New legislation introduced here in the United States would revolutionize customer service. It requires for-profit businesses to publicly disclose when they use artificial intelligence (AI) to communicate with customers in every interaction. When customers demand it, as they surely will, these companies will be forced to hand off to human operators. This unusual step is just the latest example of how much organizations are turning to AI in customer service. Surprisingly, 94% of customers actually like interacting with AI agents when they can decide. As businesses invest heavily in AI technology, questions arise about the future of call centres and the human workforce within them.
Gartner predicts that by 2029, AI will independently solve 80% of frequently asked customer service questions. This future-telling has created a flurry of enthusiasm from businesses. Right now 85% of customer service execs are testing out AI chatbots. Despite the enthusiasm surrounding AI, only 20% of AI projects in customer service have fully met expectations thus far.
Independent logistics company Evri is doing its part, making the UK’s largest ever green fleet investment with a stunning £57 million. This funding will double its customer service capacity. Their chatbot handles queries like missing packages automatically, freeing up human customer service to tackle more complicated tasks. “Our data confirms the vast majority of people get the answers they need from our chat facility, first time, within seconds,” said Evri representatives. During the demo, they stressed that their smart chat feature uses location data to deliver the most useful answers.
As businesses such as Salesforce begin deploying AI into their customer service ecosystems, they boast significant savings. Salesforce claims it has been able to cut customer service costs by $100 million thanks to smart AI deployment. Joe Inzerillo, chief digital officer at Salesforce, reminds us that call centres are the perfect training ground for AI systems. As a community, you have an incredible archive of documentation. This tremendous resource will do wonders for the AI—especially as it gets ready to completely take over the first line of defense,” he said.
Yet the shift to AI-powered, AI-enabled or AR customer service is not without hurdles. Inzerillo noted that while AI can streamline processes, it risks oversimplifying complex customer interactions. “Where a human agent might say something like ‘sorry to hear that’, the bot opened a case. And he noted the tendency of bots to offer inaccurate or old information as a serious pitfall. The catch is that, as with all chatbots, the chatbot may hallucinate. It might not show you real-time information and it might even serve you wildly inaccurate responses,” he continued.
The discussion around AI in customer service goes beyond efficiency and cost. There’s a human element. Emily Potosky, a Gartner analyst, said there are times when users want to interact with people rather than in a digital environment. As one older woman told us, “There are times that I don’t want to interact online, I want to speak to an actual human being.” She pointed out that while AI can enhance service efficiency, it must be trained comprehensively to handle sensitive situations effectively. So let’s get to work and picture our future five years from now. Will AI really be able to process mortgage applications and have conversations about debt? Let’s see if the AI has become empathetic,” she said.
Despite the potential for AI to improve customer satisfaction rates, “We’ve seen customer satisfaction rates that are in excess of what people get with humans – then AI can unlock the next level of customer service,” Inzerillo said. There is a consensus that knowledge management remains crucial. As we have said many times, Potosky stressed that knowledge management is essential when deploying generative AI technology. She also said that “when you’re deploying generative AI, the knowledge management piece is crucial.”
The policy and equity implications of these changes reach well past the realm of technology. Tata Consultancy Services’ new CEO K Krithivasan recently underscored a major transition taking place in the industry. He added that AI might make call centers in Asia unnecessary, as companies automate tasks people used to do. This predicted shift raises fears of job loss across the sector.
Businesses today are facing an unprecedentedly dynamic landscape. They need to find the balance between the efficiency gains provided by AI and the benefits of a true human connection in customer service exchanges. The proposed legislation in the U.S. reflects this ongoing tension between technological advancement and maintaining a personal touch in customer care.