Understanding the role of AI in customer service
The journey of AI in customer support has been a remarkable one. From the first generation of keyword-based chatbots that under-delivered their promises, to the sophisticated LLM-powered AI agents of today that offer human-like conversations.
And it’s no shock that in the ever-evolving landscape of customer service, the infusion of AI technologies has become a game-changer. The ability of AI to streamline processes, improve efficiency and enhance customer experience has led to a surge in its adoption by businesses worldwide. Among the myriad applications of AI in customer support, two prominent contenders are Generative AI and Traditional Conversational AI. But where do these technologies differentiate?
In this blog post, we will delve into the nuances of these technologies, understand their unique features, explore real-world implementations, and ultimately determine their impact on customer satisfaction and operational efficiency.
Generative AI in customer service
Generative AI is an advanced branch of artificial intelligence that focuses on generating new, original content by learning patterns from prior training data. Unlike traditional AI models that rely on predefined rules, generative AI employs neural networks and machine learning algorithms to generate creative and contextually relevant responses.
In customer service, generative AI enables businesses to create dynamic and adaptive ΑΙ virtual agents. These AI agents can engage customers in natural, human-like conversations, adapting their responses based on the context of the interaction. Generative AI’s ability to generate novel content allows it to handle diverse customer queries, even those it hasn’t encountered before.
However, even though generative AI excels in answering informational questions, one key concern lies in its potential to produce inaccurate or inappropriate responses like ChatGPT. Moreover, generative AI struggles to reliably solve business-specific questions where the use of a third-party system is required, such as “where is my order” or “I made a deposit but I don’t see my money”.
Conversational AI in customer service
Conversational AI, on the other hand, is a broader concept encompassing various technologies such as natural language understanding (NLU), speech recognition, and sentiment analysis. Traditional Conversational AI uses Natural Language Understanding (NLU) models to understand a customer’s request and respond with a predefined set of answers. It centers around automating conversations that have been previously defined, enabling a seamless and human-like conversation between AI systems and customers.
In customer service, Conversational AI takes the form of interactive chatbots, voice assistants, and virtual agents. These AI-driven entities can comprehend user queries, interpret intent, and deliver relevant and accurate responses in real-time. Conversational AI not only resolves issues efficiently without hallucinations, but also fosters customer engagement through natural and effortless interactions.
However, despite its advancements, Conversational AI agents require a lot of training and configuration before deployment and can sometimes appear robotic and even struggle with context comprehension, leading to occasional misinterpretations and frustrating user experiences.
Customer Satisfaction: Which AI Type Performs Better?
The impact of AI on customer satisfaction is a critical aspect to consider. Generative AI’s ability to create engaging and personalized experiences fosters stronger connections between customers and brands. However, the occasional risk of providing erroneous responses can lead to customer dissatisfaction. On the other hand, Conversational AI’s efficiency in handling routine queries and delivering accurate answers contributes significantly to overall customer satisfaction, but its more rigid nature may lack the personal touch that Generative AI offers. Moveo’s no-code platform blends generative AI and conversational AI to create the ultimate solution for automating customer support.
Moveo.AI combines the best of both worlds: the predictability and interpretability of Traditional Conversational AI to automate business processes and the eloquence and flexibility of Generative AI to participate in natural conversations and answer business-specific questions.
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