How to Employ AI in Customer Service in 2024?

Customer Support

Exceptional customer service is essential in today’s business realm. However, for companies, providing top-notch support often involves many challenges, such as recruiting and training support agents, investing in expensive tools, managing shifts, and more. But fret not, there’s a solution, artificial intelligence!

Harnessing the power of artificial intelligence (AI) in customer service can address all these concerns seamlessly. AI can be a valuable ally in enhancing your customer support while staying within your resources.

AI in customer service refers to the use of intelligent machines and computers to deliver assistance and solutions, as opposed to relying solely on human intellect. 

Let’s dive into what AI does, its benefits, and how you can get started to maximize productivity.

Understanding AI in Customer Service

When we dive into the world of AI in customer service, we’re talking about bringing in AI technologies like machine learning, natural language processing (NLP), and automation to spruce up how we interact with customers.

Machine learning is like giving systems a superpower. It allows them to perform tasks even if they weren’t explicitly taught to do so. AI systems get trained using a company’s data before they go into action, and the cool part is, that they can keep learning and getting better at providing more accurate answers over time. They take notes from previous conversations to figure out which responses are most on the money.

In customer service, there are two flavors of artificial intelligence.

First up, we’ve got rule-based bots. They answer customer questions based on a predefined set of instructions. So, you might have a few options to choose from, and your choices lead you down a predetermined path.

Then there’s conversational AI, which operates in a different league. Thanks to NLP and machine learning, it can quickly make sense of what customers type and respond naturally. Instead of making customers pick from a fixed menu of choices, conversational AI chatbots let them throw in their questions or prompts.

The AI takes that input, compares it to what it’s learned, and dishes out what it thinks the customer probably wants. And it’s not just robotic answers; it’s conversational and human-like. Customers can shoot back with more questions, keeping the chat flowing.

What are The Benefits of AI in Customer Service?

  1. Boosted Productivity: AI is a game-changer, and 84% of IT leaders think it can supercharge their customer service. Case in point: AI-driven chat assistants can crank up support agents’ productivity by a solid 14%.
  1. Enhanced Efficiency: Doing things manually can be a real workout for service agents. Think about switching between systems, digging through customer histories, searching for knowledge articles, and typing responses. It’s a hassle, and it’s easy for errors to slip in.

    AI in customer service swoops in with smart suggestions from knowledge bases, insights from conversations, and customer data. Our latest research reveals that 63% of service pros believe AI can help them serve customers quickly.
  1. Personalized Service: When a customer kicks off a chat with a chatbot, AI can instantly provide essential details like the customer’s name, location, account type, and preferred language.

    If the situation calls for a field service technician, AI can hand over all the vital info to the on-site worker, enabling them to deliver personalized service right from the get-go.
  1. Reduced Burnout, Uplifted Morale: AI steps in to tackle the repetitive, time-consuming tasks, allowing agents to focus on situations that demand creative problem-solving, social savvy, and complex critical thinking – all of which truly impact the overall customer experience.

    No wonder 79% of IT leaders reckon generative AI can cut down on the team’s workload and prevent burnout.
  1. Proactive Service: AI digs into your customers’ contracts, warranties, purchase history, and marketing data to dish out the best next steps for your agents, even after the service chat is wrapped up.

    For instance, it can remind customers that it’s nearly time to renew their subscription, prompt them to schedule a maintenance appointment, or let them know about a product upgrade or discount. And taking it up a notch, generative AI can even sum up customer conversations and whip up knowledge base articles for future reference. It’s like having a super-smart assistant on your team.

Exemplary Role Model Companies that Have Harnessed AI


      The streaming giant Netflix utilizes AI and machine learning to deliver personalized recommendations from its extensive library of movies and TV shows.

      By understanding each viewer’s unique preferences, Netflix tailors content recommendations to align with the user’s taste.

      But it doesn’t stop there; AI also streamlines the production of original content, ensuring it resonates with its audience, and guides their advertising strategies for optimal results.


      Decathlon, the renowned sporting goods retailer, faced a surge of 4.5 times more customer inquiries in spring 2020.

      To maintain their high customer service standards, they turned to Heyday, a conversational AI platform.

      With Heyday’s help, they created a digital assistant capable of understanding over 1000 unique customer intentions and responding to sporting-goods-related questions with automated answers.

