AI customer service implementation is no longer experimental. It has become a strategic priority as customer service workloads outpace resources. According to HubSpot’s State of Service report, 78% of teams say customer expectations rose in the past year while budgets stayed flat — a widening gap that traditional tools can’t bridge.
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AI offers a way forward. AI tools fill this gap with automation, natural language processing, and predictive analytics that enable teams to scale support.
This article examines where customer service automation creates value, how to plan adoption, and what ROI to expect from next-generation tools. The post will also explore how to use AI in customer service.
Table of Contents
- AI in Customer Service
- Benefits of AI in Customer Service
- Top Ways Customer Service Teams Use AI [New Data]
- How to Use AI in Customer Service
- Factors to Consider Before Implementing AI for Customer Service
- Examples of How to Use AI in Customer Service
- Frequently Asked Questions About How to Use AI in Customer Service
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AI in Customer Service
When determining how to use AI in customer service, teams often turn to technologies such as AI agents, natural language processing (NLP), and machine learning (ML) that automate and enhance support interactions. These tools enable customer support software to understand intent, analyze large volumes of tickets, and deliver accurate responses in real time.
In particular:
- AI agents handle routine inquiries through chat, email, WhatsApp, or voice channels.
- NLP powers chatbots and virtual assistants, allowing them to interpret context and sentiment in customer conversations.
- ML algorithms detect patterns in customer behavior, predict issues, and recommend next steps to agents or customers.
Teams that learn how to use AI in customer service see faster average resolution times. Service quality also becomes more consistent.
Benefits of AI in Customer Service
When teams understand how to use AI in customer service, outcomes improve. Customers have a smoother experience. Shoppers can get around-the-clock support and faster resolutions to challenges. Internally, service teams see operational benefits, including better ticket routing workflows and increased efficiency.
Here are all of the benefits AI can unlock for your team.
Customer Experience Benefits
HubSpot’s State of Service report found that 65% of service leaders expect AI to improve customer satisfaction scores within the next year. AI-driven personalization and instant self-service options help customers resolve issues on their own terms. Furthermore, AI-driven sentiment analysis helps flag negative experiences early, preventing escalation.
To illustrate it, here’s how to use AI in customer service to improve the customer experience.
Faster Response Times
Of customer success leaders, 92% claim that AI has helped improve customer service response time. This speed increases CSAT and prevents ticket backlogs. Using chatbots as an example, businesses can automatically respond to a customer‘s live chat message within seconds.
Without automation, response times stretch, and customers turn to competitors.
24/7 Availability
AI can work beyond headquarter time zones. Customers won't need to wait for a human employee to respond to their inquiry. Instead, a chatbot can gather all the basic information needed to address their problem.
Personalized Experiences
Natural language processing allows AI systems to understand intent and tailor responses. According to HubSpot, 47% of teams already use AI for personalization. The payoff is higher retention and loyalty. It’s no wonder, since customers expect more personalization in interactions than ever before.
Operational Benefits
AI delivers measurable efficiency gains. Customer service leaders implement AI to scale support without increasing headcount, with 75% of service teams already using AI reporting faster ticket resolution compared to manual processes. These improvements translate directly into cost control and scalability.
Streamlined Ticket Routing
Automated classification and routing ensure tickets reach the right rep or knowledge base in seconds. Our data shows that 66% of teams using AI report improved routing accuracy. Manual routing risks misdirected tickets, wasted time, and customer frustration.
Lower Service Costs
AI enables teams to reduce customer service costs by automating FAQs, routing, and repetitive tasks. Service leaders report cost savings of up to 45% within the first year of AI adoption. Without it, operational costs climb as demand outpaces staffing.
Improved Scalability
HubSpot found that CS leaders see AI as essential for scaling service without expanding headcount. For example, knowledge-base assistants reduce repetitive inquiries by suggesting help articles. Teams that delay adoption risk growth bottlenecks and reduced competitiveness.
Agent Benefits
AI also improves the agent experience, which often gets overlooked. HubSpot research shows that support reps say AI in customer service automates repetitive support tasks and reduces burnout.
Reduced Workload for Agents
AI handles repetitive tickets, cutting volumes in early implementations, and takes the load off human agents. Reps can then work on complex interactions. Ignoring this balance drives burnout and attrition.
