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Impact of Artificial Intelligence on Call Center Services and BPO Services

Posted by Sunny Morgan
Impact of Artificial Intelligence on Call Center Services and BPO Services

Artificial Intelligence (AI) and Machine Learning (ML) are rapidly changing the way we live and work. AI refers to the development of computer systems that can perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and language translation.

  • Machine learning, on the other hand, is a subset of AI that allows systems to improve their performance on a particular task through experience. One of the most interesting applications of AI and ML is in the field of healthcare.
  • AI algorithms can analyze vast amounts of medical data to assist doctors in diagnosing diseases, personalizing treatment plans, and predicting patient outcomes. For example, AI-powered systems can analyze medical images to detect cancer at an early stage, saving countless lives.
  • Another exciting development in AI is the rise of conversational AI, also known as chatbots. These systems use natural language processing (NLP) to understand and respond to human language, enabling businesses to interact with customers more efficiently and effectively.
  • Moreover, AI and ML are transforming industries ranging from finance to retail to transportation. For instance, financial institutions use AI to analyze market trends, make predictions, and prevent fraud.

Retail companies use Artificial Intelligence and Machine Learning algorithms to improve the customer experience, recommend products, and streamline operations. AI and ML are shaping our future in many exciting and impactful ways. As technology continues to advance, the possibilities for these fields are endless and will continue to transform the world we live in.

Interesting Blog: How Evolution of Artificial Intelligence Has Influenced Cinematic World?

The Advent of AI Conversational Systems

The arrival of AI conversational systems, also known as chatbots, has revolutionized the way businesses interact with customers. These systems use natural language processing (NLP) to understand and respond to human language, enabling them to engage in conversations with users in a human-like manner. For a very long time, AI-powered chatbot systems were under heavy scrutiny by people but things have drastically changed recently.

Artificial Intelligence (AI) conversational systems have received positive reviews for several reasons, including:

Improved Customer Experience

AI conversational systems provide customers with instant, accurate, and personalized responses to their queries. This improves the overall customer experience and increases customer satisfaction. The fact that customers have slowly started accepting AI chatbots because they are preferring to get straightforward answers to their queries; AI chatbots are serving their purpose adequately with a large room for more prospects.

Increased Efficiency

AI conversational systems automate repetitive tasks and reduce response times, freeing up human agents to handle more complex inquiries. This increases overall efficiency and reduces operational costs. Companies are striving to optimize their operational efficiency so the new business trend comprises automating the non-creative business operations and using the existing human and technological resources to bring innovation.

Natural Language Processing

AI conversational systems are equipped with natural language processing (NLP) capabilities, allowing them to understand and respond to human-like queries. This enhances the overall user experience and makes communication more intuitive. NLP plays a crucial role in perfecting the human-bot conversation to the level of human-human conversation. The feature is being perfected every day and the companies are making huge progress.

24/7 Availability

AI conversational systems are available 24/7, providing customers with access to information and support at any time. This improves customer engagement and reduces wait times for support. Probably one of the best features of having AI conversational chatbots is that they can entertain an infinite number of customer requests at a time. Therefore, there is no wait time, downtime, or shift time constraints involved.

Functionalities are Highly Scalable

AI conversational systems can handle large volumes of queries and interactions, making them ideal for high-traffic customer support environments. The majority of downtime is caused by high customer traffic and we can always predict the peak hours. During peak hours productivity and efficiency inevitably become lower, but having AI-powered chatbots is a boon for every company as it only needs slight bandwidth adjustments.

It only takes a few clicks and moments for AI conversational systems to get integrated with your business operational model, and the rest of the chores are handled self-reliably. AI conversational systems have received positive reviews for their ability to enhance the customer experience, increase efficiency, and provide round-the-clock support.

Overall: Chatbots are being deployed in various industries, including customer service, e-commerce, and healthcare, to provide quick and convenient assistance to customers, streamline operations, and improve the overall user experience. With the rapid advancement of AI technology, chatbots are becoming increasingly sophisticated and are expected to play an even more significant role in shaping the future of business and society.

The Impact of AI on Customer Service

AI can have a significant impact on customer service by automating repetitive tasks and providing faster resolution to customer inquiries. This can result in increased efficiency and customer satisfaction.

  • However, it is important to note that AI is not a replacement for human customer service representatives, as there are still many interactions that require human empathy and emotional intelligence.
  • AI systems must be properly designed and trained to avoid creating negative customer experiences. Undeniably, the AI systems have successfully optimized all the call center operations by streamlining and automating most of the tasks.
  • Additionally, the big tech giants have already speeded up the process of exploring the deepest features and applications of AI systems. Call center services have significantly upscaled their work efficiency and result using AI Technology.
  • India happens to be a hotspot for BPO industries. Companies from across the world reach out to Indian BPO companies for getting their business operations streamlined. Also, Indian companies have already started manifesting AI systems in their work models.