      The results were impressive, with a 65% reduction in customer inquiries and a boost in customer satisfaction.


      Myntra, a leading e-commerce platform owned by Walmart, introduced MyFashionGPT, powered by ChatGPT, to enhance the online shopping experience.

      MyFashionGPT allows customers to make natural language queries, discover outfits across various categories, and complete desired looks effortlessly.

      It stands out for its ability to interpret and respond to sophisticated fashion queries, offering personalized suggestions based on global trends.


      HomeServe USA, a prominent provider of home service plans, employs an AI-powered virtual assistant named Charlie for their customer service. Built using a conversational AI platform from Google, Charlie efficiently manages over 11,000 calls daily. It provides swift responses to customer queries, initiates the claims process, and schedules repair appointments.

      What makes HomeServe USA stand out is its strategy of amalgamating AI and human interaction to offer superior customer service. Charlie, despite being a powerful tool, doesn’t replace the human touch, ensuring a harmonious blend of efficiency and personalized support.

      Enriching Your Customer Experience with AI in 2024

      As AI continues to evolve, it’s poised to deliver increasingly personalized customer experiences. Our State of AI report highlights a significant level of trust among respondents in AI’s potential to provide more personalized messages (50%) and experiences (46%).

      The future of AI in customer service is all about tailoring interactions to individual customers. AI tools leverage data from a customer’s purchase history, preferences, behavior patterns, and feedback to create a highly personalized experience.

      This can manifest in personalized product recommendations and customized interactions that enhance their journey.

      Different Ways To Use AI in Customer Service

      Here are some simple ways to employ AI in customer service in 2024.

      1. Crafting Content

      Generative AI steps in to analyze customer messages, picking out crucial details and crafting responses that sound just like a human agent.

      This swift and accurate response system not only trims down waiting times but also heightens customer satisfaction. This is particularly effective when the AI taps into CRM data and knowledge repositories.

      2. Chatbots on the Scene

      AI-driven chatbots handle the nitty-gritty of customer inquiries, offering rapid responses and assisting with tasks like tracking orders, suggesting products, and troubleshooting issues.

      The beauty of chatbots lies in their round-the-clock availability, which reduces response times and makes customer service more accessible.

      3. The Language of AI

      Natural Language Processing (NLP) is the tech behind AI systems that comprehend and interpret human language.

      It’s a crucial tool for analyzing customer sentiments, pinpointing their needs, and providing relevant responses. NLP finds its home in chatbots, voice assistants, and sentiment analysis tools.

      4. Feeling the Sentiment

      AI-backed sentiment analysis tools keep tabs on customer feedback, reviews, and social media interactions, gauging the mood of the customers.

      This invaluable insight helps companies spot areas for improvement, address customer concerns, and deliver personalized experiences that align with customer preferences.

      5. Recommendations Galore

      AI-powered recommendation systems dissect customer behavior, past purchases, and preferences to serve up tailored product or content recommendations.

      By getting to know each customer’s preferences, businesses can supercharge their cross-selling and upselling strategies.

      6. Predicting the Future

      AI’s predictive analytics leans on customer data to anticipate their needs, behavioral patterns, and potential problems.

      This crystal ball effect allows companies to proactively handle customer issues, fine-tune resource allocation, and make each customer interaction a personalized affair.

      7. Self-Help Solutions

      AI-backed self-service options, like knowledge bases and FAQs, get a boost from natural language processing.

      They understand customer queries and deliver the right information or troubleshooting steps, ensuring customers and agents can find solutions quickly without human intervention.

      8. Clever Routing

      AI-infused intelligent routing systems give incoming customer inquiries a careful once-over and direct them to the service representative or department with the most relevant experience or know-how.

      This means customers get to talk to the right person who can address their needs with efficiency.

      Wrapping Up 

      AI is reshaping the customer service landscape. From offering 24/7 support to predicting customer behavior, AI is now a crucial element in providing a seamless and personalized customer experience.

      The companies we’ve spotlighted in this article are at the forefront of embracing these transformative technologies, elevating their customer service game, and delivering exceptional value to their clientele.

      As AI continues to evolve, we can anticipate even more creative and effective applications in customer service. The future looks bright, and it’s evident that AI will have a central role in redefining how businesses engage with and cater to their customers.