Tired of outdated customer support options? Conversational AI can reduce hold times and increase customer satisfaction, redefining your service interactions.
However, it can be difficult to know how to use it for your own business, which has unique needs and challenges.
Read on to learn:
- How conversational AI works
- Types of conversational AI agents
- Benefits
- 9 common use cases to consider
- Pro tips for using AI-powered customer service
How conversational AI works
Let’s break this down into something even your tech-averse uncle could get (without a slideshow). Conversational AI learns, interprets, and improves — all while making you look good.
Here are the steps conversational AI takes:
- Training Phase (Building the knowledge base): Before the AI can do its magic, it undergoes intensive training. Think of it as its "Rocky training montage." The AI looks over massive datasets — emails, chats, tweets, and more — to learn language patterns, slang, and context.
This gives it a deep understanding of how people communicate, preparing it to handle real-world conversations (or a big fight with Apollo Creed).
- Input Phase (Receiving the customer message): The process starts when a customer reaches out. For example, a customer might type or say, “Where’s my order?” into a chat or call interface. The AI recognizes the input and prepares to process it.
- Processing Phase (Decoding the intent): Here’s where the magic happens. The AI uses Machine Learning (ML) and Natural Language Processing (NLP) to understand the message.
The AI identifies the intent behind the input (e.g., “track my order”) and considers context, phrasing, and even tricky things like sarcasm or emojis. The outcome is that the AI figures out the best way to respond.
- Response Phase (Crafting the answer): Once the intent is clear, the AI generates a response. The AI combines its understanding of your brand’s tone with the customer's query to deliver a human-like reply.
For example: “Your order was shipped yesterday! Here’s the tracking number: 12345.” The outcome is that the customer gets a fast, accurate, and friendly reply.
- Feedback Phase (Learning from interactions): Every customer interaction makes the AI smarter. Feedback from each exchange (e.g., corrections or improvements) loops back into the system to refine its accuracy.
Over time, the AI becomes increasingly reliable, like a personal assistant who knows you better with each task.
Why it works: Machine learning and NLP are the dream combination here — ML helps conversational AI understand patterns in customer behavior. At the same time, NLP lets it grasp the nuances of human communication.
Yes, we’re talking about stuff like sarcasm, emojis, and phrases like, “It’s fine” (spoiler: it’s ain’t fine). Together, they make the AI feel less like a bot and more like a helpful friend who actually listens.
Types of conversational AI assistants
Conversational AI comes in all shapes and sizes — from chatty intern-level helpers to full-blown digital masterminds that could probably run your business. Here’s the breakdown of what they do, where they shine, and why you might (or might not) need them.
Let’s take a look:
Chatbot conversational AI: The FAQ warriors
Chatbots are the hard-working frontliners of AI. They handle field repetitive stuff with the enthusiasm of someone who’s never heard, “What are your hours?” a thousand times. Great for basic questions, but don’t expect life advice.
Going a bit deeper:
- Why they’re great: Chatbots are great at tackling FAQs, resetting passwords, or giving your team a break from answering the same question 400 times a day.
- Where they work: E-commerce sites answering, “Where’s my stuff?” or service businesses helping customers book appointments.
- What they can’t do: Nuance. If the question involves a gray area, they’ll probably just give you a shrug emoji.
Virtual assistants: The smart stuff
Virtual assistants like Lindy are the “can do!” AI overachievers. They go beyond chatbots and can handle way more complex stuff with machine learning, contextual awareness, and a sprinkle of charm.
Exploring more:
- Why you’ll grow to love them: They can manage personalized interactions, handle jobs like lead nurturing and enrichment, and learn from your knowledge base and customer feedback to get even better over time.
- Where they work: Sales teams automate follow-ups, customer service teams answer tricky questions, and marketing teams run campaigns while scaling like they mean business.
- What they’re not great at: Not much, really. But if your team is stuck in the Stone Age, you’ll need some onboarding first. Conversational AI marketing assistants, especially, need a little getting used to before you’re able to get the whole nine yards out of them.
