Future of customer support with Generative AI

This whitepaper examines the impact of Generative AI on customer support, highlighting its rapid growth and $13 billion market value since OpenAI's ChatGPT debut. By 2025, it's expected 50% of Fortune 500 firms will use Generative AI, influencing content creation to drug discovery. It explores innovations by OpenAI, Google, and others, focusing on voice and visual advancements transforming customer support and industry trends.

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Table of Contents

    What's Generative AI?

    In the age of artificial intelligence, if we say that customer support is not evolving at a pace that has not been seen in recent years, we would be lying. Customer support as we know it is over. ChatGPT, Bard, LLama and other Generative AI tools powered by Large Language Models are going to make a significant impact on most of the spheres of the modern business, and Customer support is no different.

    Generative AI uses the power of advanced algorithms, which are based on neural networks, to generate new content in the form of text, images, videos or entire experiences. Generative AI deviates from traditional AI since it draws its knowledge from a vast dataset that has been fed to it, which gives it the ability to give contextually relevant answers.

    In a recent interview, it was the visionary Bill Gates who said that, “ In the near future, anyone who's online will be able to have a personal assistant powered by artificial intelligence that's far beyond today's technology."

    With this context, we are about to explore the role that Generative AI is going to play in customer support in the coming years. We are going to focus on the capabilities of harnessing the power of Generative AI, especially using Voice and visuals.

    Generative AI explanation

    Market adoption of Generative AI technology

    Artificial intelligence is a field of science that has slowly evolved from being a part of science fiction to becoming part of our everyday lives in a matter of a couple of decades. From the early 50s where scientists like Alan Turing and Marvin Minsky laid the framework for modern Artificial Intelligence, with the term officially coming into existence during the Dartmouth conference of 1956.

    Decades of research by various computer scientists later, AI today is smarter than ever, with the ability to create entire coherent sentences and solve complex problems. Generative AI, which is a subset of artificial intelligence, is also making all the right noise.

    The global Generative AI market is currently worth over $13 billion. It has been just over a year since most of these tools debuted (ChatGPT on 30 November 2022, Google Bard on March 21, 2023, Anthropic Claude in March 2023, and Midjourney in July 2022). Already, Gartner predicts that by 2025, Generative AI augmented tools will be used by at least 50% of the workforce of fortune 100 companies.

    Market adoption statistics

    And organizations are already beginning to realize the enormous potential that Generative AI can have on their bottom lines. Take, for instance, this McKinsey report in which over 40% of the respondents say that they are planning to invest in AI due to the advances in Generative AI.

    Individuals and organizations across industries, irrespective of their age or job function, are starting to adopt Gen AI in one form or another. 22% of the respondents to the same survey said that they regularly use GenAI at work.

    Gen AI finds its application mostly in the marketing and sales departments, with respondents saying they use Gen AI to create first drafts, personalize marketing, and summarize text documents using tools such as ChatGPT.

    Content Creation

    With Generative AI tools such as Midjourney, companies can produce high-quality, original content at scale. Not just written content, Generative AI can also be used to generate images, music and videos, where they can cater to the diverse marketing needs.

    Personalization

    Every individual prefers an experience that is tailored to their needs. Generative AI algorithms can tailor make recommendations according to each individual needs, along with customized marketing campaigns.

    Generative AI application

    Drug discovery

    Drug discovery was a field of science that always involved a lot of trial and error, and now, with Generative AI, novel drug candidates can be generated and their properties predicted. Analyzing datasets of molecular structures was one task that used to take a lot of time and resources, and Generative AI techniques can do this activity within a short period of time, bypassing the traditional drug discovery process.

    How does Generative AI work?

    Artificial Intelligence has taken the world by storm. Ever since the introduction of ChatGPT last November, the world has seen a paradigm shift in the way information is being searched and consumed. While we may not see the death of the modern search engine the way we imagine it, there is likely going to be a sea change in the way people are going to interact with computers.

    Take the Hu.Ma.Ne AI Pin for example. This wearable piece of technology is poised to revolutionize the smartphone industry. The interaction between humans and computers is seamless, and soon, we may even see the disappearance of apps, which have been ruling the roost fora decade and a half now.

