Customer service is detrimental to the success of any business. Not only does it guarantee long-term customer retention, but it also strengthens a company’s culture and public image. The rise of technology has resulted in numerous tools to enhance customer support operations—chatbots powered by artificial intelligence (AI) being one of them. In what follows, we break down the benefits of AI-powered chatbots, their potential downsides, and the industries that have embraced these solutions.
What are the benefits of AI-powered chatbots?
One of the greatest advantages of incorporating an AI-powered chatbot into a website, application, or social media chat is the possibility of providing 24/7 customer support. This is especially helpful when a company has customers located across the world and in different time zones from those of the agents at its headquarters. It also helps to deliver consistent assistance during peak activity periods or whenever agents are unable to take other calls and respond to chats.
Small or medium-sized companies looking to scale their operations without significantly increasing costs will find AI chatbots advantageous as well. It can help to handle a rising influx of customer queries any time of the day. With conversational AI, new customers can get answers to FAQs and clear their doubts as to what to buy. In turn, this will strengthen a brand’s value and perception without having to opt for the traditional customer service model, which includes staff salaries, training costs, and infrastructure.
In addition, AI chatbots might be the perfect solution for companies looking forward to improving workflows and enhancing productivity. Customer support can be a challenging field, and recent reports suggest that workers on the field are 74% more likely to experience burnout. Therefore, it isn’t uncommon for a human agent to lose motivation at repetitive questions or become frustrated while interacting with a particularly difficult customer. By contrast, AI can automate uninspiring tasks and patiently provide answers 24/7.
Are there any downsides to AI-powered chatbots?
While AI-powered chatbots might lack the emotional responses that make dealing with difficult situations tougher, this might not be always beneficial for the customer. Not long ago, the results of a survey by NewVoiceMedia revealed that 75% of customers preferred interacting with a live agent instead of using self-service (12%) or a chatbot (13%). Sometimes, a customer might not be able to find the answer to a question because they didn’t enter the right command, which can lead to frustration and dissatisfaction with a brand.
Despite the development of this type of technology, not all AI chatbots are good at identifying slang, abbreviations, idioms, non-literal language, and sarcasm. This can lead to misunderstandings and ineffective responses that can further frustrate the customer.
It has been reported that prompt answers from airline customer support agents on social media platforms like Twitter leads to satisfied clients. These users are more willing to recommend the company and spend more money on the company’s services in the future. This shows that certain customers wish to connect with brands in ways that AI is not yet able to understand.
And, while AI-powered chatbots might help provide answers to FAQs, they are less effective for businesses with complex services and operations. These sorts of businesses will require a more advanced AI chatbot, which can be expensive to get and install.
The industries leveraging the power of chatbots to grow their businesses
E-commerce businesses are increasingly adopting AI chatbots as part of their customer support operations. With the boom of technology and digitalization of most products, this industry has experienced astronomical growth in recent years with revenues projected to reach $7.39 trillion by 2025. Due to this massive growth, traditional means of customer support like phone calls, emails, and social media chats are not enough.
Companies in the travel industry such as hotels and airlines are also applying AI to support their customer base. A company like Turkish Airlines, for example, provides “Boti”, an AI chatbot that allows customers to search flight availability, promotions, and information about flight status among others. Whereas, in 2020, Hilton introduced a chatbot assistant in China that answers travel-related questions and provides information about checking and promotions.
The iGaming industry is yet another sector that has seen astronomical growth with the rise of the internet and mobile apps. Nowadays, it is possible to access online pokies for real money from a laptop, desktop, or smartphone anytime, anywhere. Therefore, online casinos have seen the need to acquire a 24/7 customer support solution. Not only does this help to resolve customers’ issues, but it also enhances a platform’s reputation.
To bottom line
AI chatbots are a technology on the rise that has many benefits for companies—from providing customer support 24-7 to reducing costs and much more. However, it does come with certain disadvantages that must be taken into consideration. E-commerce businesses, airlines, hotels, and iGaming platforms are some of the industries that have made AI work in their favour.