Voice assistants: The multitaskers’ dream team
Voice assistants like Alexa or Google Assistant turn talking and walking into doing. Great for customers who’d rather chat than type, these audio apps get stuff done with just a command.
Let’s take a look at what they can do:
- Why they rock: Hands-free help in multiple languages, smart device integration, and the ability to actually remember what you said. Just try not to use them while you’re driving.
- Where they work: Accessibility-friendly customer support, managing smart homes, or reordering groceries with a simple “Hey Google, help me adult today.”
- What they can’t do well: Understand sarcasm (yet).
Generative AI: Starting to get scary now
Generative AI customer support agents, powered by advanced Large Language Models (LLMs) like GPT-4, elevate conversational AI significantly. Do you need a personalized email, a custom chat response, or even some bad poetry? They’ve got you covered.
Here’s a bit more info:
- Why they’re great: These systems generate responses that feel so real customers might ask them to dinner. From email campaigns to chat solutions, they can take it.
- Where they work: Customer service teams provide tailored help, marketers automate content creation, and businesses want to impress customers with AI-powered charm. A chatbot with conversational AI like Lindy also leverages models like GPT-4.
- What they can’t do: Guarantee poetry that doesn’t make your English teacher cringe. They also tend to lose track of what they’re doing, and — let’s face it — still have a ways to go before they take over the world.
Benefits of using conversational AI for customer service
There’s a lot to love about using conversational AI for customer service, and it’s not just the fact that it can have a winning personality (if you want it to).
Let’s take a look:
- Infinite scalability: With AI chatbots, your customer service can scale to meet demand around the clock without increasing your staff. This means your customers get faster responses, even during peak hours or unexpected surges in inquiries.
AI chatbots can handle thousands of customer conversations simultaneously, reducing wait times and improving the overall customer experience.
- Instant gratification: Say goodbye to endless hold music and frustrated customers. Conversational AI delivers lightning-fast responses, ensuring your customers feel heard and valued — no matter the time of day or night.
Happy customers, happy business — and a happy you.
- Round-the-clock support: While your human team recharges, your AI-powered assistant is hard at work, providing always-on support to customers across the globe.
Early birds, night owls, and everyone in between will appreciate the unwavering assistance.
- Skyrocket your ROI: Yes, there's an initial investment (and it can be less than you think), but conversational AI quickly becomes your financial MVP.
By automating routine inquiries and freeing up your team's time, AI reduces operational costs, boosts efficiency, and fattens your bottom line.
- As personalized as you need it to be: Conversational AI is not limited to fielding questions; it builds lasting relationships.
By learning your customers' unique preferences and purchase history, deliver tailored experiences that foster loyalty and keep them coming back for more.
- Data-driven insights: Conversational AI doesn't just chat; it gathers valuable customer data and insights with every interaction.
This treasure trove of information helps you understand your customers better, refine your strategies, and make informed business decisions.
9 common use cases for conversational AI for customer service
Conversational AI is an extremely versatile tool that can boost pretty much any customer service process under the sun (and some that haven’t even been invented yet).
Let’s take a look:
- Answer those FAQs like a pro: Your AI chatbot can handle all those repetitive questions about your products, services, or company policies with lightning-fast precision, freeing up your human agents to focus on complex issues that require a personal touch.
Plus, with its ability to learn and adapt, your chatbot becomes smarter with every interaction, providing even better answers over time.
- Keep customers in the loop: AI can track orders and send proactive updates, so customers always know exactly where their package is. This not only reduces the number of "Where is my order?" inquiries but also gives customers peace of mind and builds trust in your brand.
They can even make changes to the order or cancel it if needed, all through a seamless, intuitive chat interface.
- Book it like a boss: Your virtual AI concierge can handle reservations and bookings for everything from restaurants to hotels, 24/7, ensuring you never miss a potential customer.
