BPO in the Artificial Intelligence Customer Support Industry

Research shows 10% of consumers expect brands to respond within 5 mins. Human agents handle basic queries but struggle with complex issues. BPO leverages AI to enhance contact center efficiency, delivering faster responses. Explore BPO's impact on AI customer support below.
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Research shows that 10% of consumers in the digital age want brands to respond to their concerns in less than five minutes. Human agents can satisfy such demands, especially for basic inquiries. However, what if they have to deal with complex issues simultaneously?

Business process outsourcing (BPO) offers a viable solution. Service providers leverage artificial intelligence (AI) technologies to boost contact center operations. These innovations help deliver faster and more effective responses to common problems. 

Below, we further explore BPO’s role in AI customer support

How BPO Companies Optimize AI for Customer Service

How BPO Companies Optimize AI for Customer Service

Third-party contact and call centers establish a seamless blend of cost-efficient and personalized customer service using AI-powered systems. This approach helps them meet consumers’ demand for faster and more effective support services. 

According to Emplifi’s recent research, one in 10 customers expects a response to their inquiries within five minutes. However, labor-intensive workflows prevent companies from fulfilling customers’ needs in as few interactions as possible. Hence, Emplifi recommends investing in automated systems to promptly process inquiries. 

Companies can also consider partnering with a BPO provider in place of costly investments. BPO companies optimize AI-driven solutions to improve their client’s customer service. They incorporate this cutting-edge tech into the following systems to help your business stay ahead of the competition:

  • Intelligent chatbots. Service providers employ these AI-powered virtual assistants to speed up replies to basic customer inquiries, such as product features and assembly instructions. They equip chatbots with natural language processing (NLP) to understand and address inquiries accurately.
  • Automated ticketing systems. These platforms automatically categorize and prioritize customer issues. They ensure urgent matters receive prompt attention. Meanwhile, more complicated concerns are forwarded to appropriate customer service agents.
  • Interactive voice response (IVR) systems. These automated telephony solutions enable conversation with callers via voice or keypad inputs. They provide customers access to needed data, perform transactions, and route their complicated problems to the suitable unit.
  • Predictive analytics tools. BPO firms utilize AI and machine learning (ML) algorithms to collect and analyze large amounts of customer data. They use the resulting insights to predict customer behavior and buying patterns. Understanding consumer preferences assists you in tailoring your business offerings to meet and exceed market expectations.
  • Voice recognition capabilities. BPO organizations deploy these AI-enabled systems to deliver hands-free customer support. This tech interprets and responds to voice-based commands or concerns from consumers.
  • Sentiment analysis platforms. These tools help third-party vendors gauge customer emotions and reactions to your products or services. The findings inform your efforts to improve enterprise offerings and increase customer satisfaction.
  • Automatic feedback loop systems. Support providers employ AI to continuously learn from customer interactions and collect feedback. The gathered data guides your team in adjusting and enhancing business processes to effectively meet evolving customer needs.

Benefits of AI in Customer Support BPO

Benefits of AI in Customer Support BPO

As many transactions occur online, customers expect more immediate responses to their daily needs. This demand drives businesses to broadly adopt AI and automate routine tasks, especially in customer care. 

This continuously increasing demand also expands the scope of AI solutions. For instance, generative AI has gained traction for enabling digital self-service and augmenting agent skills. 

Generative AI produces high-quality content based on inputted prompts. It assists less-experienced agents in resolving issues using strategies similar to those of their higher-skilled counterparts. Recent statistics proved that the technology increased hourly problem resolution by 14% and reduced response time by 9%. 

Overall, AI improves customer service and agent productivity. The following section explores how this tech benefits BPO companies, client organizations, and consumers.

For BPO Providers and BPO Clients

Third-party vendors and their clients experience the following benefits after adopting AI:

  • Reduced operating costs. AI implementation lets BPO companies and clients cut manual labor, training, and infrastructure costs. This advantage allows providers to offer competitive pricing while maintaining profitability. Clients, on the other hand, can reallocate resources to their more strategic business areas and projects.
  • Enhanced scalability. BPO partners and client firms can quickly scale their operations using AI-driven systems. Automation allows support vendors and clients to adapt to fluctuating customer demands without compromising output quality. This flexibility helps enterprises accommodate varying workloads and expand their service offerings.
  • Data-driven decision-making. When deploying AI in call centers, service providers use the tech to collect and analyze big consumer data in real time. This action gives their clients valuable insights into customer behavior, preferences, and pain points. Such details empower them to make informed decisions and deliver tailored solutions.
  • Improved customer service quality. BPO providers let AI systems handle repetitive customer support processes while human agents deal with complex issues. This setup results in faster and higher-quality consumer care services. It also boosts the client’s customer satisfaction and retention.
  • Personalized customer experience. AI enables BPO providers and clients to deliver support via customers’ preferred communication channels. An AI-powered contact center solution allows them to centralize a customer interaction hub. This platform facilitates seamless transactions without losing data.
  • Increased sales. Providing AI-assisted and customized responses helps BPO firms enhance their client’s profitability. Zendesk’s data reveals that 90% of polled consumers will buy more from companies that personalize support. Thus, maintaining brand loyalty allows clients to achieve monthly or annual target revenues.

