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AI In Customer Service: How To Use The Power Of AI In Business

AI in customer service is changing how companies offer support to their consumers. Thanks to advanced technology, businesses can provide quick solutions to customer queries. In today’s highly competitive era, exceptional customer service is one of the important ways to stand head and shoulders above the competition. 

For a company, meeting customer demands is of utmost importance. However, the ever-evolving customer demands make it hard for businesses to streamline customer communications. That’s why many companies are switching to AI-powered customer service chatbots. 

In this AI guide, we reveal everything related to artificial intelligence tools and how AI helps businesses. 

What Is Artificial Intelligence In Business?

Servion Global Solution predicts that artificial intelligence will power around 95% of all consumer interactions by 2025, including online conversations and live telephones. Before we reveal the key benefits and examples of AI to improve customer experience, let us clear the basics. 

Artificial Intelligence is the smart solution powered and demonstrated by machines and computers. The primary aim of AI applications is to reduce human labor and speed up the process. 

Many companies are incorporating natural language processing (NLP) and machine learning (ML) to solve customer issues without involving humans. 

Key Benefits Of AI For Customer Support 

AI is revolutionizing customer experience by assisting companies with administrative tasks and answering customer questions. Below are a few main benefits of using AI in customer service. 

Lower Customer Handling Time 

Before artificial intelligence technology, businesses had a hard time handling customer queries. The only solution was to scale up the number of human agents to meet the demands of increased customer traffic. Companies can integrate AI bots to answer common queries and solve simple issues. 

Deliver Proactive Support 

As artificial intelligence is getting more advanced, the customer management team is using the tech to identify patterns in customer inquiries. With AI, you can provide proactive support whenever a customer faces an issue. 

Predict Future Trends 

Especially in the beauty and fashion industry, brands are implementing AI to predict future trends. Advanced technology also helps brands understand the style of fashion to attract customers. 

Reduce Unnecessary Expenses 

Many tech giants are using AI to reduce customer service costs by nearly 80%. When businesses provide an automated way or chatbot assistance to customers, they can eliminate endless waiting for customers and improve customer interactions. 

Product and Service Personalization

Back in 2017, eBay introduced an AI chatbot – ShopBot – to help shoppers save time and money. From deal hunting to product discovery, eBay chatbot can do everything for the customers. It acts like a virtual assistant, helping shoppers find relevant items without wasting their precious time. 

According to International Data Corporation, AI is expected to cross the $36.8 billion market by 2025. Leveraging the power of AI technology, customers can get immediate, self-service, and on-demand assistance. AI solutions offer personalized support via voice assistants like Siri or Alexa and live chats. 

Handle Large Datasets 

Many businesses often find it hard to manage large datasets. Using AI in customer service, business owners can handle large volumes of data and build a more efficient, productive, and cost-effective environment. 

Saves Time 

Artificial Intelligence systems can handle small tasks independently, helping in-house employees to focus on high-priority jobs. Integrating AI can free up employee time, helping them solve complex problems that require human intelligence. 

Many brands are focusing on adopting artificial intelligence tools to strengthen their brand reputation, boost sales, and revamp customer journeys. If you want to improve customer service or boost sales with AI, consider integrating advanced technology. You can even create a chatbot using ChatGPT API with a few simple steps or contact professionals. 

Examples Of AI In Customer Service 

In customer service, AI is generally associated with chatbots to offer diverse customer support. Here we have compiled a list of examples of AI in customer service. 


AI is changing the way businesses offer online customer support using chatbots. A chatbot is computer software that mimics human conversations over chats. It is available 24/7 to answer questions in real-time. When chatbots provide correct information for customer questions, it improves brand reputation.

Back in 2021, Walmart (a retail chain operator) acquired the design tool Botmock to help shoppers shop for products via chat and voice. Cheryl Ainoa, SVP of New Business & Emerging Tech at Walmart Global Tech, said that Botmock’s technology would help them create more ways to serve customers, speed time to market, and lower costs.

Self Service 

Another best example of artificial intelligence in customer service is self-service powered by AI. The latest technology helps customers solve problems, navigate the website, or complete purchases without human agents. Thus, it offers a sense of independence to buyers. 

Natural Language Processing 

NLP is one of the most valuable tools to streamline the customer experience. It can be deployed in emails, voice requests, chatbots, phone calls, and anywhere you want people to say or write something. It helps companies analyze data quickly, leading to fewer expenses and more savings. 

AI Training 

Not only do AI tools offer superior customer service, but it also enhances seamless collaboration between employees. Human account managers and other employees can benefit from ongoing AI training to further develop their skills. 

Machine Learning 

Machine Learning, or ML, has become an indispensable part of practically every corporate development. It’s an essential mechanism that helps in data analysis. Human agents can derive valuable insights from the stored data to predict common questions and offer satisfactory answers. 

Support teams are now using the latest technology to automate ticket creation, ticket tagging, etc. The combination of machine learning and natural-level processing can automate email replies and improve self-service. If you want to integrate the tool into your business, contact Inferenz artificial intelligence experts. 

Key Takeaways – Use AI To Improve Customer Service In 2023

AI in customer service is more than a buzzword with a wide range of use cases. From answering customer questions and queries to analyzing data, AI has diverse applications. Hence, there is no doubt that AI is here to stay in customer service. It’s a revolutionary, practical, and low initial investment solution for businesses. 

All in all, using artificial intelligence is becoming a gold standard for businesses, and it’s high time you should focus on adopting it. Whether you’re a healthcare brand wanting to adopt AI or a business owner, feel free to get in touch with Inferenz experts. Our experts will help you understand how to use AI in customer service to improve your brand reputation. 

Customer Service AI FAQs

How does AI improve customer service? 

Thanks to AI tools, time-consuming and challenging processes have become faster and more straightforward. In addition, AI can help customers with relevant products, answering all queries, etc., to improve their overall experience. 

How to use AI technology in business? 

Some common uses of AI are to reduce fraud risk, deliver personalized marketing schemes, and streamline shopping experiences. 

How can AI improve customer satisfaction? 

AI can analyze data to extract behavioral patterns. This, in turn, helps businesses create customer personas and help them with personalized recommendations, leading to improved customer satisfaction.