Transforming Customer Interactions: How AI is Reshaping Contact Centers

August 17, 2023
ai in contact centers


Transforming Customer Interactions: How AI is Reshaping Contact Centers

Delivering quality support to every caller is one of the most complex goals of a contact center. However, automation and Generative AI are making contact centers highly efficient, adding human-like touch to communication resources.

Undoubtedly, contact centers progressed significantly from a mere handoff between callers and live agents to analyzing the sentiment and context of callers. As a result, quick resolutions are served.

In 2023, 91% of contact center leaders consider automation to be the top priority. With AI in contact centers taking the front seat to shape the future of customer service automation, it is imperative for brands to embrace innovative solutions.

But, if you are unsure about AI contact center solutions, or you think it is just another passing hype, we’ve got you covered. Read on to discover how automation and AI are revolutionizing contact center operations.

What is AI in Contact Center?

The simple application of AI, or Artificial Intelligence technologies like NLP (Natural Language Processing) and ML (Machine Learning), within a contact center can take operations to new heights. Contact centers implement AI to improve overall performance, optimize support, and boost efficiency. To achieve this, AI is introduced to automate routine tasks and assist agents with tasks like:

  • Troubleshooting, order tracking and FAQs
  • Making reservations and booking appointments
  • Guiding callers through the purchase process
  • Routing appropriate customer support requests to the suitable agent/team

AI in contact center automates processes and provides real-time assistance to ensure agents are focused on critical and high value tasks and perform better.

Benefits of AI Contact Center Solutions

ai in contact centers

Contact center AI is more than just another trend; it is a necessity. Adding AI technologies improve the functions and operations of contact centers in many ways.

Round-the-Clock Support

Artificial intelligence contact center solutions function 24/7 to deliver constant and consistent support to customers across all communication channels. AI-enabled systems are technically advanced, offering immediate assistance to ensure that all queries are resolved promptly, even outside the regular operating hours.

This is critically important because over 90% of customers calling a contact center expects immediate response. It is a significant factor that affects CSAT score. Moreover, it is consequential for business operating in different time zones or having customers across diverse geographies.

Contact centers offering 24/7 customer support also demonstrate the willingness to support customers at any time. This is a crucial factor that ensures customers are delighted and for building your brand loyalty.

When done correctly, it will also reduce the rate of cart abandonment.

Improved Competence and Efficiency

Artificial intelligence Contact center solutions are proven to boost overall efficiency, competence and productivity. Businesses can expect up to 40% increase in productivity over time.

In addition, 60% of contact center agents reported that AI also saves time with daily operations.

Including AI in contact center automates repetitive tasks, which reduces agents’ demand. As a result, they have time to prioritize complex issues and high-value callers that demand human intervention and expertise.

Most importantly, AI tools assist customer conversations by providing agents with real-time recommendations and insights based on the needs of the callers. This not only increases agent productivity but also fosters long-lasting customer relationships.

With this improvement, contact centers can reduce AHT (average handling time) and reduce wait times, while providing stellar customer experience.

Real-time Analytics with AI

AI is equipped to collect large volumes of data and analyze it in real time. This information is a powerhouse of insights that highlights customer preferences, behavior, and trends. It is the most valuable resource for optimizing operations.

Leveraging AI-powered analytics, here’s what contact centers can do:

  • Create Customer Profiles: With AI, contact centers can analyze both customers as well as interaction data. Using this data, they can create detailed profiles for all customers depending on several factors. Furthermore, this information is useful to deliver personalized interaction for improved customer experience and satisfaction.
  • Monitor Performance: Using AI-enabled analytics, contact centers can track performance metrics like first contact resolution and average response time. This information can be used to identify the scope and areas of improvement, ways to reduce churn, and more.
  • Predictive Analytics: AI-enabled analytics is an excellent tool to predict customer preferences and behavior. Taking into account historical data, this helps contact centers predict customers’ needs and offer proactive support.

AI analytics is extremely powerful when used correctly. It can help contact centers understand how their customers behave, what they prefer, and elevate service quality by identifying issues quickly and solving them.

Better Customer Experience

AI in contact center facilitates better performance and improves efficiency. Likewise, it also delivers excellent customer experience. With AI, customers can now have easy access to digital self-service and instant support features.

In addition, agents can predict customer needs using AI assistance to communicate effectively and resolve issues faster. AI contact center solutions offer more options to customers and empower agents. Together, it ensures top-notch customer service and support.

However, even though AI is an invaluable technology for contact centers, it cannot replace agents. Rather, AI can be viewed as just another advanced tool that augments human experience.


There are many reasons to consider contact center AI as a cost-effective option.

Firstly, AI reduces the need for human agents required for contact center operations substantially. It is estimated that the use of conversational AI is likely to reduce the cost of agent labor by up to $80 billion in 2026.

In addition, AI can also lower AHT for customer queries, thus empowering agents to handle large volumes of interactions in very less time.

Finally, when routine and frequent tasks are automated, it would allow contact centers to easily handle high volume customer queries with a smaller team. With AI-enabled technologies, businesses can now reduce costs by modifying how agents and contact centers operate in the new age.

Explore AI contact center solutions with the trailblazer – ContactPoint360!


Best Examples of Contact Center AI Solutions

Now that you know how AI contact center solutions benefit business operations, it’s time to dig deeper into these technologies.

Noted below are the top 5 AI use cases in contact centers and how they can supercharge your customer service.

