Who hasn’t heard something about AI by now? There are lots of positives but rightly some concerns as well. We take a delve into AI Chatbots and their use in customer service.
In 2024 customer service has undergone a significant transformation with the introduction of AI powered chatbots like ChatGPT. Gone are the days of predetermined responses and robotic conversations that will make even the most mild mannered extremely frustrated. Todays AI Chatbots are smarter, more intuitive and are reshaping the way businesses interact with their customers.
But why are AI chatbots leading this revolution? In this article we take a deep dive into the key reasons behind their rise, how they are changing customer service and what it will mean for businesses and customers alike moving forward.
1. AI Chatbots Provide Faster, More Personalised Responses
Nobody likes to wait these days, so the biggest reason AI chatbots like ChatGPT are game changers in customer service is their ability to provide instant, personalised responses.
Traditional chatbots often relied on pre-scripted answers that could only handle basic inquiries. If your question didn’t fit into the chatbots narrow scope you’d be walking away extremely frustrated or redirected to a human agent (if you were lucky)
However modern AI chatbots like ChatGPT are powered by natural language processing (NLP) which allows them to understand context, nuance and even the tone of the conversation.
This not only provides a more human like response but will also provide relevant answers to your questions. For example if a customer was to ask about a product or return policy a detailed response based on the customer’s situation and even suggesting what to do next would be provided vs traditional chatbots just providing a link to the terms and conditions.
Quick stat:
A 2024 report from Gartner predicts that AI-driven interactions will increase customer satisfaction by 25% as they become more personalized and efficient.
2. AI Chatbots Are Available 24/7
Unlike us who require sleep and have to work in shifts, AI chatbots never sleep. Simply due to the fact they are available 24/7 is not only extremely valuable to businesses but also customers.
This becomes extremely important for global business or e-commerce sites where you’ll likely have customers in different time zones.
We are a demanding population so as customers we expect support at our convenience, not when the companies help desk is open. Modern AI chatbots are able to handle routine tasks such as answering FAQ’s, tracking orders or helping with troubleshooting.
This is all without a wait time or having to join a queue, providing an uninterrupted service and providing a quality customer experience.
3. Reduced Operational Costs
I can speak personally for this one, having recently set up an AI chatbot to handle SMS responses. Reduction in operational costs is without a doubt a major benefit for investing into a customer service chatbot.
I’m an advocate for having a balanced approach, we still need humans and i think most still want that interaction. However chatbots free up human agents allowing them to focus on more complex and high value tasks. By taking on the routine inquiries and handling a large percentage of customer service load it streamlines processes and promotes growth in important areas.
A recent 2024 study by McKinsey found that companies using AI chatbots can reduce customer service costs up to a whopping 30%. This is because they can handle hundreds of conversations simultaneously without the limitations of a solely human workforce.
By reducing the volume of enquiries a live agent receives it allows the business to scale more efficiently improving both response times and customer satisfaction.
4. AI Chatbots Improve Over Time
A unique and often not known feature of using AI chatbots is their ability to learn and improve over time. Traditional ones are static, they rely on fixed scripts and cant adapt to new situations.
Unless you are able to predict every eventuality or question asked, they simply don’t make the cut for customer service. Modern bots like ChatGPT on the other hand use machine learning to analyse each interaction and gather feedback to enhance its own responses.
For example, if a customer were to ask a complex question that the chatbot struggles to answer, the system can flag that interaction for improvement. Over time it becomes more adept at handling tricky or unexpected queries leading to a better overall service.
Why this is game changing is it means you don’t need to constantly update and maintain your bot, it will self improve naturally. A good customer is a happy customer so accurate, relevant and timely responses are a must.
5. They Can Handle Multilingual Support Effortlessly
In today’s globalized world offering support in multiple languages is either crucial or at the very least beneficial for many businesses. Traditionally you would either have to rely solely on customers from your native language or pay the large expenses of multilingual staff and translation services.
Because AI chatbots have the ability to not only understand but also communicate in multiple languages it allows businesses to provide seamless support to customers around the world. Whether a customer is contacting you from the UK, Spain or Japan the chatbot can switch between languages and provide consistent support.
This might have just given you an idea for your own business as this level of language proficiency opens up new opportunities for global expansion and appeal to a much broader audience.
6. ChatGPT Enhances Human Agents, Rather Than Replacing Them
I touched on this earlier and I’m a big advocate of AI and humans working together not replacing. This is a big area for concern that AI chatbots could replace human jobs, when in reality they are designed to complement human agents not replace them. In most instances chatbots are a first line of defense in customer services.
They handle the simple enquiries or out of hour chats allowing us to deal with the more complex issues, its like growing your customer service team 100x but reducing the workload on your top (human) employees.
What i’ve seen a lot and believe to be an extremely effective method is a hybrid approach. You will likely have seen this in action with Amazon if you’ve ever used their chat services.
AI will take control of the conversation and more often than not provide the answer you require, but on the off chance your request is more complex or simply just want to speak to a human you can.
7. The Future of Customer Service in 2024 and into 2025
As AI technology continues to advance, the role of AI chatbots in customer service will only grow. In 2024 we are already seeing AI bots setting new standards for what customers expect in terms of speed and accessibility.
Looking ahead its safe to assume AI chatbots will be able to take on even more complex tasks, such as understanding emotions in conversations and predicting a customer’s needs before they even ask. Whether you like the idea of AI or are scared of what it is capable of, the simple answer is it’s here and it’s here to stay.
Businesses that embrace this technology now will be in a better position and stay competitive in the years to come.
Final Thoughts
The face of customer service has already been changed by AI bots in 2024. By providing faster, more personalised support, being available 24/7 and improving overall efficiency they are quickly becoming a must have tool for your business.
This is just the start, these technologies will only continue to evolve, customer service will be more seamless, creating better experiences for customers and reducing on labour intensive tasks for your teams.
If you are a business owner or a customer services manager i would strongly recommend now is the time to consider how AI can help your business. Even if its just used as an out of hours program it will help your business deliver superior customer support and experiences putting you above your competitors.
