Beetroot Tech Glossary
Glossary

Check out our explainers covering the latest software development, team management, information technology, and other tech-related terms and concepts.

What is AI in customer support?

AI in customer support is the implementation of AI technologies to streamline support tasks and enhance customer experience. The combination of NLP, machine learning, generative AI, and predictive analytics enables businesses to automate different aspects of real-time support and make it proactive. While customers can instantly find relevant answers to their concerns, companies can serve more customers, optimize human resources, and improve service quality.

The Role of AI in Customer Support

AI in sales and customer support changes how customers get help by providing faster, more personalized services. AI tools instantly handle inquiries by generating replies or routing tickets to the appropriate human support representative. They also complete customer journey mapping to predict what a specific person may need next. This way, AI-based solutions ensure a shift from reactive support focused on problem-solving to a proactive approach that anticipates user needs before they encounter obstacles. 

AI applications in customer support include chatbots, virtual assistants, AI-powered helpdesk software, sentiment analysis tools, intent-detection solutions, voice recognition systems, and knowledge-base automation. Companies can use each of these separately or build a system with comprehensive automation based on agentic AI solutions. A standard option is a hybrid support model, where autonomous systems operate alongside human support staff who remain in the loop to monitor outputs and step in when human intervention is needed.

FunctionAI RoleBusiness Outcome
Answering FAQsGenerates automated responses to simple questionsResponse time reduction and self-service capabilities
Ticket managementCategorizes and assigns incoming ticketsAutomatically categorized inquiries and smoother collaboration between teams
Agent empowermentRelies on customer data and history to generate relevant repliesIncreased productivity within support teams
Predictive supportIdentifies patterns and risks to prevent support inquiriesImproved customer experience; Reduced support cost

How AI in Customer Support Automation Works

The flow of AI automation in customer support varies across systems since each company has a unique approach to automating tasks. In some cases, a basic chatbot is enough, yet many opt for more comprehensive automation that includes advanced personalization, ticket routing, and continuous learning, like in the following workflow:

  1. Input recognition. The system recognises the request a customer has sent through chat, email, ticket, AI call center, or voice message.
  2. Understanding intent, sentiment, and context. The embedded NLP and ML models parse the input to clarify what the customer wants.
  3. Response generation. AI-driven personalization in customer support relies on recognized intent, sentiment, and context to provide standard answers based on rules, retrieve the necessary information from the knowledge base, or generate customized responses using generative AI services.
  4. Escalation to humans when needed. If the system detects that the customer's request requires human attention, it redirects it to an agent.
  5. Continuous learning from interaction data. The system tracks outcomes and related issues to learn from them and make more relevant decisions next time.

Key Benefits of AI in Customer Support

AI advancements in customer support help companies automate repetitive tasks and enable support agents to work more efficiently. According to the National Bureau of Economic Research (NBER), support agents who use AI tools become 14% more productive, with the most significant improvements among inexperienced workers. Below is a concise list of the benefits of AI in customer support systems.

BenefitDescriptionBusiness Impact
24/7 supportReplies anytimeInstant support services and higher customer satisfaction
Personalizing responsesRelies on customer data and history to generate relevant repliesFaster issue resolution and more loyal customers
Higher efficiencyAutomates routine and repetitive tasksReduced wait times and lower support costs
Emotional intelligenceRuns sentiment analysis to detect customer's moodMore thoughtful responses; Urgent case prioritization
ScalabilityHandle large volumes of requests simultaneouslyAbility to increase the customer base without growing the support team

Challenges & Solutions of AI in Customer Support

The success of AI in customer support systems depends on the fine balance between automation and human touch. It's also necessary to ensure the ultimate data privacy and manage the following challenges:

  • Data privacy and security → Implement data-handling policies for security and regulatory compliance.
  • Maintaining empathy → Combine automation with human oversight for sensitive or complicated cases.
  • Training data quality → Clean and prepare data before using it to train AI algorithms.
  • Integration complexity → Make sure AI tools are compatible with existing CRM and support platforms.
  • Ongoing tuning → Implement a continuous feedback loop and updates to keep the model accurate.

Practical Examples of AI in Customer Support Systems

The main AI use cases in customer support include virtual assistants, automated ticketing, and augmented support with AI-driven insights. Here are some more industry-specific examples showing how to implement AI:

  • Online stores use chatbots to provide omnichannel support across their websites and social media for outstanding customer service.
  • Banks use conversational AI systems to generate personalized responses to common requests or connect human agents when needed.
  • Healthcare providers rely on AI agents in customer support to gather initial patient data for more accurate triage and distribution.

Summing Up On AI-Powered Customer Support

The future of AI in customer support looks promising, with more companies adopting it to handle customer requests and streamline support teams' work. AI-powered software can answer common questions autonomously, handle ticket triage, predict user needs, and assist human agents with drafting replies. By integrating compliant AI support systems and training them on quality data, organizations automate many routine tasks and significantly improve customer service.

Unpack transformative technologies through content curated by Beetroot experts:

Let’s see how we can help!

Fill out the form to reach out and we’ll get back to you shortly with tailored solutions.