Our whole digital eco-space is moving rapidly towards a technological breakthrough and call center services are going to be the ones leveraging the maximum benefits of AI-powered systems. The tech-savvy billionaire Elon Musk has already openly accepted that he is heavily invested in AI technology and it is surely going to run the future. It would be a poor choice for any company that does not update itself with the ongoing AI advancements.

Future Aspects of Artificial Intelligence  

Artificial Intelligence (AI) has rapidly become one of the most impactful technological advancements in modern history. The potential for AI to shape and improve the world is almost limitless. It is already changing the way we live, the way we work, and interact with each other, and this trend is only set to continue in the future.

  • One of the most significant benefits of AI is its ability to automate repetitive and time-consuming tasks, freeing up humans to focus on more creative and strategic work. This can lead to increased productivity and efficiency, resulting in a more productive and prosperous society.
  • In addition, AI has the ability to analyze vast amounts of data and make predictions with a high degree of accuracy. This can be incredibly valuable in fields such as healthcare, finance, and marketing, where the ability to make informed decisions can mean the difference between success and failure.
  • Another benefit of AI is its potential to improve our quality of life. AI systems can assist with tasks such as household chores, transportation, and even healthcare. For example, AI-powered robots and smart home devices can automate household tasks such as cleaning, cooking, and organizing.
  • Additionally, self-driving cars and advanced healthcare technologies powered by AI can make our lives safer and more convenient. However, as with any new technology, there are also potential challenges and concerns that come with AI. For example, as AI continues to automate more tasks, there are concerns that it may lead to widespread job loss and economic inequality.

Additionally, there are valid concerns about the ethics and privacy implications of AI systems that have access to large amounts of personal data.

Despite these challenges, it is clear that AI will play a major role in shaping the future of the world. As technology continues to advance, AI will become even more integrated into our daily lives and will have an even greater impact on our world. It is important that we continue to critically evaluate and responsibly use AI in a way that benefits society as a whole.

Opinions on AI Technology from the Mouth of BPO Leaders

Business Process Outsourcing (BPO) leaders generally have positive opinions about the use of AI tools in their industry. Many BPO leaders believe that AI has the potential to greatly improve the efficiency and effectiveness of customer service operations.

  • By automating repetitive tasks and providing quick and accurate responses to customer inquiries, AI can help BPO companies provide better customer experiences and improve overall customer satisfaction.
  • Additionally, BPO leaders see AI as a tool for optimizing processes and reducing costs. By utilizing AI for tasks such as data analysis and prediction, BPO leaders can make informed decisions that drive process improvements and cost savings.
  • However, BPO leaders also acknowledge that AI is not a replacement for human customer service representatives and that there is still a need for empathy and emotional intelligence in many customer interactions.

As a result, BPO leaders view AI as complementary to human customer service representatives, rather than a replacement for them. Overall, BPO leaders see AI as a valuable tool for improving customer service operations and driving business growth. They believe that properly implemented AI systems can lead to increased efficiency, cost savings, and improved customer experiences.

Also Check: Cyber Warfare: The Disruptive Application of Artificial Intelligence

Ways Call Centers Leverage AI Tools

Initially, there was a small misconception that predictive call routing was just a technology that was only meant to direct calls to different departments. But it's actually more advanced. It uses AI to match call center customers with the customer service agents who are best suited to handle their issues, based on factors like personality, expertise, and customer behavior profiles.

  • This leads to a highly personalized customer experience, as the AI has a complete understanding of the customer journey and persona. To implement this AI, companies must define metrics such as agent personality traits, average ticket resolution time, and expertise in specific areas.
  • AI-powered predictive call routing is a technology that uses artificial intelligence algorithms to match call center customers with the customer service agents who are best equipped to handle their specific needs and issues.
  • This is achieved by analyzing customer behavior profiles, natural predispositions, communication habits, and call history to determine the customer's persona and match them with the most appropriate agent, based on factors such as personality, expertise, and communication style.

This results in a more efficient and personalized customer service experience, as tickets are resolved more quickly and effectively, freeing up time and resources for the call center. One sure way to ensure absolute customer satisfaction is by offering them the kind of assistance that relates most things to them. Customers are instantly satisfied as they are satisfied someone is there to assist them and holds the optimum expertise in the area of concern.

Optimizing Interactive Voice Response (IVR)

Interactive Voice Response (IVR) is a familiar form of AI that many of us have encountered while receiving customer service. It involves answering recorded questions such as preferred language, name, and account number.

  • While some may dislike this type of AI due to past experiences of repeating information, now things have been perfected to the extent that it is becoming difficult to identify any errors in the AI-generated responses. That is why the adoption of AI-powered chatbots is on the rise in all major IT companies worldwide.
  • A solution developed by Humana and IBM's Data and AI Expert Labs has enabled the life insurance company to redirect 60% of their monthly 1 million calls to AI. We can imagine how beneficial the decision would have been for the company.
  • The automated IVR system is efficient in handling routine, specific inquiries such as hours of operation, eligibility, copay, or bank statement information without the need for a human customer service representative. Therefore, allowing human agents to focus on more crucial and innovative tasks for improving the process further.