    Generative AI working

    Generative AI As explained by Generative AI

    We can go on and on about how powerful Generative AI is, but instead, let us show with an example.

    We asked ChatGPT to explain Generative AI to a 10 year old with a medium knowledge about computers.

    This is the answer that ChatGPT came up with, which, in our opinion, is a pretty good starting point:

    Sure! Imagine you have a really smart robot friend. This friend is not just good at following rules; it's also fantastic at making up new things all by itself. Let's call this robot friend "Generative AI."

    Now, you know how you can teach your friend to recognize different animals by showing it pictures, right? Well, Generative AI is like that, but even cooler. Instead of just recognizing things, it can create its own pictures, stories, or even music!

    Here's how it works: you give your robot friend lots and lots of examples, like tons of pictures of cats, dogs, and other animals. Your friend looks at all these pictures and learns what makes a cat look like a cat and a dog look like a dog

    Generative AI explanation

    Now, the magic happens when you ask your friend to make a picture of a new animal it has never seen before. Using what it learned from all those examples, the robot friend gets creative and draws something new that looks like it belongs in the animal kingdom.

    So, in simple words, Generative AI is like having a creative robot friend that learns from examples and can come up with new and interesting things on its own, just like you do when you draw or tell stories. It's like having a buddy who can think and create in a really smart and imaginative way!

    Technicalities of Generative AI

    Generative AI is cutting edge technology, and underneath the hood, there lies some pretty amazing innovations that make you go “Wow!” In this next section, we are going to look at a few technical concepts that power the modern Generative AI engines. These concepts may be a bit technical, but we will make it as simple to understand as possible

    Here are a few terms you should be familiar with:

    Neural Networks

    The human brain consists of billions of neurons, which form the basis of most of our cognitive functions, including memory and creativity. Inspired by this architecture, computer scientists have devised neural networks, which consist of layers of artificial neurons.

    Latent space

    Latent space can be considered as an abstract representation of data that captures the underlying structure and variations in the original, high dimensional data space. It is simply a representation of compressed data.

    Generative AI technicalities

    Probability distributions

    Generative AI does not produce a set deterministic output, but rather a probability of various elements of the content it is creating. The introduction of this probabilistic approach leads to much more creative and contextually relevant answers.

    Now, there are 2 types of approaches Generative AI uses to create new content. One is Variational AutoEncoders and the other is Generative Adversarial Networks (GANs).

    Variational AutoEncoders (VAEs)

    Variational auto encoders use a combination of neural networks to produce the desired result. The two interconnected neural networks are called an encoder and a decoder. The encoder takes input data points and converts them into compressed data called latent space or latent variables. This serves as the compact blueprint for the data.

    VAEs work under the principle of dimensionality reduction. From the latent code, VAEs can generate new data points that share the characteristics of the original training data.

    The decoder network takes samples from the sample space and reconstructs it back to the original input space. Through VAEs, machines can thus generate novel and original content that captures the essence of the data that they were trained upon.

    Generative AI Variational AutoEncoders

    The ability of VAEs to capture the underlying structure of data and then create novel variations out of it make them a valuable tool for data augmentation. VAEs find their application in a wide variety of domains, including image generation, music composition etc.

    Generative Adversarial Networks (GANs)

    The more commonly used type of Generative AI, GANs consist of two neural networks. One is called a generator and the other is called a discriminator. These neural networks are pitted against each other in a perpetual battle.

    The first neural network, called the generator, produces new data that closely resembles the training data. The discriminator, which is the second neural network, is tasked with discerning the difference between genuine data and the data created by the generator

    As these two neural networks compete against each other, the generator gets better and better and deceives the discriminator. The discriminator also gets better at identifying data that is artificially generated. This interplay of the neural networks leads both of them to excel, leading to the generation of increasingly original data.

    GANs have also been known to produce high quality images, videos and text, which shows how versatile they are.

    Generative AI adversarial

    Major players in the Generative AI Space

    We have seen how generative AI works, now lets see some of the major players in the market who are pioneering this technology.

