Before the advent of advanced AI systems like ChatGPT, the term “chatbot” often carried a negative connotation. For many consumers, chatbots were those frustrating little boxes that popped up in the corner of a screen, offering help but frequently failing to understand or deliver accurate information.
A YouGov survey conducted in November found that 60% of consumers felt confident they could distinguish between a human customer service agent and a chatbot. Additionally, over 80% of customers expressed a preference for waiting to speak to a real person—some willing to wait as long as 11 minutes—even if an AI chatbot was immediately available, according to Callvu, a customer service platform provider.
However, the landscape is shifting. Newer AI technologies are becoming more adept at comprehending customer needs, efficiently retrieving relevant information, and presenting it in a user-friendly manner. This was a key topic during a session at Fortune Brainstorm AI Singapore on July 31, sponsored by Accenture. During the session, speakers highlighted how these advancements could rejuvenate customer service.
Joon-Seong Lee, a senior managing director at Accenture’s Center for Advanced AI, provided a compelling example of how AI could outperform traditional customer service chatbots. He recounted how Google’s Gemini AI program successfully helped him navigate a banking system to link two accounts—something the bank’s own chatbot failed to accomplish.
Lee suggested that companies should move away from the traditional search model, where users must hunt for answers. Instead, AI should directly provide the answers customers seek. “You’re not searching for answers. You want the answer,” he emphasized.
In a practical application, Sami Mahmal, data lead for Zurich Insurance, discussed how AI was used to streamline the car insurance process in Indonesia. Traditionally, a physical inspection was required before an insurance policy could be sold, often resulting in significant delays. With AI, customers can now submit photos of their vehicles, allowing an automated system to quickly assess damage and either approve the policy or escalate it for further review. This shift from a manual to an automated process reduced the time from days to mere minutes.
But does investing in AI chatbots offer a worthwhile return for companies? According to Sinisa Nikolic, director of high performance computing and AI at Lenovo Asia Pacific, the challenge lies in understanding how to leverage AI effectively. While the majority of chief information officers acknowledge the need to embrace AI, more than half are unsure of the best approach. Lenovo’s experience, however, shows that AI can significantly boost efficiency—in its case, by over 80% in the supply chain.
Moreover, proactive chatbots, which listen to customer calls and provide human agents with relevant information without the need for a manual search, could potentially reduce operational costs by 30%-50% and shorten call times by 5 minutes, according to Mahmal.
Lee also highlighted AI’s potential in expanding a company’s reach to customers. He noted that digital marketing firms, which previously managed 400 to 500 campaigns per month, can now execute thousands of highly personalized campaigns thanks to generative AI.
In conclusion, while traditional chatbots have been met with consumer frustration, the integration of advanced AI technologies offers a promising avenue to enhance customer service, increase efficiency, and ultimately improve customer satisfaction.