Increased Efficiency
Real-time AI assistants suggest answers, summarize cases, and surface context. PwS’s AI agent survey reports that 66% of reps say AI improves their productivity. Without these tools, agents waste time digging through CRM data or knowledge base articles.
Real-Time Support and Recommendations
AI provides live guidance during conversations by surfacing next-best actions or flagging compliance risks. Customer support teams expect these tools to directly improve first-contact resolution rates.
Now, let's review how to put some of these benefits into practice.
Top Ways Customer Service Teams Use AI [New Data]
It’s probably no surprise that AI is one of the leading priorities among success leaders. Service teams everywhere are trying to decide how to use AI in customer service. But our State of Service data sheds new light on how AI is reshaping customer service teams.
Here are some of the highlights to know:
- 77% of customer experience teams already use AI with great results. Benefits include improved customer service response time, improved CSAT, and lower spend on customer service.
- Leaders see the future of customer service being driven by AI-powered reps.
- 72% of CS leaders say AI can provide better customer service than a human can.
- 86% of leaders using AI say it improved their ability to scale customer service operations as their company grows.
Looking for inspiration? Here are some of the highest ROI strategies for CS teams using AI:
- Using AI chatbots.
- Offering omnichannel customer support.
- Leveraging AI/automation throughout the customer experience.
- Collecting and analyzing customer feedback.
- Using generative AI for crafting communications with customers.
This is just a glimpse. Keep reading to learn practical tips for how service teams can add AI to their customer experience strategy.
How to Use AI in Customer Service
AI adoption is moving quickly, with 88% of customer success executives saying their companies plan to up their AI-related budgets this year due to agentic AI.
The methods below illustrate how to use Ai in customer service. That includes tips for approaching implementation in stages, starting with quick wins, moving into advanced applications, and scaling toward full transformation.
Quick Wins: Fast-Track AI Applications
Quick wins are entry points for AI customer service implementation. They require minimal integration, deliver results within weeks, and build early confidence across teams. Here’s how to use AI in customer service to unlock value faster.
1. Use AI chatbots.
AI-powered chatbots handle FAQs, track orders, and reset passwords without human intervention. Chatbots are programmed to interpret a customer’s problem and then provide troubleshooting steps to resolve the issue. This saves time for reps and customers because responses are instant, automatic, and available 24/7.
With Breeze AI Customer Agent, customer support teams report 39% faster ticket resolution vs. teams not using the agent. On top of that, leaders predict that by 2025, AI will be able to resolve a majority of tickets without involving a customer service rep.
Tools like HubSpot’s Breeze AI, Intercom Fin, or Zendesk AI can be deployed in days.
Average timeline: 2-4 weeks for full deployment on web and mobile channels.
Note: HubSpot's Breeze AI is a conversational CRM bot that service professionals can connect to HubSpot to maximize productivity.
Get access to Breeze AI Customer Agent.
2. Automate ticket routing.
AI can automatically categorize and route customer inquiries to the appropriate department or agent based on the nature of the request. This reduces wait times and ensures customers are connected with the right person to resolve their issue.
HubSpot’s Service Hub automation workflows are practical ways to start. Workflow implementation ranges from one day to three weeks, including training on historical ticket data.
AI tools allow teams to analyze the customer's problem, sentiment, and perceived urgency. Customer success leaders can also program AI models to tag issues for escalation.
Pro tip: Automated ticket routing means experienced agents handle complex cases. Meanwhile, newer reps deal with the simple tickets. Leaders should also consider having reps who are solely dedicated to time-sensitive requests.
The State of Customer Service Report
Unlock essential strategies for exceeding customer expectations and driving business growth in a competitive market.
- Exclusive insights from worldwide CRM leaders
- Analysis of modern customer behaviors
- Closer look at the AI opportunity in CRM
- Strategies for staying agile in 2024 and beyond
Download Free
All fields are required.
3. Use AI for knowledge base management.
While building out a robust knowledge base or FAQ page can be time-consuming, self-service resources are critical. AI can help maintain and optimize a company’s knowledge base by analyzing which articles are most helpful to customers and suggesting updates to content.
Knowledge base AI can also recommend relevant articles to customers in real time, reducing the need for human intervention.
