How AI is Used in Customer Service: Implementation Tips

Todd Chapman
July 27, 2023
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Good customer service is very important to modern organizations. The firm expands, and revenues rise thanks to the additional clients that quality service attracts. However, we need new approaches to client assistance as times and consumer expectations change. Because of that, artificial intelligence (AI) is now stepping in to assist.

In terms of customer care, AI has become a game changer. The efficiency, personalization, and optimization of client experiences have changed the nature of consumer-business relationships. In this article, we will discuss how to use AI in customer service and examine examples of AI in customer service.

Why Artificial Intelligence is important for customer service

AI in client service isn’t just a trend; it’s a great tool to improve efficiency and drive consumer satisfaction. One of the primary ways it is used is through chatbots. A well-implemented chatbot handles multiple queries simultaneously, reducing wait times. It operates 24/7, offering round-the-clock assistance.

These AI for customer support solutions reduce the burden on human agents, allowing them to focus on value-adding tasks. Moreover, it quickly retrieves data, provides product recommendations and processes orders. Artificial intelligence improves client interactions via personalization in addition to task automation. AI adapts the service to each client’s unique wants and preferences by examining consumer data and behavior trends. It gives individualized suggestions, improves consumer understanding, and intensifies conversation engagement. Such a targeted customer service strategy ensures an enhanced consumer experience, leading to increased loyalty and business growth.

Conversational AI for customer support goes beyond simple chatbots by providing dynamic discussions. It means the machine understands the context of the conversation and allows it to offer appropriate replies. Moreover, consumer feedback should guide the AI integration customer care strategy. Businesses can utilize AI to provide the best possible service by understanding clients’ wants and needs.

Use Case 1: AI-driven client support in online marketplaces

Customer service AI use cases are at the forefront of the transformational shift seen in the support industry. They ensure swift, efficient, and consistent service since they operate non-stop. AI handles multiple client queries at once and leads to reduced wait times. Through machine learning, AI-based systems learn from past interactions, enhancing their capacity to provide relevant responses over time.

Our chatbot, which we have built, serves as a perfect example of AI in client service. In this showcase, we will look at how it has impacted the ecommerce industry. The first case we want to examine is, the largest online marketplace in Nigeria. The platform manages over 2,000,000 ads and serves approximately 7,000,000 unique monthly users. Jiji contacted us for the implementation of AI in customer service to automate the tens of thousands of daily inquiries they receive through social media comments and direct messages.

MetaDialog’s system was designed to merge a large Natural Language Processing (NLP) model with Jiji’s proprietary data, which includes internal manuals, predefined reply templates, previous users tickets, SQL databases, and more. It allowed Jiji to automate responses, offering real-time dialogues almost indistinguishable from a human conversation. Such a solution relieved Jiji’s support team, who were under constant pressure due to the increasing volume of inquiries.

How to Use AI in Customer Service: 3 Use Cases

AI-driven client support has its advantages and drawbacks. On the upside, it offers 24/7 client service, instant responses, multitasking capabilities, and cost-effectiveness. Such an AI customer service example shows us the power of high tech that can analyze data, identify patterns, and provide insights to improve products and services.

Use Case 2: Conversational AI for hosting company

Fozzy is a company that caters services like domains, hosting, VPS, game servers, and website builders. They utilize advanced solutions to maintain a high-performance network that exceeds 4 Tbps, ensure daily backups, implement LiteSpeed web server, provide automatic vulnerability fixes, and offer free SSL certificates.

However, like many growing organizations, Fozzy faced the challenge of enhancing client support and increasing departmental efficiency. Consequently, they started to explore ways how to use AI in customer service. Luckily, they came across MetaDialog and tried the free demo version of our AI-based platform.

To resolve Fozzy’s automation challenge, we introduced Generative AI technology, capable of understanding, interpreting, and responding to clients’ textual messages. This AI integration into consumer care transformed its customer service strategy.

The successful application of this conversational AI resulted in a significant boost in departmental efficiency. The bot effectively processed over 1,600 user requests during the collaboration with Metadialog, doubling the speed of the first response time and increasing fully satisfied clients by 28%.

How to Use AI in Customer Service: 3 Use Cases

Fozzy’s experience provides an insightful example of how AI can be used in customer service. By augmenting their team with AI, they could better allocate their resources, enhance client service, and gain valuable insights to improve their services further.

