The Future of AI in Customer Service [Data + Expert-Backed Predictions]

The world has been buzzing about artificial intelligence (AI) for years now. From self-driving cars to virtual assistants, AI has made inroads across various industries, including customer service. The use of AI in customer service is already widespread, with many companies using chatbots, virtual assistants, and other technologies to handle a wide range of customer needs.

But what does the future hold for AI in customer service? In this post, we’ll dive into some data from HubSpot's very own State of AI report and expert-backed predictions to shed light on where this technology is heading.

The Future of AI in Customer Service Predictions

1. Businesses will use chatbots more frequently.

One of the most apparent trends in AI-powered customer service is the increased adoption of chatbots. According to a recent report by Grand View Research, the global chatbot market size can reach USD 27,297.2 million by 2030, registering a compound annual growth (CAGR) of 23.3% from 2023 to 2030.

Several factors are driving the growth of chatbots:

• Chatbots are cost-effective compared to hiring and training human customer service reps. Juniper Research reports that chatbots will bring $11 billion in combined cost savings for the retail, banking and healthcare business sectors as a replacement for customer service representatives by the end of this year.
• According to HubSpot blog research, 36% of surveyed customer service reps found that the most significant benefit of using AI tools was that the tech makes customer service available 24/7. Chatbots can handle customer inquiries anytime without outsourcing or hiring more employees to answer later-day inquiries.
• 30% also responded to the survey stating that AI tools help to reduce average handling time, such as gathering customer information before beginning a conversation with a representative.

Chatbots are becoming increasingly sophisticated and can handle many customer inquiries, from simple questions about product specifications to more complex issues like returns and refunds, so chatbots may grow even more import to customer service teams in the future.

2. AI will offer more personalized customer experiences.

As AI advances, customer service experiences will likely become more personalized. In fact, respondents in our State of AI report showed resounding trust in AI's ability to offer more personalized messages (50%) and experiences (46%).

AI tools can use data from a customer's purchase history, preferences, patterns, and feedback to personalize their experience. This can result in personalized product recommendations and customized customer service interactions to benefit them in the customer journey.

For example, HubSpot's content assistant is a new feature that uses AI to assist in creating written content, outlines, emails, and more. When responding to customers, service reps can benefit from this tool as it can generate messages based on the desired tone and goal.

Get started with HubSpot's AI tools for free.

3. AI will have more enhanced predictive capabilities.

Another trend that we are likely to see in AI-powered customer service is enhanced predictive capabilities. As AI becomes more sophisticated, it can predict customer needs and behaviors with greater accuracy, which could improve customer experiences and increase customer satisfaction.

For example, AI can determine when a customer will likely make a purchase based on their behavior and purchase history. This information can prompt customer service interaction based on unique needs and solutions, such as offering a discount or a personalized product recommendation at an optimal point of their journey.

4. There will be continued debate around the role of AI in customer service.

There is likely to be continued debate around the role of AI in customer service. Some people argue that AI will eventually replace human customer service reps, while others believe that the two will always work hand-in-hand as 61% of customer service professionals say most reps will use AI/automation in their role by 2024.

The reality is likely somewhere in between. While AI can handle a wide range of customer inquiries, there will always be situations where a human touch is necessary.

For example, a human customer service rep may be necessary to ensure a positive outcome when dealing with complex customer issues or emotional customers — which AI isn't currently for navigating consumer psychology. But as the technology evolves, who knows how multifaceted it can become.

AI is here to stay in customer service.

AI in customer service is set to grow in the coming years. From the increased adoption of chatbots to the creation of immersive customer experiences, AI can transform how companies interact with their customers. However, it is worth remembering that AI is not a replacement for human customer service reps – rather, it is a tool that can enhance the customer journey. By combining AI with human expertise, companies can create exceptional customer experiences that drive loyalty and improve the bottom line.