How AI is Improving Customer Experience?

We are gradually moving towards a culture where most things have turned autonomous and there’s minimal human involvement. As technology advances, machines are getting smarter and adopting a very human-like approach. Thanks to Machine Learning and Artificial Intelligence, they have rapidly evolved and their programs or algorithms are constantly worked upon to provide more refined results.

The use of ML and AI can be witnessed in almost every sector today. Brands around the globe are leveraging artificial intelligence to know their customers better and improve customer experience. As per the stats collected by Semrush, around 40% of businesses say that customer experience is their top motivator behind using AI technology.

Also Read: Impact of AI on Software Testing

AI continues to be an essential tool for brands to enhance customer experience and plays a huge role in how businesses operate these days. While AI holds paramount importance and value in terms of saving time and costs, its role in making the customer experience better than ever has been extremely impactful.

Let’s look at the ways Artificial Intelligence is transforming customer experience and what it holds in the future.

1. Better Customer Insights

Unlike the traditional data analytics tool that would consume a lot of time to analyze customer data and their behavioral patterns, AI technology does that within a matter of seconds. It can sift through much larger and complex data and uncover many more business opportunities. On top of that, AI constantly tries to learn and improve from the data it analyzes, and thus helps brands to better understand customer behavior.

AI thrives on information- the more the better, which allows brands to present relevant content in front of the customers and improve their customer journey. AI collects and analyzes consumers’ social, behavioral, and past-purchases data that help companies gain useful insights. They can know about the interests of their users, their purchasing habits, and recommend the best actions accordingly based on how they interacted with your website/app previously. Ultimately, with AI, you can spend your time prioritizing these insights rather than spending that precious time analyzing customer data using the traditional analytics method.

2. Chatbots

Chatbots are probably the most used application of AI today. The use of chatbots or virtual assistants for communication or customer support has vastly increased in the last few years, and it is leaving its imprint in nearly every business sector, be it Retail, Healthcare, or Banking. Research says that by 2022, 80-90% of queries will be handled without human interaction, i.e., via chatbots.

What seems to be a time-consuming deal manually can be significantly reduced through automation. What makes Chatbots a must-have option is their ability to easily identify common issues, their patterns, and predict what’s causing trouble for a certain user. Although AI chatbots are still not seen as a complete replacement for humans, they make a great option to achieve high efficiency if supplemented with your current work. Automated replies or suggestions aren’t always helpful and aren’t what the customer wants or looking to get addressed. This is why a combination of AI and human interaction works best to deliver the most convenient and satisfying customer experience.

3. Personalization

Another way AI is improving customer experience is by providing them with personalized content. Our past and present activities tell the AI algorithms what we like and what we ‘may’ like. This has made our lives much easier. What we want to watch is often presented to us before we even search for it. For instance, based on your YouTube search history and what content you often watch, Youtube would recommend videos that match your taste. At times, you would see random videos on your feed, and even watch them, and enjoy them. This is all because the machine learning algorithms try to understand your taste and preferences, and based on that, display to you the content which you may like.

Not just for YouTube, this applies to every other app you use these days. Netflix would show you the next movies and tv shows that might be of your interest based on the type of genre you watched earlier. Spotify would recommend you songs based on what type of songs or music you usually listen to. Similarly, eCommerce apps personalize the content for you and display products that are related to your past purchases or would match your likings. AI technology has become way too smart. You talk about something over a call, on a message, or discuss with your friend on social media, the next day it would appear on your feed or on the apps you shop from.

4. AI boosts Productivity

AI boosts the efficiency and productivity of your organization. It simplifies tedious and daunting tasks and does its best to provide a remarkable customer experience. The time and effort you invest in repetitive tasks reduce significantly. For instance, it can start a conversation on its own with users (for example, chat popups that appear right after a user lands on a website), provide them with the information they require, and help them with the purchase process. Chatbots deal with most of the queries and only transfer very complex ones to the customer service team.

Unlike humans, Artificial Intelligence doesn’t get tired or need rest. It can work 24×7 with the same intensity, thus resulting in greater productivity. But again, humans have invented AI, AI hasn’t invented humans. Yes, it can ease things for businesses but saying it will replace humans won’t be right.

5. Fraud Detection

AI comes of great help in detecting fraud in banking, retail, and other industries. It runs data analysis and detects complex patterns in it and marks that activity as fraud, also alerting users about it. This is why companies are using AI and Machine Learning for fraud prevention more than ever.

The AI model is trained to sense the normalcy of bank transactions, loan applications, or information for opening a new account. The software then notifies or alerts about deviations different from the normal pattern.

Future of AI in Customer Experience

The AI market has grown substantially in recent years. More than 1,500 enterprises including Google, Microsoft, Amazon, and IBM have invested in developing next-generation AI apps for delivering higher customer experience, and many more companies are expected to join the list.

The global AI market value is expected to reach $190.61 billion by 2025. The technology will revolutionize the future of businesses and the customer experience in multiple ways, such as it will automate repetitive and manually time-consuming work, and encourage humans to focus on other important and creative things. It will make the business-customer interactions seamless and effortless.

Artificial Intelligence will also leave a crucial impact on connectivity networks. It will encourage analyzing patterns to troubleshoot any problem, seek important user information from different channels to quickly and effectively get an idea of what users want.

Also Read:

How Machine Learning has modernized Mobile App Development?

Can machine learning overcome human bias?