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Generative AI Revolutionizes Customer Service

Key Points

  • Customers now demand instant, seamless service across all channels, and even a single negative experience can drive them to competitors, making high‑quality support critical for brand loyalty and revenue.
  • Enterprises spend billions on fragmented contact‑center tools (IVR, chatbots, RPA, agent assist), which improve productivity but often fail to deliver a unified, friction‑free experience.
  • Generative AI and large language models can dramatically expand automation, handling complex text and speech tasks with speed and precision far beyond older technologies.
  • By leveraging generative AI in three key domains—self‑service virtual agents, real‑time agent assistance, and automated workflow orchestration—companies can create delightfully efficient customer journeys from discovery through retention.

Full Transcript

# Generative AI Revolutionizes Customer Service **Source:** [https://www.youtube.com/watch?v=_3-ZOKKo7II](https://www.youtube.com/watch?v=_3-ZOKKo7II) **Duration:** 00:11:17 ## Summary - Customers now demand instant, seamless service across all channels, and even a single negative experience can drive them to competitors, making high‑quality support critical for brand loyalty and revenue. - Enterprises spend billions on fragmented contact‑center tools (IVR, chatbots, RPA, agent assist), which improve productivity but often fail to deliver a unified, friction‑free experience. - Generative AI and large language models can dramatically expand automation, handling complex text and speech tasks with speed and precision far beyond older technologies. - By leveraging generative AI in three key domains—self‑service virtual agents, real‑time agent assistance, and automated workflow orchestration—companies can create delightfully efficient customer journeys from discovery through retention. ## Sections - [00:00:00](https://www.youtube.com/watch?v=_3-ZOKKo7II&t=0s) **AI‑Driven Delight in Customer Service** - Manish Goyal of IBM Consulting outlines how AI analytics and automation can boost contact‑center efficiency, turning rapid, satisfying interactions into lasting brand advocacy. - [00:03:10](https://www.youtube.com/watch?v=_3-ZOKKo7II&t=190s) **Generative AI Enhances Self-Service and Agent Support** - The speaker explains how generative AI improves automated chat flows and provides real‑time knowledge assistance to human contact‑center agents, boosting customer experience. - [00:06:15](https://www.youtube.com/watch?v=_3-ZOKKo7II&t=375s) **Generative AI Boosts Customer Service** - The speaker explains how generative AI can transcribe calls in real time, auto‑draft summaries for CRM integration, improve consistency, reduce costs, and dramatically increase agent productivity across omnichannel customer service. - [00:09:27](https://www.youtube.com/watch?v=_3-ZOKKo7II&t=567s) **AI-Driven Veteran Claims Acceleration** - The speaker explains how analytics, automation, and advanced AI have transformed VA claim processing, handling millions of documents weekly to drastically reduce wait times for veterans. ## Full Transcript
0:00- [Auto-Attendant] All of our representatives 0:02are currently busy. Please stay on the line 0:04and your call will be answered 0:05by the next available representative. 0:10Today's customer hates to wait for service. 0:13When I call up a brand or a service provider, 0:15I expect to get my questions answered quickly 0:18and to my satisfaction. 0:20In the world of customer service, 0:22the challenge is to stay a step ahead 0:23of customer expectations 0:25and ensure that every brand interaction 0:27is not just positive, but delightful for the customer. 0:47My name is Manish Goyal 0:48and I'm a Senior Partner in IBM Consulting, 0:50leading our AI analytics business globally. 0:53The goal of my team is to help our clients 0:55apply AI analytics and automation to create insights 0:58that drive better decisions. 1:00And one of the areas I spend a lot of time in 1:03is advising clients on how AI analytics can help deliver 1:08delightful customer experiences. 1:11This could be through self-service experiences 1:14or through aiding human agents 1:16with tools and insights so that they can deliver 1:18a great experience to the customer. 1:21Now, enterprises spend billions of dollars 1:24on customer service every year. 1:26Good customer service 1:27can turn one-time clients into long-term brand champions. 1:32And the lifetime value of an NPS promoter 1:34can be 10 times more than an NPS detractor. 1:38On the other hand, around 80% of consumers say 1:41they would rather do business with a competitor 1:43after more than one bad experience with a brand. 