AI customer service chatbots: everything you need to know for 2024

Customer service is crucial for business success. We’ll show you how to leverage the power of chatbots to supercharge business growth.

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Chatbots are a game-changer when it comes to customer service. As artificial intelligence (AI) evolves, chatbots have become smarter and now offer a time-efficient alternative to the tedious and repetitive tasks often given to your service representatives. The wins are plenty – cost-efficiency, more engaged employees, satisfied customers, and a streamlined customer service experience.

According to Juniper Research, companies that utilise AI chatbots have seen an 80% increase in customer satisfaction. For businesses looking to scale and enhance their customer retention, this guide is essential.

Benefits of chatbots

Chatbots analyse text for keywords and phrases related to common customer roadblocks and then provide self-service solutions to a customer’s question(s). This translates into lower operational costs, higher customer retention, and lower employee burnout. Here are the key benefits of utilising AI customer service:

  • Reduced case volumes: with the help of chatbots, businesses are able to free customer service representatives from dealing with simple and repetitive issues, and have them focus on unusual or complex problems instead.
  • Seamless integrations: chatbots seamlessly integrate with your Customer Relationship Management (CRM) system, ensuring that your customers don’t have to rehash the details when transitioning from bot to human interaction. Plus, with the power to look up data instantaneously, chatbots add a personalised touch to customer interactions, which can help foster customer loyalty.
  • Task automation: Chatbots can provide answers and take charge of follow-ups. This could be scheduling a meeting or sending a follow-up email to your client to retrieve feedback on their customer experience. This not only maintains a consistent customer experience but also helps your team surface unfulfilled customer needs.
  • Multi-channel support: websites, social media, and messaging apps – chatbots can easily integrate into any of your digital channels, ready to help out customers however they choose to interact with your business. This coordination makes for more effective communication with your customers and you never miss a client query or complaint.
  • 24/7 availability: in a world that never sleeps, customer support needs to be readily available Chatbots ensure round-the-clock support. This is particularly useful when your customers reside in different time zones or face urgent product or service emergencies.

Key considerations when implementing chatbots

While there are numerous benefits to integrating chatbots and your customer service setup, there are some key factors you’ll need to consider to ensure your chatbot is cost-efficient and safe.

  • Initial investment and ROI: integrating a chatbot comes with its set of upfront costs, and your business must weigh these against the expected return on investment (ROI). While building custom chatbots may seem appealing, it’s crucial to recognize the potential pitfalls. Without prior experience and understanding, home-grown chatbots can quickly become mismanaged, disorganised, and expensive. For those new to chatbot implementation, opting for pre-built solutions can provide an efficient and cost-effective entry point.
  • Data security and privacy: You’ll need to confirm that your chatbot complies with regulations such as GDPR and any other industry or location-specific privacy laws. Practices like user identity authentication, intent-level authorization, channel authorization, end-to-end encryption, and intent-level privacy will help you safeguard privacy and safety standards.
  • Human oversight and intervention: while chatbots can handle routine queries and tasks, there are scenarios where human intervention is a must – after all, in complex issues, employing emotional intelligence is necessary. Ensure that there is always a mechanism in place for a human to take over a conversation when necessary to keep your customers satisfied.
Did you know?

According to Outgrow, it is predicted that businesses will soon have a chatbot and use the GPT-3 technologies from OpenAI to assist customers more effectively.

What’s next for chatbots in 2024?

As AI technology evolves, here are some exciting trends and predictions for where chatbots are headed in 2024.

More human-like interactions

Thanks to Natural Language Processing (NLP) and machine learning, chatbots are more context-aware and can better understand interactions and identify what a customer needs. This makes it difficult to differentiate between a bot and a human customer services representative. While this might sound like it came out of a sci-fi novel, this is great news for businesses. Your customers will feel their query was properly answered and understood, all while having a personalised, data-driven interaction.

Industry-specific customisation

With the launch of the GPT store and the ease with which chatbots can now be created with native data, businesses can build bots that fit the specific needs of their company. Through tailored solutions for sectors such as ecommerce, healthcare, and hospitality, chatbots will now possess domain-specific expertise. This will give users a refined and personalised experience.

Did someone say *more* fintech?

Financial institutions are embracing the integration of payment options within chatbots. Using APIs, these bots facilitate seamless payment processes by sending secure payment requests and providing links for transactions.

Melting into your CRM systems

Chatbots will be better equipped to synchronise with your CRM system in 2024, leveraging user data to offer a personalised customer service experience. This will help enhance your customer interactions by making it easier and faster to find solutions to queries.

Overwhelmed by the number of AI chatbots on the internet? We’ve hand-picked a few to help you find the correct one for your business.

  • Tidio – best for small to medium-sized businesses
  • Freshchat – best for multi-channel customer engagement
  • Zoho SalesIQ – best for customisation options
  • Drift – best for real-time conversations with website visitors
  • Conversica – best for automated customer follow-ups


When properly implemented, chatbots can bring huge advantages to businesses looking to improve their customer service. From keeping customers happier by resolving common queries and streamlining communications to saving money by avoiding the need to hire more customer service reps, chatbots are a key tool for customer service success.

Frequently Asked Questions
  • Is AI replacing customer service?
    Yes and no. While AI is transforming customer service by automating routine tasks and enhancing efficiency, it is far from a complete replacement for humans. Humans are still needed to handle crucial queries with the empathy and emotional intelligence that bots lack. If anything, AI is proving to be more of a collaborative tool than a substitute for great customer service.
  • What companies use AI for customer service?
    There are plenty of large companies that rely on AI for their customer service through the likes of chatbots, including Amazon, Bank of America, Marriott International, and H&M.
  • How do I train ChatGPT as customer service?
    You can train ChatGPT to work as a customer service rep by creating an account in Social Intents, heading to ‘My Apps’ and editing your Live Chat Settings. Then, click on the ‘Train your chatbot’ button in the Chatbot Settings where you can list the pages and information you want to train your chatbot on.
Written by:
Fernanda is a Mexican-born Startups Writer. Specialising in the Marketing & Finding Customers pillar, she’s always on the lookout for how startups can leverage tools, software, and insights to help solidify their brand, retain clients, and find new areas for growth. Having grown up in Mexico City and Abu Dhabi, Fernanda is passionate about how businesses can adapt to new challenges in different economic environments to grow and find creative ways to engage with new and existing customers. With a background in journalism, politics, and international relations, Fernanda has written for a multitude of online magazines about topics ranging from Latin American politics to how businesses can retain staff during a recession. She is currently strengthening her journalistic muscle by studying for a part-time multimedia journalism degree from the National Council of Training for Journalists (NCTJ).

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