Is Generative AI the Future of Customer Service?

Artificial intelligence (AI) was once the muse of science fiction — now, that fiction has become a reality. Organizations worldwide are emerging from all industries to uncover the potential of AI-powered technologies. Yet, while most people know of the AI-powered program ChatGPT by now, few understand the underlying AI capabilities that enable this program and others like it to work so effectively.

Behind the smoke-and-mirrors of ChatGPT is generative AI, a sub-class of artificial intelligence focused specifically on generating content. Generative AI solutions can be applied in many different ways within business settings, from assisting with blog writing to generating entire coding sequences for specific programs.

By the end of 2023, the global generative AI market is expected to grow to more than $13.6 billion, with current projections estimating the market will reach more than $42.6 billion in 2027.

Of the many exciting use cases for generative AI that exist today, one of the most compelling involves leveraging generative AI to enhance the quality and efficiency of customer support. With the right approach to generative AI, businesses can deepen their relationships with customers all while driving customer loyalty through exceptional customer experiences. Offering end-to-end expertise, Exadel can provide your business with expert AI and data management solutions that enable you to continuously innovate, improve, and grow.

What is Generative AI?

Generative AI is a subset of artificial intelligence that can automatically create unique pieces of content. The generative AI process involves algorithms that enable continuous learning from user input by the AI model. Unlike standard AI models, generative AI specifically relies on supervised learning and rule-based programming, meaning it can only be improved based on the information it is given access to.

In terms of content, generative AI can produce a variety of different results, including text, images, audio, video, code, and simulations. As a result, generative AI has an incredibly wide scope of capabilities that can accommodate everything from creative uses, like generating blogs or artwork, to more technical uses, such as generating code in specific programming languages.

Recently, McKinsey & Company published The State of AI in 2023: Generative AI’s Breakout Year, which included many key survey findings regarding generative AI. According to the survey report, one-third of respondents are already using generative AI in at least one business function, with 40% of respondents planning to increase AI investments due to advancements in generative AI technology.

The report further states:

Currently, the most prevalent use of generative AI is seen within the technology sector and in organizations operating in North America.

The Impact of Generative AI on Customer Service Systems

In any business setting, customer support is a critical function. Improving the customer experience with generative AI requires organizations to consider how to integrate the necessary technologies without undermining the roles of human employees.

Businesses should strive to implement generative AI models that do not aim to replace human employees but rather provide vital support to these employees that enhances the overall customer experience. For instance, one of the key benefits of generative AI for customer service is the ability to automate repetitive tasks, enabling support teams to spend more time resolving specific tasks for each individual customer.

Let’s take a look at three ways generative AI can impact customer support systems:

By implementing generative AI in customer support systems, your business can create more streamlined and intuitive customer experiences. Moreover, generative AI can play the vital role of a virtual assistant for customer support teams, boosting a team’s productivity and response times.

Generative AI for Customer Service & Support Roles?

One of the primary points of pushback regarding generative AI for customer service is how the technology impacts traditionally human-based jobs and roles. In the customer service and support segments especially, professionals are growing increasingly concerned about being replaced by AI solutions. It’s hard not to see where these professionals are coming from — after all, automation and reduction of manual tasks are two of the biggest benefits of all types of AI.

Generative AI is somewhat different than other AI models. While generative AI for customer service and support certainly streamlines traditionally manual roles, such as customer service, the need for human intervention is still enormously important. As previously stated, generative AI requires ongoing input from users to learn and improve. Some programs can learn from all user input depending on the privacy policies and agreements in place (such as ChatGPT), making it easier to improve the program over time.

However, for business use cases involving sensitive customer information, generative AI tools must often be more secure and private, requiring the business itself to handle the model’s training and learning.

From the perspective of a customer service professional, this can represent a shift in their day-to-day responsibilities and skill requirements. Companies leveraging generative AI for customer service and support would be smart to re-skill these workers rather than reducing their workforce to ensure they have the proper level of specialized talent to supervise generative AI models throughout the customer support process.

According to a recent Harvard Business Review report on generative AI:

“We believe that leading companies should neither attempt to automate human jobs out of existence nor cautiously wait on the sidelines until the well-documented shortcomings of generative AI are ironed out. Instead, in areas where the application of generative AI shows promise, companies should take a more strategic tack.”

This “strategic tack” involves breaking down jobs into smaller bundles of tasks and applying generative AI for customer service separately to each bundle. By doing so, a business can better identify which areas of business can benefit most from the technology versus which areas are less effective.

The report highlights customer service as a particularly good use case for this task breakdown process. Harvard Business Review states that generative AI can enrich rather than erase customer service jobs by facilitating collaboration between human representatives and generative AI models.

Which Industries Will Use Generative AI Influence the Most?

All industries involve customer support teams — but which is the most keen on generative AI?

In truth, customer service generative AI can be advantageous for businesses in any industry so long as the technology is properly implemented and managed. For many businesses, integrating generative AI into a digital infrastructure will require third-party support from technology providers specializing in the implementation, training, and maintenance of generative AI models.

Here is an overview of how generative AI can be used in today’s major global industries:

The Risks & Limitations of Generative AI for Customer Support

Like any new technology, generative AI is not without its risks and limitations.

For businesses considering implementing customer support generative AI, it is critically important to not only evaluate the risks of the technology but also begin strategizing on how to overcome specific limitations and risks. This is especially significant in customer support scenarios where generative AI models may come into direct contact with customers and customer data.

With this in mind, let’s take a closer look at the downsides of generative AI for customer service:

• Bias & Customer Trust: Since generative AI models learn from existing data, this can result in the unintentional replication of biases that may be present within the training data. Mitigating this risk requires businesses to diversify their datasets and enforce regular audits of generative AI outputs to identify any biases at play. Additionally, over-reliance on generative AI can degrade customer trust, making it highly important for businesses to balance AI-powered and human-based support to ensure a positive customer experience.
• Misinformation: Though powerful in its own right, customer service generative AI is also susceptible to misinformation. If given too much access to publically available information, such as news outlets and online media publications, generative AI may inadvertently contribute to the spread of misinformation. This further emphasizes the need for regular audits and monitoring of AI-generated output to ensure accuracy.
• Data Dependency & Training: Generative AI models for customer support require massive amounts of data to produce high-quality outputs. In domains or industries with limited data availability, the performance of generative AI models may suffer. This is a big part of why customer support is a good place to start with generative AI, as most businesses have access to a wider pool of customer data. Additionally, businesses need the right level of technical support to properly train generative AI models without driving up operational costs.

How Businesses Can Balance Generative AI & Human-Based Support

When discussing the evolving relationship between customer support and generative AI, the moral of the story is that businesses need to find the right balance between AI-powered and human-based support.

Integrating generative AI into a customer support system requires precise planning and execution. Starting on a micro-level by separating bundles of smaller tasks can be a smart way to assess the usefulness of generative AI in a specific business scenario.

Here are five additional steps your business can take to optimize the usage of generative AI for customer service:

Exadel Helps Build Meaningful Customer Experiences with AI

At Exadel, our team has the expertise and capabilities needed to position your business as a digital leader.

We center our AI implementations around your specific goals and aid you in identifying the areas of your business that can benefit the most from generative AI.

Get started with Exadel today to discover the power of AI for your business.