Pro tip: Use HubSpot’s Knowledge Base Agent to capture recurring queries from live support into draft articles for review and publication. The configuration is done within one day.
Advanced Applications: Smarter AI Capabilities
When learning how to use AI in customer service, advanced applications go beyond automation basics. They rely on deeper data and modeling, which means slightly longer timelines, but they unlock higher-value insights and personalization for both customers and agents.
4. Make sentiment analysis smart.
Today, many bots have sentiment analysis tools, like natural language processing, that help them interpret customer responses. Chatbots can then assess how to respond when a customer behaves in a certain way.
The configuration of sentiment analysis tools may take six to eight weeks. However, success teams can opt for a simpler and faster solution, such as chatflows. These AI-powered workflows have rules to trigger human escalation when certain keywords are detected. The deployment time takes just one day.
Pro tip: Tools like Grammarly's tone detection in the image below can analyze CS agents’ text and tell them how their message may be perceived by their users before they hit send.
5. Leverage voice analysis.
Some customers prefer support via phone call. Voice AI has made it easier to automate call center interactions. These tools can be trained in predictive call routing and interactive voice response to serve as the first line of defense for customer inquiries.
For example, when you call your favorite company and an automated voice leads you through a series of prompts, that's voice AI in action.
Pro tip: Use voice AI technology to resolve routine customer service tasks (like hours of operation requests and account access troubleshooting). Then, agents remain available for more complex issues.
6. Automate call transcription.
AI call transcription gives service teams a searchable, objective record of every customer conversation. Within HubSpot’s Conversation Intelligence (CI), calls are automatically transcribed, summarized, and tagged for key topics. This enables faster quality reviews, targeted service agents coaching, and identification of recurring service issues.
Transcripts also support compliance and dispute resolution, since managers can reference exact wording. Success teams can even share clips or add calls to coaching playlists to create real customer scenarios for onboarding.
A full rollout of CI is typically complete within two to four weeks, depending on the number of CS agents and historical calls to process.
7. Offer multilingual support.
AI-powered chatbots and conversation tools can now detect a customer’s language, translate incoming messages in real time, and generate responses in the same language. This makes global service delivery seamless, even with limited multilingual staff.
AI also accelerates translation and localization. It produces variants of knowledge base articles and maps them to a customer’s language preference stored in the CRM. The result is a consistent, localized experience that prevents international customers from being forced through English-only help content.
Pro tip: Create language variations directly in HubSpot Service Hub, configure chat targeting, and map language preferences in Smart CRM.
Transformation Initiatives: Scaling AI Across Service
Transformation initiatives require deeper integrations across channels and the CRM. They take longer to deploy, but set the foundation for a fully AI-enabled customer service.
8. Provide omnichannel AI service.
AI-driven omnichannel support unifies customer conversations across email, live chat, phone, and social channels in one inbox. With HubSpot’s omnichannel customer service tools, every interaction is logged in the CRM, so agents see the full history and context no matter where the customer reaches out.
This approach eliminates repetitive “catch-up” questions and ensures consistent, personalized service across touchpoints. Customers can move seamlessly between channels — for example, starting in chat and finishing on email — without losing context.
To deploy a fully functioning system, prepare to invest 12 to 16 weeks, depending on the number of channels and integrations.
Pro tip: When success agents are unavailable for callbacks or chat, don‘t give customers the option to select those channels. That way, customers aren’t stuck in a party-of-one conversation, wondering why the team hasn't responded.
9. Automate data management.
Some of the most valuable are embedded in analytics and internal workflows. AI paired with a CRM can recall customer history, flag risks, and surface engagement data for service reps.
With HubSpot’s Service Analytics, teams can track trends in ticket volume, CSAT, and agent performance. AI identifies the issues that drive the most cases and which customers require proactive outreach.
For example, if a loyal customer hasn’t engaged recently, AI can trigger a notification for follow-up, ensuring no relationship slips through the cracks.
Pro tip: Use AI-generated insights to identify opportunities for proactive service, like recommending content updates or creating targeted coaching for reps handling recurring issues.
10. Make the most of machine learning and predictive analytics.
Machine learning is at the heart of predicting customer behavior through AI. This technology analyzes large quantities of data and pulls out actionable insights. AI can then forecast trends, anticipate customer sentiment, and solve future problems.