    OpenAI : ChatGPT

    ChatGPT opened the floodgates to artificial intelligence and, in turn, generative AI. Launched on November 30,2022, ChatGPT became the fastest growing internet application, reaching 100 million users within a short span of time. OpenAI has Sam Altman and Greg Brockman at the helm, and the flagship product, ChatGPT 3.5 and ChatGPT 4, has found widespread acceptance among a majority of AI enthusiasts.

    ChatGPT icon

    Google : Bard now Gemini

    When ChatGPT was launched in November 2022, Google sensed a threat to its very existence, and there have been unconfirmed reports that Google CEO Sundar Pichai issued a “code red.” Google has been quick to act, Google Bard was the answer. Bard was released to the general public in February of 2023, and took the center stage during Google’s I/O conference this year.

    Gemini icon

    Anthropic: Claude

    Claude, developed by the parent company Anthropic, has a very interesting history. Siblings Daniela and Dario Amodei, who were previously working at OpenAI, branched off because they did not like the direction the company was headed. Claude made its debut on March 2023, and, after some refinements, Claude 2 came to the scene in July 2023. Claude is being seen as a direct competitor to OpenAI’s ChatGPT, with some saying that the chatbot even surpasses the capabilities of ChatGPT 4.

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    Midjourney

    Imagine having the ability to generate completely original images using just a few lines of descriptive text. This is exactly what Midjourney offers, and is a company that is at the forefront of AI research, especially in the image generation space. Midjourney was made available to the public as early as February 2022, but has been gaining a lot of traction in the recent past. The company, and its founder David Holz, are being seen as pioneers in the generative AI space, and have the distinction of generating over $200 million in revenue, with a mere 40 employees and without external funding.

    midjourney icon

    We have seen some of the major players in the Gen AI space. Let us see how Generative AI is making an impact in the customer support sphere.

    Generative AI and Customer Support

    Generative AI is changing the way a lot of businesses around the world operate, and customer support is just one sphere that is going to be impacted in a huge manner. Gen AI is going to change the way businesses interact with customers, providing round the clock customer support and improving efficiency.

    Here’s how Generative AI is going to impact Customer Support in real life:

    24/7 Support:

    Generative AI powered chatbots and virtual assistants are on the forefront of providing assistance to customers 24 hours a day, 7 days a week. Generative AI powered chatbots don’t take breaks, are usually instantaneous in their response, and get the context almost as much as a human agent. They can answer customer queries, provide product information, and fetch all the requisite details that a customer asks in the least possible period of time. Make your business run around the clock with Gen AI.

    Provide personalization at scale

    If businesses have learnt one thing about the customers in the digital age, it is that personalization can go a long way in ensuring a customer stays with a business. According to a McKinsey report, 76% of the consumers will make a repeat purchase from a brand that personalizes. A customer's history, past purchases and preferences can make a generative AI engine anticipate the needs and offer personalized recommendations

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    Automate repetitive tasks

    One of the tasks that customer support teams dread, but is essential for the functioning of everyday business, is answering questions that are repetitive in nature. Customer support agents cite answering these repetitive queries as one of the most dreadful parts of their jobs, and it is ripe for automation. This is where Gen AI can step in. Using sophisticated algorithms, chatbots and voice assistants powered by Generative AI can answer “n” number of questions, without breaking a sweat. This leaves the customer support agents to concentrate on the more complex queries, which they need more time and attention on.

    Proactive support

    One thing that a customer appreciates, especially with an ecommerce store, is a business that anticipates their problems and provides proactive support. For instance, if a customer says they are facing an issue with an item they have purchased, businesses can be proactive and ship them a replacement even before they have returned the item. This way, the customer knows that the business cares about them, and Generative AI can go a long way to provide this kind of proactive support.

