Some customer service pros swear that AI doubles their productivity, while others say it eliminates the human element in customer service. Whatever the case, more and more businesses are using AI.

Should you jump on the AI bandwagon, too? It's not a simple yes or no answer.

This blog will explain the advantages and limitations of using AI in customer service. Find out whether AI could be a good fit for your team.

Why Are Customer Service Teams Turning to AI?

Customers expect quick, round-the-clock service. That's a tall order for human teams alone but an easy task with AI. 

AI can understand and respond to customer questions, often through chatbots or virtual assistants. Effective AI tools can answer common questions, guide customers to the right information, and even help solve simple problems. 

They're designed to speed up and improve customer service. AI effortlessly handles routine tasks, freeing human agents for more complex issues. 

Plus, with more people shopping and seeking support online, AI helps businesses keep up with the growing demand without breaking the bank.

7 Advantages of AI in Customer Service

Should you use AI? It depends on your unique situation. But there are some compelling reasons why many businesses are turning to AI. 

Here are seven advantages that might make AI a good fit for your customer service team:

1. 24/7 Customer Service

Imagine your small e-commerce business suddenly going global overnight. It’s exciting but also daunting when you realize customers from Tokyo to Toronto expect support at all hours. 

AI-powered chatbots can handle routine queries around the clock, whether tracking an order at 2 AM or resetting a password during a holiday. 

For instance, if you sell smart home devices, your AI could guide a customer through basic troubleshooting steps anytime, potentially solving their issue without waking your human agents.

36% of customer service experts consider 24/7 availability the top benefit of AI. This round-the-clock support satisfies customers and gives your human team the breathing room to tackle complex issues during business hours.

2. Automating Manual Tasks

Think about your current workflow. How much time do your agents spend on repetitive tasks like categorizing tickets or updating customer information? Now imagine freeing up that time for more impactful work.

AI can take over these routine tasks. For example, it could automatically tag incoming emails based on content, route them to the right department, and even draft initial responses for your team to review. 

This automation doesn't just save time—it reduces human error and ensures consistency in your processes.

Many businesses already see how automation lessens workload, opens up more meaningful conversations with their customers, lets them go deeper into troubleshooting, and provides more tailored assistance.

3. Faster Response Times

Customers will pay 19% more for “always immediate service.” That means they don’t want to wait in line or on hold. AI can dramatically speed up your response times, often providing instant answers to common questions.

Consider a scenario where a customer asks about your return policy. Instead of waiting for a human agent to become available, AI can immediately provide the information, complete with links to relevant pages on your website. 

This speed not only satisfies the customer—but also prevents simple queries from clogging up your support queue.

Businesses that implemented AI to handle customer issues say that customers now get instant decisions about how problems will be handled, leading to faster resolution times and improved satisfaction.

4. Time and Efficiency Savings

AI isn't just about speed—it's about smart use of resources. Imagine having an assistant who could analyze thousands of customer interactions in minutes, identifying trends and insights that might take your team weeks to uncover manually.

For instance, AI could analyze your support tickets and reveal that many customers are struggling with a particular feature of your product. 

This insight allows you to proactively address the issue, perhaps by updating your user guide or tweaking the product design. The result? Fewer support tickets and happier customers.

Tasks that may take longer for human teams, AI can do in a snap. Service pros say AI saves them two hours daily when used for responding to customers.

5. Multilingual Support

If your business is expanding globally, language barriers can be a hurdle. But AI leaps over this obstacle with ease. 

Chatbots and translation tools help you communicate effectively across language barriers, expanding your reach and improving customer service.

Imagine a scenario where a Spanish-speaking customer reaches out about an issue with your product. Your AI system could automatically detect the language, translate the query, and provide a response in Spanish—all without involving a human agent.

This capability allows you to serve a diverse customer base without the need for a large multilingual team.

6. Generating Solutions

AI doesn't just regurgitate pre-written answers—it can think on its feet (so to speak) and generate tailored solutions.

Imagine a customer contacts you because they can't figure out how to integrate your software with their existing systems. 

Instead of providing a generic troubleshooting guide, AI could analyze the specific error messages, consider the customer's unique setup, and generate a step-by-step solution tailored to their situation.

7. Query Prioritization

Not all customer issues are created equal. Some need immediate attention, while others can wait. AI can be your triage nurse, ensuring the most critical issues get addressed first.

