ReadingA complete overview of AI in customer service

A complete overview of AI in customer service


Ever wondered why everyone's talking about artificial intelligence in customer service?

It is a big deal because it makes support faster, is available 24/7, saves money, provides personalized help, handles more customers, analyzes data, works on different platforms, and understands language better. Of course, there are challenges like getting teamwork right between humans and AI. The key is finding the right balance – letting AI handle tasks while humans add that personal touch.

But with so many options out there, how do you find the right customer service providers? It’s all about understanding how AI tackles industry challenges and improves customer experiences. Discover the future of customer service with us, where AI and human touch team up to make a difference.

How can AI improve customer service?

A study by MarketandMarkets predicts that the global AI in the customer service market will reach $1345.2 billion by 2030. This staggering growth reflects AI's capability to enhance customer service across various dimensions significantly. In fact, artificial intelligence can bring significant enhancement to customer service by providing faster response times, personalized interactions, and improved efficiency. Here’s how businesses can improve their customer service and grow globally.

By streamlining customer service workflows and routing

Companies use AI to analyze large volumes of data efficiently, enabling them to identify key patterns and behaviors, gain real-time insights, and make predictions. Using this powerful capability, businesses can transform their customer service workflows with ease.

This optimizes routing and ensures customers are connected to get the most appropriate support personnel. The best way to do this is by implementing AI and understanding customer requirements and preferences. AI-powered solutions can seamlessly direct inquiries to the right customer service team saving their time.

Let's take an example of a busy company getting customer questions, many of which are the same. They can use AI to:

  • Give answers to common questions.
  • Share details about their products.
  • Help solve usual problems.
  • Send customers to the right support staff for their specific issues.

To solve this, DevRev, an AI-powered platform that uses routing to ensure conversations or tickets to the appropriate team for efficient resolution. Assignments are assigned to the team members to handle each message by considering factors like workload and availability. Later customer escalation allows users to resolve urgent issues first, ensuring to pay special attention to specific tickets. This can help to improve customer satisfaction and reduce wait times.

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By automating repetitive tasks and empowering support teams

Using AI for automation helps companies by taking over simple tasks like answering initial questions, giving basic info, and dealing with common problems. This means the support team can spend more time on complicated issues that need a human touch and understanding.

For example, a company might use AI to handle tasks like:

  • Dealing with the same kind of support tickets.
  • Fast answers to frequently asked questions.
  • Updating records for new and existing customers.

This not only cuts down on mistakes but also makes things more efficient. Plus, it gives the support team instant access to helpful information like a customer's past interactions and details about products.

By providing personalized responses using Natural Language Processing (NLP)

Companies use AI, especially natural language processing (NLP), to understand and respond to human language. This tech helps determine what customers are asking and provides tailored relevant answers. This approach builds a stronger bond with customers and improves their experience.

For instance, AI can be used to:

  • Figure out how customers feel.
  • Learn what customers like.
  • Suggest things that customers might want.

Using NLP, companies can make customers happier and more loyal and improve their products and services based on what they learn from customer interactions.

By enabling real-time interactions and sentiment analysis

Using an AI tool is a great choice if you're looking to link your database with a customer relationship management system. It can analyze customer data as it comes in, helping you understand their feelings, likes, and actions.

This means you can offer timely help and fix problems before they grow. Plus, AI can look at customer feedback to spot upcoming trends and guide you in making your products and services better.

For eg, AI can be used to:

  • Provide live chat support
  • Answer questions in real-time
  • Resolve issues in real-time

By using AI-powered chatbots and knowledge-based articles

Integrating AI-powered chatbots and knowledge-based articles is a game-changer for customer service. This not only enhances the overall customer experience but also saves costs by automating routine tasks.

DevRev, a leading AI-powered CRM service, exemplifies this approach by providing technical assistance to developers and fostering an interactive learning environment.

Using tools like flexible content management and varied permissions, DevRev empowers developers to contribute, edit, and access content independently, aligning with their collaborative and innovative approach.

Consider DevRev AI-powered chatbots and KB articles to improve customer service and establish a foundation to deliver faster, more personalized solutions.