Pro tip: Use predictive analytics to inform predetermined customer communication responses (e.g., via chatbots or over the phone). Machine learning can help improve the intended output based on FAQs and customer history.
Factors to Consider Before Implementing AI for Customer Service
AI delivers measurable ROI, but adoption isn’t risk-free. Service leaders often underestimate the cultural, operational, and ethical factors that determine whether implementations succeed or stall.
The following considerations outline the most common challenges when learning how to use AI in customer service.
Maintaining the Human Touch
AI automates routine interactions, but it cannot replace empathy, judgment, or nuanced communication. Over-automation risks alienating customers. For example, a client may get frustrated if they’re trapped in a chatbot loop without escalation.
Prevention:
- Set up clear rules for human escalation when AI detects negative sentiment during a conversation with an AI agent.
- Use AI for triage and FAQs to ensure high-value or sensitive cases reach human agents.
Data Privacy and Security Concerns
With access to large amounts of customer data, AI systems make privacy and compliance central concerns. Poor data governance can lead to regulatory fines (e.g., GDPR violations) or reputational damage if personal data is mishandled.
Prevention:
- Audit all AI tools for data encryption, storage practices, and compliance certifications.
- Limit access to sensitive transcripts and ensure retention policies are enforced.
Change Management
Resistance from frontline staff is one of the biggest barriers to AI customer service implementation. If reps feel AI will replace them rather than support them, adoption falters.
Prevention:
- Involve service agents early in the tool selection and rollout process.
- Position AI as an assistant that removes repetitive work, not as a replacement.
- Provide ongoing training.
Measuring Success
Define success metrics upfront, so leaders can prove ROI or secure further investment for AI tools. Don’t measure success with one metric. For example, focusing solely on ticket deflection risks overlooking improvements in CSAT or agent efficiency.
Prevention:
- Establish KPIs across customer, agent, and operational outcomes (CSAT, NPS, average handle time, cost per ticket).
- Conduct quarterly reviews to adjust workflows and retrain models where needed.
Customer Expectations and Needs
Understanding what customers actually want is critical. Deploying AI that adds friction — for example, long verification flows or irrelevant responses — can backfire.
Prevention:
- Map the AI customer journey before the rollout.
- Survey customers to understand channel preferences.
Quality of Data
AI is only as good as the data it’s trained on. If ticket data is inconsistent, outdated, or siloed, AI recommendations will be inaccurate.
Prevention:
- Run regular CRM hygiene audits to clean and de-duplicate records.
- Standardize tagging and categorization in service systems.
The State of Customer Service Report
Unlock essential strategies for exceeding customer expectations and driving business growth in a competitive market.
- Exclusive insights from worldwide CRM leaders
- Analysis of modern customer behaviors
- Closer look at the AI opportunity in CRM
- Strategies for staying agile in 2024 and beyond
Download Free
All fields are required.
Feedback and Monitoring
AI isn’t a “set-and-forget” tool. Models degrade over time as customer language, product lines, and service expectations evolve. Without systematic monitoring, response accuracy drops, bots deliver irrelevant suggestions, and customers lose trust.
For instance, chatbots trained on outdated FAQs may give incorrect information that will lead to customer frustration.
Prevention:
- Establish a monitoring routine: weekly checks for chatbot responses and monthly audits of routing accuracy.
- Involve both agents and customers in the loop: gather frontline input on where AI helps or fails, and survey customers to gauge their satisfaction with AI-driven interactions.
- Create a closed feedback loop. Retrain models with new tickets, update knowledge base content monthly, and flag misclassifications for continuous improvement.
Examples of How to Use AI in Customer Service
Delta Airlines
Delta Airlines uses AI in a variety of ways to make customer interactions with the company “more intuitive, simpler, and less complex for customers.” I use their virtual assistant often to help change flights, monitor flight changes, and process refunds when needed.
Eric Phillips, the chief digital officer, explains how new technologies are creating a better customer experience at the company. It goes far beyond just chatbots. AI is helping the company in all parts of its business, both internally and consumer-facing.
For example, Delta is using AI to parse through vast amounts of data to help with reservation inquiries and pricing. This act alone could help increase the total value of the company by 2%.
The company sets a great example for how the customer service experience and employee experience work together.
