How to get AI in customer service right

Many organisations have invested heavily in digital channels to enable customer service, but this investment hasn’t always translated into a better customer experience. One recent survey found most customers remain unconvinced that self-service or automated customer support using AI-powered technology can match the experience provided by a live agent. More than 60 per cent say they are frustrated with self-service options that use AI.¹

What’s going wrong? One of the most common mistakes organisations make is focusing solely on operational efficiencies. They invest primarily to shift customers away from contact centres – often without considering the customer experience. The good news? A new wave of AI technologies offers a fresh opportunity to get this right. When designed and deployed effectively, the latest solutions enable organisations to meet customer demand in a way that is both automated and satisfying.

Here are our top recommendations for anyone looking to maximise value from AI in customer service.

Be clear on your target outcomes

Operational efficiency is a valid goal – and entry-level AI solutions can deliver quick financial wins. But to unlock AI’s full potential, start with a much broader lens, setting targets for customer experience and colleague engagement alongside commercial outcomes. Instead of just asking: “How much cost can we take out?”, also consider:

• “How can we use AI to improve customer experience and boost loyalty?”
• “How can we use AI to enhance the agent experience and reduce attrition?”

Recognise that data and knowledge are critical

Though challenging and time-consuming, getting data and knowledge sorted is key to unlocking AI’s full value. Without accurate, well-organised data and consistent, up-to-date knowledge, successfully deployment of AI at scale is almost impossible. The effort is worth it. Our work on a new data platform for one of the UK’s largest insurers shows how well-structured data drives meaningful customer insights and enables superior service.

Leverage the capabilities in your existing technology architecture 

Before investing in cutting-edge AI tools, check you are using AI features in your existing CCaaS platform fully. In a fast-moving market, the smartest organisations blend a solid core platform for service fundamentals with cutting-edge AI solutions like PolyAI and EdgeTier wherever these can provide a true competitive edge.

Be clear on your customer interaction model

How do customers prefer to engage with you – via app, online, chatbots, IVR or human agents? Just as importantly, how do you want to engage with them? Meeting customers in their preferred channel is key, but you should also be clear on your own strategic preferences. A well-defined customer interaction model is an important reference point to guide tech investments and cost decisions.

Don’t make assumptions about what your customers prefer. some customers prefer to speak to a human agent while others may value the efficiency of a digital or even automated interaction. Surprisingly, many customers prefer the latter.

Think about the impact on your contact centre workforce

Currently, AI can handle all simple customer queries. Within 2-3 years, it will manage all medium-complexity queries too – reducing contact centre workload by about 60 per cent. This doesn’t mean your organisation should be downsizing its contact centre workforce by 60 per cent. With human agents handling only complex issues, their roles will become more demanding. You’ll need to restructure the working day, building in more breaks to reduce stress, and balancing live customer interactions with internally focused tasks, such as creating knowledge articles. Where you do need to reduce your workforce, consider redeploying some contact centre agents into new roles such as CCaaS engineers, leveraging their customer experience alongside AI and improving the customer and agent experience

Think about your outsource partners – how can you leverage their capabilities and tech?

Specialist AI tools offer fantastic capabilities. Agent-matching technology, for example, pairs individual customers with the most suitable service agent, while AI-powered listening software provides live coaching for agents. To benefit from these tools, you may not need to invest in them directly.  It’s likely your outsourcing partner is already using cutting-edge solutions.

We’ve seen this in action with one of our clients. The organisation maintains its own core service platform but outsources contact centre services. With smart procurement, they’ve been able to leverage partners’ specialist AI-enabled tools (and ensure performance is measured by customer outcomes, not just by volume of calls handled.)

Build digital, tech and AI literacy into your teams at all levels

Training and skills development is an essential component of any programme to integrate AI into customer service. Employee engagement is key to maximising value. Our work with a global energy leader proves the point.

Less widely recognised is the need for leaders to build their digital, tech and AI literacy in order to lead the technology shift effectively. Being able to articulate a consistent vision – always from the customer’s perspective – is vital. So, instead of: “AI will help us reduce inbound calls”, choose: “AI will help customers get their queries answered faster.” Then, show how delivering what’s valuable for customers translates into value for the business.

Will you get AI in customer service right?

AI is transforming customer service but success depends on how it’s implemented. Focusing solely on cost reduction risks frustrating customers and overburdening agents. However, organisations that take a customer-first approach and integrate AI thoughtfully into their service model will unlock real, long-term value.

The future of AI in customer service isn’t just about automation – it’s about creating better experiences for customers and agents alike, with ongoing iteration based on customer and colleague feedback. If you are a contact centre leader, we recommend you take a brave step forward in this area, create an ambitious future of service strategy and be laser focused on its execution. Hire some digital and AI experts who can help build capability in your existing team and inspire your team by getting them involved and sharing the value in their terms. Organisations that get this right will set themselves apart in an increasingly AI-driven world and be able to shout about their success in the market.

Want to discover how Baringa can help you? Explore our Customer and Digital services

^{1. Beyond The Hype: What 1,000 U.S. Customers Really Think About AI, forbes.com, Aug 11 2024}