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How Generative AI Is Already Transforming Customer Service

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How Generative AI Is Already Transforming Customer Service

Boston Consulting Group,

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Generative AI is poised to dramatically disrupt customer service and business models, say the authors of a new research paper from Boston Consulting Group. 

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Business leaders must plan for the disruptive impact of generative AI on customer service, explain the authors of a new research paper from Boston Consulting Group. While large language models (LLMs) have the potential to improve customer satisfaction and enhance productivity, businesses must also navigate a slew of challenges, including machine bias and inaccuracies. Glean valuable insights into how organizations are transforming their customer service offerings, while taking steps to protect themselves from the unpredictable aspects of this rapidly evolving technology.

Summary

Embed generative AI into customer care processes in five phases.

Ever since OpenAI launched its large language model (LLM) ChatGPT, companies have become increasingly aware of the potential of generative AI to disrupt customer service. Organizations have already begun harnessing the potential of LLMs in their customer service platforms, with sustainable energy provider Octopus Energy using generative AI to automate drafting email responses to customers, boosting customer happiness scores by 18%. Once organizations leverage the power of generative AI at scale, they could boost customer service productivity between 30% and 50%.

There are five phases organizations go through on the path to fully adopting AI-enabled customer service solutions:

  1. “Self-service for simplest transactions” – At this stage, companies don’t yet use generative AI, enabling self-service only for simple transactions, involving the company’s online portal, app or contact center.
  2. “Self-service for simple journeys” – Companies...

About the Authors

Simon Bamberger is a Los Angeles-based managing director and partner. Nicholas Clark is a London-based partner and associate director of service and support operations. Sukand Ramachandran is a London-based managing director and senior partner. Veronika Sokolova is a London-based project leader. All are professionals with the Boston Consulting Group.

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