How Artificial Intelligence Is Transforming Customer Service

Without a doubt, artificial intelligence has already made an impact in many industries, including customer service. With more and more businesses installing chatbots on their websites and automating their data analysis among other things, AI solutions are definitely becoming an integral part of customer service today.

Hence, here’s how artificial intelligence is transforming customer service.


Chatbots Have Been Around for Ages

By this point, chatbots have been around for ages, so it’s no wonder that so many businesses are using them at the moment. Moreover, some crucial changes happened in recent years that made chatbots a priority for many companies that want to deliver high-quality customer service:

  • The rise of social media led to many consumers preferring messengers for communication above all else. This is especially true for the younger demographic, but even older buyers are using such apps to stay in touch.

  • Chatbots were actively backed by major tech companies, including Microsoft and Facebook. This meant that chatbots were more actively adopted than they would have been without such support.

  • It is becoming much cheaper to maintain chatbots. Not only are they a relatively low-cost means for providing customer service, but they are also becoming easier and cheaper to maintain thanks to the latest developments in the field.

According to Drift, 87.2% of consumers have either neutral or positive experiences with chatbots.

This disproves the common myth that chatbots are inefficient and leave customers frustrated. Luckily, businesses can be certain that having a chatbot will be better than not having one considering the percentage of satisfied customers.

Businesses Get More Insight from Data Analysis

Another benefit of using AI in customer service is that it allows businesses to get more insight from data analysis. Handling big data is possible thanks to AI-powered solutions that can process large amounts of data in no time.

But the use of AI in data analysis extends beyond that. Of course, there is the automation aspect that makes data collection, storage, and management easier. In addition to that, AI solutions are able to predict customer behavior more accurately and give businesses more insight into their target audience.


Angela Norton, an expert in AI and writer at the custom writing reviews site Best Writers Online, explains:

The importance of AI for data analysis is undeniable. Thanks to AI, companies are able to take into account a very wide variety of factors when trying to predict customer behavior. There’s more nuance to the results you get. This allows brands to deliver highly personalized experiences to their customers leaving them satisfied and happy to return for more. With so many brands hyper-focused on their customers, AI has become essential.

Customer Relationship Management Is Better

Customer relationship management is yet another aspect of customer service that AI has been influential on. Robotic process automation or RPA, for instance, has changed organizations from within and altered the way client connections are managed. CRM databases now store valuable customer information that is used by chatbots and other solutions to deliver personalized experiences to customers. In addition to RPA, there’s also natural language processing or NLP which allows chatbots to understand human dialects among other things.

Indeed, using CRM data with AI solutions is now more common than before precisely thanks to the benefits of this practice. By actively utilizing their CRM data and AI solutions, businesses can follow up on new leads, develop long-term relationships with customers, and so much more. It’s much easier to keep track of all the activities of every specific customer to create a profile for them and personalize their experiences with your brand. In other words, it’s almost like a magic solution for all companies focused on their customers.


Here are just some statistics to prove the power of CRM and the results it can bring when combined with AI solutions:

  • 74% of businesses consider converting leads into customers as their top priority. Obviously, using AI and CRM is crucial for this.

  • 74% of respondents also say that CRM solutions allow them to get better access to customer data which, in turn, helps them personalize customer service.

  • 65% of companies start using CRM solutions within the first 5 years after their launch which shows just how widespread the usage of CRM software currently is.

Companies Spend Less on Customer Service


As mentioned earlier, chatbots are a relatively low-cost solution for delivering customer service. Naturally, companies can now spend less on customer service thanks to the adoption of various AI solutions. Chatbots alone can help organizations cut operational costs by up to 30%. In most cases, however, the power of AI in customer service and its ability to reduce costs is indirect.

For example, AI is able to automate certain processes related to customer service. You can hire a professional writer from the writing services reviews site Writing Judge to create email templates for you to use for customer support. Then, by using different email marketing tools, these templates can be filled out and sent out automatically which reduces the time your customer service team spends on email marketing.

Similarly, AI helps companies analyze their customer data more effectively to make more accurate predictions about customer behavior. According to New Voice Media, American businesses are losing $75 billion every year due to poor customer service. With the help of AI’s data analysis and predictive powers, customer service can be improved and personalized so that businesses can avoid possible losses of such kind.

The personalization aspect is particularly important here. It helps businesses convert more leads into customers and keep these customers coming back for more. The more your customers are satisfied, the more they are likely to recommend your brand to others which means you could potentially gain even more customers through word-of-mouth. While these are indirect connections to AI usage, they still exist and help your business succeed.

AR and VR Improve Customer Experience

Last but not least, AR and VR are known to improve customer experience in a variety of ways. While AR and VR ads help companies to create more effective ad campaigns, these solutions can also be used to improve experiences while customers are on your website. From 3D virtual tours used by hotels to AR product viewing for different items, AR and VR can make digital customer experiences more nuanced and enjoyable.

When a customer is able to view the product as if in real life thanks to AR technologies, they likely won’t have as many questions about the said product as they would have if they had no way to experience it. In other words, this customer will be less likely to contact customer support to get their questions answered simply because they won’t have those questions after seeing the product virtually. This means there will be one less query for the customer support team to handle and the time and money saved from this can be used in other ways.

Final Thoughts

All in all, AI has already changed the way customer service is delivered to consumers – and it’s still changing this field. After all, businesses want to create ideal customer experiences and are constantly looking for new ways to do so. AI, of course, is one of the best tools for achieving this goal.


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Anna Medina


Anna likes writing from her university years. When she graduated from the Interpreters Department, she realized that translation was not so interesting, as writing was. Always she does her best in the posts and articles.

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