AI agents for customer support, "real" or another "fad"?

If you teleport back to 2014 and land at a customer support conference, everyone will be talking about:

“Chatbots will change how customer support looks in the future”

Ten years later, this statement is dumbfounded.

While chatbots promised a revolution, they never quite lived up to the hype.

Instead of providing seamless interactions, they often frustrated customers and trapped them in loops of canned responses that rarely solved their issues.

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So yeah, chatbots are so 2010 and they suck…

We all agree that traditional chatbots are about as helpful as a chocolate teapot.

Sure, they might handle the “What are your opening hours?” questions, but anything more complex and they’re like a deer in headlights.

User: “I need help with my account.”
Chatbot: “Here’s a link to our FAQ page!”
User: 🤦‍♂️

It’s no wonder that 73% of customers find chatbots frustrating.

Yeah, I just pulled that stat out of thin air, but admit it, it feels true!

So, if chatbots are out, what’s in?

Great question!

The real transformation in customer support has come from AI agents, they’re far more advanced, capable, and customer-centric than their predecessors.

I wouldn’t term them as chatbots 2.0, that will IMO not do justice to what they’re capable of…

Agents today can understand context, handle complex queries, and adapt to customer needs in real-time, delivering the kind of support experiences customers expect in 2024.

What on earth is an AI agent?

Alright, I promise not to get too nerdy here, but let’s peek under the hood of these AI agents.

When people hear “AI agents,” they often lump them together with chatbots, but that’s where the confusion starts.

Chatbots, by nature, are limited to rigid scripts or structures and answer questions they’ve been programmed for.

They don’t understand context, so they’ll keep asking for your order number even after you’ve told them five times you can’t find it 😭

So how are AI agents different?

Natural language processing (NLP):
AI agents use NLP to understand human language, the way it’s meant to be understood – Full of nuance, context, and even sarcasm.

At this point, they speak human, better than most humans 😂

User: “Great, my order is late. Just perfect.”
Chatbot: ??????????
AI agent: “I’m sorry your order is delayed. Let’s see how we can fix this for you.”

See the difference?

Machine Learning:
With every conversation, these AI agents get smarter with the feedback given to them.

Unlike chatbots, which stay static and predictable, AI agents become better.

They learn from past interactions, remembering every resolution, happy customer, or complaint, and adapt to new situations.

In short, the more you use it, the better it gets.

Integrated with your existing tech stack:
AI agents can connect with your existing tech stack.

They play nice with all your existing systems, whether your CRM, ticketing system, or knowledge base.

How does this help?

CONTEXT

They can pull up a customer’s history, check order statuses, or even process refunds without running in circles or asking other humans.

How about that?

I get it, will this help woo customers my way?

Straight to business, I like it.

Here’s how it can help woo customers your way:

Understanding and empathy in every interaction
AI agents are built to understand your customers at a deeper level. With NLP, they can pick up on context, sentiment, and even subtle frustrations. To put things into context, if a customer can’t find their order number while asking for a return, an AI agent can suggest using email or a number for verification. Personalization makes your customers feel heard, and valued, and salvages frustrations into positive experiences.
Tailoring responses to fit your brand
AI agents can embody your brand’s tone and personality. Whether your brand is professional, fun, or casual, AI agents can adopt the appropriate voice, maintaining consistency across customer interactions. They can even sprinkle in emojis or humor if that’s what your brand is known for. (Like me 👀) That’s what you need to build stronger, long-lasting relationships with your customers by making each interaction feel uniquely on-brand.
Handling complex requests with ease
AI agents thrive in managing complex and nuanced customer questions. Think about questions on subscriptions, refunds, product recommendations, or any other specific questions that pique your curiousity. Let your imagination run wild As these agents train on your data set and tech stack, they know your customer end-to end and can intervene at the right time, improving your CSAT and loyalty.
Seamless multi-tasking for enhanced support
Customers often have multiple requests during a single interaction. They might want to return a product while also asking about new arrivals. AI agents do an amazing job at multi-tasking, and handling related requests in a single conversation without losing context. This ensures your customers are fully supported and understood, leading to more productive interactions and higher satisfaction.
Continuous learning loop
One of the standout features of these agents is their ability to learn and improve with each interaction. (check the ML section above) As they handle more queries, they can refine their responses, becoming smarter and more efficient with time. They stay updated with new product launches, policy changes, and customer preferences, ensuring they always provide accurate, current information. This continuous improvement means your customers get the best possible support, no matter how your processes evolve.

To be clear, it doesn’t only help your customers – it helps your agents, too.

These 4 points should cover “how”

Handling repetitive questions
Blazing fast responses
Escalations built-in
Constant learning
Metric reporting

I’ve written extensively about these benefits + a lot more here

Check it out and lmk if you disagree

Does the business case hold up in court?

It def does, and here are my top reasons why they’re a smart investment

Productivity gains for support agents

AI agents handle routine, repetitive queries to free up an agent’s time to focus on complex tasks.

Result? Better customer experience as they can provide more thoughtful support where it is needed the most

Faster response times and increased first-contact resolutions mean fewer back-and-forth, leading to a smoother, more efficient support process.

In short, AI agents make both customers and your team happier. 💪🏻

Better bottom line 🤑

Using smart workflow automation and auto-handling of L1 tickets, you reduce the need for human agents required for the same workload.

AI agents can handle large volumes simultaneously, giving consistent results at a fraction of the cost.

So, improving response times and providing better customer service leads to higher customer retention rates.

Customers who feel their issues are solved quickly will naturally feel wanted and stick around, reducing churn and increasing their LTV (lifetime value).

Are you not entertained?

Scale without breaking the bank

When you 10X your customers, the demand on your support team increases.

AI agents allow you to scale your customer service without sacrificing quality. (very imp when you’re hyperscaling)

Whether you’re handling hundreds or thousands of customers, they can manage the workload, so each interaction is handled with the same speed and accuracy.

Pretty unheard of in customer support? I know 👀

Farewell, chatbots?

If you’re still not convinced that AI agents > chatbots, then I’ve nothing to say to you 😅

But for everyone else, we’re moving towards a future where AI agents will play a pivotal role in almost every customer interaction.

With predictions that up to 80% of customer questions will be resolved autonomously, you can no longer ignore this paradigm shift.

Most of your customers use ChatGPT, Claude, Gemini, and similar LLMs, every day, so they know what a good AI bot looks like, and how intuitive it should be.

AI agents are becoming smarter, more accessible, and capable of crafting highly personalized customer journeys.

They’re no longer limited by rigid scripts or performing basic tasks and can respond in real time with empathy and precision, ensuring that every customer feels understood and valued.

So yeah, goodbye chatbots 😂

**If you’re not ready for this yet, we can help….

Time to plug our AI customer support tool, obviously 😉

If you think you’re evaluating AI for your customer support team, talk to us and we can figure out if Albus can help you: