Benefits of AI in Customer Service (What 2025 Data Tells Us)

2003 was a watershed year for AI, with tools like OpenAI’s ChatGPT seemingly taking the world by storm overnight. However, AI is also quietly but powerfully reshaping customer service. Far from being a future investment, AI in customer service is a practical tool that’s taking customer and agent experiences to the next level.

With the help of AI, companies can now offer swifter, hyper-personalized, and holistic support experiences at larger scales than ever while streamlining their own internal operations.

In this article, we’ll walk you through the current AI customer service landscape, the benefits and challenges of using it, and a quick implementation guide. 

Ready for the AI customer service revolution? Then, let’s get to it.

AI in Customer Service: Statistics for the 2025 Customer Success Manager

Time flies. Just yesterday, AI seemed to be a buzzword at the edge of the customer success manager’s horizon. Now, it’s a very real and ubiquitous force changing the customer service landscape from the inside out.

What you may not realize is that the majority of companies (56%) are already utilizing AI in customer service. In fact, it’s the most common form of AI used by companies today:

Source

This trend also doesn’t show any signs of slowing down. Quite the opposite. 

According to Precedence Research, the Generative AI in Customer Service market is expected to continue growing at a CAGR of 25.11%, topping USD 2.897 billion by 2032. That’s only one drop in the ocean of an AI market that’s expected to reach $1.85 trillion by 2030, growing at a phenomenal 37.3% CAGR.

If you dig a little deeper, you’ll see why. AI is estimated to save employees 2.5 hours per day on average. Most of this time is saved by eliminating menial, repetitive tasks to focus on strategic work with more value.

28% of business leaders also already use AI to cut costs. This can come from reduced recruiting pressure, higher output, fewer errors, and optimizing resource allocations.

Chatbots and generative AI are currently neck-and-neck leaders in the popularity of different AI customer service tools. Tools to analyze customer feedback, route requests to appropriate customer support agents, and prioritize customer queries are close behind.

Increasingly, managers and agents alike are also seeing AI as a tool to augment human intelligence instead of replacing it. 75% of marketers agree that AI and automation can help them save time. 73% say that it can help them be more productive.

4 Main Benefits of AI in Customer Service

Chances are, you already know about AI’s transformative potential in terms of efficiency, scalability, and 24/7 availability. But, what do these benefits actually look like in your day-to-day customer services operations?

Instead of boring you with what you already know, let’s explore examples of AI in customer service and the benefits that they bring with them:

1. Enhance Customer Conversations With AI Assistants

Your direct interactions with customers are the bedrock of your customer service, so you want to put your best foot forward, from the first interaction to the last.

However, maintaining standards with growing ticket volumes, increasingly complex products, and customers with eventful support histories can be difficult.

This is where AI-powered live chat tools can become the ultimate sidekick for your agents. For starters, they can automatically route tickets to the best on-call agent for the job, minimizing runaround and time-wasting.

Revolutionize Customer Service with AI Today

Empower agents, reduce ticket volume, and deliver seamless support with AI-driven customer service solutions.

Other live chat features include the ability to summarize customer history and queries to provide agents with a quick overview. This is useful not only for the initial contact but also when handing over or sharing interactions between team members.

Built-in writing assistants can help agents optimize their responses in real-time by fact-checking and proofreading their content. They can also suggest useful links to resources or solutions that the agent might not have thought of based on root cause analysis.

Last, but not least, AI can automatically review conversations to provide agents or managers with an overview of their performance by metrics like time taken, the level of success, and customer satisfaction (through sentiment analysis).

2. AI-Powered Knowledge Bases and Help Centers

Many users still prefer to see if they can DIY a solution before they look for human support.

Instead of giving them a monolithic tome with endless content to scroll through, AI can turn your knowledge base into a dynamic and proactive customer success machine. For example, AI-powered search can provide users with intelligent suggestions to deliver personalized experiences based on search terms, their unique history, and trending topics.

It will even keep your knowledge refreshed and accurate by automatically updating, categorizing, and suggesting new content topics. This helps to ensure that both your customers and agents have access to the most up-to-date and relevant resources at all times.

KB software with Generative AI can draft new content or edit existing articles, streamlining the process of publishing and maintaining help center materials. With better and more comprehensive content, customers will have more effective self-service options, lowering ticket volumes.

What’s more, it provides improved content to feed your AI chatbots with canned responses and suggestions.

3. Automated Chatbot Support

For most customers, live chat combines the best of both worlds. It has the immediacy of a phone call, without the added social anxiety and time commitment. And, it has impersonality and written record of email without the issue of random and significant delays.