Book a demo to learn more.

By providing 24/7 customer support

Unlike human agents, AI systems can operate continuously. It can provide round-the-clock customer support without the constraints of human limitations. It can be helpful for customers who live in different time zones or have queries outside of business hours. This continuous availability ensures that customers get instant support whenever they need it.

AI-powered support also offers the advantage of scalability, allowing businesses to handle overflowing customer inquiries without compromising service quality or response times. This shows AI can be a valuable tool for businesses that want to provide their customers with the best possible service.

Types of AI tools for customer service to streamline your customer support

The time has come when AI tools in customer service have become a necessity for businesses of all sizes. It helps to automate tasks, offer 24/7 support, and provide the best customer service experience.

  • A survey conducted by Statista shows that the global chatbot market size is expected to reach $1.25 billion by 2025. Also, 67% of consumers worldwide today have started using chatbots for customer support.
  • According to CMSWire, 60% of CX leaders expect AI to bring a big, positive change to customer experience in the next two to five years.
  • Here’s the predictive analytics by Gartner that says 40% of customer service engagement will be handled by virtual assistants by 2030.

Chatbots to revolutionize customer responses

Chatbots have emerged as one of the most effective AI tools in customer service, functioning much like a digital customer service representative. They can be used to answer frequently asked questions, collect data from customers to give personalized service experiences, and route customers to appropriate support channels.

For instance, consider a SaaS company specializing in customer relationship management (CRM) software. The company uses a chatbot to interact with customers, providing answers to product-related queries, assisting in creating new projects, or adding new team members. The chatbot also offers troubleshooting steps for common issues, such as resetting passwords or recovering lost data, significantly reducing the resolution time.

A notable example in this domain is DevRev’s Turing bot, especially to handle user queries and ticket resolutions. It operates in two different modes, suggestion mode - to propose answers for user queries, and another auto-response mode - to automatically generate and check responses. These advanced features ensure that customer inquiries are not just answered accurately, but also on time, enhancing overall customer satisfaction.

Virtual assistants to enhance customer interaction and satisfaction

Virtual assistants are advanced AI tools that help to perform tasks better and engage in more complex customer interactions. Utilizing natural language processing (NLP), these tools understand and respond to user input in a way that feels human-like. They can also be used to provide customer support by answering questions, resolving issues, and providing recommendations.

Moreover, virtual assistants can be integrated with backend systems, ensuring quick access to relevant information and freeing up human agents to deal with customer service issues.

Know how a virtual customer service assistant works,

A virtual customer service assistant seamlessly handles customer inquiries and concerns across various channels, including phone calls, emails, and instant messaging. It effectively manages product-related issues, bridging the gap between businesses and their customers.

This intelligent assistant promptly addresses customer queries, ensuring a smooth and responsive customer experience. Its capabilities extend beyond issue resolution, as it proactively engages customers through newsletters, emails, and catalogs, fostering ongoing engagement and satisfaction.

For instance, in a sales scenario, a representative working on a deal is required to know the status of a lead. They can ask AssistBot (virtual assistant) for the lead status and AssistBot will give all the information they asked for. This will ultimately save time for customer service teams and allow them to focus on closing the deal.

Machine learning for smart insights

Machine learning is a type of AI that allows computers to learn without being explicitly programmed. Its capabilities are used in customer service to identify patterns in customer data, such as finding common customer issues and customer churn. Later, this data can be used to improve customer service by providing more targeted support and preventing customer churn.

83% of SaaS organizations are investing in machine learning for customer service.


According to Statista, the global spending by end-users in the SaaS industry is projected to reach $197 billion in 2023 and is predicted to increase by $232 billion in 2024.

For example, a company uses machine learning to analyze customer feedback. Machine learning algorithms can identify common customer complaints that the company's website is difficult to use. With this insight, the company can redesign its website to enhance usability, directly addressing the customers' pain points.

By using AI technology, companies can streamline their customer support and provide a better customer experience. Chatbots can provide 24/7 support, virtual assistants can handle routine tasks, and machine learning can help companies identify and resolve customer issues.

