What is Generative AI and How to Use it in Customer Service?

As businesses continue to compete in the modern digital era, providing excellent customer service has become a crucial part of their success. Learning what is generative AI and how to use it in customer service can transform a business’s relationship with customers. With the rise of generative AI technology, the customer service landscape is evolving quickly. In this article, we’ll explore the role of generative AI in the evolution of customer service, what the future may hold, and how it can improve the overall customer experience.

What is generative AI?

Generative AI is a subset of artificial intelligence that uses algorithms and machine learning to produce new, original content. Unlike other forms of AI, which use pre-existing data to make predictions and decisions, generative AI can create entirely new content from scratch.

How generative AI is changing customer service

As businesses integrate generative AI into their customer service operations, they are experiencing several significant benefits. One of the primary advantages is the ability to deliver personalized experiences to customers at scale. Generative AI algorithms can analyze vast amounts of data about a customer’s preferences, buying history, and behavior to create personalized interactions in real-time.

Generative AI is also transforming self-service options. For instance, companies are using chatbots that leverage generative AI technology to provide customers with instant answers to their questions. By using natural language processing, these chatbots can understand the context of the customer’s question and provide an accurate response.

The future of customer service with generative AI

As generative AI technology continues to develop, the future of customer service looks bright. In the next 5 to 10 years, we can expect to see even more sophisticated generative AI algorithms that can handle complex customer inquiries and personalize interactions in ways that were once impossible.

One area where generative AI is likely to have a significant impact is in reducing customer churn. By analyzing customer data, generative AI algorithms can identify at-risk customers and provide proactive support to prevent them from leaving. This approach can save companies significant amounts of money and time that would otherwise be spent on customer acquisition.

In addition to reducing churn, generative AI can also improve the overall customer experience by providing more natural and intuitive interactions. For example, some companies are experimenting with generative AI-powered voice assistants that can understand and respond to customer requests with human-like conversation.

Take it from the pros: Examples of generative AI in action today

Several companies have already started using generative AI to transform their customer service operations. For example, Delta Air Lines has created a chatbot that uses generative AI to help customers find flights, check-in, and even track their bags. The chatbot, called “Ask Delta,” has been a huge success and has reduced call center volume by 20%.

Another example is global retail brand H&M, which has implemented a generative AI-powered voice assistant in its mobile app. The assistant can help customers find products, place orders, and answer frequently asked questions. The voice assistant has reduced the load on H&M’s customer service team and improved the overall customer experience.

Sephora, a leading cosmetics retailer in the US, Canada, Europe, and Australia, has been using generative AI to personalize the customer experience both online and in-store. Their AI-powered Virtual Artist feature allows customers to try on different makeup looks virtually, making it easier for them to decide what products to purchase. The technology uses machine learning algorithms to analyze features like skin tone, eye shape, and lip shape, and recommends products that match the customer’s preferences. 

This not only saves time for customers who no longer need to physically try on multiple products but also allows Sephora to offer personalized recommendations and upsell products based on the customer’s preferences. Sephora has also implemented a chatbot powered by generative AI to provide customers with real-time assistance and product recommendations. The chatbot uses natural language processing to understand customer inquiries and respond with helpful and personalized answers. Overall, Sephora’s use of generative AI has improved the customer experience by providing personalized and efficient service.

Generative AI technology is revolutionizing customer service in ways that were once unimaginable. As businesses continue to adopt this technology, we can expect to see even more significant improvements in the customer experience. From personalized interactions to sophisticated chatbots and voice assistants, the future of customer service looks bright with generative AI at the forefront.