As AI continues to revolutionize customer service, it's clear that not all AI solutions are created equal.
For example, a clear disparity exists between the success of Klarna’s customer-facing AI assistant and the reported struggles of the UK's HMRC (HM & Revenue Customs) customer service AI assistant. Klarna's AI, powered by OpenAI, has been a game-changer: efficiently handling 2.3m conversations in just one month and maintaining high customer satisfaction levels. This AI solution has cut average resolution times from 11 minutes to just 2 minutes.
Unfortunately, these efficiency gains aren’t guaranteed alongside every chatbot implementation. HMRC's efforts to cut costs by reducing helpline staff and promoting digital services have come up short, with a recent National Audit Office (NAO) report revealing that HMRC’s new AI customer service tool could resolve just half of the queries it sampled.
The recent 9% reduction in human staff and the under-achieving HMRC AI assistant have left many taxpayers without the support they need. In fact, the same NAO report found that across the country, the average wait time per caller amounted to a total of 798 years(!) spent waiting on the phone (up from 365 years three years prior). It's almost as if we've replaced friendly advisors with automated agony.
Implemented well though, AI-powered customer support can have an enormous positive impact. Klarna expects an additional $40m in annual revenue. Who knew a chatbot could be such a cash cow?
The contrasting outcomes of AI-driven customer service are a powerful reminder that merely implementing AI solutions is insufficient. The success of these solutions depends on their technological nuances and how they are practically applied. After all, who knew that going from “human touch” to “helpline horror” could be so taxing?
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Portfolio News
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Chatbot Alpha (or Horror)
Klarna's new AI tool does the work of 700 customer service reps - Klarna says that its AI Assistant is "more accurate" in "errand" (ticket) resolution and has contributed to a 25 percent drop in repeat inquiries. Tickets are now completed in less than two minutes, compared to 11 minutes previously. The tool is now available in 23 markets and communicates in more than 35 languages. Read more
Britons spend total of 800 years waiting to speak to the taxman - HMRC has cut its helpline staff while promoting digital services that do not provide like-for-like replacement to save money, the spending watchdog has revealed. Read more
Industry News
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Select Financings
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