10 Use Cases of Conversational AI for Transforming Customer Service in 2024

Exceptional customer service is the lifeblood of any successful business. However, delivering prompt, accurate and personalized support across channels poses an increasing challenge as customer expectations rise. This is where conversational artificial intelligence (AI) comes in. By automating repetitive tasks and enabling natural, frictionless interactions, conversational AI is transforming customer service.

According to Deloitte‘s 2022 Global Contact Center Survey, 75% of companies are planning investments in AI and automation. Conversational AI adoption is being fueled by its ability to drive efficiency, reduce costs, and boost customer satisfaction.

Conversational AI Investment

Image source: Deloitte Global Contact Center Survey 2022

In this post, we‘ll explore the top 10 use cases showing how conversational AI can elevate customer service operations and experiences.

How Does Conversational AI Work?

Before diving into specific applications, let‘s briefly recap how conversational AI works:

  • Speech recognition – Translates spoken language into text
  • Natural language processing – Analyzes text to extract meaning and intent
  • Natural language generation – Converts structured data into natural sounding text responses
  • Dialog management – Handles conversation flows and contexts
  • Orchestration – Integrates with backend systems and data sources

Conversational AI is commonly delivered through three main channels:

Voice Bots

Voice bots answer calls and interact conversationally using speech recognition and synthesis. They can authenticate users with voice biometrics and escalate calls to human agents when needed.

Chatbots

Text-based chatbots communicate with customers via messaging apps, websites and social platforms. They understand written questions and guide users to resolutions using NLP.

Smart Assistants

These advanced virtual agents combine voice and chat abilities to deliver seamless omnichannel customer support. They leverage dialog management to handle complex conversations.

Now let‘s explore 10 major use cases driving conversational AI adoption for customer service.

1. Accessibility Services

Conversational AI can make customer service more inclusive for people with disabilities. For example:

  • Text chat for hearing-impaired customers
  • Voice bots for visually impaired customers
  • Simplified language for cognitive disabilities

These capabilities create a more equitable and positive experience for diverse customers.

Key Benefits

  • Expands access to support for people with disabilities
  • Removes barriers to communication and service
  • Builds trust and loyalty with vulnerable customer groups

2. Account Management

Conversational AI is extremely effective for managing routine customer accounts tasks such as:

  • Account creation and onboarding
  • Password resets
  • Account updates and edits
  • Notifications and reminders
  • Account termination

It can authenticate customers securely before accessing accounts. The ability to handle high volumes of account transactions frees human agents to focus on relationship building and complex account issues.

Key Benefits

  • Automates repetitive manual account processes
  • Provides 24/7 self-service account access
  • Reduces call volume to human agents
  • Improves data quality and accuracy

3. Answering FAQs

One of the most common uses of conversational AI is for answering frequently asked customer questions. An AI-powered chatbot can be trained on existing knowledge bases and continuously learn to handle new FAQs. This significantly reduces repetitive inquiries handled by agents.

Key Benefits

  • Deflects common questions away from human agents
  • Provides consistent 24/7 support
  • Reduces average handle times (AHT)
  • Improves agent productivity and satisfaction

4. Authenticating Customers

Conversational AI adds a valuable layer of security by verifying customer identities. It can ask security questions or request account details to authenticate users before allowing access to personal data or transactions.

Key Benefits

  • Adds secure identity verification layer before access
  • Reduces fraud by validating legitimate users
  • Protects sensitive customer data and transactions

5. Booking & Reservation Assistance

Intelligent virtual agents can help customers book travel, accommodation, restaurants and events. Key capabilities include:

  • Recommending options based on customer needs
  • Checking availability and pricing
  • Guiding customers through booking steps
  • Providing reservation confirmations/details

Key Benefits

  • Automates and accelerates booking workflow
  • Provides personalized recommendations
  • Drives bookings across digital channels

6. Intent Detection

A critical application of conversational AI is understanding a customer‘s intent from their questions or requests. Accurate intent detection enables the agent to route customers to the right resolutions.

Key Benefits

  • Classifies unstructured customer input into actionable intents
  • Matches customers with correct solutions
  • Improves issue resolution rates
  • Reduces transfers between departments

7. Multilingual Support

Conversational AI can serve global audiences by interacting with customers in their preferred languages. This provides a more natural and effortless experience for non-English speakers.

Key Benefits

  • Expands customer reach into new global markets
  • Removes language barriers to great service
  • Reduces need for specialized language agents

8. Order Tracking & Updates

Conversational agents allow customers to easily get real-time order status and delivery updates. Key capabilities include:

  • Tracking order location and delivery ETA
  • Sending proactive shipping notifications
  • Answering order-related questions
  • Rescheduling deliveries

Key Benefits

  • Improves order transparency with 24/7 self-service
  • Reduces inbound calls to check order status
  • Increases customer satisfaction through proactive updates

9. Payment Management

Conversational AI assists with common payment tasks such as:

  • Setting up/changing payment methods
  • Managing billing details
  • Explaining charges and invoices
  • Handling payment disputes

This strengthens payment processes while optimizing human resources.

Key Benefits

  • Automates repetitive payment interactions
  • Quickly resolves payment issues
  • Frees agents to handle complex billing inquiries

10. Troubleshooting

Chatbots help customers diagnose and fix problems with products or services. By asking targeted questions, conversational AI can walk users through troubleshooting to quickly resolve issues.

Key Benefits

  • Provides 24/7 self-service troubleshooting
  • Guides customers to correct solutions
  • Escalates complex issues to live agents

Why Adopt Conversational AI for Customer Service?

Below are key reasons for organizations to invest in conversational AI:

  • Improved Customer Experience – Conversational AI delivers quick, personalized and effective resolutions, driving higher satisfaction.
  • Increased Efficiency – Automating high-volume repetitive tasks improves operational efficiency.
  • Lower Costs – Conversational AI reduces customer service costs by automating interactions.
  • 24/7 Availability – Intelligent virtual agents provide always-on support, improving resolution times.
  • Scalability – Agent capacity can be easily adjusted to fluctuating demand with conversational AI.
  • Consistency – Customers receive reliable, accurate responses from conversational agents.
  • Data Insights – Conversation analytics uncover trends to continuously improve customer service.

As the examples illustrate, conversational AI has diverse applications for elevating every facet of customer service. By adopting AI-powered voice bots, chatbots and smart assistants, companies can drive efficiency, reduce costs and strengthen engagement across the customer journey. Conversational AI solutions are reaching maturity, and leading organizations are already realizing significant ROI. The future possibilities for further optimizing customer service with AI are unlimited.

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