An AI chatbot for customer service is a software tool that can initiate natural and human-like conversations with your customers. Through it, you can handle routine inquiries, provide instant support, and operate across multiple channels. These chatbots let you cut response time, reduce operational costs, and support customers 24/7.
Finally, robots have invaded the business world! In the past few years, the rise of generative AI chatbots has been exceptional. Studies show that the global AI chatbot market was valued at $15.6 billion in 2024. It is projected to nearly triple to $46.6 billion by 2029 (at a strong CAGR of about 24.5%).
Do you know where Gen AI bots are used the most? Around 37% of businesses use chatbots specifically for “customer support interactions”.
Reasons?
- AI chatbots can independently handle around 80% of common customer questions and tasks.
- Companies using AI chatbots for customer service have seen up to 30% savings in customer support costs.
- These savings are expected to reach $8 billion by the end of 2025!
Impressed? Want to save on operational costs while creating human-like responses? Gain some knowledge! In this article, you will study what AI chatbots for customer service are and the technology behind the bots. Next, we will study five major benefits of AI in customer service and learn how you can automate your customer service with AI.
What are AI Chatbots for Customer Service?
Chatbots are software tools that talk to customers through text messages (just like your human agent would). They can independently perform the following duties with minimal human supervision:
- Reply to customers anytime (24/7 availability)
- Handle many chats at once
- Offer professional responses in a minimum time
Studies show that chatbots respond to inquiries three times faster than human agents. As a result, they contribute to a 24% increase in customer support satisfaction scores (CSAT).
Two Main Types of Chatbots
When it comes to using AI chatbots for customer service, there are usually two main types of chatbots you can consider:
| I) Rules-Based Chatbots | II) AI-Based Chatbots |
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5 Major Benefits of AI in Customer Service
By using chatbots, businesses and consumers are expected to save a combined 2.5 billion hours in 2025. AI-driven customer service solutions can:
- Minimise resolution times
- Reduce support costs
- Improve customer response quality (without needing a big team)
Let’s gain more clarity and study the five major benefits of AI in customer service:
1. Offer 24/7 Customer Support Without Growing Your Team
Your team may work during the day, but customers can face problems anytime (at night, on weekends, or during holidays). Most small businesses can’t afford to hire support staff around the clock.
This is where AI chatbots for customer service help. They give instant replies to customer questions 24/7. Through them, your customers get the help they need, even when your office is closed. Studies show that about 64% of internet users cite 24-hour service as the best feature of chatbots!
2. Provide Customer Support in Multiple Languages
Does your business get questions from customers who speak different languages? Research shows that if you don’t hire translators or multilingual staff, they can simply switch to your competitors.
The solution? AI chatbots for customer service easily solve this problem by speaking multiple languages automatically. They let your customers select their preferred language. Next, the chatbot responds right away!
When using them, you don’t need to:
- Manage translation tools
- Rewrite the “help” content
This makes your service more welcoming and inclusive. Additionally, you also avoid delays that usually happen when trying to translate requests manually.
3. Give Faster Replies Even During Busy Times!
Did you know? About 55% of customers enjoy getting quick responses to simple questions from a chatbot. If your team is busy or if there are too many queries during peak hours, delays can lead to frustration. AI chatbots for customer service remove this problem!
They give immediate and quality responses, whether one customer is asking or a hundred at the same time. Studies show that virtual assistants can reduce inquiries by 70% across:
That’s why about 23% of client service organisations rely on AI digital assistants as their main communication channel.
4. Lower Costs and Make Better Use of Your Team’s Time
More customers = More agents = More operational costs
This was the general industry understanding in the pre-AI era. But nowadays, AI chatbots for customer service can take care of most common questions and repetitive tasks. Thus, you don’t need to hire more support agents as your business grows!
Your existing team can focus on more valuable work, such as:
- Improving help guides
- Training new users
- Building better relationships with customers
Over time, this saves money! These savings can be reinvested in your product, marketing, or customer experience (CX).
5. Deliver Omnichannel Messaging Solutions Without Extra Training
Not all your customers reach out in the same way! Some prefer WhatsApp, others may message you on Instagram, Facebook, or X (formerly Twitter).
A good AI chatbot for customer service works across all of these platforms. It gives customers the same experience no matter where they contact you. In this way:
- You stay connected with customers on their preferred platforms
- They get answers quickly without the need for separate tools or extra staff
But are your customers interested in talking with bots? Yes! Studies show that about:
- 62% of consumers prefer to interact with a chatbot rather than wait for a human agent
- 51% of consumers prefer interacting with bots over humans for immediate assistance
So, How to Automate Customer Service with AI?