The benefits of using AI for customer service

Do you know what your customers need? They typically expect a quick response of 6-15 seconds for chat, 80% want emails answered within an hour, and 75% expect the same on evenings and weekends. Meeting these expectations is crucial for great customer service. Understand ways to use AI to transform customer service.

AI-powered productivity boost for customer service agents

AI streamlines work for agents with tools and automation, to make tasks simpler. Chatbots handle easy questions, automate repetitive work, and reduce the team’s load. This frees up support agents to focus on important tasks and complex issue resolution.

AI also understands how customers feel and what they want from interactions. This helps the bot to direct issues accurately to agents and prevents unnecessary escalations. When handing over to a human, the agent knows the customer's feelings, allowing them to handle the situation well.

Let’s consider DevRev, a OneCRM platform that offers AI-powered productivity tools that help to make customer jobs easier. Below are some automation tools that assist in tasks such as responding to customer interactions, connecting tickets, and resolving issues.

Proactive customer recommendations

AI in customer service goes beyond just addressing queries; it can actively suggest products or services based on a customer's history and preferences. By analyzing past interactions, history, and customer behavior, AI technology can help to provide personalized recommendations and enhance the overall customer experience along with increasing sales.

Choose an AI-driven platform like DevRev, which excels in offering proactive customer recommendations. It leverages advanced algorithms, identifies patterns in customer behavior, and recommends relevant products or services contributing to increased customer engagement.

Get 24/7 customer support service

Customers can use AI to enable round-the-clock customer support. It ensures that the assistance is available whenever a customer needs it. Chatbots powered by AI can handle routine customer queries, provide information, and initiate basic issue resolution even outside regular business hours by using Knowledge-based articles. This constant accessibility helps in customer retention and offers personalized experiences.

Here’s a demo of how customers can save time and get accurate answers to customer questions.

AI-powered customer support insights

AI technology excels in analyzing vast amounts of customer data to derive actionable insights. By understanding customer behavior, preferences, and pain points, businesses can make informed decisions to improve their products and services.

One such feature is the DevRev Support app which serves as a pivotal tool to bridge customers and development teams. With features like PLuG for chatbot assistance, Auto-routing for efficient conversation handling, and OneCRM linkage for traceability, it transforms support into a strategic interface. Support Insights further enhances the process by providing valuable data for trend analysis and continuous improvement.

Get intelligent workflow automation

In the traditional workflow, customers have to wait in a long queue to speak to an agent and then transfer to multiple departments before resolving any issues. And this can be a frustrating experience for customers.

This is where we need AI-powered intelligent workflow to eliminate the problems and route customers to the right place at the right time. AI can do this by analyzing customer data, such as the type of issue, the customer's language, and the customer's sentiment. This data can then be used to match the customer with an agent who has the expertise and skills to resolve their issue quickly and efficiently.

Benefits of AI-powered workflows

AI-powered workflows can provide several benefits for businesses, including:

  • Reduced customer wait times
  • Improved customer satisfaction
  • Increased agent efficiency
  • Reduced costs

This approach ensures quicker and more efficient support, eliminating unnecessary wait times for customers.

Multilingual AI support

Make communication easier with multilingual support using Conversational AI. This technology understands a customer's language and translates the conversation instantly, making support more convenient.

Enhancing the personalization of conversations is achieved by incorporating multilingual support automation software into your customer service solution. The AI gains access to valuable customer information, including location, device used, buying preferences, conversation history, and more. This holistic understanding enables the AI to provide tailored support, creating a more personalized and effective interaction.

For instance, consider a situation where a bot automatically detects the customer's language through factors like location and the chat window text. This advanced technology ensures a smooth and responsive multilingual support experience.

What are the challenges of AI in customer service?

Get your company ready for tomorrow with AI in customer service

Smart automation not only cuts costs but also improves customer service interactions. It's not just about customer service—it helps your entire company grow globally.

Start investing in teamwork between people and machines to build a future-ready setup for your company. Gear up for the digital future now and secure lasting competitive advantages through AI automation in customer service.

Frequently Asked Questions