AI is changing the customer experience in 2025; it provides personalized interactions and offers the promise of efficiency. Almost 86% of buyers are willing to pay more for a great customer experience, and most of them are more likely to buy from brands that provide personalized experiences. Also, the lion’s share of customers expect an instant response from a brand when they contact them, and 67% of people are more likely to use a self-service solution rather than request a representative for help. So, AI-focused companies generate 5.7 times more revenue compared to companies not prioritizing AI in customer experience.
In 2025, a sizeable percentage of companies will use AI-powered tools to increase customer experience. In recent times, statistics have demonstrated that businesses using AI-driven personalization saw revenue boosts of 25%. Also, the AI chatbots have brought costs down by one-third for customer support and made ticket resolution 0.25x faster. It is worth mentioning the significance of customer support automation in enhancing customer satisfaction and loyalty through AI.
Customer service automation involves using artificial intelligence and machine learning to perform routine support tasks like answering FAQs and processing requests without human intervention. This enhances efficiency, provides 24/7 support, and allows human agents to focus on more complex issues. AI virtual assistants can also answer common questions via AI customer engagement through service automation, which frees up human agents to address more niche issues and enhances efficiency.
According to a 2023 analysis by Gartner, 80% of all corporations use Artificial Intelligence to improve customer experience. Additionally, AI provides a placeholder to collect customer data so as to provide a more personalized customer service that leads to higher customer satisfaction and customer loyalty. Conversely, only some tasks may be automated, and again, this is reflected in the findings: 61% of consumers said that human agents are better suited to understanding their needs. Companies must mirror some balance in the effort to automate via AI in combination with providing an intermediary for human empathy.
Using AI to automate customer service has many upsides that boost customer happiness and make businesses run smoother. Here are five big advantages of AI service automation:
AI chatbots and digital helpers answer customer questions right away, giving support at any hour. This non-stop availability means problems get fixed faster and customers end up happier.
AI has an impact on customer data to provide custom experiences, like tailored suggestions and focused promotions. This personalization builds a stronger bond with customers, boosting their overall experience.
By using machines to do routine jobs, AI cuts down the work for human agents, letting them tackle more complex problems. This change not only makes operations smoother but also saves a lot of money. For instance, NIB's AI assistant cut the need for human customer service by a broad margin, which saved the company $22 million.
AI predicts what customers want by looking at how they act, helping businesses fix problems preemptively. This forward-thinking approach makes customers more loyal and happy.
AI can handle tons of information, giving businesses useful insights into what customers like and how they behave. This knowledge helps companies make smart decisions, resulting in better plans and improved experiences for customers.
Incorporating AI into customer service not only enhances the customer experience but also drives operational excellence, positioning businesses for sustained success in a competitive market. What if we told you that there exists an agentic AI solution that could help your company with AI customer engagement and more? Imagine a humanized AI character that can present:
There exists such an agentic, humanized AI persona that is capable of meeting all of your AI customer engagement necessities. Introducing Kiksy! A multi-faceted, industry-agnostic customer engagement tool that can revolutionize the customer experience for your brand through automation and engagement. Curious to know more about this technology? Follow us for more.
Chief Executive Officer
Kavita has been adept at execution across start-ups since 2004. At KiKsAR Technologies, focusing on creating real life like shopping experiences for apparel and wearable accessories using AI, AR and 3D modeling