Recently, Lyft, the ride-hailing company, has partnered with Amazon and Anthropic. The organisation is using AI chatbots for customer service. The result?
- Customer service resolution time has dropped by 87%
- Thousands of customer issues are being handled by AI every day (without needing human agents for each one)
So, do you also want to automate customer service using AI in 2025? Follow these easy steps:
Step I: Identify Repetitive Tasks and Common Questions
Start by listing these two:
| A) The most common customer questions | B) Tasks that your team does repeatedly |
Say:
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Say:
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Please note that these are the areas AI chatbots for customer service can handle first.
Step II: Choose the Right AI Chatbot Platform
Look for a chatbot platform that:
- Offers generative AI (can understand and reply in real language).
- Integrates with your website, WhatsApp, Facebook, or other channels.
- Provides prebuilt templates for common support tasks.
- Offers analytics to track performance.
Step III: Set Up Answers to Common Questions
Train the AI chatbot for customer service to answer:
- FAQs (frequently asked questions)
- Product details
- Shipping and return policies
- Account or order help
Some platforms even let you upload documents or paste URLs, and the bot learns from them.
Step IV: Connect the Bot to Your Website and Channels
Integrate the AI chatbot for customer service on:
- Your website (via chat widget)
- Facebook Messenger
- Email auto-replies (if required)
This way, it can reply to customers no matter where they reach you!
Step V: Set Escalation Rules to Human Agents
Make sure the AI chatbot for customer service knows when to transfer to a human. Some common cases are:
- If the customer is angry or frustrated
- If the question is too specific or not in the bot’s data
- If the customer requests a human
Such transferring abilities/ escalations keep the CX smooth and avoid customer frustration.
Step VI: Train and Improve
Most AI tools allow you to:
- Review past chat transcripts
- See what customers are asking
- Spot gaps in your bot’s answers
You can use this data to:
- Add more questions and responses
- Improve the bot’s training
- Refine the customer journey
Step VII: Add Automation for Other Tasks
Once your chatbot is working, you can also automate:
- Appointment booking
- Lead capture and follow-up
- Order tracking
- Email responses
- Feedback collection
Some AI chatbots for customer service connect with your CRM, help desk, or ecommerce system to make this easy.
Why Build the Bot When You Can Borrow the Brain? Let Atidiv Handle Your 100% Customer Support in 2025!
Through AI chatbots, you can:
- Handle routine queries
- Provide 24/7 multilingual support
- Minimise response times
The effects? You can significantly improve CSAT and reduce pressure on your human agents by automating common tasks.
While the benefits are clear, setting up and managing AI chatbots for customer service is tough, particularly for SMBs.
Need expert help? Atidiv is a customer experience specialist agency with 15+ years of experience and 70+ clients. Our expert team uses advanced AI chatbots to deliver prompt multilingual customer support.
Atidiv’s approach: AI + Human oversight = Best CX. Hire Atidiv in 2025 to lower your operational costs by up to 60% and earn happier customers.
FAQs on The Key Benefits of Using AI Chatbots for Customer Service Inquiries via Text
1. Will an AI chatbot for customer service sound robotic or frustrate my customers?
Modern AI chatbots for customer service use natural language processing (NLP). It allows them to understand questions and respond in a human-like way.
You can opt for Atidiv’s AI chatbots. They are professionally trained to handle real-world queries. And if anything is too complex, it’s quickly passed to a human agent.
2. Can an AI chatbot for customer service really reduce my customer service costs?
Yes! Chatbots reduce the number of repetitive questions your human agents need to handle. This reduces your hiring needs as well as operational costs. Also, automation lowers the workload for your team.
3. How do I know if an AI chatbot for customer service is actually helping my business?
To do so, you can track the following results:
- Faster response times
- Fewer support tickets for simple issues
- Lower operational costs
Additionally, most AI chatbots for customer service provide performance reports. By analysing them, you can see (in real numbers):
- How many customers were helped
- How long it took
- What issues were resolved
4. What happens if the AI chatbot for customer service can’t solve the problem?
If the AI chatbots for customer service can’t help, the issue is immediately sent to a human agent! We at Atidiv follow a system which gives the agent context and suggested replies. This makes the handoff smooth without the need to repeat any information from the customer’s side.