“It’s not just revenue, and it’s not just efficiency. All those things have to come together. In the end, investing in systems has to make the employee experience better when they’re addressing and interacting with customers. That makes the customer experience better. The revenue play is: ‘I had a good experience, I’m coming back,’” Phillips say.
What you can learn: The goal of Delta’s CX is to communicate to your customers that “we know you, and we value your time.” By applying these same principles and using AI to deliver efficient customer service, you’ll be sure to make a positive impression on your customers.
Macy’s
Macy’s is another company that has found a unique way to incorporate AI into its customer service offerings.
Through cognitive AI technology, Macy’s helps its clients navigate its stores and locate associates in a much faster way. This smart-phone-based assistant, “Macy’s on Call,” can offer you personalized answers to your queries. It can help you find certain products or brands in a store and help you find any services or facilities that you’re looking for.
What you can learn: Use AI to handle the most routine inquiries that you receive so that your human assistants can dedicate more time to solving complex issues.
Netflix's Machine Learning Strategy
Netflix's use of machine learning to curate personalized recommendations for its viewers is pretty well known.
The real value that AI plays here is being able to analyze mass sums of data and use that information to curate a unique customer experience. Netflix’s AI tracks viewing habits, ratings, searches, and time spent on the platform to serve you content that you’re most likely to enjoy.
The streaming giant is also using AI in a variety of ways to enhance the customer experience , from chatbots to steady streaming.
What I like: I’m guilty of my fair share of Netflix binges. What I love most about Netflix is that I feel like the platform sometimes knows me better than I know myself. I save a ton of time not having to browse through endless choices, and instead most often choose something off my “Recommended list.”
As you can tell below, I’m a sucker for a female-led drama. Overall, this creates such a positive experience for me that I’m much more likely to return to Netflix instead of perusing a variety of other streaming services.
What you can learn: Again, personalization is key. How can you create an experience for customers where it feels like you know them? How can you anticipate their preferences and concerns and curate a unique experience around that?
Kaplan’s Service Evolution
Kaplan Early Learning’s support desk was stretched thin as ticket volume climbed across phone, email, and chat. The team needed a quick scale without sacrificing consistency.
Kaplan centralized on HubSpot Service Hub and switched on Breeze features, such as:
- An AI customer agent for common questions,
- Reply recommendations in the Help Desk,
- Early sentiment analysis,
- Transcripts and AI-assisted summaries
Within weeks, low-complexity inquiries shifted to self-service, and agents refocused on nuanced issues. Measurable changes followed: 25–30% of inquiries resolved via AI chat, ~30% faster average response times (even as volume grew), and a 63% year-over-year improvement in customer service staff retention.
Why Kaplan achieved such impressive results is that they fixed the foundation first. Kaplan unified channels and history in the CRM, then layered automation on top. They chose quick-win intents (order status, billing, basic product questions) and set clear escalation to humans.
Payoneer
Payoneer’s global support team uses AI-driven sentiment analysis to escalate angry chats to a human agent. When frustration surfaces — repeated escalation requests, negative language, or urgency cues — the bot skips decision trees and routes the conversation straight to a live agent.
The system also passes along a condensed transcript so the human sees context at a glance. Within this flow, sensitive cases move faster, and agents need not re-ask verification questions.
What you can learn: Build escalation logic first, not last. Define the sentiment signals, set clear thresholds for handoff, and ensure transcripts/summaries travel with the case.
Road
Road’s 20-person support team was fielding ~10,000 conversations a month across a fast-growing EV-charging customer base of 150,000+. Volume outpaced capacity, but leadership refused to trade speed for culture or quality.
They optimized their help center for AI readability (clear subheads, simpler language), then put Intercom’s Fin AI Agent in front as first-line support. Fin resolved repetitive questions and, crucially, followed explicit guidance rules — when customers asked for phone support, Fin handed off immediately to a human.
A daily review loop lets agents flag shaky answers and fix the source (KB article, snippet, or rule) the same day.
Within weeks, the team scaled without adding headcount. Their effort resulted in 150% ROI, 20%+ lift in Fin CSAT, and inbox load down by 70%.
What you can learn: Treat the help center as AI training data: structure it first, then automate. Bake “human now” intents into guidance rules to avoid dead ends. Close the loop daily.