No more missed calls or double bookings — just smooth and efficient service that delights your customers and maximizes your revenue.
- Account management is much easier: Empower your customers to effortlessly update their information, check their balance, or even reset their password with a quick chat with your AI tools.
This convenient and secure self-service option reduces the burden on your support team and increases customer satisfaction.
- You’ll get instant feedback: Your AI can proactively ask customers for feedback after an interaction or purchase, helping you gather valuable insights to improve your service.
This valuable data allows you to identify areas of improvement, tailor your offerings to customer needs, and continuously enhance the overall customer experience.
- It can act like a professional tech support agent: For simple tech issues, an AI helper can guide customers through troubleshooting steps or provide helpful resources, resolving common problems without the need for human intervention.
This not only reduces support ticket volume but also empowers customers to gather more information about their issues easily.
- Manage payment and billing: AI can handle payment and billing inquiries securely and efficiently, providing customers with the information they need in a snap.
By offering instant and accurate responses, you'll reduce customer frustration and build trust in your payment process.
- Receive tailor-made personal recommendations: Based on a customer's past purchases and preferences, your AI can suggest other products or services they might be interested in, boosting sales and enhancing the customer experience.
This personalized touch makes customers feel valued and understood, increasing their likelihood to return.
- Speaking your language: Don't let language barriers get in the way of great customer service. AI can offer support in multiple languages, expanding your reach to a global audience and fostering inclusivity.
By catering to a diverse customer base, you unlock new markets and growth opportunities — and you won’t have to hire as many people.
How to choose the right conversational AI agents for your business
Finding the perfect conversational AI is like dating — you’re looking for "the one" that meets your needs without a ton of drama.
Let’s inject some practicality here:
- Think about the stuff that keeps you up at night: Are your customers sending “Where’s my order?” emails at 3 a.m.? Or are they ghosting mid-chat? Define what you want to fix so your AI can step in like a customer service superhero (cape optional, but it’s a cool look, honestly).
- Scalability: Whether you’re dealing with 10 customer queries or 10,000, your AI shouldn’t throw a tantrum when the load increases. Look for one that grows with you, like a loyal sidekick, not a moody teenager.
- Multilingual mastery: If your business spans continents, your AI needs to be a polyglot. Bonus points if it can understand idioms like “kick the bucket” without thinking customers are talking about Lionel Messi.
- No assembly required: Implementation should be so simple that even your intern can handle it. If the setup involves an engineering degree, move along.
- Integration that doesn’t feel like forced friendships: The AI should play nicely with your CRM, Slack, and email platforms. No one has time for a bot that can’t even sync a calendar invite without throwing a fit.
- Customer data security: Your AI must safeguard sensitive information like it’s the last cookie on the plate. Look for encryption, compliance certifications, and a "we don't gossip" vibe.
- Personality matter: A conversational AI should sound human, not like it just downloaded Small Talk 101. Personalization should feel friendly, not stalker-ish.
- Make your ROI skyrocket: Yes, some AIs are pricey. But a good one should save you enough time and money to justify the cost. Think about the hours saved from answering the same FAQ a hundred times.
- Choose a bot that isn’t afraid of commitment: Businesses change, and your AI should be ready to roll with it. Whether you add new services or triple your customer base, you don’t want a chatbot that suddenly goes “not my problem.”
- Language barriers? What barriers?: If your AI can’t handle a French inquiry one moment and Spanish the next, it’s not doing its job. Global businesses deserve global solutions — not bots stuck in “Sorry, English only.”
- Pick one that makes your team feel relieved: The ultimate test is whether your AI makes life easier for everyone involved. Your team shouldn’t have to babysit it, and your customers should leave the chat feeling like they just dealt with the Ritz Carlton of bots.
Pro tips for using AI for customer service
Implementing AI successfully takes work.
Here are some pro tips to make your AI assistant as helpful as possible:
- You can keep training your AI forever. Your AI needs to go back to school regularly. As customers ask new questions and have different needs, you’ll need to provide more data to train the AI.
