AI Chatbots vs. Human Customer Service: Which is Better?

Hiruj Dutta
8 min readAug 17, 2024

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Hey there! Have you ever needed help with something online and found yourself chatting with a little box that pops up in the corner of your screen? Sometimes it’s a real person, but other times, it’s an AI chatbot — kind of like a digital helper. You might wonder, “Should I stick with the chatbot, or should I ask to talk to a real person?”

That’s a great question! In this article, I’m going to walk you through the differences between AI chatbots and human customer service. We’ll explore what each one is good at, where they might fall short, and when it’s best to use one over the other.

What Are AI Chatbots?

Let’s start with understanding what AI chatbots are. AI stands for “artificial intelligence.” That sounds fancy, but it just means that these chatbots are computer programs that can talk to you like a real person. They can answer your questions, help you find information, or guide you through something you need to do.

These chatbots are pretty smart. They can understand what you type and give you an answer that makes sense. They’re super helpful for things like finding out when a store is open or how to track your package.

The Strengths of AI Chatbots

Let’s start with the good stuff. AI chatbots can be a real game-changer for your business, especially if you have many customers. Here’s why:

  1. They Never Sleep: AI chatbots can work around the clock. This means your customers can get help any time of day or night. Imagine someone browsing your website at 3 AM and they have a question. A chatbot can jump in and help them out, which could lead to a sale that you wouldn’t have gotten otherwise.
  2. Handling High Volumes: If your business has tons of customers reaching out at once, a chatbot can handle multiple conversations simultaneously. This takes a huge load off your human customer service team, allowing them to focus on more complicated issues.
  3. Cost-Effective: Hiring and training a big customer service team can be expensive. On the other hand, once you’ve set up an AI chatbot, it doesn’t cost much to keep it running. This can save you a lot of money in the long run.
  4. Quick Responses: People today expect fast service. AI chatbots can give instant replies, which keeps customers happy and engaged. No one likes waiting around for an answer, and with a chatbot, they won’t have to.
  5. Consistency: Human agents can have bad days or make mistakes. AI chatbots, however, will always deliver the same quality of service, no matter what.

The Limitations of AI Chatbots

Now, as much as I love AI chatbots, they have limitations. It’s important to know what these are so you can decide when it’s better to use a human touch.

  1. Lack of Human Understanding: AI chatbots are smart, but they’re not human. They can’t always understand complex or emotional situations. For example, if a customer is frustrated, they might need a person who can empathize with them and offer a personalized solution.
  2. Limited Problem Solving: While chatbots are great at handling simple questions and tasks, they can struggle with more complicated issues. If the problem is outside of what the chatbot was trained on, it might not be able to help.
  3. Risk of Miscommunication: Sometimes, chatbots can misunderstand what a customer is asking for. This can lead to wrong answers, which can make the customer frustrated. When a chatbot can’t figure it out, it’s important to have a human ready to step in.

The Strengths of Human Customer Service

Now, let’s talk about the power of human customer service. There’s a reason why we still rely on real people to handle our customers, even in this age of technology.

  1. Empathy and Understanding: Humans can relate to other humans. We can pick up on tone, emotions, and unspoken cues. This is especially important when dealing with upset customers. A human agent can calm someone down, show empathy, and offer a solution that makes the customer feel heard and valued.
  2. Creative Problem Solving: Humans can think outside the box. If a customer has a unique problem, a human agent can come up with a creative solution that a chatbot might not even consider.
  3. Building Relationships: Building a connection with customers is something only a human can do. Friendly and helpful customer service can turn a one-time buyer into a loyal customer who keeps coming back.
  4. Handling Complex Issues: Some problems are just too complicated for a chatbot. Human agents can dig deeper into an issue, ask the right questions, and provide a detailed solution.
  5. Adaptability: Humans can adjust their approach based on the situation. They can change their tone, offer apologies, or even make small talk to keep the conversation light and positive.

The Limitations of Human Customer Service

Of course, human customer service isn’t perfect either. Some challenges come with relying solely on people.

  1. Cost: Hiring, training, and maintaining a customer service team can be expensive. If your business is growing quickly, you might find that you need to keep hiring more agents to keep up with demand.
  2. Limited Availability: Humans need breaks, sleep, and time off. This means that your customer service might not be available 24/7, which could lead to missed opportunities.
  3. Inconsistency: People have bad days. An agent might be tired, stressed, or just not in the mood to be super friendly. This can lead to inconsistent service, which might hurt your business’s reputation.
  4. Slower Response Times: Unlike AI chatbots, human agents can only handle one customer at a time. During busy periods, this can lead to longer wait times for customers, which can be frustrating.