1:46The contact center, 1:47the hub of most customer service operations, 1:50has come a long way in the past couple of decades. 1:53Tools such as interactive voice response (IVR), 1:57agent assist, robotic process automation and chat bots 2:00have already made customer service agents more productive. 2:04However, at most enterprises, the use of these technologies 2:08is fragmented instead of seamless. 2:11At the same time, 2:12customer expectations continue to be more and more demanding 2:16these days, especially coming out of the pandemic. 2:20Customers expect seamless access and speedy resolution 2:23to their queries across digital and voice channels. 2:27This in turn puts pressure on businesses 2:30to deliver a frictionless customer experience 2:32at every stage, from discovery to purchase, 2:36through service and retention. 2:38Now with generative AI, 2:39this experience can be taken to the next level. 2:42Large language models have the power to significantly expand 2:45what can be automated, 2:47performing critical customer service tasks 2:49that are far beyond the capacities of earlier technologies. 2:53These models are trained on vast amounts of data 2:56and can recognize, classify, and create 2:59sophisticated text and speech with speed and precision. 3:03To see how 3:04generative AI can significantly improve customer service, 3:08let's look at three key areas. 3:10The first is self-service, 3:12wherein you give the tools to customers to serve themselves. 3:16Virtual agents or chatbots serve the purpose here. 3:19And over the years, they have become very good 3:22at being able to direct customers 3:24down a predetermined journey. 3:26To make these journeys, 3:28you first analyze what people are asking about, 3:31you understand their intent 3:32and then handcraft the dialogue flows 3:34to direct them down the right journeys. 3:38In the past, creating these flows took time, 3:41but now with generative AI, 3:43you can deliver much richer self-service experiences. 3:47These experiences are more natural and conversational. 3:50They're more resilient to variations and digressions, 3:53and the tooling to create these flows 3:56is also now being augmented with generative AI, 3:59so that the process area and domain area experts 4:02can describe the journeys in natural language 4:05and AI generates the necessary underlying flows. 4:09The second area, 4:10where generative AI can significantly improve 4:12customer experience is by augmenting the human agent, 4:15whether in the contact center or in the field. 4:19A lot of time is spent by agents in the contact center 4:22searching knowledge bases 4:24to resolve the queries for customers. 4:26Generative AI can dramatically improve the retrieval 4:29of this information from the knowledge bases 4:32and present it back to agents in a summarized way, 4:35to help resolve the customer query quickly. 4:38This cuts down the time that the customer is on hold, 4:40improving their experience, 4:42while also allowing the agent to handle more calls 4:44during their shift. 4:46Similarly, field service agents can be armed 4:49with generative AI based solutions 4:51that help them troubleshoot problems in the field 4:53faster and more accurately. 4:56Another good example 4:58is helping agents draft email responses automatically, 5:02based on the context or query, 5:04allowing them to review and edit 5:06before responding to the customer. 5:08AI augmented emails 5:09have shown to have a higher satisfaction score by customers. 5:13And the third area is in contact center operations. 5:16Let's say you have a call center of a thousand 5:19or maybe ten thousand agents. 5:21Gaining insights into what's happening 5:23across all the conversations 5:25taking place between agents and customers 5:27was difficult or expensive before. 5:30With generative AI, you can go through the transcripts 5:32of every call made and continuously gather insights 5:36on how and why agents are taking a long time 5:39to handle certain types of calls, 5:41or understanding granular classification of complaints 5:44on products or services. 5:47This insight that a application of generative AI provides 5:50can allow your operations leaders to find the root cause 5:53of a problem faster and resolve them, 5:56if in the servicing function, 5:57or alert the product or marketing teams, 6:00if they need to take remedial action. 6:02There's also a lot of time spent by agents, 6:04after each call with a customer, 6:06documenting a summary of their conversations 6:08and actions taken. 6:10During that after call work time, 6:12they're unavailable to attend a new call. 6:15Again, with generative AI, 6:17you can transcribe in real time 6:19the conversation that they're having 6:21and generate a draft of the summary 6:23that agents can then edit and feed back into the CRM system. 