Published on 
January 18, 2024
Automation and Self-service

AI for Customer Service in 2024: Examples & Tips

Shonik Agarwal
Founder's Office
min read
Table of Contents

AI for Customer Service in 2024: Examples & Tips

Generative AI is expected to add $7 Trillion to the Global GDP over the next 10 years. AI in customer service has become a focus area for many businesses.

In the past, deploying any sort of AI application was a complex project for businesses that could take up to a year. You needed a dedicated data engineering team to prepare and cleanse data, fine-tune machine learning models and do a ton of testing before it could be deployed.

But Large Language Models (LLMs) like OpenAI's GPT have made it possible to deploy AI applications off the shelf and drive value from day one.

Short Summary

  • We'll look at Jobs To Be Done (JTDs) & tasks performed by all users involved in customer service & how AI can aid each one.
  • AI customer service applications include chatbots, agent assist, intelligent triage & extracting insights from unstructured data.
  • Tips on getting started with AI include analysing existing agent workflows, deploying AI and fine tuning models regularly.

How AI can help different areas of customer service?

Let's look at all stakeholders involved in customer service, the tasks they do on a daily basis and how AI can aid in each of these tasks.

Stakeholder Jobs to be Done (JTD) Tasks How AI can help
Customer Obtain quick and accurate assistance Seek information and assistance quickly and accurately AI-powered chatbots can provide immediate responses to customer queries, ensuring quick and accurate information.
Customer Service Rep Resolve customer issues efficiently Prioritize tickets AI can summarize conversations & provide sentiment analysis to help agents prioritize tickets
Lookup customer context AI can provide relevant information and suggestions to assist representatives in resolving customer issues more efficiently.
Draft replies AI can learn from previous interactions and draft replies on behalf of agents.
Translation Auto translate messages in their preferred language and translate agent messages to customer’s language
Tagging & data entry AI can automate data entry & tagging improving the time taken per resolve.
Customer Service Manager Monitor and analyze customer feedback and agent performance Analyze queries by topics AI can analyze customer interactions to identify topic trends and patterns.
Onboarding new agents AI can provide sandbox environments for agents to practice real life scenarios & give feedback on the actions they take, responses they give.
Agent QA AI can help managers QC work for their agents based on pre-set criteria.
Business Owner Enhance customer satisfaction and loyalty Understand & analyze customer feedback at scale Identify key trends in issues, features mentioned in customer satisfaction surveys

1. AI chatbots

How AI Chatbots are Transforming Customer Service: 10 Benefits of Support  Chatbots – Customer Service Blog from HappyFox

Customers can get immediate responses to their common requests using an AI customer service chatbot. LLM models like OpenAI can be fine-tuned to fetch just the relevant snippet from a large knowledge base of articles.

This is a much better customer experience from the traditional flow where customers are expected to search the knowledge base with various keywords and then reach out to support if they are unable to find a solution.

Chatbots can be designed to combine knowledge base articles with user data to craft context-aware & personalized responses.

2. Agent assist

AI can use natural language processing to learn from previous interactions, knowledge base and user data to suggest the perfect response to customer requests. The customer service agents can review it before sending which gives them control & keeps them in the driver seat.

3. Automate data entry

Some support agents spend up to 45 seconds doing data entry per customer issue which can be outsourced to AI. AI can auto-fill forms as and when these attributes are mentioned during the conversation.

4. Intelligent triaging

AI based summary & sentiment analysis in Richpanel

AI can summarize each conversation using natural language processing and do sentiment analysis which will help support agents prioritize issue based on severity, urgency, customer data and sentiment. This can save a few seconds per customer issue and greatly improve the customer service experience.

5. Multilingual support

Richpanel agent assist for automatic language translation

If you are supporting customers in multiple languages, you can use AI's automatic translation capabilities to do real-time translation between agent and customer messages.

6. Insights from unstructured data

Richpanel reporting on trending topics

AI a great asset for interpreting unstructured data, such as opinions gathered through surveys. Applying sentiment analysis enables businesses to gain an understanding into how their customers are feeling about products or services they have experienced - leading to improved customer service strategies, production advancement, modified marketing approaches and prudent decision-making processes.

Benefits of AI-Powered Customer Support

A customer service team using AI-powered customer support to improve customer satisfaction and cost savings

Better customer experiences customer satisfaction

Customers would rather resolve issues themselves than be on hold. AI can help customers get instant answers to the common customer queries and improve self-service rates.

Cost savings

AI in customer service can provide a cost-saving advantage as it has the capacity to automate tasks, cutting down on the need for big support teams. This allows companies to reduce their expenses due to lowered labor costs and improved operational performance.

Data-driven insights

Businesses can utilize AI to make better decisions based on factual evidence. Through analysis of customer service information, companies can discover trends and implement processes that cater specifically to their customers’ demands and interests.

Challenges and Risks of AI in Customer Service

An image showcasing the use of AI for customer service and the potential challenges and risks associated with it.

