Embracing Automation and AI in Customer Service

Hi. I’m Ryan, Product Owner at Gnatta.

We’ve been working on bringing in some of our most innovative features yet over the last 12 months, not the least of which has been an AI Assistant. Gnatta’s AI Assistant is available to operators, ready to summarise an interaction or draft a response in a flash – and we’ve seen incredible results from clients that are adopting it as part of their customer care strategy.

This development comes at a time when those clients are reporting an ever increasing level of expectation from customers, and share with us their struggles to meet those demands. They look to us, as their technology partner, to provide innovative solutions that will help them keep apace. Fortunately, our industry is ripe for innovation at the moment, with automation and artificial intelligence (AI) able to transform how companies handle predictable queries. By automating common interactions, businesses can significantly enhance the customer experience, reduce costs, and improve efficiency.

Below, I’m going to explore why I think AI and automation for handling the straightforward stuff is not just a good idea—it’s essential for staying competitive.

AI and automation technologies have rapidly advanced over the past decade, becoming more accessible and affordable for businesses of all sizes. Already, chatbots, virtual assistants, and AI-powered tools are commonly used to support customer service queries. These technologies can process and respond to customer inquiries, predict outcomes based on historical data, and provide personalized experiences.

However, as everyone who’s gotten stuck in a chatbot loop knows, there are significant improvements to be made to fully realise the opportunities presented by these technologies.

Why Automate Predictable Customer Service Queries

• Efficiency and Speed: One of the most significant advantages of automation is the ability to handle customer inquiries swiftly. Predictable queries, such as order status checks, FAQs, or account balance inquiries, can be resolved in seconds without waiting for a human agent. Studies show when making these enquiries, customers don’t need to converse with an agent – they just want a swift resolution.
• Cost Reduction: Automating routine customer service tasks can lead to substantial cost savings. By reducing the need for human agents to handle predictable queries, businesses can allocate resources more effectively and focus on more complex customer issues that require a human touch. This results in more efficient labour costs and improved operational efficiency.
• Consistency and Accuracy: Automated systems provide consistent responses to customer queries, ensuring that customers receive the same information regardless of when or how they reach out. This consistency builds trust and reliability, as customers know they can count on accurate information every time they interact with the company.
• Scalability: As businesses grow, so does the volume of customer touch points. Automation allows companies to scale their customer service operations without a proportional increase in staffing and associated challenges around team growth. AI-powered systems can handle a high volume of queries simultaneously, ensuring that no customer is left waiting.
• 24/7 Availability: Customers expect support at all hours of the day. Automated customer service solutions can provide round-the-clock assistance, ensuring that customers can get the help they need, whenever they need it. This availability enhances the customer experience and helps businesses cater to a global audience.

AI-powered customer service tools leverage machine learning algorithms to predict outcomes based on historical data. By analysing past interactions, these systems can identify patterns and trends, allowing them to anticipate customer needs and provide proactive solutions.

For example:

• Chatbots: These virtual assistants use natural language processing (NLP) to understand and respond to customer queries. Over time, they learn from each interaction, becoming more accurate and efficient in their responses.
• Automated Email Responses: AI can analyse the content of customer emails, categorize them, and generate appropriate responses. For instance, if a customer emails about a lost package, the system can automatically provide tracking information or initiate a refund process.
• Voice Assistants: Voice recognition technology allows customers to interact with automated systems using natural language. These systems can handle various tasks, such as answering questions, providing account information, or guiding customers through troubleshooting steps.

Companies across the globe have successfully implemented AI and automation in their customer service operations, achieving remarkable results. Here are some of our favourites, from household names:

• Amazon: The e-commerce giant uses AI-powered chatbots to handle routine customer inquiries, such as order status checks and returns. This automation frees up human agents to focus on more complex issues.
• Bank of America: The bank’s virtual assistant, Erica, helps customers manage their accounts, pay bills, and answer common questions. Erica uses machine learning to improve its responses over time, providing a seamless customer experience.
• Domino’s Pizza: The pizza chain has implemented an AI-powered ordering system that allows customers to place orders through various channels, including voice assistants, chatbots, and social media. This automation streamlines the ordering process and ensures accurate order fulfillment.

While the benefits of automation and AI in customer service are clear, there are challenges to consider:

• Data Privacy and Security: Handling customer data responsibly is crucial. Businesses must ensure that automated systems comply with data protection regulations and safeguard customer information.
• Maintaining a Human Touch: While automation can handle routine queries, it’s essential to maintain a human touch for complex or sensitive issues. Customers should always have the option to speak with a human agent if needed.
• Training and Maintenance: AI systems require ongoing training and maintenance to remain effective. Businesses must invest in regular updates and improvements to keep their automation solutions current and efficient.
• Customer Acceptance: Not all customers are comfortable interacting with automated systems. Companies should provide clear communication and options for customers who prefer human interaction.

These risks aren’t small – in fact, they can be pretty serious. But I don’t think that means businesses should be avoiding AI. I think there’s a significant opportunity cost in the choice to use (or avoid) AI, and every contact centre needs to be thinking hard about how they’re leveraging automation as we move into peak season this year.

Thanks for reading,

Ryan.