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    Home»Business»Using AI in Customer Service? Don’t Make These 4 Mistakes
    Business

    Using AI in Customer Service? Don’t Make These 4 Mistakes

    The Daily FuseBy The Daily FuseJune 22, 2025No Comments6 Mins Read
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    Using AI in Customer Service? Don’t Make These 4 Mistakes
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    Opinions expressed by Entrepreneur contributors are their very own.

    AI is omnipresent in 2025 in all areas of the enterprise sphere, together with customer support. And for good motive. Used proper, AI can present invaluable insights into your clients’ behaviors and preferences, enhance the effectivity of your customer support workforce and improve total satisfaction.

    Between dynamic personalization, streamlined buy processes and predictive buyer assist, many small companies are leveraging AI to degree the enjoying area and supply enterprise-grade customer support.

    Nevertheless, regardless of AI’s large potential, there are a number of potential pitfalls when utilizing AI in customer support. At worst, AI can scare off clients or generate frustration, reasonably than serving to to streamline processes.

    Listed below are the 4 most typical errors — and keep away from them.

    Associated: How Small Businesses Can Leverage AI Without Breaking the Bank

    1. Irritating generic chatbots

    To begin with, chatbots is usually a nice asset to your workforce members and clients alike. They’ll speedily deal with routine queries, liberate your brokers’ capacities, reply to clients even exterior common enterprise hours and cut back wait instances.

    Nevertheless, to be efficient, chatbots have to be well-trained and customized.

    Sadly, many corporations — in a rush to remain forward within the AI race — deployed chatbots that ask too many questions, give generic solutions and fail to unravel queries.

    In a single hilarious example, NYC’s MyCity chatbot saved giving fallacious solutions even six months post-deployment and after $600,000 in investments, misinforming customers about authorized necessities for enterprise homeowners and even primary info such because the minimal wage.

    General, 80% of people reported that interactions with chatbots have elevated their frustration reasonably than resulting in faster options to the problems they have been dealing with.

    To keep away from this, it is essential that chatbots are educated effectively on company-internal information. Ideally, they need to be capable of leverage customer-specific information throughout quite a lot of completely different channels in an effort to present customized, environment friendly assist to each one that reaches out.

    2. Unaccessible siloed information

    On that be aware, one other widespread pitfall to keep away from when implementing AI in customer support is data siloing. Considered one of AI’s biggest strengths is its capability to course of large quantities of information and unearth patterns and tendencies, condensed into actionable insights. These insights can then be leveraged for personalization and focused technique changes.

    Nevertheless, that is solely attainable if AI truly has entry to all the required information components — and that may be a problem many small companies are presently dealing with.

    The truth is, a recent study by Nextiva, a market chief in buyer expertise software program options, discovered that amongst firm management, information siloing was recognized as some of the widespread obstacles to AI implementation. Within the examine, 39% of respondents agreed that they “struggled with accessibility, aggregation, integration and construction of real-time and historic information.”

    To keep away from this limitation, it is important to audit information storage and integration as quickly as you begin planning your AI implementation technique. Ensuring from the beginning that the methods you might be contemplating combine effectively — or that bridge options are a minimum of accessible — will keep away from pointless siloing and frustration down the road.

    Associated: AI Can Give You New Insights About Your Customers for Cheap. Here’s How to Make It Work for You.

    3. Going overboard on hyper-personalization and automation

    On the opposite finish of the spectrum are companies that go overboard of their enthusiasm for AI, to a level that may seem off-putting to many purchasers. This contains hyper-personalization and automation processes.

    Whereas personalization is a key benefit of AI and may enhance the effectivity of customer support brokers and the satisfaction of the folks they work together with, you do not wish to seem omniscient both. Having the impression that an organization is aware of all the things about them earlier than they even speak to you is seen as acutely creepy by many purchasers.

    Salesbots, specifically, usually trigger the uncanny valley effect, or scare off potential clients by leveraging info they do not really feel they should have entry to.

    To keep away from this explicit pitfall, it is important to rigorously calibrate the extent of personalisation you implement and weigh its potential advantages in boosting conversions towards clients’ notion of intrusiveness.

    4. Forgetting human escalation choices

    Lastly, a widespread mistake small companies make in leveraging AI for customer support is to neglect human escalation choices, particularly in buyer assist. It doesn’t matter what your AI can do, it is all the time mandatory to supply clients the choice to speak to a human agent as a substitute.

    There’s nothing extra irritating for a buyer dealing with an pressing drawback than being caught in an ineffective dialog loop with a chatbot or a digital cellphone agent when an precise particular person would clearly assist them attain an answer way more effectively.

    Exterior enterprise hours, when AI is the one one holding down the fort, it is usually sufficient to supply clients the choice to go away a message and guarantee them you’ll contact them as quickly as attainable. Aside from that, although, it is advisable give folks the choice of a human lifeline to assist put out an pressing hearth.

    Associated: Does AI Deserve All the Hype? Here’s How You Can Actually Use AI in Your Business

    Conclusion

    In 2025, AI is an unimaginable asset that small companies can leverage to raise their customer support. It’s, nonetheless, not a panacea.

    To successfully harness the potential of AI and keep away from widespread pitfalls, it’s a necessity to rigorously plan and prepare the methods you are deploying, train discretion with respect to personalization and implement a human failsafe choice.

    By sticking to those tenets, although, you’ll profit from the alternatives AI has to supply for small companies in customer support and improve your total buyer satisfaction.

    AI is omnipresent in 2025 in all areas of the enterprise sphere, together with customer support. And for good motive. Used proper, AI can present invaluable insights into your clients’ behaviors and preferences, enhance the effectivity of your customer support workforce and improve total satisfaction.

    Between dynamic personalization, streamlined buy processes and predictive buyer assist, many small companies are leveraging AI to degree the enjoying area and supply enterprise-grade customer support.

    Nevertheless, regardless of AI’s large potential, there are a number of potential pitfalls when utilizing AI in customer support. At worst, AI can scare off clients or generate frustration, reasonably than serving to to streamline processes.

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