer service more successful.
AI Engine can use the behavioral data from the
customer to automatically determine the right
message variant and right time to send to customer.
AI can observe messages perform and then suggest to
brand marketers which one to send to customers in
real-time.

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Use Case of AI in Customer Service
Improved Human
Interaction with
Customers
AI can play a big role in augmenting
human interactions with customers.
Two of most significant ways AI is
augmenting customer service is
through AI-Augmented messaging and
AI Email Tagging.
BOTS to assist customer
service
Personalized User
Experiences
Cost reduction and
resource optimization
Nuanced Insights from
customer data
Round the clock, Round
the year support
Predictive Insights
Assisting customers to
make decisions
Simplified Task Management
Customer service representatives today are
tasked to handle a large number of customer
calls on a day-to-day basis. They are also
faced with the challenge of reducing the
average resolution time for every
customer. Chatbots have an important role
to play in addressing both these challenges.
Not only can chatbots provide prompt
answers with lightning-fast responses in real-
time, but they can also reduce the burden on
human agents by resolving a high number of
customer queries with the highest accuracy
and human-like behavior.
AI can play a huge role in helping
customers find the right information more
efficiently. Artificial Intelligence helps
analyze customers’ data and key metrics
and recommend products or services to
customers based on their
browsing/buying preferences.
BOTS can help businesses cut
customer service costs by speeding
up response times, freeing up
agents for more challenging work,
and answering up to 80% of routine
questions.
Customers want service on their
terms. Brands must be available
and responsive to customers at all
times throughout the year.
Automated customer service can
make it possible. It allows
organizations to deliver always-on
customer service and resolve issues
as soon as they arise. This means
customers can have their inquiries
resolved 24 hours a day without
having to wait for long periods to
get a response.
With the advent of AI in customer
analytics, brands can excavate nuanced
insights on their customers. In the
absence of AI, data mining used to be
tedious and time-consuming. Now AI-
powered systems can process and
analyze vast amounts of data and gather
insights, which can open new doors of
opportunities to businesses.
Predictive personalization makes customers
feel that each and every product or service
or brand is specifically tailored for them.
Businesses that have integrated AI into their
systems have improved their customer
relationship by providing customers with
information that is relevant to them. This has
increased transparency and communication.
Around 80% of customers believe that AI-
powered chatbots assist them in making
better purchase decisions than humans.
Nowadays, customers engage with brands
across devices, therefore personalized
touchpoints are needed to aid the
customer’s decision journey. Automated
AI-powered assistants answer customer
queries instantly, gather complete details
regarding the product or services, and
advise customers to help them make the
right decisions.
AI-powered bots or other systems used for
customer service are capable of handling
various tasks all at once. While human
agents generally get burned out
performing tasks related to a huge amount
of data, AI can give automated replies to
customers. It is essential for businesses to
integrate AI in their systems to gain
customers, retain them, and make them
loyal to your business. AI makes the
customer experience more engaging and
helps you stay ahead of the game.
Customer Service Support and
Agent Support
AI can support the agent in resolving
the ticket. With the information it has
stored already, including the
customer’s profile and previous
interactions, it can offer suggestions to
the agent as to what may be the best
solution in this case.

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Impacts of AI in Customer Service
Interacting with customers is much more
accessible than before. This is because of the use
of artificial intelligence in customer service.
Currently, even under-experienced customer
support attendants can have confident
interactions with a client thanks to AI.
It’s a massive step into the way doing things. It is
projected to continue due to the number of
companies and businesses adopting it.
Improved Customer
Satisfaction
Personalizing User-
Experience
Building Trust and Brand
prominence
Used in directing support specialist
Streamlined On-Boarding Process
Communication made much easier More Reliable Results
Application of BOTS have enabled customer agents
to handle multiple tasks simultaneously, improving
relationships between business and customers. AI-
Enabled BOTS are able to pro-actively start a
conversation with a client and offer valuable and
relevant suggestions and information to customer at
each step of their journey.
Besides, the cost of implementing AI-powered BOTS
is relatively cheaper than employing full-time human
customer support staff.
AI can analyze sets of data and offer real-time
products and services fitting the need of each
customer rather than the general category.
With its ability to collect data from multiple
sources, AI allows devices to gather clients’
information like geographical location, personal
preferences, events, or even weather conditions
and provide the most relevant service to a
customer.
In the coming future, using online and offline
methods to provide better customer service will be
more helpful in nurturing customer loyalty and
confidence in your brand.
With AI, the shift to self-service should not be
costly. Customers need not to face services that are
hard to navigate or encounter difficulty reaching
out when faced with a problem.
This convenience preserves a place for artificial
intelligence technology in the near future without
any doubts.
The invention and application of AI have dramatically
reduced the job of customer support specialists. The
advanced artificial intelligence system can guide
operators directly to where there is a problem and
address it without much difficulty. Implementing a
good customer service platform is predicted to gain
relevance in the near future. This because the current
service specialists in a company will work with the
trend much better than the ones before.
It will be easy to train others by sharing any
knowledge acquired within the organization.
Onboarding Process have been a long-standing
challenge in the customer service sector in any
industry, and it should not be forgotten. And to
complicate matters more, this issue has no unified
solution because it’s a more personal matter for
different companies.
When you employ the help of AI during these
processes, you can quickly identify the best
candidates. Effectively focus your attention on them.
Guide employees to work in a simple way to make
sure that everyone is brought to speed.
Another long-standing challenge in the customer
service sector is the reliability of the results. This is
because it is essential to focus on the accuracy of
your services . Make appropriate changes if things
are not working well.
Implementation of AI can narrow down service
results with greater precision and unlock your
service potential for your users.

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Conclusions
Artificial Intelligence (AI) has revolutionized customer service into a frustration-free, personalized, and convenient interaction.
Employing AI technologies such as bots and other AI-powered communication in CRM will propel the business to a whole new level
and even make you stand out among your competitors. Though this trend has picked well among businesses. Trend projected to
improve in the future owing to its impacts on customer service like improved customer experience. Trend reliable results,
personalized experience, and easier communications.
For some businesses, AI is the future of customer service. For others, it’s a future that has already started. Your customers expect a
lot from their contact center experiences—personalized, real-time, flexible communications, and fast resolutions to their problems.
With the progress that AI has made in recent years, it’s important to be concerned about its impact. And the smart thing to do is to
understand how it works and what it does. Chances are that your competitors are exploring ways to improve their customer
service using AI. And with the wide availability of tools out there, implementing AI in your customer support work is not out of the
realm of possibilities.
However, adding AI is not a catch-all solution. You still need to maintain and train real customer support staff to talk to customers
about issues that AI tools can’t handle. However, you can save time and resources by adding AI in support. Imagine how much time
is saved finding information for customers. How many calls could be resolved instantly if your support tools simply found the link
someone needed.
Well, this is a sample of what AI can help you do. And it’s worth looking into before it becomes standard practice across all
industries.

Power of AI in Customer Service

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