6:27Not only does this drive consistency 6:29in capturing details of each conversation with customers, 6:32but it also saves time and drives productivity 6:35for the agents. 6:41Today, as the cost of building these solution comes down 6:44with foundation models and the ROI becomes justifiable, 6:48there's a renewed focus 6:50on the ways generative AI can be used for customer service. 6:54And it's not difficult to imagine why! 6:56Customer service has always been complex. 6:58Just think of the last time you called in 7:00for customer service. 7:02Chances are you wanted to address a problem you were facing 7:05with a purchase or a product or a service you have; 7:09and if you have a problem, you are generally unhappy, 7:12which is why enabling service journeys that anticipate 7:15and deliver delightful omnichannel experiences, 7:19whether as a self-service function 7:21or a human assisted one is critical. 7:24Secondly, in some companies, there are a lot of employees 7:27who can influence the experience customers have 7:29with the brand or service. 7:31If you can augment their skills 7:33and drive productivity across this large population 7:36who front your brand, 7:37it'll be a huge win for your enterprise. 7:40And given the capabilities of AI 7:42and the rate at which it is evolving, 7:44you can expect significant gains in productivity 7:47with the right deployment. 7:49And there's more! 7:51As businesses focus on building omnichannel experiences 7:54for their customers, 7:55AI can power interactions or conversations 7:58irrespective of the channel customers come in from. 8:01Which means a customer request 8:02that originated in one channel 8:05can be completed in another channel, seamlessly. 8:09Combining traditional AI with generative AI 8:13enterprises can drive proactive outreach, 8:16helping avoid problems or help resolve them faster. 8:24If you were to look closely at how these companies achieve 8:27high levels of coordination amongst their channels, 8:30you will discover a five step approach driving the execution. 8:34The first step, as you kick off, is to have a clear idea 8:37of the experience you want to deliver. 8:40Next is to understand your customers well. 8:43What is the demographic, preferences, digital or voice? 8:47And now that you know your audience, you need to determine 8:51how you want to serve them, 8:52decide what channels you want to direct them to. 8:55And then, look at the best tools 8:57that can support those channels. 8:59So what is your platform? 9:00Do you go with the cloud-based contact center solution? 9:03Will it be on-premises for other reasons, or something else? 9:08Once you have your tool chain sorted, 9:10the final step is to design the journey end-to-end, 9:13so it delivers on the service strategy, 9:15the experience you had defined when you started. 9:18My favorite story, and it really warms my heart 9:21whenever I speak of this, 9:23is the work that we have been doing 9:24with the US Veterans Affairs since 2019. 9:27Before we came in, it used to take a really long time 9:30for veterans to get their benefits. 9:32We applied analytics and automation 9:34to help support faster claim creation 9:37and response to veterans. 9:40Just a few numbers: 3 million packets processed end-to-end, 9:44and these packets have lots of documents in them. 9:47280 different document types, 9:5024 distinct mail type processes, 9:54100% automation of all mail intake. 9:57We are processing 220,000 documents per week. 10:02We then took that process further, 10:05by applying sophisticated AI to analyze the medical records. 10:09We are now helping the claims adjudicator 10:11make decisions faster, 10:13so that the veterans who fought for our country 10:16get the help they need without the long wait. 10:19And since 2023, we have processed over 125,000 claims. 10:26We have been expecting AI to make a big difference 10:29for quite some time now. 10:30And I think the capabilities 10:32have finally caught up with the hype. 10:34What's more, the innovation rate has also accelerated 10:38dramatically, with a new announcement almost every week. 10:42It is becoming increasingly evident now 10:45that the faster you add the capabilities 10:47of generative AI to your organization, 10:49the sooner you can make use of the unlimited opportunities 10:53it opens up. 10:54Imagine the next time your customer runs into a problem 10:57and needs help: You'll have all the capabilities 11:00to turn a possibly adverse situation 11:03into a positive experience, without making them wait, 11:07and perhaps, even before they pick up the phone. 11:10So the question for enterprises 11:11looking to fold AI into their customer service 11:14is no longer, "Why?" But "When?"