Privacy and security

When utilizing AI in customer service, businesses must pay special attention to privacy and security. With possible data breaches and unauthorized access or misuse of a consumer’s personal information, companies need strong measures safeguarding their customers’ details. They should be open about how they use the clientele’s data, as well as follow established regulations around safety and make certain that the artificial intelligence is not employed for nefarious activities. By addressing these matters upfront, it will help ensure that trust between company and consumer remains intact while preventing potential legal repercussions or damage caused by bad reputation.

Implementation difficulties

Customer service teams must have a clear view of their goals and objectives, as well as the current customer support strategies when attempting to implement AI for customer service. To guarantee successful integration, businesses can create testing protocols for evaluating implementation before expanding it.

Proper integration with existing systems, and ensuring that training is accessible to customer service personnel during transitioning. Such practices are essential towards facilitating an effective use of AI within the field of customer services.

Resistance from customer service teams

Customer service teams may oppose the adoption of AI in customer service due to potential job loss and mistakes that could occur. Companies can address this resistance by providing training opportunities, allowing team members involvement in decision-making processes, and managing expectations realistically.

By taking these steps, companies can ensure a more successful transition for their support teams, and utilize AI as an asset within their customer service strategy rather than replacing them entirely.

Tips on implementing AI for your customer support team

A customer service team starting with agent workflows to implement AI for their customer support team

Start with agent workflows

Analyzing your team’s customer service workflows is essential before implementing AI. By doing so, you can pinpoint areas where AI could be used to enhance efficiency and usefulness. It helps to decide which tasks are suitable for automation or augmentation with the help of artificial intelligence, guaranteeing that its implementation will meet the goals and needs of the group perfectly.

This approach allows the support team to be in control. You can moderate/edit AI suggestions and fine-tune the AI. Once you have enough confidence in agent AI applications, you can move to customer facing AI applications.

Measure & fine-tune your model

It is important to assess and refine the AI model in order for it to give customers accurate, helpful responses. To do this correctly, parameters of the model must be calibrated so that its results are on target while also providing quality customer service experiences.

Data preprocessing and categorization needs to take place before feeding into the AI setup. Ensuring useful insights can be obtained from incoming information pertaining to customers. By monitoring how well your system operates closely as changes need making when necessary, you will maximize satisfaction levels when assisting consumers with their queries.

Customer chatbots

Customer service chatbot powered by Richpanel

To maximize AI benefits, consider implementing AI chatbots that provide a personalised experience round the clock. These bots can provide automated responses to common queries or requests 24/7 while freeing up your human team to focus on more complex challenges.

Through utilizing internal systems, the chatbot has access too, they are able to keep an updated knowledge base providing information such as order status and delivery dates accurately.

When setting up this technology, it is imperative that customers find the bot user-friendly in order for them to have positive interactions between them and the company.


Modern-day customer support teams will leverage AI to gain competitive advantage over their peers . AI can automate mundane tasks, aid agents and gain valuable insights from customer interactions. By addressing any obstacles that might come with AI implementation and following best practices suggested in this post, we hope you will be able to take advantage of AI, improve consumer satisfaction rates and enjoy cost savings.

Frequently Asked Questions

How is AI used for customer service?

AI is enabling businesses to offer faster, more efficient customer service responses and queries in order to boost satisfaction. By automating the process, companies can save money while also making customers happier with quicker resolutions of their queries.

Will AI take over customer service?

Rather than replacing the role of human agents, automation is meant to support contact centers in becoming more customer-focused and help alleviate manual tasks. Machines are not intended to take over entire job roles. Instead, they unlock people’s capabilities for other valuable projects. Consequently, AI will never completely replace workers within customer service sectors.

What is an example of AI for customer service?

AI technologies can provide customers with a seamless service experience by utilising chatbots and automated voice prompts. These are programmed to give basic information such as product data, answer inquiries, and even complete transactions if needed. Companies using this technology have been able to reduce costs associated with customer services while still providing quality support for their clients.

By incorporating AI into the way they handle customer needs through these intelligent chatbot systems that understand natural language processing along with automated voices prompts when making phone calls, companies can streamline interactions in order to make it easier than ever before for customers seeking assistance or purchasing products/services quickly without spending too much time on it, resulting in better overall satisfaction from those who do business with them.

Overall, implementing artificial intelligence within the realm of customer service provides not only cost savings opportunities but also increases convenience which often leads to improved relationships between companies.

What challenges and risks should businesses be aware of when implementing AI in customer service?

Businesses must take precautions when introducing AI into customer service systems in order to avoid potential issues such as privacy and security risks, difficulties with implementation and pushback from customer service teams. Companies should ensure that they understand the needs of their staff involved in these processes prior to deployment, provide sufficient training on how it operates and also guarantee its adherence to regulations governing data protection. Ultimately businesses need assurance that customers’ personal information will remain protected at all times while using any AI related technology within this sector.

What are some tips for implementing AI for a customer support team?

For optimal AI integration in customer service teams, it is essential to examine and optimize your AI model’s performance. Implementing chatbots for customers can ensure successful implementation of Artificial Intelligence within the support staff. Focusing on agent workflows will ensure customer interaction with maximum efficiency while maintaining overall effectiveness from a team standpoint. It is paramount that all aspects related to the use of an AI model are analyzed thoroughly so that its presence yields great results for both customers and support personnel alike.

Customer support powered by AI and ChatGPT
See how