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    Generative AI thus plays a pivotal role in providing customer support. Let us now explore some of the fields Gen AI is making inroads into

    Significance of Voice in Customer Support

    Voice support is one of the oldest modes of customer support there is. In fact, the history of voice in customer support is quite interesting:

    • A study by the CFI group has shown that 76% of the respondents feel more comfortable with traditional phone calls to customer support representatives to resolve their issues.
    • A Zendesk report says 70% of the customers are irritated when their call is transferred from one department to another.
    • 33% of the customers are most frustrated when they have to stay on hold, according to Hubspot research

    All this points to one thing - voice is still a key part of the customer support puzzle.

    customer image

    Here are the benefits of using Voice in Customer support -

    Voice bots are for everyone

    Voice bots are more inclusive, which means they can be used by all of your customers, irrespective of their age or education level. There have been instances where the elderly have faced issues with customer support because they cannot communicate effectively with the support team. Voice bot eliminates such instances.

    Customers can convey their emotions clearly

    Customer support has evolved drastically in the age of the internet, with email, chat and voice coming to the forefront. Of all these channels, it is voice support where the customers can display their emotions more clearly, giving businesses the opportunity to provide proactive customer support.

    customer voice benefit image

    Quick resolution of customer queries

    When businesses employ voice chatbots for their support needs, the are ensuring that customers get instant replies to their queries. Voicebots make sure that both complex and repetitive queries are answered faster, and there is less ambiguity when it comes to what exactly a customer’s pain point is.

    Better personalization

    As we have mentioned earlier, better personalization leads to better CX. Businesses that allow customers to speak in their preferred languages will always be loved. Voice chatbots can also know the customers preferences and call them out by their names, all tiny details that make a big difference to the way the customers perceive the brand

    How Generative AI is amplifying the human touch

    Voice chatbots, powered by Generative AI, use advanced natural language processing (NLP) and voice recognition technologies. Generative AI can not only understand natural language spoken by a human being, it can also emulate a conversation as though it was a real human being on the other side of the call.

    Generative AI is also helpful in the fact that it is multilingual, meaning it further amplifies the inclusivity aspect we discussed earlier. Also, we live in the era of instant gratification. A whopping 90% of the people polled in this Hyken report say they will move to a competition after just one bad customer interaction.

    Customers often seek swift resolution to their queries, and voice enabled bots allow customers to articulate their issues verbally, without the need to laboriously type out their queries. Automated self -service options powered by Generative AI further boosts CX, as corroborated by a Zendesk study which found that 4 in 10 agents feel customers who cannot find answers to their queries on their own feel angry and frustrated.

    Generative AI ensures that customers receive targeted assistance, through their context-aware voice interactions. Probably the most important aspect of Generative AI is that it can understand the context of a conversation and consider the previous interactions, user history and the specific nature of the current query.

    Generative ai human touch

    Visuals in Customer Engagement

    Human beings are visual creatures. A substantial portion of the human brain is dedicated to processing visual imagery. Images, videos, visuals and infographics have been used to convey complex information quickly and effectively.

    Visual cortex In the context of customer support, visual content enhances the clarity of communication, which leads to improved retention and understanding. Generative AI tools can provide step-by-step visual guides for troubleshooting and offer visually appealing product displays

    visual in customer engagement

    Visual content is crucial because the human brain processes images faster than text, making it a powerful tool for communication and information retention

    Product illustrations

    Generative AI can help create detailed and accurate product illustrations. With this, customers can easily understand all the various features that the product offers, along with the product’s functionalities.

    For example, in the first week of November 2023, Google launched a set of Generative AI product imagery tools for those who are willing to advertise in the U.S. Users will simply have to type the prompt of the image they want to use, and the images will be generated via the text-to-image capabilities of AI.

    The company showcased the Product Studio by typing something like “a skincare product that was surrounded by peaches with tropical plants in the background.” Now, the same company can request the product to be placed in a winter inspired setting, with “snow surrounded by pine branches or pine cones.”

    product illustrations

    This is how the second image looks like, generated by Google’s Product Studio.

    Personalized visualizations

    Data visualization is the art of converting raw or unprocessed data into pictorial format, which will enable businesses to make sense of a large pool of data. This visual representation can be in the form of graphs, infographics, maps or even charts.

    With Generative AI, businesses can create personalized visualizations of customer data, turning complex, multidimensional data into visually appealing, interactive and insightful representations.