Since its implementation, the use of the AI-powered IVR has doubled and the cost of running it has decreased by two-thirds. Today, members who call in can complete their initial inquiry in less than two minutes, without the wait for a live agent.

Conversational AI Systems

Conversational AI, commonly referred to as AI chatbots, has become a prevalent form of customer service in today's digital age. With 85% of consumers worldwide expressing a desire to communicate with brands through messaging, up from 65% from the previous year, chatbots have become one of the most sought-after channels for customer service inquiries. We expect the adoption of conversational AI is going to be everywhere in the digital space.

These AI-powered chatbots provide customers with an easy-to-use online chat option, allowing them to quickly engage with website content and access self-service support in real-time, without the need for face-to-face interaction with a customer service representative. Sometimes, reaching out to a live agent requires them to wait for a longer time but AI chatbots are readily available and provide instant responses to customer queries.

This type of AI not only empowers customers to resolve issues at their convenience but also lightens the workload for organizations' service teams. One of the key benefits of chatbots is their ability to significantly reduce call volume, freeing up call center agents from answering repetitive, simple questions and enabling them to focus on more complex and pressing issues. Overall, AI chatbots are nothing less than a boon for customer support departments.

Emotional Intelligence

Emotional Intelligence AI is another form of AI used in call centers to track customer sentiment during phone calls. This AI is designed to recognize changes in a customer's tone and language patterns, such as a raised voice or a prolonged pause, which can indicate frustration. There are a lot of factors that indirectly say a lot of things about human emotions and we can feed that information into AI’s algorithms for capturing human emotions.

  • The AI is trained to operate in various languages and cultural contexts, making it suitable for use in countries with diverse linguistic and cultural backgrounds. It analyzes the tone of voice and language cadence to determine the caller's mood.
  • Taking into consideration factors such as the number of interruptions by the agent and the tone of voice used by both the customer and the support representative. The AI tools are capable of identifying and contemplating the different tonalities.
  • To be able to comprehend human emotions could be the final piece of the puzzle. Once AI reaches this level of comprehensiveness, the whole world is going to witness a breakthrough in technology. The call center services and BPO services are going to be the first ones to explore this segment of AI technology.

In real time, the AI provides live feedback to the agent through pop-up messages, giving them a deeper understanding of the customer's emotional state during the call. This allows the agent to adjust their approach accordingly and enhance the overall customer experience. Conventionally, having emotional intelligence was only privy to humans all this time, but using AI, machine learning, and NLP, we can train systems to gather this intelligence too.

Call Analytics

We all are aware of the famous quote, “Pre-emptive actions are the only actions we should take.” AI systems are capable of playing the hardest game of any business industry, and that is predictive analysis. If you as a business owner could foresee what the current business world entails in the future, you can equip yourself with the necessary resources that would give you the utmost advantage over your competitors in the future.

Artificial Intelligence (AI) plays a significant role in call centers, primarily in terms of offering comprehensive analytics on various aspects such as call duration, the speed at which the issue is resolved for the first time, and so on. AI systems are equipped with the capability to analyze patterns and have access to customer information, which allows them to understand if the customer has had a satisfactory or unsatisfactory experience.

The use of AI in this context provides more holistic analytics compared to human customer support managers. This is because AI can assess customer sentiment, tone, and personality, which are crucial factors in determining customer experience.

Insanely Insightful AI Recommendations

In addition to the AI that focuses on emotional intelligence, other AI technologies also provide recommendations to customer support representatives during call center interactions. These systems make use of sentiment analysis to comprehend the customer's objectives and then provide the most appropriate solutions to the support rep.

This results in shorter call times and a more personalized, positive customer experience for the customer. The technology has the ability to track how frequently a customer has called or mentioned the possibility of canceling their account, and based on this information, it assigns a customer risk score.

This score is made available to the agents, giving them valuable information during the phone call.

Read More: How AI Can Help in Managing the Outbreaks of Deadly Viruses?

Bottom Line

The answer to the question of whether AI can handle all customer calls in call centers is both yes and no.

  • On one hand, AI has the capability to automate some or all of the customer calls that are repetitive or straightforward. This enables customer support representatives to allocate more time and focus on handling more complex calls.
  • On the other hand, this automation can also lead to a reduction in the volume of calls received by live agents, potentially impacting the number of representatives required in a call center.
  • However, there will always be challenging situations that AI cannot handle effectively. The main objective of incorporating AI in call centers is to enhance the customer experience and alleviate human agents from handling routine requests.

As a result of the COVID-19 pandemic, digital shopping and excellent customer service have become the norm for consumers. Therefore, brands must adjust and further integrate AI into their call centers. AI can simplify routine tasks, provide comprehensive analysis, and enhance the performance of agents by enabling them to respond more quickly.

Also, AI can not only identify critical situations but resolve issues on the first call, and improve overall customer satisfaction through better tools and resources. By doing so, AI can support customer support reps in being more productive and engaging in meaningful and fulfilling conversations with customers.


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