But here’s the rub: live chat is a time sink for agents. When you’re trying to handle every conversation one-on-one, it’s tough to keep up with high demand, never mind running things 24/7.

However, chatbots have built up somewhat of a bad rap. Without AI, they were difficult to set up, requiring the manual creation of complex decision trees based on popular keyphrases. 

They also lacked the ability to “understand” and intelligently respond to incoming queries, making them frustrating and unhelpful. However, even then, some research suggests that customers enjoy the ease and convenience of interacting with chatbots.

By combining chatbots’ existing benefits and supercharging them with AI, AI customer support chatbots have perhaps the greatest potential to transform customer service operations.

Revolutionize Customer Service with AI Today

Empower agents, reduce ticket volume, and deliver seamless support with AI-driven customer service solutions.

Using technology like natural language processing (NLP) and large language models (LLMs), these bots are becoming increasingly adept at understanding complex human queries and responding in kind. 

These “conversational AI” are becoming increasingly lifelike, offering experiences that feel more personal and intuitive. And, combined with custom rules, they have the ability to handle basic tasks, like refund requests, completely autonomously, reducing ticket volumes.

Customerly’s Aura AI allows the creation of smart rules for your most common or impactful use cases. Combined with its natural language capabilities, it allows for intelligently responding to even complex user inquiries.

AI chatbots aren’t just spewing canned responses (though they’ve got those when needed). They can actually analyze a customer’s previous interactions and respond with context, making the experience feel more personalized. Plus, if things get too complicated, the chatbot can escalate the conversation to a human agent or flag issues.

Oh, and did we mention it? These chatbots are always on the clock—no coffee breaks, no downtime, just 24/7 support, ready whenever your customers need them.

Plus, they seamlessly integrate with FAQs, documentation, and knowledge bases (KBs), making sure customers get the answers they need ASAP.

4. Analytics and Data-Driven Insights

The ability to process vast amounts of data in a fraction of the time it would take a human is fundamental to how AIs work.

AI can quickly summarize hundreds, if not thousands, of interactions and look for key data points, like:

On top of simply generating pretty charts, AI itself can analyze your data to pinpoint actionable insights, discover trends, make predictive forecasts, and provide intelligent suggestions. Not to mention predict customer behavior on an individual or macro level, depending on the above metrics.

What’s more. with the rapid improvement in NLP, AI is also getting much better at sentiment analysis. So, it will not only give you quantitative insights but also tell you how customers feel about your service.

Challenges of AI in Customer Service

With great power comes great responsibility. There’s no such thing as a free lunch.

Take your pick of clichés, but we can’t stress enough that incorporating AI into your customer service deserves careful consideration.

As a customer success manager, if you do it right, you could boost your team’s efficiency and take your customer satisfaction to new heights. Do it wrong, and it can do more harm than good.

With that in mind, here are some obstacles you’ll need to navigate to make the most out of AI in customer service:

How to Implement Artificial Intelligence In Your Customer Service Strategy (Quick Guide)

As the persons responsible for the successful implementation of customer satisfaction software, team leaders need a solid game plan to ensure everything goes swimmingly. This will not only help you and your team stay on the same page during the onboarding process but also as you continue to integrate and grow your utilization of AI going forward.

We understand this is something many of you have not done before, and that it can be an equally scary and exciting process. That’s why, at Customerly, we support you through this process to get the most out of your AI customer service without the headaches.

While the exact steps will vary based on your company, AI maturity, and exact goals, this is the general roadmap you’ll want to follow: 

Ready to embark on your own AI customer service journey transformation? Book a call now and get tailored advice on how to implement Customerly’s all-in-one, best-in-class AI-powered customer service solution for your business. Don’t settle for the results you need, but get the ones you deserve.

Conclusion

Trust us — you don’t want to miss out on the transformative powers of AI in customer service.

Many businesses are already catching on to the potential of AI, and are using it to boost customer satisfaction, improve agent performance, and enhance their support strategies. 

From AI-powered chatbots to data-driven insights, these tools help streamline operations and create more personalized experiences, meaning everyone is a winner.

Revolutionize Customer Service with AI Today

Empower agents, reduce ticket volume, and deliver seamless support with AI-driven customer service solutions.

At Customerly, we offer a comprehensive solution that combines AI-driven customer support with powerful analytics and automation tools. Whether you’re looking to enhance customer interactions or boost agent productivity, our platform has everything you need to transform your customer service and deliver exceptional results.