Top 5 AI in customer service for companies: Pros and cons

Customer service has become a battlefield where the stakes are high, and the competition is fierce. Businesses are constantly seeking innovative ways to gain an edge over their rivals and capture the hearts of their audience – and we might have the answer to give you a headstart.

Our Customer Service Trends 2024 report revealed that 68% of support teams believe that AI has directly influenced customer expectations, while an overwhelming 77% state that AI will accelerate the demand for quick responses.¹

It's clear that AI in customer service for companies is not just a passing trend; it's a game-changer that they can't afford to ignore. Join us as we explore how your business can leverage this technology to stay ahead of the curve.

What is AI in customer service for companies?

AI in customer service for companies refers to the use of artificial intelligence technologies to enhance and streamline support processes, including chatbots, natural language processing (NLP), machine learning (ML), and predictive analytics.

Companies that use AI for customer service can provide a more personalized, contextual, and efficient experience to their audience. For instance:

• Chatbots can handle simple inquiries and FAQs, freeing up human representatives to focus on more complex issues.

• NLP enables AI systems to understand and respond to customer queries in a more human-like manner.

• ML and predictive analytics help companies anticipate customer needs and offer proactive support.

Need to cover the basics before moving on? Don’t worry, we’ve got you. Check out our complete guide on artificial intelligence and customer experience.

Does AI help your company’s customer service?

Yes, it does. AI in customer service for companies helps them to offer 24/7 support for their audience in any channel, without sacrificing the quality or consistency of the experience. It also enables businesses to provide personalization at scale, save valuable time, and improve their decision-making process.

1. 24/7 support in any channel

AI-powered chatbots are a game-changer for companies aiming to offer round-the-clock omnichannel support, ensuring exceptional customer experiences. These bots can:

• Provide help at any hour, bridging the gap when businesses are closed

• Manage multiple customer interactions simultaneously

• Slash wait times

• Impress customers with swift resolutions

Take Nuuly, for example, a curated fashion destination for anyone who loves fashion and is exploring how to wear, buy, and sell it in ways that are gentler on the planet and their wallets.

Nuuly uses our resolution bot, kindly known as Fin, to handle incoming queries about logistical issues, like shipping delays. The bot quickly responds, provides self-help resources, and can escalate issues to the support team. This saves the team over 50 hours per month, allowing them to focus on complex tasks and improving retention.

2. Increased quality and consistency across support

Our previously mentioned report also showed that, of the teams that have already adopted AI in customer service, 35% have seen increased quality and consistency across support.¹

On one hand, AI follows predefined rules and workflows, ensuring that all interactions are handled consistently and according to company guidelines. On the other, AI systems can learn from each conversation, improving their responses over time and guaranteeing that they stay up-to-date with the latest information and best practices.

Read more: AI customer service software: key features and benefits.

3. Personalization at scale

A 2022 Deloitte study found that 69% of consumers said they’re more likely to purchase from a brand that personalizes experiences. The same research revealed that organizations that do so can experience almost 4x times more word-of-mouth recommendations and 2x more customer engagement.²

With AI in customer service for companies, it’s possible to analyze customer data, including purchase history, browsing searches, and demographics, to tailor support interactions to individual preferences and needs.

Furthermore, companies using generative AI for customer service can anticipate people’s needs and offer proactive support, such as suggesting products or services that might interest them based on their past behavior.

Are you excited to leverage artificial intelligence in your business? So find out how you can use AI for customer service to help teams and customers.

4. Time-saving processes

One of the biggest benefits for companies that use AI in customer service is saving time. In fact, our report revealed that of the teams that have already adopted it, most report that 11-30% of their support volume is currently being resolved by AI. And there’s more: 45% of support reps state they’re already saving (a lot!) of time.¹

When your employees are freed from repetitive questions that consume their time and mental energy, they can dedicate themselves to more stimulating activities that value capabilities that only humans have – building empathetic and lasting relationships with customers.

5. Improved decision-making

AI's knack for spotting trends in data can supercharge companies’ decision-making processes. By foreseeing customer needs or providing proactive assistance, businesses can enhance their offerings. With AI, businesses can also create tailored support flows, ensuring customers are swiftly directed to the right solutions.

If you're still on the fence about using AI to elevate your customer service, dive into this article: To AI or not to AI? The support leader’s dilemma.

Top 5 AI customer service software companies

Now that you know that companies using generative AI for customer service can save time, increase productivity, and provide contextual support for their audience, it’s time to get acquainted with the tools that make it all possible.

1. Intercom

Intercom is the only AI customer service solution you need. Designed as an all-in-one platform, it combines a chatbot, help desk, and proactive support tools — so you can keep costs low, support teams happy, and customers satisfied.

Trusted by +25,000 businesses, Intercom offers:

• A centralized inbox, where you can connect your teams, channels, tickets, and data into one single workspace.

