The Future of Customer Service: Blending Human Touch with AI Efficiency
The Economic Times•1 week ago•
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The Future of Customer Service: Blending Human Touch with AI Efficiency

CUSTOMER SERVICE TIPS
customerservice
ai
ecommerce
bpo
digitaltransformation
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Summary:

  • 60% of customers prefer human interaction over AI chatbots for complex queries

  • Over 75% rate their AI support experience 3 or less on a scale of 5

  • Major platforms automate level 1 queries but retain humans for complex issues

  • Generative AI chatbots and AI-savvy agents are enhancing customer experience

  • India’s BPO sector added 700,000 new jobs focusing on digitally skilled agents

The Shift Towards Human and AI Collaboration in Customer Service

Ecommerce platforms are increasingly leveraging AI chatbots for customer service to cut costs. However, a significant portion of customers still prefer human interaction, especially for complex issues. A survey revealed that about 60% of respondents favor talking to humans over AI chatbots for their order queries, with over 75% rating their AI support experience 3 or less on a scale of 5.

The Challenge of Alienating Customers

Poor customer service, particularly in the quick delivery segment, risks pushing users away. Naman Lahoty, partner at Stellaris Venture Partners, emphasizes the criticality of customer service in food delivery due to its urgency and need for accuracy. Meanwhile, Gaurav Agrawal of Exotel notes that most chatbots lack the human touch, making interactions feel robotic.

The Pragmatic Approach to Automation

Major platforms like Amazon, Flipkart, and Meesho, along with quick commerce apps such as Instamart and Blinkit, have automated level 1 queries (order details, status, FAQs). This approach is not only cost-effective but also necessary given their massive user bases. For instance, Uber handles millions of support requests annually across over 15,000 cities in more than 50 languages.

Enhancing Customer Experience with Generative AI

Brands are now experimenting with generative AI chatbots and AI-savvy customer care executives to improve service. Amazon India is deepening its AI-powered customer care, aiming to make interactions more personal. Uber is also leveraging generative AI to enhance conversational experiences.

The Rise of AI-Powered Voice Chatbots

Velocity AI launched Vani AI, an AI-enabled voice chatbot fluent in English, Hindi, and other regional languages, helping solve payment issues, OTP problems, and more. Similarly, Meesho's generative AI-powered voice bot has achieved 10% higher Customer Satisfaction (CSAT) scores.

The Hiring Shift: Digitally Skilled Agents

Hiring in the customer care sector is rebounding, with a focus on digitally skilled agents who can work alongside AI tools. India’s BPO sector added 700,000 new jobs in the last year alone, driven by demand for agents capable of managing complex, non-scripted queries.

Flipkart exemplifies this trend, hiring for roles that require emotional intelligence and technical adaptiveness, ensuring seamless omnichannel support.

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