AI-powered chatbots are transforming how businesses connect with customers, offering a blend of personalization and efficiency. According to the Zendesk Customer Experience Trends Report, 2025, 86% of customer experience leaders believe that CX can be transformed over the next three years. This overall improves the customer experience. Customers can get a 24/7 connection or communication with the brand.
It provides customers with easy and quick information, and sometimes even guides them to the next stage of the customer journey. Reports suggest that 50% of queries go unresolved or require further escalation, and 52% of customers hang up on a support agent due to the long waiting time. It can respond to requests that use audio, text input, or a combination of both. It enhances accessibility. According to a study by Gartner, 38% of organizations will implement a chatbot in the next two years.
In this article, we’ll learn what AI is in customer service, the top 5 features of a customer service chatbot, and best practices for using it!
What is AI in customer service, and the Benefits of using Chatbots for customers?
AI in customer service allows the use of artificial intelligence in everyday customer support operations to streamline workflows, automate tasks, and provide personalized assistance. It also improves customer experience. The use of an AI-powered chatbot to give personalized responses is a prime example of the use of AI in customer service.
There are many benefits of using chatbots for customers, such as providing a 24/7 service to customers. The Global state of CX 2024 report reveals that 28% of customers who experience practitioners saw a positive impact on customer loyalty through their use of generative AI for CX. 39% witnessed a positive impact on company profits.
AI-powered chatbots automate tasks, which lowers the burden and helps in creating a personalised experience. At the same time, customers also receive a quick response. AI also reduces the scope of error and works seamlessly for multiple channels. It also helps in predicting customer behaviour and helps in scaling your business.
Top 5 features of a customer service chatbot
Here are the top 5 features of a customer service chatbot that you must know
- No-code chatbot: One big concern while using a chatbot is that responses can seem static. Opting for a no-code chatbot limits your training requirement. Also easy-to-use conversation builder allows for smooth conversation between customer and bot, so that it seems like a human interaction.
- Intent Detection: The Chatbot platform must let you test and identify customer intent and help you. Providing an appropriate response for that. Agents must be able to track the conversation.
- All Channels: Make sure your platform provides omnichannel customer service. This lets you reduce the customer wait time on high-volume channels such as live chat, etc.
- Store Context: Check if your chatbot provides real-time dashboards and reporting capabilities that identify a pattern in bot and customer interactions. Cross-channel transfer of valuable information about the customer and pain point helps in providing a contextual response for a better customer experience.
- Customize Bot: Use a chatbot that meets your brand’s tone and visual choices. Chatbots with interactive features such as buttons, carousels make the conversation more engaging.
How AI chatbots are redefining customer support
Let us discuss how AI chatbots are redefining customer support
- 24/7 availability: AI chatbots work continuously day and night. They resolve customers’ inquiries by answering FAQs or managing routine troubleshooting. It reduces human effort.
- Managing High-volume Enquiries: Every business has a peak inquiry period for which they plan and optimize their workflow schedule. But they can be moments of surprise and high-volume interaction for which you must be prepared. Chatbots handle large volumes of queries at once without increasing the waiting time of customers. For example, Commonwealth Bank of Australia has a generative AI chatbot, CommBank. Within its app to streamline the banking process, provide quick solutions, and enhance customer satisfaction.
- Personalized Support: These chatbots use customer data and tailor a personalised response. They guide users through product inquiries. Account management, etc. H&M’s chatbot improves the mobile shopping experience by providing personalized recommendations, price details, and an easy transactional process.
- Reduce Cost: Companies that use AI chatbots have witnessed a 35% reduction in support cost and a 20-30% increase in first-contact resolution rate.
- Integration: Customers expect a standardized service. An AI chatbot provides support across multiple touchpoints such as mobile apps, websites, messaging platforms, etc.
AI chatbots are evolving beyond simple automation and are becoming more intuitive, smart, and deeply embedded in customer interaction. AI chatbots are integrating voice, text, image, etc for more interactive and seamless communication. These chatbots are moving beyond simple query response to the ability to make and take decisions and perform complex tasks. They are becoming more specialized to handle special queries. Also, the upcoming chatbots will be able to detect the emotion behind the words used and give responses that are natural. Effective communication is essential for growing your business. Lumia 360 offers innovative digital solutions to grow your business. To know more about our services, email info@lumia360.com or call 514-668-5599.
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