Nowadays, companies are facing an ever-escalating demand for speed, efficiency, and personalized customer support12. The traditional support systems often fail to provide a satisfactory solution to such queries, resulting in customer frustration and, eventually, churn3. Thankfully, AI-powered customer support tools are stepping in to fill the void, turning the scenario on its head45. Businesses can now leverage the power of artificial intelligence to improve efficiency and customer satisfaction, which ultimately serves the companies in realizing their growth26.

In recent years, businesses have dramatically started to use AI for customer support. The amount of customer inquiries is increasing every day, as well as the need for a hassle-free, enjoyable customer experience. The global AI in the customer service market is predicted to skyrocket over the next years because of the need for 24/7 service, the reduction of operation costs, and an increase in service quality.123

In recent years, businesses have dramatically started to use AI for customer support. The amount of customer inquiries is increasing every day, as well as the need for a hassle-free, enjoyable customer experience. The global AI in the customer service market is predicted to skyrocket over the next years because of the need for 24/7 service, the reduction of operation costs, and an increase in service quality12.

Key AI Tools Transforming Customer Support
Here's a snapshot of some of the most popular AI-powered customer support helpers at present:

1. Chatbots
   The most well-known AI support tool is probably the chatbot, an automated conversational system that can handle thousands of inquiries at once and can provide round-the-clock information. Powered by natural language processing (NLP), chatbots are able to interpret human inquiries and rapidly provide answers or direct the issue to a human agent if necessary3. Chatbots can also learn responses from different interactions, gradually enhancing their responses over time. These can be programmed to handle common questions, with human agents there only to address the more intricate issues, thus improving efficiency and reducing response times that, in turn, lead to better satisfaction1.

2. Virtual Assistants
   Such virtual assistants take customer interaction several steps further than the simple chatbots described above. In addition to being capable of a limited conversation, they can help customers manage their interactions with the company through many products and services. For example, virtual assistants can be embedded within a company's website and mobile app to assist customers during a longer, multi-stage purchase journey where they might select multiple products and encounter technical problems4. A virtual assistant, for example, might be able to suggest products, answer questions about features, or offer a discount or promotion to a consumer browsing an e-commerce site. Virtual assistants can improve the experience of customers, and guide them in their buying decisions. This can lead to increased sales, maximal conversion ratios, and more5.

3. Sentiment Analysis
   A great support agent needs to understand how customers feel about their product. But what if you could see into your customers' minds? Sentiment-analysis tools apply AI to customer interactions – whether through chat, email, or social media – to derive what the customer is feeling6. If a business can assess sentiment successfully, then it can find its unhappy customers, and it can deal with them before they become vocal. This approach empowers companies to improve their service quality. Let's say there is a very frustrated customer on the phone, the system could classify the interaction as above a certain threshold and flag it for immediate human follow-up by one of the agents (which should be done immediately)7.

4. AI-Driven Ticketing Systems
   Automated ticketing systems provide a smart way to manage customer service queries For example, AI systems for ticketing inquiries can automatically categorize support requests by their level of urgency, the customer's history with the system or organization, and the nature of the issue, thereby enabling automated sorting and prioritization of tickets to fix the highest-priority issues first1. In addition, these systems might show the agents what information and context could be relevant to answer each question, so that they can do so more quickly and efficiently2.

5. Knowledge Management Systems
   By using AI-driven knowledge management systems to collate and distribute information to both customers and agents alike, you can build an accumulation of content that customers can potentially use to solve their problems – from frequently asked questions to troubleshooting guides and instructional videos – all housed in an internal knowledge base4. Customers can tap into this self-service knowledge to better understand how to use the product and to resolve common or superficial problems on their own, without the need to get in touch with support staff. It isn't just about making customers happier: it also allows the support team to handle more complex queries by freeing them from lots of simple ones3.

6. Analytics and Reporting Tools
   Data is the lifeblood of superior customer support. By utilizing AI analytics tools, businesses can glean deep insights from customers' browsing habits, spending patterns, and other behavioral data points across channels. AI-powered decision-making can then leverage that data to help support staff refine their processes5. For instance, if analytics show that many customers are having difficulties with a particular feature, the firm can take steps to revise the user experience, provide training materials, or change their support offerings in that area7.

Here, the elevated empathy plausibly matters: for example, customers will feel they are being served personally and with attention to their individual needs, because AI tools analyze the relevant customer data (e.g., prior purchases, patterns of browsing, customer voice) and can then personalize experiences and responses to match individual customer profiles12. For example, a customer who has purchased similar products before may be offered targeted recommendations, or a call center employee may be briefed on the customer's history so that he doesn't have to explain it, leading to more meaningful and efficient customer service34. This kind of personalization is both good for customer satisfaction and for building loyalty, as they feel that they are understood56.

Nevertheless, there remains a vital role for human agents in customer support, even as advances in AI technology improve the ability of computers to handle routine inquiries and run various data analytics.12 At the same time, customers can readily identify occasions when they need the empathy, creativity, and critical thinking that humans offer in contrast to the inflexibility and often bizarre responses of machines.34 The optimal system is a hybrid approach in which AI helps human agents by providing them with data and insights to empower them to do their jobs but also allows agents to take over when empathy and personalization are required to ensure the best possible customer experience.56

Companies have to be aware of the obstacles that come with using AI-powered customer support. Firstly, the implementation of AI technologies requires companies to invest in technology and training of employees1. Aside from this, companies have to keep their AI tools updated to improve with use and training so that they can serve customer needs and preferences that change over time2. There are privacy concerns, as well. Companies need to make sure that they use customer information appropriately, abide by the rules, and retain clients' confidence3.

We also see several trends in customer support arising as AI continues to develop:

• Voice-activated customer support: the increasing use of voice-activated AI assistants will make customer support even more natural by automating text-based tasks on behalf of human employees on both sides of the interaction.12

• Predictive analytics: AI will use predictive analytics more and more to anticipate user needs and provide proactive support functions so that issues can be fixed before they even arise.34

• Omnichannel Support: Customers will seamlessly move between different channels and devices, while also keeping context in conversations with you, thanks to AI tools.56

• Continuous learning: the more data these systems are exposed to, the better they get at adapting to new problems. Therefore, they can become increasingly sophisticated at providing ever-improving support solutions.78

Through support tools powered by artificial intelligence, businesses are now able to amaze their customers, improve operational efficiency, enhance human experiences, and, most importantly, deliver extraordinary customer service, anytime, anywhere, and on any channel.12 Also, as more organizations adopt AI in the future, we can only expect to see more creative and effective customer service solutions that ultimately set new standards in service delivery.3 With an AI presence that helps rather than hinders, businesses can strike a balance and provide support that meets the needs of a changing world – where customers interact with AI but still receive the human touch they deserve.45