AI has moved far beyond science fiction and is becoming way more of a reality than any of us thought possible in our lifetimes. As it works to reshape industries and our economy, especially in the realm of customer service12. If you don't think you have had a conversation with a chatbot, yet, you probably haven't realized it and have at least once3. Chatbots are automated systems and are quickly becoming the go-to for companies looking to streamline their customer service and cut down their need for human resources45. The question is, will AI put an end to human customer service agents? Also, will chatbots be capable of providing the support that customers need?67

AI customer service is growing by leaps and bounds every day. Thanks to natural language processing (NLP) and machine learning algorithms, now it's possible for customers to receive help 24/7 via chatbots, voice-activated virtual assistants, and automated phone systems12. These AI systems are becoming more sophisticated and are even increasingly able to understand nuanced conversations and respond appropriately to everything from customer emotions to subtle cues13.

For example, SalesForce and Xfinity are already helping businesses automate up to 80% of customer support news, which can reduce wait times and help customers feel more supported and less frustrated45.

First and foremost, companies appear to be focused on cost efficiency. According to recent research by Juniper Research, chatbots may save up to $11 billion for businesses across multiple industries by 20251. Secondly, AI customer service systems are increasingly helping companies scale their customer service efforts, especially during the holidays and peak hours. This is especially important for smaller companies seeking to scale and better service their customers. This leads us to consistency and speed. Human representatives can be prone to error and have limitations that can lead to prolonged phone calls with customers and customers having to call back multiple times. The hope with AI is that wait times will be reduced, which will make customers happier and more likely to keep using their services2. And finally, data-driven personalization is expected to become stronger as time progresses. For example, virtual assistants are already able to look back at past conversations with customers, purchase histories, and other details that will make interactions more efficient and helpful. The goal here is for customers to feel valued while receiving the exact information they need3.

The benefits of AI chatbots and other technologies are clear, however, there are some warranted concerns that we all should be aware of. Is it possible that it will replace all human customer service representatives? Or, will humans and AI work in concert in ways that will make customer service much more pleasant for companies, customers, and customer service representatives alike? One of the largest worries surrounds job displacement. One of the most obvious concerns is that AI will completely take jobs away from humans in the customer service industry. According to a report via the World Economic Forum, AI could lead to 85 million jobs being lost by 2025. While time will tell on these statistics, industry experts are pointing to the fact that human workers cannot fully be replaced. AI can focus on basic requests, while humans can deal with the more nuanced discussions and requests with clients, especially where emotions like empathy and frustration are concerned.12

For example, say that an Xfinity customer has issues with their service and tries to troubleshoot. Things aren't working as they should, so then they try to contact the company for help. The chatbot doesn't work either, which leads the customer to frustration and a desire to connect with a human for help. Once the customer gets in touch with a human representative, they may be at their wits end. Thus, companies like Xfinity must find the best flow and reduce the degree of frustration a customer may experience before getting in touch with a real human.3 If companies look at the situation with an open mind, AI may even create new job opportunities and help customer service agents up their skill sets.4 This could include things like data analysis, service optimization, and more. Plus, AI could help create more flexible work environments, as customer service representatives can work from home while working to drive top-level customer service.5

As AI grows in power and popularity, there are several benefits and challenges that we should all be aware of. In this section, we'll dive into them all. The advantages include improved efficiency, cost savings, personalization, and scalability. AI is available 24/7, as there is no need for breaks. AI can significantly improve the speed and efficiency of customer service operations1. Secondly, there are inherent cost savings associated with it, including reduced labor costs and the ability for teams to work remotely. Also, AI allows for greater personalization as brands can fuse customer data and solutions2. Then, there is scalability. AI can handle massive volumes of customer support calls at once, which is important for companies large and small. This solves the problem of customers waiting for hours in phone support cues while providing help around the clock3. Where cons are concerned, at the top of the list is the loss of human touch. One of the biggest challenges with AI-driven customer service is the inability of the technology to connect deeply with human emotions4. While AI can process massive amounts of data, it fails to make the emotional connection that real customer service representatives can. Next are technical issues, which AI has been known to have as the technology has been in the process of evolving. This can include glitches, customer queries that are misunderstood, and false information which can lead to frustrated customers5. Finally, there are security concerns surrounding AI handling massive amounts of customer data, which may lead to data breaches and dangerous security issues if they aren't quickly managed6.

Looking ahead, AI will most likely continue to play a growing role in customer service. Experts point to the likelihood that AI and humans will collaborate very closely as organizations work to better their customer service experts.12 Additionally, AI will help to handle routine tasks that are time sucks. This allows human representatives to focus on complex issues and connect more deeply with the customers they serve.34 This hybrid approach will lead to more satisfying customer experiences while creating more job opportunities for workers who want to evolve their skill sets.56