    Data is no longer just pretty. Generative AI makes data accessible, understandable and eventually, valuable. In the future, we may see Generative AI create dynamic stories out of data that may evolve in realtime as the data does

    Personalized visualization

    Interactive Knowledge Bases

    Interactive knowledge base

    Knowledge base in the form of written content has always been difficult to create for the modern business, simply because of the time and resources required. All this changes with generative AI.

    Generative AI can help write new articles from bullet points or powerpoint decks that the employees have created to explain a certain process. Generative AI can even listen in to the recording of a customer call, identifying the major pain points of the customer and the solution that the representative offered them. Using this, it can create a complex knowledge base, which can be used to resolve queries quickly in the future.

    Another important application of Generative AI is that it greatly enhances the search functionality within the knowledge base. Previously, misspelled words or prompts used to trip up the search functions in the knowledge bases, leading to a poor CX. With Generative AI powered search engines, knowledge bases become all the more powerful.

    Generative AI can also pull answers from specific sections of a lengthy paragraph or article and present them in a conversational style.

    Now that we know how Generative AI helps customers in the department, let us see what the future holds for this technology

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    Future trends in Generative AI for Customer support

    We have seen how voice, text and multimodal interactions are set to redefine the way customers engage with businesses. But there is more, a lot more.

    There are nuanced and often overlooked trends, which will reshape the future of how customer support will be delivered using Generative AI.

    Some of these include:

    a. Support agents will get cognitive augmentation

    Support agents will no longer be relegated to getting automated responses, but rather their entire human capabilities will be enhanced. During customer interactions, support agents with Generative AI backing them will get sentiment analysis, dynamic suggestions and real-time insights. They will act as intelligent companions, making even novice support team members seem experts.

    cognitive augmentation

    b. Hybrid learning architecture

    Currently, what the AI models are good at is identifying the patterns behind customer queries. But what if they were also able to identify the logic behind these breakdowns? We see an emergence of hybrid learning architectures, which combine symbolic reasoning with neural network capabilities, which will accomplish exactly this. Gen AI can grasp the intricacies in context, which will lead to much more intelligent resoonses.

    c. Explainable AI

    The exact nature of how AI reaches a particular decision has been a bone of contention among many, especially in the customer support circle. This will change with the emergence of explainable AI. Explainable AI will bring in transparency in the way AI models arrive at specific responses. When businesses make AI decisions more interpretable, businesses will get trust with customers, which showcases accountability in the customer support process.

    Hybrid learning architecture

    While we have seen how Generative AI works and the changes it is going to bring in various realms ofcustomer support, there are a few limitations that we must address

    Limitations of Generative AI

    Lack of empathy

    While Generative AI technology may give us all the answers we are looking for, it still lacks the empathy and emotional intelligence of a human agent. Generative AI chatbots may not be adept at dealing with sensitive situations and will fail at building a rapport with the customers.

    Relying too much on automation

    Building on the previous point, while Generative AI technologies can make the customer support process faster, it should not be seen as a complete replacement to traditional support. This is because gen AI technologies still lack the empathy and the emotional intelligence required to deal with sensitive customer queries.

    Lack of empathy

    Hallucinations lead to faulty information

    Many times, generative AI, when not capable of answering a question, tends to “hallucinate, ” creating output that is completely nonsensical or inaccurate. This can lead to a poor brand perception and erode customer trust, things that cannot be gained back easily.

    Bias and ethical considerations

    Fairness and inclusivity must be the cornerstones on which these LLMs must be trained upon, and care must be taken to ensure that they strictly adhere to ethical principles and address potential biases.

    Limited understanding of context and nuances

    While Generative AI tools may generate human-like conversations, they may not be able to grasp the subtleties of the language, or understand sarcasm. Failing to identify these emotional cues and overlooking critical information can lead to miscalculations and eventually frustration.

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    We are just grasping at the edges of what Generative AI can bring into the customer support realm. We have covered just the basics in this Whitepaper, and are sure that if we were writing the same Whitepaper next year, some of these areas will find sea changes. Generative AI will become an indispensable ally in delivering unparalleled customer experiences, and businesses will not just meet but exceed customer expectations.

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    Bot image

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