2023 is quickly emerging as the year of the AI call center.
AI for the call center isn’t an entirely new concept. But, the intelligent solutions available to customer service leaders today are becoming more advanced. The days of clunky chatbots and basic AI algorithms are long gone. In their place, we’re seeing an increase in robust CCaaS solutions enhanced by generative AI, Large Language Models, and deep neural networks.
These technologies improve everything from customer call quality to employee productivity while minimizing operating costs for business leaders. But where exactly is AI having the biggest impact on the call center, and where is the market heading?
Here’s your guide to the state of the AI call center market in 2023.
The AI Call Center Market in 2023
Call centers have long thrived as environments fueled by innovation. Over the years, platform providers have introduced endless tools designed to boost productivity and enhance customer satisfaction. First, we saw the rise of the cloud, then contact center automation.
Now the AI call center generates the most buzz among business leaders. Gartner even found that conversational and generative AI solutions will accelerate contact center investment by around 24% in 2024.
According to Grandview Research, the market for the AI call center was valued at around $1.16 billion in 2021. It's also expected to expand at a CAGR of 22.7% through 2030. The analyst suggests that increasing customer expectations for personalized, efficient, and omnichannel interactions drive the rising demand.
Grandview also notes that the rise of the global AI call center market accelerated due to numerous innovative technologies introduced after the pandemic. The development of quality assurance tools, generative AI systems (like ChatGPT), low-code platforms for building bots, and more have driven rising interest in AI solutions.
Moreover, an increase in companies adopting cloud-based contact center technologies has contributed to the market too. The cloud segment is expected to register the largest growth among AI call center technologies in the coming years as companies embrace agility, flexibility, and scalability.
The Biggest Use Cases for AI Call Center Technology
AI call center technology leverages artificial intelligence and machine learning to enhance and automate various CX functions. Notably, while
Notably, while modern AI solutions offer several benefits to omnichannel contact center strategies, many businesses are still focusing on the potential of AI in voice. Grandview Research’s study found the phone segment accounted for the largest market share (40%) of call center AI investments in 2021. So, what are the use cases for AI in the “calling” space?
1. Improving the Routing Process
One of the biggest trends in the AI call center landscape is the focus on more intelligent routing strategies. In 2021, the segment for predictive routing held a market share of 24%.
AI and customer service automation tools can significantly enhance the process of connecting agents to customers. A HubSpot study even found 90% of service reps think AI tools for routing improve the customer experience either somewhat or significantly.
With intelligent routing tools, companies can use AI to match customers to specific agents best suited to handle an issue. This technology relies on customer behavior profiles, allowing software to examine customers' and agents' communication habits and predispositions.
Used correctly, it can improve customer satisfaction, enhance employee efficiency, reduce the need for call transfers, and more.
2. Updating the IVR System
Most of us have already interacted with some form of AI in an Interactive Voice Response system. In the past, basic solutions allowed machines to record responses to specific questions for routing purposes. For instance, an IVR system can examine a customer's language, ask for their name, and even obtain an account number before passing the caller on to an agent.
However, call center AI is having a significant impact on the value of this technology. One solution created by Humana with IBM’s data and AI experts helped the life insurance company to route more than 60% of over 1 million calls to self-service solutions.
The rise of interactive voice assistants makes it easier for companies to collect valuable information before an agent discussion and serve customers faster. The same tools can also reduce the number of calls agents need to handle by routing customers to self-service instead.
3. Conversational AI and Chatbots
Conversational AI is probably the most commonly referenced technology in the AI call center. Chatbots and virtual assistants have grown increasingly common in recent years. Innovators like Google even provide companies with tools to make their own generative AI assistants.
Chatbots are commonly associated with text-based communication channels, like social media, SMS, and web-based messengers. However, they can be omnichannel tools. Natural Language Understanding and Processing technologies have led to an increase in bots capable of responding to voice.
Bots can even be built into the standard call flow, providing customers with faster and more convenient ways to resolve common problems. Conversational AI doesn’t just deliver benefits to the customer experience either.