Boost your tech industry knowledge with our FREE RESOURCES - Explore our collection
Back to all articles

August 2, 2024 - 6 minutes

The Future of Customer Service: AI Call Centers

Transforming Customer Service with AI-Powered Call Centers

Ironhack

Changing The Future of Tech Education

Articles by Ironhack

Artificial Intelligence

Customer service has changed significantly from the days of handwritten letters and face-to-face complaints. It’s no secret that companies around the world are crying out to improve their customer service experience with AI technologies. In this article, we’ll explore the future of customer service, focusing on the growing role of AI-powered call centers. 

Increasing Role of AI in Customer Service

The application of artificial intelligence in customer service isn't a new concept, but its integration into call centers has been a game-changer. Initially, AI was used in this sphere to perform simple tasks like chatbots answering frequently asked questions. Today it has evolved to handle more complex tasks, like deciphering complex sentences, and idiomatic expressions, analyzing the emotional tone of a customer's voice or text, predicting future needs or issues, and many others. These advanced capabilities are made possible by high-quality training data, which provides the AI with examples and contexts to learn from, ensuring it can respond accurately and effectively.

Benefits of AI Call Centers

  • Efficiency and Speed: AI call centers handle large amounts of data quickly, reducing customer waiting time. Moreover, they are available 24/7 to provide quick support, a great advantage in a global market where businesses operate in different time zones. 74% of consumers prefer different channels to access customer service, a crucial feature of AI technologies. At the same time, AI can handle simple queries which helps human workers address complex issues, making the overall customer service experience better.

  • Cost Savings: AI call centers reduce operational costs by cutting expenses related to hiring, training, and maintaining a large human staff. According to Tidio's report, 28% of business leaders have used AI to cut company costs​​, allowing companies to use resources more effectively, and improving overall efficiency.

  • Consistency and Accuracy: AI does not experience fatigue, it always answers correctly, which helps to build reliable customer service.

Key Technologies

  • Chatbots and Voice Bots: nowadays, these technologies are transforming customer service by handling simple inquiries and providing instant responses using Natural Language Processing (NLP). According to VoiceSpin this 24/7 service significantly enhances customer satisfaction, and the market for AI-driven voice bots is expected to grow at an annual rate of 21.3% from 2022 to 2027​.

  • Robotic Process Automation (RPA): it automates repetitive and time-consuming tasks, such as data entry and call routing, improving operational efficiency and helping human agents focus on more complex issues that require personal attention.

  • Predictive Analytics and Call Routing: it forecasts customer needs and behaviors, while advanced call routing systems connect customers with the most suitable agents. This technology improves the customer experience by reducing wait times and enhancing service personalization​​.

Case Studies: Companies Leading the Way

As AI technology continues to evolve, several companies have emerged as pioneers in integrating AI into their customer service operations.  

Google

Google has also made significant progress in this sphere, with Google Duplex being a notable example, which can make phone calls on behalf of users, book appointments, or make reservations. This technology demonstrates the potential of AI to handle complex and context-sensitive tasks traditionally performed by human agents.

Google also employs AI-powered chatbots and virtual assistants to handle a variety of customer service inquiries. These technologies can handle tasks from troubleshooting technical issues to providing detailed information about Google’s products and services. The key advantage here is the scalability of AI, allowing Google to handle a lot of inquiries simultaneously, thus improving efficiency and customer satisfaction.

Bank of America

Bank of America has integrated AI into financial customer service. Its virtual assistant Erica, launched in 2018, uses AI, predictive analytics, and cognitive messaging to assist customers with various banking needs. It offers personalized financial advice and account management. Erica's special feature is its ability to learn and adapt based on user interactions, such as offering updates or alerts based on regular inquiries. This personalization builds stronger customer relationships and improves the whole user experience.

IBM

IBM has been a market leader in AI technology, offering solutions in various sectors, including customer service. To power customer service operations, a lot of companies use IBM Watson which is its artificial intelligence technology. Thanks to NLP, machine learning, and data analytics Watson can understand and answer complex customer queries effectively.

For example, IBM Watson has been used to deliver support services in the healthcare, finance, and retail sectors. Watson can help healthcare professionals to schedule appointments and provide medical information. In retail, it helps to guide customers through product selections and answer inquiries. 

H&M

H&M, a worldwide famous fashion retailer, uses AI to upgrade its customer service as well as improve the customers’ shopping experience. The company uses AI-powered chatbots to help clients find products, order tracking, and resolve issues. AI helps the company manage multiple inquiries simultaneously and provide quick and efficient service.

H&M also makes use of AI for inventory management and personalized marketing. Their technology predicts fashion trends and offers personalized product recommendations, by analyzing customer data.

The Future of Customer Service: Predictions and Trends

As we may predict, customer service will experience significant transformations with advancements in artificial intelligence. The future of customer service will probably be defined by several key trends:

  • Increased Personalization: AI can analyze large amounts of data to understand personal customer preferences, behaviors, and histories. It allows companies to offer recommendations tailored to a certain customer. AI-based technologies can suggest products to customers based on their past purchases and browsing history, or suggest personalized solutions.

  • Expansion of Omnichannel Experiences: today consumers are interacting with companies using various platforms like social media, mobile apps, websites, and in-store visits. The future of customer service will see seamless interactions, where AI will play an important role in uniting these channels, These interactions will become more seamless, allowing customers to switch between channels without losing the context of their conversation. Thanks to AI, these channels will be unified providing consistent responses, and ensuring a smooth customer journey and high satisfaction levels.

  • Rise of Conversational AI and Virtual Assistants: chatbots and virtual assistants will grow significantly, as they handle complex queries, understand natural language, and detect emotional tones in interactions with customers. These tools, like Amazon's Alexa and Google's Assistant, assist help with tasks like information retrieval, appointment management, and troubleshooting issues. As these technologies are being perfected, they will offer more engaging interactions, while consequently becoming an integral part of the customer service ecosystem.

  • Predictive Analytics and Proactive Support: AI can analyze historical data and customer behavior, thus predicting potential issues and providing active support. This approach improves customer satisfaction by preventing problems and enhances operational efficiency by reducing reactive support requests.

Conclusion

AI technologies are changing customer service, offering improved efficiency, personalized experiences, and seamless omnichannel interactions. To implement AI in customer service successfully, businesses must balance new technology with an empathetic human touch. This includes investing in advanced AI infrastructure, continuously training and upskilling their human staff, and developing a customer-centric strategy. This way, businesses can meet and exceed customer expectations, fostering loyalty and trust in a competitive market. The collaboration between AI and human customer service agents will redefine service standards, setting new benchmarks for efficiency and personalization. 

If you’re interested in artificial intelligence, check out our Remote Artificial Engineering Bootcamp If that’s not quite what you’re looking for, check out our other bootcamps: 

Related Articles

Recommended for you

Ready to join?

More than 10,000 career changers and entrepreneurs launched their careers in the tech industry with Ironhack's bootcamps. Start your new career journey, and join the tech revolution!