Forbes Business Council, Newsweek Expert Forum and Rolling Stone Culture Council member Merilee Kern, MBA, is founder, executive editor and producer of “The Luxe List,” as well as host of both the “Savvy Living” lifestyle and travel and “Savvy Ventures” business TV shows. Connect with her at TheLuxeList.com, SavvyLiving.tv, at LuxeListReports on Facebook, Twitter and Instagram, and on LinkedIn at MerileeKern.

As the Artificial Intelligence (AI) age evolves, customer service methods are also progressing at exponential rates.

The era of wait times and generic responses from call center agents is going by the wayside. In today’s world, AI powered businesses tools are transforming the support process by providing tailored, efficient and scalable solutions that surpass bygone era methods.

This change in customer service methodology marks a new and exciting chapter in AI-driven support services that deliver exceptional operational assistance while also ensuring customer satisfaction.

“The evolution of customer service has transitioned from traditional call centers to digital platforms,” notes Angel Vossough, co-founder and CEO of BetterAI, a pioneering developer of innovative AI solutions for their own enterprise, like the VinoVoss AI Sommelier, and for other businesses.

“This shift in customer support is primarily driven by the integration of advanced AI-powered technologies that are upending and revolutionizing the support experience,” says Vossough, who details below how nextgen AI is offering personalized, efficient and scalable solutions that surpass conventional customer service approaches.

The Rise of AI in Customer Service

The journey of AI from theoretical concepts to practical applications in customer service has been remarkable. In recent years, the adoption of AI tools, such as chatbots and AI-driven analytics, has surged across the service sector. These technologies are now pivotal in handling customer interactions, providing quick responses and personalizing service delivery. AI applications in customer service range from automated response systems to sophisticated analytics predicting customer preferences and behaviors.

Real-World Applications of AI in Customer Service

One notable example of AI’s impact on customer service is the implementation of chatbots by companies like H&M. The fashion retailer’s chatbot, powered by AI, assists customers in finding products, checking stock availability, and even offering personalized style recommendations. This not only enhances the customer experience but also frees up human agents to focus on more complex inquiries.

The Role of Natural Language Processing (NLP) and Large Language Models (LLMs)

Natural Language Processing (NLP), a branch of AI, focuses on the interaction between computers and human language. In customer service, NLP is used to understand, interpret and respond to customer inquiries in a natural and human-like manner. This technology powers chatbots, virtual assistants and AI-driven support tools, enabling them to process and respond to text and voice queries.

The emergence of Large Language Models (LLMs), like GPT-4 or Mixtral, have taken NLP to the next level by generating human-like text based on vast amounts of data. These models can understand context, generate coherent and relevant responses, and even create content in multiple languages.

Applications of LLMs in customer service include contextual understanding, writing assistance and multilingual support, further enhancing the personalization and efficiency of the support experience.

Benefits of AI-Powered Customer Service

The adoption of AI in customer service brings several advantages:

• Increased Efficiency: AI tools automate routine tasks, reducing response times and allowing human agents to focus on complex issues.
• Enhanced Personalization: AI can tailor interactions based on customer data and previous interactions, leading to more personalized service.
• Scalability: AI solutions can handle large volumes of inquiries simultaneously, making it easier to scale customer service operations.
• Improved Accuracy: With advanced language processing capabilities, AI improves the precision of responses and reduces the risk of human error.
• Challenges and Ethical Considerations: While AI-powered customer service offers numerous benefits, there are challenges and ethical considerations to address.
• Data Privacy: Ensuring customer data is handled securely and in compliance with regulations is paramount.
• Bias in AI Algorithms: AI systems must be designed and trained to avoid perpetuating biases based on factors such as race, gender or age.
• Job Displacement: As AI automates certain tasks, companies must prioritize reskilling and upskilling their workforce to adapt to new roles.
• Maintaining a Human Touch: AI should be viewed as a complement to human agents, not a replacement. Striking the right balance between automation and human interaction is crucial.

Collaboration Between AI and Human Agents

While AI can significantly enhance the efficiency and effectiveness of customer service, it is essential to recognize the importance of collaboration between AI and human agents. AI should be viewed as a tool to augment human capabilities, not replace them. By leveraging the strengths of both AI and human agents, companies can deliver optimal customer service experiences that combine the speed and accuracy of AI with the compassion and problem-solving skills of human agents.

Future Directions for AI in Customer Service

The future of AI in customer service looks promising, with potential integrations of virtual and augmented reality to create more immersive support experiences. Leveraging big data, AI can offer even more personalized customer interactions, understanding needs and preferences on an unprecedented level.

“As a former Network Support Engineer at the Cisco Technical Assistance Center (TAC), I witnessed firsthand the dedication and expertise of the Cisco team in delivering exceptional customer support,” Vossough says. “During my tenure, the TAC team managed an extensive database of previous cases, but years ago, we lacked the direct applications of AI technology available today.” Vossough adds, “The possibility of developing a Large Language Model (LLM) trained on this vast historical dataset could have revolutionized how our support services operated. Such an AI system could have analyzed patterns, identified common issues, and proposed solutions with unprecedented speed and accuracy, significantly enhancing our efficiency and effectiveness. As the CEO of BetterAI, our focus is on AI-powered search and recommendation systems, and I am so excited to see how AI has the potential to help with this transformation.”

AI-powered customer service represents a leap forward from traditional support models. By enhancing efficiency, personalization and scalability, AI is setting a new standard for customer interactions. However, the true potential of AI lies in its ability to complement human capabilities, offering a hybrid model where technology and humanity converge to create unparalleled service experiences. The integration of AI in customer service is not just an option, but rather a necessity for businesses aiming to thrive in an increasingly digital world. C&IT