Think of it like a new hire — you have to coach them through different situations so they learn. Keep training your AI to keep it performing at peak efficiency.
- The premium must be on UX (user experience). Nobody likes an interface that's hard to use. Make sure your conversational AI is designed with your customers in mind.
Keep menus simple, responses easy to understand, and the flow intuitive. If customers get frustrated trying to use it, they won’t come back. You want AI that customers are happy to use, not a cumbersome chatbot that drives them away.
- Monitor that performance. Once your AI is up and running, don’t just set it and forget it. Regularly evaluate how it’s doing to make sure it’s handling queries accurately and providing a good experience.
Check for any drop in customer satisfaction or spikes in complaints — your chosen AI should be a help, not a big hindrance.
FAQs
What is conversational AI?
Conversational AI is the smart tech behind those human-like chats you’ve had with virtual assistants. Using machine learning and Natural Language Processing (NLP), it deciphers what you’re asking, figures out the best answer, and delivers it smoothly — no awkward pauses or “uhh” in sight.
What is the best AI for customer service?
The best AI is the one that makes your customers happy and your team less stressed. While Lindy takes the crown for its multi-tasking genius and human-like conversations, the right pick depends on your specific needs and budget.
How are AI chatbots used in customer service?
AI chatbots are pretty much the front desk staff of your customer service team. They answer common questions, process requests, and even handle booking or order updates. And the best part? They never need a coffee break or call in sick.
How does conversational AI improve customer service?
By working faster than a frenzied support team, conversational AI eliminates wait times, delivers personalized help, and learns from every interaction. Think of it as an upgrade for your support team.
Is conversational AI expensive to implement?
It’s an investment, sure, but it’s often more affordable than you think. With lower operational costs, fewer staff hours spent on repetitive jobs, and higher customer satisfaction, it usually pays for itself faster than your last software upgrade.
Can conversational AI replace human agents completely?
Not quite. While AI can tackle repetitive jobs and lighten the load, human agents are still the best for the most complex problems and sensitive situations. Think of AI as the team player that handles the heavy lifting while humans focus on the finesse. Still, some experts predict that AI will eventually tackle most call center jobs in the coming years.
Getting started with conversational AI and Lindy
Lindy, the AI-powered personal assistant, is your one-stop shop for improving every part of the customer experience.
With Lindy, you get:
- Lots of integrations: Connect Lindy with your favorite platforms like Gmail, Slack, Salesforce, and more (right out of the box), creating a unified hub for all customer interactions.
- She’s got the (human) touch: Lindy’s customer support chatbot doesn't just spit out robotic responses. Thanks to its powerful NLP (Natural Language Processing), it can understand a wide range of customer queries accurately — even when people throw weird questions at it.
Just use a simple code to embed it on your website, and you can get started.
- Integrates with your knowledge base: Your Lindy customer support agent can also draw from your knowledge base to provide on-brand messages and always have up-to-the-minute information. Oh, and Lindy can auto-update your CRM.
- Ticket triage made easy: Lindy's AI customer service is designed to help sort and prioritize support tickets based on predefined criteria, streamlining the process for support teams.
You can customize the triggers to let Lindy know when to forward a message to you for immediate attention so that you don’t lose track of urgent alerts.
- A network of interconnected Lindies: Harnessing the power of shared knowledge, multiple Lindy bots can collaborate and learn from each other, continuously improving their collective intelligence and ability to serve your customers.
- Intelligent email triage: Lindy prioritizes important emails, drafts personalized replies, and even automates recurring workflows.
- Omni-channel communication: Lindy seamlessly interacts with customers across various channels (email, chat, social media, etc.), providing a consistent and personalized experience.
- Way beyond AI and customer support: Lindy supports various tasks, including coding, meeting management content creation, email triage, and email auto-replies. Check out our Lindy agents page to learn more.
