In November 2022, OpenAI launched ChatGPT. To most people, that was the first time hearing about AI. Before this, it was almost unrealistic to think of a program that could speak like a human, interpret humour, and write in seconds.
Fast forward, and people have now accepted AI. And the customer service industry hasn’t been an exception. AI chatbots and virtual assistants (VAs) have rapidly increased, disrupting this industry.
But what are these AI-powered tools, and how do they operate? Join me as I discuss the present and future of AI in customer service.
Get Familiar With Chatbots
A chatbot/conversational agent is a computer application that converses with potential clients and answers their queries. Chatbots use Natural Language Processing (NLP), Artificial Intelligence (AI), and Machine Learning (ML) to analyze information and give feedback via text/voice.
Chatbots can be rule-based, AI-powered, or keyword-based, with each having its distinct abilities. You should learn about each type before purchasing.
What about AI Virtual Assistants?
AI VAs are more advanced and capable of tackling administrative services. They understand voice commands and can book calls, bookkeeping, and perform marketing tasks.
In November 2023, Bill Gates predicted that all people will have an AI assistant in the coming five years. Which shows how much effort is put into the industry. Familiar AI assistants include Siri (Apple), Google Assistant (Google), and Alexa (Amazon).
3 key differences between virtual assistants and chatbots
- While both VAs and chatbots use NLP to understand input, only VAs understand moods and emotions. So, VAs like Alexa are likely to respond more accurately and humanly than chatbots.
- Chatbots are great at handling specific tasks like answering frequently asked questions. However, VAs can perform various tasks like answering questions, running home security systems, or scheduling calls.
- Chatbots apply a chat-based interface when engaging clients while virtual agents can run face-to-face meetings, giving a more natural conversation.
Role of AI-powered chatbots and virtual assistants in customer service delivery
- Client support and queries: Chatbots and AI assistants respond immediately to client queries. Real-time responses save time and promote client satisfaction.
- Marketing and sales: You can use AI tools to engage with customers, increase productivity, and streamline the buying process. The tools can give insights into a buyer’s journey and patterns, helping you close sales much easier.
- Service reservation and booking: Chatbots can help answer booking queries, book reservations, and offer confirmation receipts.
- Data collection and analysis: AI can collect and analyse customer data, including customer pain points, behaviour, or preferences.
- Real-time order information: AI assistants can process orders, send confirmation messages, and give estimated delivery times. It can also provide delivery status and information about any delays.
- Account management: Applying conversational AI can help potential customers set up an account or seek services from businesses. AI assistants can also help with real-time balance enquiries, such as in the finance industries.
- Troubleshooting issues: Chatbots help customers when they encounter service-related difficulties. Help comes through conversational and knowledge-based capabilities to determine the cause and provide solutions. If the issue is complex, it refers customers to a human representative.
Pros and cons of AI-powered chatbots and virtual assistants
Pros
- 24/7 availability with instant responses, ensuring customers get answers and services seamlessly.
- Capital saving: Imagine the cost you may need to budget for space, salaries, and employee allowances. AI agents reduce all these operational costs.
- Data analysis insights: Using data collected by chatbots and AI virtual assistants, you can make data-driven decisions to improve customer services.
- Can handle many tasks at a time: AI tools can handle multiple tasks simultaneously without getting tired, promoting consistent customer support in your business.
Cons
- Cyber security concerns: Cyber attack risk has been rising consistently, and AI tools are not spared. Hackers might access personal data, causing financial losses and ruining brand trust/reputation.
- Human touch: Chatbots lack empathy and emotional intelligence. And their robotic responses can decrease engagement and reduce sales.
- Limited understanding: Chatbots and AI assistants feed on already available data to give feedback, limiting creativity. Such encounters might lead to customer frustration when seeking recent information not updated online.
- Costly maintenance needs: Although chatbots save costs in the long run, setting up tools and regular maintenance updates can be costly.
What’s the future of AI-powered chatbots and AI virtual assistants?
The future of chatbots and virtual assistants in customer service promises to be the norm, holding more exciting experiences and interactions. People are accepting the culture of AI quickly, bringing evolution to chatbots and virtual assistants.
This future also promises more integration of AI to other cutting-edge technologies like Augmented Reality(AR) and Virtual Reality (VR). Now imagine using AR to show your customers what your business can do to theirs. Isn’t that fascinating?
Chatbots might evolve from reactive to proactive tools, anticipating your needs without asking you. Your AI VAs might also become more sophisticated and able to perform more complex routines. For example, scheduling meetings, organising tasks, and suggesting routines to make customer service easier.
Furthermore, these tools will have studied your routine and habits over time. Allowing seamless work-life balance by suggesting a lifestyle that prioritizes productivity.
Become part of the innovative future with AI-powered services
With the changes AI-driven customer services bring, we expect to be mind blown by more discoveries. Learning and understanding this technology empowers you on how to leverage it for business success. Consider what we discussed in this article and embrace technology. This step will secure you a chance to be part of the innovative community in the future.