For example, AI could analyze incoming queries for keywords, sentiment, and customer history. 

A long-time customer expressing frustration about a billing issue could be automatically flagged as high priority and routed to your most experienced agents. Meanwhile, a general product inquiry might be handled by AI or queued for later response.

7 Limitations of AI in Customer Service

Despite advancements, AI isn’t perfect. As with any technology, you should understand its limitations to make informed decisions about implementation. 

Let's explore the other side of the coin:

1. Unpredictability

AI, especially in its more advanced forms, can sometimes behave in ways we don't expect. This unpredictability can lead to inconsistent customer experiences or even provide incorrect information.

For instance, an AI chatbot might misinterpret a customer's query and provide an irrelevant answer, leading to frustration. In more serious cases, AI could potentially give out sensitive information or make promises that your company can't keep. 

This unpredictability means that AI systems require constant monitoring and occasional human intervention to ensure they're functioning as intended.

2. Market Alienation

While many customers appreciate the speed and convenience of AI, others may feel alienated by it. This is particularly true for older generations or those who are less tech-savvy.

While 31% of younger consumers (under 45) trust AI, only 8% of those aged 55 and over say they trust it.

Consider a scenario where an elderly customer is trying to resolve an issue with their account. They might struggle to navigate an AI-powered chatbot, preferring instead to speak with a human who can patiently guide them through the process. 

Relying too heavily on AI, you risk alienating these customers and potentially losing their business.

3. Lack of Emotional Intelligence

AI has made significant strides, but it still falls short when it comes to emotional intelligence. It can't truly empathize with a frustrated customer or pick up on subtle emotional cues in the way a human can.

Imagine a situation where a customer is upset about a delayed shipment of a birthday gift for their child. An AI might efficiently provide tracking information and offer a standard apology, but it can't understand the emotional weight of the situation. 

A human agent, on the other hand, could offer genuine empathy and perhaps go the extra mile to make things right.

4. Limited Understanding of Context

AI operates based on patterns and programmed responses, which means it can struggle with nuanced or context-dependent queries. It might miss subtle details or fail to grasp the full picture of a complex situation.

For example, if a customer says, "The product doesn't work like it did last time," AI might not understand whether "last time" refers to a previous version of the product, a different product from your company, or a competitor's product. 

This lack of contextual understanding can lead to misunderstandings and ineffective problem-solving.

5. Missing the Human Touch

There's something to be said for the warmth and connection that comes from human interaction. AI, no matter how sophisticated, can't replicate the feeling of being truly heard and understood by another person.

This limitation becomes particularly apparent in sensitive situations. 

Suppose a customer calls about a service outage that disrupted an important event or a product malfunction that caused significant inconvenience. In that case, they will likely appreciate the empathy and personal touch that only a human can provide.

6. Reduced Customer Interactions

While AI can efficiently handle a large volume of customer queries, it also means fewer direct interactions between your team and your customers. This reduction in human-to-human contact can have unintended consequences.

These interactions are often valuable opportunities to build relationships, gather feedback, and gain insights into customer needs and preferences. 

If you rely too heavily on AI, you might miss opportunities to connect with your customer base and gather organic, qualitative feedback that can improve your products or services.

7. Need for Continuous Updates

AI isn't a "set it and forget it" solution. It requires ongoing maintenance, updates, and training to remain effective and relevant. This need for continuous updates can be resource-intensive and time-consuming.

For instance, every time you launch a new product, update your policies or change your services, you'll need to update your AI system accordingly. If you don't, you risk providing outdated or incorrect information to your customers. 

Should Your Customer Service Team Use AI?

While AI offers impressive benefits like 24/7 availability, faster response times, and improved efficiency, its limitations remind us of the irreplaceable value of human interaction. 

However, you don’t have to choose between AI and human agents. Instead, find the right balance to leverage the strengths of both. When you understand AI's potential and pitfalls, you can implement it strategically to enhance your customer service offerings. 

AI can handle routine queries and data analysis, freeing your human agents to provide empathy, tackle complex issues, and build meaningful customer relationships.

Ready to Explore How AI Can Transform Your Customer Service?

Partner with Origin 63 to discover tailored AI solutions that align with your business needs. We can help you navigate the AI landscape and implement HubSpot's cutting-edge AI tools to elevate your customer service game.

Contact Origin 63 today and take the first step towards a more efficient, responsive, and customer-centric service approach.