AI customer support: benefits, challenges and best practices

The evolution of customer support has been a sight to behold. From the birth of postal systems that allowed businesses to engage with customers in a regulated fashion for the first time to the invention of telephones and subsequent rise of contact centers, organizations have forever been searching for the latest concept that will enhance their relationship with consumers.

In today’s world, one innovation has emerged as the ultimate game-changer. Artificial intelligence (AI) is revolutionizing the customer support space by boosting satisfaction rates, streamlining contact center processes and delivering valuable insights. With the global AI market expected to grow by 37% each year until 2030¹, it is no surprise that businesses are investing heavily in the technology to help develop stronger relationships with existing customers and stay ahead of their competitors.

Indeed, business leaders yet to fully embrace AI-based customer support are limiting their growth opportunities, which is why we have compiled this definitive guide into how the technology can ensure brighter days for both them and their customers.

AI-based customer support is the use of artificial intelligence technology to support customer experiences that are fast, efficient and personalized. It encompasses both customer-facing and internal-facing solutions that enhance relationships with consumers by allowing the likes of real-time assistance, automated data collection and analysis, and opportunities for process optimization. Crucially, AI-based customer support is not designed to replace human agents but give them more time and space to focus delivering better service.

Source: The State of AI in Customer Service Report 2022 | Dialpad

Studies have found that 83% of businesses believe AI lets them assist more consumers², which is not surprising given the range of benefits it offers in the customer support space.

• Sustainable growth: delivering quality customer support can be a costly exercise, with wages for human agents alone requiring significant budgets. Using AI to automate routine tasks and responses allows businesses to manage large volumes of interactions and scale support operations without needing to hire more staff. In turn, this ensures they can grow other areas of their organizations in a sustainable and responsible manner.
• Faster responses: when Salesforce asked customers to identify factors that influenced brand loyalty, it was no surprise when 72% of respondents pinpointed fast service³. The likes of AI-powered chatbots make this a reality in the customer support space by answering queries any time and within seconds. Similarly, other AI tools provide agents with the ability to access and generate information faster and more efficiently in customer interactions.
• Greater personalization: respected research firm McKinsey & Co has a reputation for having its finger on the business pulse, which is why business leaders should take note of its finding that 71% of modern-day consumers expect personalization⁴. AI-based customer support delivers this by using tools that leverage purchase histories and previous interactions to provide personalized responses and recommendations. Generic messages can be a thing of the past.
• Understand customer intent: a common frustration for contact center leaders is that customer intent is not always explicit, with many consumers guilty of not necessarily saying exactly what they are looking for. AI can play a pivotal role by analyzing past communications across various channels and pinpointing trends and patterns that help identify customer intent. As noted in a compelling CCW report: “By using intuitive questions and natural language processing, bots can quickly identify why a given customer is interacting.”⁵
• Enhance FAQs and knowledge bases: with an increasing number of customers keen to answer their own queries via self-service tools, AI is playing a key role in enhancing FAQs and knowledge bases. Such technology is not only changing the way businesses organize information but using the likes of machine learning and natural language processing to make it easier for customers to access such material. The result? Less customers talking to agents, which results in time and cost savings.

AI-based customer support is a proven winner for businesses but there are certain challenges to be conscious of.

• Entry costs: establishing AI-based customer support can be costly, with the apparent need to hire AI developers of particular concern for some small to medium-sized businesses. The good news is there is an ever-expanding range of AI software and tools that make such solutions affordable for all businesses. After all, why hire AI developers when there is ready-built software.
• Staff education: new technologies are only as good as the people who use them and it is no different with AI-based customer support. Human agents and other customer service staff need to understand how to make best use of the AI tools designed to support them, which is why businesses should invest in training and resources. The benefits will be well worth it though.
• Implementation time: taking advantage of an AI-based customer support environment is not as easy as simply flicking a switch. Between developing a strategy, training AI chatbots and educating staff, it can take time to roll out a program, which is why it is worth partnering with tech firms that have pre-trained AI software that significantly reduce how long it takes to go live.
• Data security: one only need read recent news headlines to know the importance of protecting data privacy and security. Implementing AI in customer service can cause concern for some business leaders on this front but the pros far outweigh the cons, especially given there are a myriad of ways to protect the sanctity of both yours and your customers’ data. It is all about committing to data protection regulations and communicating transparently with customers.

Source: AI in Customer Service Statistics [April 2024] (masterofcode.com)

Businesses should commit to several practices before implementing AI-based customer support.

• Identify ideal processes for AI: one size does not fit all, which is why businesses need to consider where AI solutions will best benefit their unique customers and agents. Start by identifying where AI can help automate tasks, improve efficiencies and provide better support before expanding the scope to more complex areas.
• Develop an ethical framework: like many modern technologies, AI is a complex arena and it is highly advisable to develop a code of ethics regarding its use to ensure one’s AI dream does not turn into a nightmare. Along with guiding how you use AI-based customer support, it will ensure a commitment to data privacy, transparency and eliminating bias from interactions.
• Adopt leading technology: businesses have a multitude of options when it comes to adopting AI for customer support, be it chatbots, analytical tools or call-routing solutions. Whatever tool a business adopts, it is essential to find the best solution for one’s budget. Look for cutting-edge technologies that are customizable and feature comprehensive solutions for data encryption and protection.
• Maintain a flexible approach: do not set and forget. AI is an evolving field, which is why businesses should be open to new technologies and willing to make changes if needed. Foster a culture of innovation where both customer support leaders and staff are not only prepared to adopt new strategies or tools but aim to stay abreast of emerging AI innovations.
• Keep humans front of mind: AI can enhance customer support but do not make the mistake of thinking it can replace human agents. The aim should be to use AI tools to complement staff, thus allowing the latter to focus on more complex and valuable enquiries and tasks. Businesses should also ensure customers always have a way to opt-out of an AI chatbot interaction in favour of having a conversation with a human agent.

Every journey starts with a first step and so it is with AI-based customer support. Keep these factors in mind when rolling out your strategy.

• Prepare your agents: it is human nature that customer support agents may feel threatened by AI. Reassure them and reassure them early. Highlight benefits that will positively impact them such as needing to spend less time on mundane and repetitive enquiries and more time on complex and rewarding tasks.
• Define your goals: have a clear direction of where your AI journey is headed. Set measurable goals and key performance indicators to ensure that you are getting the most out of your investment and not paying for a ‘shiny, new toy’ that ultimately fails to deliver benefits.
• Start small: amid the buzz surrounding AI, it may be tempting to take an all-or-nothing approach to customer support solutions but tread carefully. Given many solutions are relatively new and quickly evolving, it is better to start with a small project or specific task to identify benefits and limitations before expanding to other high-value areas.

Conclusion

AI solutions are the future of customer support. Among many positives, they help deliver around-the-clock service, enhance employee productivity, ensure sustainable growth and deliver valuable insights. The key is to avoid falling prey to negative outcomes and that means taking the time to identify the right solutions for your business and implementing the technology correctly.

Customer support is just one area that is benefiting from artificial intelligence. Learn how AI is impacting different business sectors and how your own organization can embrace the technology to improve operations.