When to Use AI Chatbots

So, when should you use AI chatbots in your business? Here are some scenarios where chatbots shine:

  1. High Volume of Inquiries: If your business gets a lot of customer inquiries, especially with common questions, an AI chatbot can handle the bulk of them. This frees up your human agents to focus on more complex issues.
  2. 24/7 Availability: If you want to offer customer support around the clock without hiring a night shift, a chatbot is the way to go. It can handle customer inquiries when your human team is off the clock.
  3. Cost Efficiency: If you’re looking to cut costs, especially as a small business or startup, a chatbot can provide customer support without the need for a large team.
  4. Quick Answers: For customers who need quick answers, like tracking an order or checking store hours, a chatbot can provide instant information without any wait time.
  5. First Point of Contact: You can use a chatbot as the first point of contact to gather basic information from the customer before passing it on to a human agent if needed. This can make the entire process more efficient.

When to Use Human Customer Service

On the other hand, there are times when nothing beats a real person. Here’s when you should rely on your human customer service team:

  1. Complex or Emotional Issues: If a customer has a complicated problem or is upset, a human agent is better equipped to handle the situation with empathy and understanding.
  2. Building Relationships: If your business relies on strong customer relationships, human agents are key. They can build rapport, make customers feel valued, and turn them into loyal fans.
  3. Creative Problem Solving: When a problem doesn’t have a straightforward solution, a human agent can think creatively and come up with a solution that a chatbot might not consider.
  4. Brand Representation: Your customer service team is a direct reflection of your brand. If you want to ensure that your customers have a personal and positive experience, human agents can provide that touch.
  5. Handling Escalations: When a customer is frustrated or a chatbot isn’t able to resolve an issue, human agents are necessary to step in and take over. They can offer a higher level of support and ensure the customer leaves happy.

Finding the Right Balance

The key to successful customer service in today’s world is finding the right balance between AI chatbots and human agents. It’s not about choosing one over the other; it’s about using each for what they’re best at. Here’s how you can strike that balance:

  1. Use Chatbots for Simple Tasks: Let chatbots handle the basic, repetitive tasks like answering FAQs, checking order status, or providing business information. This will lighten the load on your human team and keep things running smoothly.
  2. Human Agents for Complex Issues: Save your human agents for the more complex or emotional situations where a personal touch is needed. This way, your customers get the best of both worlds.
  3. Combine Forces: You can set up your chatbot to handle the initial inquiry and then pass the conversation to a human agent if the issue is too complicated. This creates a seamless experience for the customer and ensures they get the help they need.
  4. Continuous Improvement: Regularly review the performance of both your chatbots and human agents. Make adjustments as needed to improve the customer experience. Train your chatbots to learn from past conversations, and provide ongoing training for your human agents to keep their skills sharp.
  5. Customer Feedback: Don’t forget to ask your customers for feedback on their experiences. This will help you understand what’s working well and where you might need to make changes. It also shows your customers that you value their opinions and are committed to providing the best service possible.
  6. Personalization: Use the strengths of both chatbots and human agents to offer a personalized experience. For example, your chatbot can greet customers by name, remember their previous interactions, and offer tailored recommendations. If a customer needs more in-depth help, a human agent can step in and continue the personalized service.
  7. Scalability: As your business grows, consider how you can scale your customer service operations without compromising quality. Chatbots can handle increased demand without needing more staff, while human agents can focus on maintaining the personal touch that sets your brand apart.

Conclusion: The Best of Both Worlds

At the end of the day, both AI chatbots and human customer service have their place in your business. The trick is to use them where they excel. AI chatbots are fantastic for handling high volumes of simple inquiries quickly and cost-effectively. They’re perfect for providing 24/7 support and ensuring that your customers always have access to the help they need.

On the other hand, human agents are irreplaceable when it comes to dealing with complex issues, offering empathy, and building strong customer relationships. They bring a level of understanding and creativity that chatbots just can’t match.

As a business owner, your goal should be to create a customer service strategy that leverages the strengths of both AI chatbots and human agents. By doing so, you’ll provide a seamless, efficient, and personal experience for your customers, no matter when or how they reach out to you.

So, take a look at your current customer service setup. Think about where a chatbot could lighten the load and where human agents are necessary. With the right balance, you’ll not only keep your customers happy but also drive your business forward.

Remember, it’s not about choosing between AI chatbots and human customer service — it’s about knowing when to use each to give your customers the best experience possible. Happy customers mean a thriving business, and that’s something we all want!

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