How Artificial Intelligence Is Transforming Customer Service


Artificial Intelligence has been making huge changes in almost every industry imaginable. No wonder AI has been transforming customer service as well. From chatbots to customer behavior analysis, AI has numerous advantages for any company that wants to improve its customer service. Hence, here’s everything you need to know about how AI is transforming customer service.

#1 Customer Behavior Analysis

First and foremost, AI is crucial for customer behavior analysis. AI-powered solutions make it easier for companies to process large amounts of data to fully understand their current target audience and eventually attract more clients of the same type.

Customer behavior analysis is not only useful for increasing sales (by guiding your customers’ actions to increase their purchase volume) but also for improving the way you provide customer support. For example, if many of your customers prefer social commerce and purchase your products through Instagram, then you will definitely need to offer customer support on that social media platform.

#2 Chatbots for Customer Support

Speaking of the way you offer customer support, chatbots are by far the most well-known example of how AI has been used in customer service. Chatbots are much cheaper to install and maintain long-term than many of their alternatives while also allowing companies to provide customer support round-the-clock without having to hire human employees for this.

Research shows that 87.2% of consumers have either neutral or positive experiences with chatbots. This means that chatbots mostly operate well even though there is still a lot of room for improvement. With the help of machine learning, chatbots will likely develop even more in the nearest future.

#3 Reduced Expenses and Better Budgeting

As mentioned above, one of the benefits of chatbots is that they are much cheaper to install and maintain. This means that you can easily reduce your customer support expenses and get better at budgeting.

For instance, instead of relying on a call center with a large team to manage all the incoming calls, you can install a chatbot on your website that will answer basic customer questions. This way, you can reduce the number of employees in your call center and the expenses involved in managing the incoming calls because some of the requests will now be managed by the chatbot on your website.

#4 Smarter Allocation of Resources

Once you reduce your customer service expenses with the help of AI, you can start using your budget for other departments at your company. Likewise, you can also start allocating resources in a smarter way.

You can further reduce your expenses with the help of outsourcing. For example, you can hire professional writers from the writing services review site All Top Reviews to create content for your digital marketing campaigns. Outsourcing is great for reducing expenses, but it can also be used to save time, so it’s a good idea for many startups and small businesses.

#5 Improved Customer Experiences and Interactions

In a more general sense, AI can be used in different ways to improve customer experiences and interactions with your brand. Here are just some examples to consider:

·         By analyzing customer behavior, you can make more accurate predictions about the actions of your customers and improve website navigation.

·         With the help of chatbots, you can manage basic customer requests quickly and answer queries at any time of the day.

·         Thanks to the insights you get from analyzing your customers, you can increase personalization and ensure that customers are satisfied with the way you treat every customer separately.

#6 More Nuanced Personalization

Speaking of personalization, AI is indeed essential for it. Nowadays, companies are hyper-focused on their customers which is why personalization is so important for brands both big and small. Luckily, it becomes much easier to integrate when you start using AI for your customer service.

Performing market research, analyzing and predicting customer behavior, using past interactions to improve current experiences – all of these are possible thanks to AI in customer service. AI can also be used on your website to make product suggestions based on previous customer purchases and browsing history. This further increases interactivity and personalization of all customer experiences.


#7 Easier Data Collection and Management

To be able to analyze customer behavior well, you first need to collect data about your customers. Fortunately, that’s where AI solutions can also be used. AI makes it easier to collect and manage data while also organizing, categorizing, and storing it long-term.

In addition to that, new solutions allow businesses to manage data more carefully by automating backups, scheduling old data deletion, and more. AI also allows businesses to work with big data (i.e. large amounts of data) which makes analysis more accurate and predictions more nuanced. All of this eventually improves customer service and support.

#8 More Accurate Customer Behavior Predictions

By collecting more data and managing it better, it is easier for businesses to make more accurate customer behavior predictions. Predicting what your customers’ actions will be plays a huge role in the number of sales you make but also in the satisfaction rate of your customers.

On the other hand, you can still make “manual” analysis and predictions. For example, you can hire an experienced writer in your field from the writing services site Trust My Paper. They can perform analysis online by collecting customer reviews posted on different websites or conduct a survey among your current customers. Then, predictions can be made by that expert writer manually based on their own expertise and past research. You can then get a report with all the details that will help you in decision-making.

#9 Simplified Daily Task Management

On a more practical level, AI is useful for simplifying daily task management. Many manual tasks performed by your customer support department can be automated which allows your team to focus on more important matters and, in turn, improve your customer service.

Simplifying task management is a benefit for all the departments at your company. Essentially, this means that everyone from your call center employees to your website developers to your product designers can become more efficient at what they do. In the long run, this will positively impact your overall customer service.

#10 Constant Improvement and Development

Last but not least, AI allows businesses to continue constantly improving their departments and developing their methods. AI and all the technologies related to it such as machine learning, AR, VR, etc. are helping businesses take their customer service to a completely new level.

In a way, AI is revolutionizing different industries and every aspect of business. That is why organizations are looking into the ways they can integrate AI into their processes and achieve even more advanced goals both in the short term and in the long run. 

A Final Word



To sum up, customer service will definitely be very different in a decade – it is already nothing what it was only five years ago. Indeed, AI is introducing new ways for companies to interact with customers while also allowing businesses to analyze their audience more accurately and make the right business moves. Keep in mind all the points in this article to start using AI to its fullest potential to improve your customer service.

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