Table 1

Overview of conversational AI applications in text-based customer service

Conversational analyticsConversational coachingChatbots
Description of AI applicationConversational analytics extracts data from conversations using natural language processingConversational coaching teaches conversation partners to use verbal and non-verbal strategies to improve communicative interactions based on conversational data with natural language processingChatbots conduct conversations via text automatically with their users
Role in customer serviceGather insights from previous and ongoing customer service conversations and feedback these to customer service agentsRecommend actions to customer service agents based on gathered insights from conversational dataCustomer service chatbots replace human customer service agents and automatically respond to customer inquiries
Type of service encounterAI-supported service encounter
The customer directly interacts with a human (customer service agent), who is supported by AI
AI-supported service encounter
The customer directly interacts with a human (customer service agent), who is supported by AI
AI-performed service encounter
The customer directly interacts with an AI
Customer service tasks
  • •

    Understand customer journey

  • •

    Connect touchpoints (live chat, SMS, social media)

  • •

    Enforce compliance in call centers

  • •

    Root-cause analysis in conversations

  • •

    Auto-completing messages

  • •

    Recommending adjusting tone or volume (in voice)

  • •

    Transferring customers to other agents

  • •

    Recommending discounts

  • •

    Recommending appropriate pre-written responses

  • •

    Automate FAQs

  • •

    Gather initial information

  • •

    Track orders and deliveries

  • •

    Appointment scheduling

  • •

    Other company-specific customer service tasks

Common AI techniquesNatural language understanding techniques
  • •

    Sentiment analysis

  • •

    Part-of-speech tagging

  • •

    Intent detection

  • •

    Summarization

  • •

    Topic modeling

Natural language understanding techniques as in conversational analytics to gather insights plus
  • •

    Recommender systems

  • •

    Reinforcement learning

Chatbots also rely on natural language understanding and decision-making techniques but also require
  • •

    Natural language generation (e.g. language models)

  • •

    Dialogue state tracking

Opportunity for relational personalizationParticularly suited to extract knowledge about customer
  • •

    Customer journey mapping

  • •

    Sentiment analysis

  • •

    Emotion analysis

  • •

    Customer profiling

Particularly suitable for connecting conversation styles with customer knowledge
  • •

    Recommend personalized level of conversation style (e.g. less repetitive)

  • •

    Suggest use of emojis based on customer emotion

  • •

    Route customers to appropriate agent based on personality

  • •

    Suggest more appropriate (e.g. empathetic) response

Chatbots combine the other two applications and are particularly suitable for realizing personalized conversation styles
  • •

    Generating personalized responses

  • •

    Adjusting styles throughout conversations

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