• A state-of-the-art AI-powered chatbot that can instantly summarize conversations, personalize replies, and autofill ticket information.

• A comprehensive set of data & integrations to understand how to allocate resources fast and effectively.

Check out how Intercom’s pricing works.

2. Zendesk

Zendesk offers a customer support platform that aims to personalize customer experiences and drive loyalty and revenue. While it provides basic features, such as messaging, AI, and automation, it falls short of being exceptional due to its lack of innovative features and limited ability to provide proactive solutions.

It offers a central hub for customer interactions, including self-service options like a knowledge base and ticketing system. However, its capabilities for personalized responses and dynamic content generation are limited compared to more advanced platforms.

3. Ada

Ada's platform offers a customer service automation solution powered by AI. Although its goal is to streamline interactions and reduce effort, its capabilities are somewhat limited compared to more advanced solutions.

Ada claims to transform customer service agents into AI coaches, but it doesn’t seem to take into account the possible pains of friction between humans and technology. Instead of focusing on how they both can work together, the platform bets on making support reps more like machines.

While it has helped several businesses, it may not provide the level of automation and resolution rate increase that some companies are seeking.

4. Coveo

Coveo's platform offers an interesting solution for businesses looking to enhance customer and employee experiences through AI-powered insights. After 18+ years in the making, it may not offer the level of innovation or differentiation seen in other AI platforms.

Coveo's GenAI Solution is designed for enterprise-scale operations, which is not suitable for smaller companies or businesses with a reduced budget.

5. Aisera

Aisera offers a suite of AI-powered tools for enterprise operations. With solutions like AiseraGPT, AI Copilot, and AI Search, the platform’s goal is to improve agent productivity, enhance customer experience, and deliver personalized search results.

While Aisera's platform boasts advanced features such as Generative AI for IT and AIOps Observability, it may not offer the same level of customization and out-of-the-box functionality as other AI platforms.

Overall, Aisera is a decent option for businesses wanting to improve their IT operations and customer service, but it may require additional customization to meet specific needs.

What companies use AI for customer service? 2 featured cases

1. Grover, an tech subscription platform that left Zendesk behind

In the bustling city of Berlin, Grover faced a challenge: to enhance their customer experience and integrate seamlessly with their tech tools. They had been using Zendesk for support, but it wasn't meeting all their needs. That's when they discovered Intercom, a platform renowned for its user-friendly interface and conversational approach.

Impressed by Intercom's capabilities and its API's flexibility, Grover made the switch. With Intercom, they transformed their customer support and on-site marketing, creating memorable experiences at every touchpoint. Using Intercom's Inbox, bots, and automation features, they found the perfect balance between efficiency and personalization.

To further elevate their customer journeys, Grover customized several apps with Intercom, seamlessly integrating tools across their tech stack.

Results include:

• 30% of conversations automatically resolved by Resolution Bot

• 37k monthly conversations

• 70% reduction in first-response time

2. Otus, an educational technology looking for a flexible solution

Based in Chicago, Otus embarked on a quest to revolutionize its customer engagement. Despite using email, they felt confined by its limitations, especially in the absence of in-app communications. As their team expanded, they sought a versatile, omnichannel solution to reach customers seamlessly, enhance user experiences, and glean insightful reports for optimizing communications and driving business growth.

Their search led them to Intercom, initially adopted for live chat but soon expanded to power customer support, engagement, and acquisition. Intercom became the cornerstone of Otus's communications strategy, offering proactive and real-time messaging that elevated customer experiences to new heights.

Harnessing Intercom's AI-enhanced features, Otus achieved a remarkable 22.2% automation rate in resolving customer queries, all while maintaining an impressive 97% customer satisfaction score. They utilized Intercom for mass communications, ensuring customers were well-informed about product updates and educational resources.

With Intercom Messenger welcoming visitors to their website and seamlessly connecting them with the sales team, Otus was empowered to drive continuous business growth. Intercom became their beacon of success, guiding them towards a future where customer engagement knows no bounds.

Results include:

• 97% CSAT

• 22.2% of questions automatically resolved

• > 20k conversations managed yearly

Ready to leverage AI for customer service in your company?

If you want to seamlessly meet your customers where they are, with proactive messaging, real-time chat, and automation that streamlines your support process, we’ve got your back.

Break free from the limitations of traditional email and embrace a dynamic, omnichannel approach that delights your customers at every touchpoint.

Sign up for a free trial today and discover how Intercom can drive business growth, boost customer satisfaction, and optimize your communications.

Sources

1. Intercom. Customer Service Trends 2024. We surveyed over 2,000 global support professionals from a range of locations, roles, and company sizes to find out how customer service is changing across five main themes: customer expectations, AI trends, support teams, tech stacks, and metrics.

2. Deloitte. Embrace meaningful personalization to maximize growth.