For Customers

AI also significantly impacts the client company’s customers and end users. Consider the following:

  • 24/7 support availability. AI systems automate customer service, allowing round-the-clock operations. For instance, an AI-powered chatbot can reply to a customer asking about a smartphone’s features. It sends all available articles for this inquiry, regardless of time zones or locations.
  • Faster issue resolution. As mentioned, AI-driven customer service swiftly addresses common customer concerns by providing relevant online articles or frequently asked questions (FAQ) pages. Generative AI also provides instant recommendations for simple problems, helping agents take action if needed. 
  • Customized responses. BPO companies make consumers feel understood and valued by deploying AI customer support systems. These platforms quickly recognize customers’ needs and personalize recommended services according to their click streams.
  • Consistent support. AI-enabled customer service ensures standardized assistance to inquiries despite the absence of human agents. This tech operates based on predefined rules and scripts. Thus, customers gain consistent answers to simple questions.

Will AI Replace Human Customer Service Agents?

Will AI Replace Human Customer Service Agents

Despite the above benefits, AI will never replace human customer service agents. The advanced solution gives them a boost instead. 

In its latest report, IBM noted that 42% of companies adopt AI to cut expenses and automate critical processes. Meanwhile, 22% said they aim to address labor or skills shortages when incorporating AI into their systems. 

Based on these figures alone, AI has undoubtedly transformed how businesses operate. The solution has also revolutionized the way they interact with customers. However, human agents still excel in providing empathy, resolving complex issues, and delivering nuanced communication.

But what is BPO’s stance in the debate between AI and live customer support agents? Here are some key points many providers and their clients take:

  • AI complements human customer service representatives (CSRs). AI takes over tedious, repetitive inquiries and tasks. Human agents prioritize more complex and empathetic customer interactions. This collaboration leads to a faster and more effective consumer care experience.
  • AI lacks the emotional intelligence that human agents bring to interactions. Compassionate communication is essential for building trust and brand loyalty. Human CSRs establish strong relationships by letting customers feel recognized and heard. In addition to technical assistance, they also provide moral support.
  • CSRs think creatively and adapt to new situations. These capabilities allow them to explore innovative solutions to unique customer issues. On one side, AI runs on predefined algorithms. The tech may struggle to handle expected scenarios effectively.

Imagine a customer contacting your BPO call center to fix a complicated electric bill discrepancy. The problem caused financial stress and frustration because the bill surged from the usual $137 monthly fee to about $240. 

A virtual chatbot could offer general information about the billing complaint process. However, the program might fail to address the customer’s emotional concerns. It might also be incapable of providing the reassurance necessary to alleviate the consumer’s distress.

On the other hand, a human CSR can actively listen to the customer’s concerns and express genuine empathy. The agent can fully understand and acknowledge the consumer’s emotions and work closely to find the best resolution. This human connection fosters a sense of trust and understanding between the customer and your company.

The Bottom Line

The integration of BPO and AI reshapes how your business delivers customer support. This advancement enables quicker and more personalized consumer responses around the clock. Automated solutions also improve operational efficiency and agent productivity.

However, you must acknowledge that the human touch in customer service remains irreplaceable. While AI streamlines time-consuming functions, CSRs are still indispensable in dealing with complex problems and emotionally charged interactions. 

The future of AI-driven customer service outsourcing lies in striking a balance between technological innovation and human empathy. Ensuring superior customer experiences for every transaction fosters brand loyalty and business growth in the long term.

Let’s connect if you seek a BPO provider that understands the importance of both AI and human resources (HR) in customer care. Our team at Unity Communications helps you optimize these capabilities to achieve cost-efficient contact center support.

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Joyce Ann Danieles is an SEO content writer from Manila, Philippines. She’s comfortable writing outsourcing-focused articles, helping you clarify the confusing concepts surrounding the BPO industry. With her experience in news writing and copywriting, she’s always ready to feed your brain with random facts and creative insights.   Outside work, Joyce explores the world of literature. She tries to write fiction she hopes to share with everyone someday.
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Joyce Ann Danieles

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