Frequently Asked Questions About How to Use AI in Customer Service
1. How can we use AI in customer service?
AI augments core workflows such as:
- Self-service.
- Case triage and routing.
- Knowledge retrieval.
- Sentiment detection.
- Reply assistance.
- Post-interaction summaries.
- And forecasting.
Start with low-risk automation (FAQs, order status), then extend to sentiment-based escalation. Use Service Hub to add AI chat for self-service, automated ticket routing, and an AI-searchable knowledge base.
2. What are the best AI tools for customer service?
Top categories of AI tools in customer service are:
- AI chat/agents (deflection, intake).
- Help-desk copilots (drafts, summaries).
- Voice intelligence (transcription, coaching).
- Knowledge AI (semantic search, article suggestions).
Choose tools that integrate natively with the business’ CRM and support guardrails, auditability, and handoff logic. For example, Service Hub centralizes channels in a shared inbox, layers AI chat and reply suggestions, and auto-links every conversation to CRM records.
3. Can I use ChatGPT or generative AI for customer support?
Yes, within guardrails. Use gen-AI for drafting replies, summarizing long threads, re-writing in brand tone, and proposing next-best actions. Keep humans in the loop for refunds, policy exceptions, compliance, and edge cases. Feed models approved knowledge only.
Built-in AI in Service Hub drafts responses from knowledge base/CRM context, logs summaries to the ticket, and routes sensitive intents to humans. Admin controls, permissions, and content sources keep responses on-policy.
4. Is AI good at customer service?
AI is effective at speed, consistency, and scale. The best outcomes pair automation for repetitive tasks with clear escalation to people for nuanced issues. Configure chatbots to handle FAQs and escalate on sentiment or intent. Customer success teams can do so in HubSpot Service Hub.
5. What’s the ROI of implementing AI in customer service?
ROI comes from ticket deflection, faster handling, fewer transfers, and better agent throughput. Second-order gains include improved retention and upsell from faster, more accurate support. Typical payback windows depend on volume and content quality.
For instance, Kaplan achieved an average response time that was ~30% faster (even as volume increased) within weeks after implementing HubSpot Breeze AI tools. Plus, the team had a 63% year-over-year improvement in customer service staff retention.
6. What are the risks of using AI in customer service, and how can I mitigate them?
Key risks include:
- Wrong or outdated answers.
- Over-automation without human escape hatches.
- Bias in training data.
- Privacy/compliance gaps.
- And change-management failure.
Mitigate these risks with approved knowledge sources, escalation rules, and agent training. Success leaders can achieve all with HubSpot Service Hub and HubSpot’s Conversation Intelligence for targeted quality assurance and coaching.
7. How do I get my team to adopt AI in customer service?
To get teams involved in the AI process, work with agents to craft intent lists, macros, and bot replies. Position AI as a copilot that removes repetitive work. Publish clear “human-now” rules, and recognize wins with data (e.g., minutes saved, escalations avoided). Provide ongoing training using real transcripts.
8. How complex is it to integrate AI with my existing customer service systems?
Complexity depends on a team’s channel mix, CRM hygiene, and authorization flows. Low-code deployments (chat, routing, summaries) typically take weeks. Voice/calling systems take longer because they require call recording permissions, user provisioning, and data mapping for transcripts and summaries.
Customer service leaders often choose HubSpot Service Hub for its native AI capabilities across chat, email, and calling, with a CRM-first configuration to reduce integration overhead and speed time to value.
The Future of AI in Customer Service
AI in customer service uses technologies like chatbots and predictive analytics to automate support.
To get started, identify quick-win use cases (like chatbots and automated routing), select the right AI tools, and plan for change management and data privacy. Even little changes will bring a high ROI to teams and ensure that happy customers keep returning.
Transform your team with the HubSpot Breeze AI Suite, which enables end-to-end customer service automation.
Editor's note: This article was originally published in April 2023 and has since been updated for comprehensiveness.
The State of Customer Service Report
Unlock essential strategies for exceeding customer expectations and driving business growth in a competitive market.
- Exclusive insights from worldwide CRM leaders
- Analysis of modern customer behaviors
- Closer look at the AI opportunity in CRM
- Strategies for staying agile in 2024 and beyond
Download Free
All fields are required.
Artificial Intelligence
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