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How Conversational AI Will Impact Customer Service

by Erina Suzuki | Published On September 28, 2023

Customer satisfaction is critical to running a successful business, but employing a full-time staff of customer service representatives comes at a significant cost. As a result, many companies have had to choose between getting happy customers and smaller profits or unhappy customers and higher profits—until now.

With the emergence of conversational artificial intelligence (AI) and improved speech analytics (a technology that uses AI to extract insights from audio recordings), companies can get the best of both worlds. As the technology of conversational AI continues to improve, it’s only a matter of time before companies make it a standard practice to implement it as part of their customer service routine

What Is Conversational AI? 

Conversational AI, also known as chatbots, is a type of artificial intelligence that allows machines to simulate human-like conversations with users. Conversational AI can understand, interpret, and respond to customers' questions through natural language processing and machine learning algorithms - just like a human agent would. 

Conversational AI can be used to enhance customer service in a number of ways, including: 

  • Providing self-service: Conversational AI can provide self-service options to customers, such as answering frequently asked questions (FAQ) or providing support for common tasks like tracking a package or making an appointment. This can help reduce the number of customer support tickets, freeing up agents’ time to focus on more complex issues. 

  • Reducing costs: Conversational AI can help reduce costs by automating tasks that human agents would otherwise do. This can free up agents’ time to focus on more complex issues and can also help improve the efficiency of the customer service team. 

  • Personalizing the customer experience: Conversational AI can help personalize the customer experience by remembering customer preferences and providing relevant information and recommendations. For instance, someone planning a trip wouldn’t need to re-enter their address, rental car preference, what type of seat to purchase on the airplane, etc. This can help improve customer satisfaction and loyalty. 

  • Improving customer engagement: Conversational AI can be used to engage customers in conversation, which can help build relationships and create a positive customer experience. 

Companies That Are Successfully Implementing Conversational AI 

Conversational AI can be a powerful tool for enhancing customer service. By automating tasks, providing self-service options, and personalizing the customer experience, conversational AI can help businesses to improve customer satisfaction, loyalty, and efficiency, all while saving money. Here are some examples of how conversational AI and speech analytics are being used to enhance customer service: 

  • Google: Google has integrated conversational AI into products like Google Assistant and Google Home. These voice-activated assistants allow users to interact with Google services using natural language processing (NLP), providing personalized information, answering queries, and performing tasks. 

  • Delta Air Lines: Delta Air Lines uses conversational AI to provide customer service for its flights. Customers can use the Delta chatbot to check their flight status, make changes to their itinerary, and get help with refunds. 

  • Starbucks: Starbucks uses conversational AI to provide customer service for its stores through a feature called “My Starbucks Barista.” This voice-activated service allows customers to order ahead, find a store location, and get help with rewards. 

  • Domino’s Pizza: Domino’s uses conversational AI to help customers place orders, track deliveries, and get updates through voice-activated services like Google Assistant and Amazon Alexa. 

Conversational AI is the Future 

While these are just some examples of how conversational AI is being used to enhance customer service, stay tuned as more companies learn to optimize this time-saving and efficiency-boosting tool. As conversational AI technology continues to develop, we can expect to see even more innovative ways to improve the customer experience. 

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