Use Case 3: AI for Personalized Customer Support

MacPaw software company is another example of how can AI improve customer service. Known for products such as CleanMyMac X, Setapp, ClearVPN, and more, MacPaw has successfully amassed over 30 million users worldwide. Their programs are installed on one of every five Macs globally.

However, like many successful companies, MacPaw faced the challenge of improving customer support due to a rapidly expanding client base. Recognizing the limitations of their simple chatbot based on the “if/else” system, the company sought AI for customer support solutions. Such an initiative led to the collaboration with our company, where the goal was to develop an AI implementation strategy that would direct consumers to receive clear, structured answers with step-by-step instructions.

The development of the AI chatbot involved several stages:

  1. The bot was trained to provide clear and straightforward answers to consumers’ queries, using data gathered from previous client interactions.
  2. The bot was subjected to rigorous testing using common consumer questions, with the AI continuously adjusted to address any identified issues.
  3. Internal tests with the MacPaw team were conducted to showcase the chatbot’s capabilities, gather feedback, and identify any additional desired features.
  4. Following the release of the chatbot, its interactions with real clients were monitored to optimize the AI-human interaction patterns.
  5. After two weeks of preparation, testing, and improvement, the AI chatbot was fully trained and incorporated into MacPaw’s workflow.

As a result of the successful integration, the response time to user inquiries was drastically reduced from 50 seconds to 8 seconds, a five-fold improvement. The AI chatbot was also well-received by customers, with over 60% of users satisfied with the bot’s responses and choosing to forgo human assistance.

Like any technology, AI customer service solutions have pros and cons when applied to client service. While it offers personalized, immediate responses to consumer queries, it still needs help with complex or ambiguous questions. Additionally, ensuring the security and privacy of data remains an ongoing concern.

How to Use AI in Customer Service: 3 Use Cases

Nevertheless, MacPaw’s case offers a valuable lesson: when strategically implemented, customer care AI uses play a pivotal role in enhancing services, leading to a more personalized, efficient, and satisfying client experience.

The impact of AI in client support for the future of business

AI for customer support solutions is reshaping client service. Numerous businesses are already harnessing the power of high-tech to serve their clients better, providing examples of the transformative potential of this technology.

The developments will certainly impact client assistance in AI in the future. Businesses that want to maintain consumer service competitiveness should understand how to use AI in customer service. AI is an effective tool to create great client connections and develop long-lasting relationships when operated with care and a customer-centric mindset.

The integration of artificial intelligence into client service operations is challenging. Data privacy, robust security protocols, and a strategic approach to AI implementation must be addressed. Moreover, companies must comprehend the scope of opportunities AI offers while staying vigilant of potential pitfalls, such as the risk of depersonalization or over-reliance on technology.

Future developments in AI will undoubtedly continue to shape consumer service in unprecedented ways. Machine learning, a subset of AI, will increasingly enable systems to learn and improve from experience, making client service even more personalized and effective.

With proper planning, strategy, and implementation, AI can provide an excellent platform to build strong relationships with clients and develop long-lasting bonds. With the use of this technology, businesses will be able to anticipate client demands, provide pro-active assistance, and completely change the customer service industry to a more effective and profitable future.

What to do if you decided to utilize the power of AI

The examples of artificial intelligence in customer service show how this technology completely transforms the traditional approach to client interactions. The many advantages AI-engine brings highlight the necessity to integrate it into your business ecosystem. It may seem daunting if you don’t have an in-house developer team who can create AI-powered chatbots. In such a case, you’ll need to outsource, and even if they execute the job well, you might still need to make adjustments here and there.

That’s why we offer you the use of the MetaDialog full-fledged conversational interface platform, which we developed to assist small companies and large enterprises in automating client relations. With the help of our conversational interface, you won’t need to worry about 87% of customer inquiries to your business. This reduces the need to maintain large client support teams, saving money and time on routine tasks. Implementing MetaDialog into your ecosystem takes about 2-5 hours, depending on the amount of data related to your product.

If you’re looking for innovative solutions to transform your company and make it more efficient, test our chatbot’s demo version rather than taking conservative actions. You can try MetaDialog AI engine for free, which will demonstrate how efficiently the bot covers business needs. No phone numbers, additional fees, or emails are required; we just want to help you understand the benefits of Artificial Intelligence.