1. Chatbots and Virtual Agents

Chatbots and virtual agents are the two most prevalent applications of artificial intelligence in contact centers.

When deployed on your app, social media channels, and website, it can handle a massive volume of basic concerns and FAQs without human intervention. In fact, it is estimated that AI-enabled chatbots can resolve customer queries up to 69% of the time.

Virtual assistants are not just programmed to provide automated support, but they are also capable of generating leads, providing personalization, and gaining valuable insights by gathering customer data.

In fact, they are also equipped to route requests for customer support to appropriate agents/teams/departments by collecting initial details from the query before an escalation.

This is the best way to ensure that customers receive excellent service for specific situations without repeating themselves and going through multiple agents. In fact, already 76% of all contact centers benefitted from the chatbot technology.

With AI-enabled bots handling daily tasks and answering common questions, agents have more time and scope to attend to customers who genuinely need live assistance.

2. Sentiment Analysis

Sentiment analysis is a critical application for AI contact centers. It is used to detect and monitor emotions and attitudes of customers.

The application uses NLP and ML to determine the sentiment of customers in the message – whether it is negative, positive, or neutral.

The importance of sentiment is high in contact centers because it builds the roadmap to measure agent performance and customer satisfaction.

Contact centers can analyze sentiments to understand customer preferences and needs even better, while identifying potential concerns that demand immediate intervention.

Contact centers can use sentiment analysis in many ways. Here are some quick examples:

  • Agent performance monitoring: Sentiment analysis can help you monitor the emotions and attitude of customer and agents chat messages. This analysis will help you ensure that the agents are communicating appropriately to deliver stellar customer experience.
  • Live chat monitoring: This technology can also be used for monitoring chat interactions in real-time. Businesses can flag any concerns or issues before escalation and take the necessary steps.
  • Chatbot monitoring: It is very important to analyze chatbot interactions regularly. This feature allows you to get accurate data of the chatbot’s performance and how it is helping customers by resolving their problems.
  • Customer feedback: Sentiment analysis is an excellent tool to analyze customer reviews and feedback. Businesses can identify potential areas of improvement and respond to complaints proactively.

An invaluable AI contact center tool, sentiment analysis helps businesses analyze customer perceptions, improve customer experience, and make data-backed decisions.

3. Real-time Translation Technology

Real-time translation is innovative technology that empowers contact centers to communicate with callers in their mother tongue.

Using NLP and ML, this technology detects languages and translates messages quickly. As a result, agents can communicate more efficiently and effectively with callers in their native language. It creates a seamless experience.

For contact centers operating in multiple regions and countries and catering to diverse populations, this is an excellent technology to leverage.

With real-time translation, businesses can reach a much wider audience and deliver support worldwide. Moreover, it helps businesses provide an empathetic and personalized customer experience as customers feel valued.

Real-time translation is an excellent AI contact center tool that also enables businesses to engage with a wider customer base, remove language barriers, and improve accessibility.

4. AI-generated Transcripts

AI and NLP are the two most powerful technologies for contact centers that convert conversation audio recordings into transcripts. Even video chats can be transcribed automatically into accurate and text-based format. You can revisit video calls with greater clarity and convenience.

Moreover, you can have a detailed insight into interactions and context even without watching or listening to any recording.

AI-generated transcripts can be instrumental for training and onboarding, monitoring agent performance, and securing compliance. It is also a resourceful AI contact center analytics tool, which allows agents to look up specific keywords and phrases, identify trends and changes in consumer behavior, and more.

5. AI assist tools

Emerging technologies are the backbone of contact centers where exceptional customer service and experiences are concerned. AI contact center automation tools make the task easier. Using these tools, you can equip agents with guidance, suggestions and real-time assistance during conversations.

BeyondQA is the perfect QA (Quality Assessment) tool for contact centers. Using this highly advanced tool, contact centers can assess the quality of calls, analyze speech and sentiments during conversations, monitor agent performance, and generate real-time reports. These features are crucial for boosting agent performance and improving interactions.

Arm your agents with powerful AI-enabled assistance and empower them to deliver the best performance. For greater efficiency and supercharged productivity, AI is the way.

ContactPoint360 Leads the Way for AI Contact Centers

At ContactPoint360, we take a progressive approach and adopt quickly to the changing times and technologies. Technological advancement is one of the greatest boons and AI assistance is the most promising demonstration of how technology is driving the world.

We have not only implemented AI contact center solutions, but also adapted to this driving force in every sphere of customer service.

The Last Note

AI in contact centers is going to lead the way for businesses. From customer support to sales, AI-powered technologies will be crucial for businesses looking to boost efficiency, transform engagement, and reduce costs.

But, to ensure you get the maximum potential of AI contact center solutions, you need to connect with the right customer support company that delivers AI-powered contact center solution. That’s ContactPoint360.

To know more, talk to us!



How AI affects contact center operations?

AI-enabled tools and technologies can improve overall agent efficiency and customer experience in contact centers. However, while AI automates tasks, it cannot replace human agents completely.

What is Contact Center AI?

It is a facilitator for smarter, data-driven, and more empathetic customer interactions. AI enables agents to be more empowered, efficient, and productive at work.

What are the benefits of AI in contact centers?
  1. Improved customer relationship
  2. Increased efficiency of agents
  3. Reduced cost
  4. Better insights
  5. Greater security
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