Evolution of AI in Customer Service: What’s Next?

Businesses count on artificial intelligence for increasingly numerous tasks, from creating content to answering questions. It only makes sense that it has spread to customer service, where it can effectively improve the customer experience. Moreover, in the next five years, AI’s role in the customer service process will only grow, especially as it advances to tackle more complex issues.

So, what will that mean for the customer service industry?

“The way I think about this begins with the fact that AI is a tool, not an end in itself. And that tool will certainly become more effective in certain areas that will directly affect the customer experience,” says Cory Halbardier, COO of Blazeo, a firm that develops AI-powered virtual assistants.

AI plays a role in streamlining operations and making systems more effective, with companies like Verizon showcasing how routine tasks are increasingly being handled by AI-driven technologies. In the next five years, a larger fraction of customer service interactions, especially in technical support, are expected to transition from human agents to AI chatbots.

However, this shift toward automation is not just about replacing human effort. The goal is to enhance it through personalization.

“Customers will be interacting with bots that know a lot about them and are tailoring their communications to their gender, their age, their location, their everything,” Halbardier adds.

AI’s exponentially growing capacities ensure that engagements with chatbots or virtual assistants are not just generic but are relevant and finely tuned to each customer. The evolution toward more personalized service via AI could redefine the customer experience, making it more engaging and satisfying.

But that does not make humans obsolete in the industry. Human interaction in customer service remains a vital component, particularly in sectors where trust, empathy, and personal understanding are paramount. Think healthcare, legal services, and real estate. In these sectors, the human element cannot be entirely supplanted by AI.

“The more AI progresses, the more it will reveal the indispensability of humans,” Halbardier notes from his experience at Blazeo. In these instances, customers significantly prefer, and sometimes require, the nuanced understanding that only a human can provide.

“The future success of businesses will hinge on their ability to discern the appropriate moments to deploy AI and when to engage human expertise,” Halbardier continues.

Effective customer service will demand a well-calibrated balance, utilizing AI for its unparalleled efficiency and predictability while reserving human interaction for situations that demand empathy, trust, and a deeper comprehension of complex human emotions and needs.

Surveys corroborate this perspective, indicating that while the efficiency and predictability of AI are highly valued for routine tasks, there is a profound appreciation for the personal understanding and empathy offered by trained human agents.

As we look to the future, the evolution of AI in customer service seems poised to accelerate, driven by advances in technology and a deeper understanding of customer needs. However, the challenge will be to ensure that this shift does not undermine the essential human qualities that underpin customer satisfaction in numerous sectors.

Adds Halbardier: “Companies that know when to deploy bots and when to deploy humans will win the future.”