What Can AI Customer Service Do for Your Business?

Did you know that 93% of service professionals in AI-powered organizations say the technology helps them save time? 

At this point you’re probably not surprised by this statistic.

We’re all aware of the fact that meeting the new highs of customer expectations requires availability and personalization at scale. And AI seems to be the answer. The technology handles the routine tasks while human agents can finally focus on connecting with customers, which is the real priority here.

But is this the right solution for your business?

Let’s find out what AI customer service can do and tasks you shouldn’t use it for.

5 use cases for AI in customer service

Knowing that 97% of companies are using or plan to use AI already this year, you should look into whether that would be a good choice for your business.

Here are the five main customer service AI use cases:

1. Lead generation

AI-powered customer service chatbots help businesses capture leads by engaging visitors instantly and collecting contact details in real time. They can personalize conversations based on browsing behavior and offer relevant incentives like discounts or free trials without human intervention. By analyzing interactions, chatbots also qualify leads and trigger automated follow-ups to turn casual inquiries into warm sales opportunities.

For example, Endeksa used Tidio’s AI for customer service to boost lead generation by 138% and decrease waiting times by 59%. The company achieved that with pre-chat surveys and smart ticket routing.

Here’s how to set up your AI to generate more leads:

• Using pre-chat surveys: you can enable it in Settings → Live Chat → Appearance. You can customize the fields, intro text, and translations. All information is stored in your Contacts section for easy follow-up.
• Using Flows: in the My Flows list of your Flows section, choose the Create from scratch button in the upper-right corner and select a trigger. Once you’ve done that, add the action called Ask a Question and write a request for the user’s email address in this node. Remember to pick Validation to Email to save it into your contact list. 

Read more: Check out this full guide on how to start collecting leads using Tidio.

2. Answering customer requests

AI-powered customer service agents help businesses respond to queries quickly and efficiently. They provide 24/7 support across various channels and guide customers through troubleshooting steps or pull relevant information from FAQs in seconds. These agents handle multiple conversations at once, ensuring no customer waits in a queue. And if a question exceeds their knowledge, they escalate it to human agents with full conversation context. 

Suitor and Cove already enjoy the benefits of AI in customer service. Suitor automated over 85% of its customer service by enabling Lyro on the website, while Cove achieved a 75% increase in self-service resolution with Lyro AI.

Here’s how to set your AI so it answers customer requests for you:

• Go to Lyro AI Agent tab and click on Data sources
• Add your website URLs so Lyro can learn from them
• Upload extra Q&A files or knowledge bases for better responses
• Use the Playground to ask test questions and check answers
• Refine responses in the Data sources tab: edit, delete, or add new ones
• Activate Lyro in the Configure section

Read more: Learn how to set up Lyro to make the most out of the system.

3. Customer engagement

AI in customer service helps to engage shoppers by providing instant and personalized support across channels. Through tools like virtual assistants, AI can understand customer intent to answer questions in real time and predict user needs based on past interactions. 

This technology enables businesses to offer 24/7 availability and deliver tailored recommendations, creating a smoother experience. By automating routine inquiries while escalating complex issues to human agents, AI ensures customers feel heard, valued, and supported. And you can reap the benefits like stronger client relationships and higher sales.

And keep in mind that companies like ADT security managed to boost sales by 17% and increase customer satisfaction by 30% after implementing AI customer service. Moreover, Wulff Beltton achieved 4.5/5 client rating when the company switched to Tidio’s AI support. Those are just a few of the results you could expect from AI customer service. 

Here’s how to customize your widget for the greatest engagement:

• Navigate to Settings → Live Chat → Appearance
• Under the General section, change the colors of the widget elements to match your website
• In the Content section under the Home tab, you can customize the welcome image, header, and message text, as well as set online/offline status messages
• In the Chat tab, you can configure the offline message or ticket submission option
• You can also set up a pre-chat survey to collect visitor information

Read more: Follow a step-by-step guide on how to customize your Tidio widget.

4. Customer service analytics

AI helps businesses collect and analyze data by automatically capturing every interaction and turning it into structured insights. AI can detect patterns in user behavior, identify recurring issues, and measure sentiment. This provides a clear view of customer needs and pain points. 

Moreover, advanced analytics powered by machine learning can predict trends and suggest process improvements, enabling your business to make data-driven decisions faster. This continuous feedback loop improves service efficiency while tailoring your offers to better meet customer expectations.

Integratec, for example, improved tracking of requests and increased lead generation by 25% after implementing customer service AI into their workflows.

Here’s how to use AI analytics:

• Access the Analytics panel in the main menu
• Explore the sections in the panel, including the Overview, Human support, AI support, Leads, and Sales

Read more: Explore the elements of Tidio’s analytics section and its benefits.

5. Sales assistance

You can use AI customer service to increase sales of your business. The software helps to turn support interactions into sales opportunities through personalized, timely recommendations. 

How? Well, AI-powered chatbots and virtual agents can identify buying signals during conversations to suggest relevant products or upgrades. Moreover, they can guide customers smoothly through the purchase process. By analyzing past interactions and purchase history, AI can tailor offers to individual preferences, improving conversion rates.

And this isn’t just an assumption. In fact, companies like eye-oo and Bella Sante have both increased their sales by €177K and $66K respectively, thanks to AI customer service. 

Here’s how you can set up AI in order to boost your sales:

• You can use abandoned cart tracking for your Shopify store: go to Settings > Tracking > Manage tracking, select Shopify, and click Save
• Or enable the Cart Abandoned Flow under Flows > Increase Sales and customize it to send reminders/offers when customers leave items in their cart
• You can also use AI Product Recommendations: enable Shopify product sync in Lyro AI Agent > Knowledge > Products tab

Read more: Check out the available Tidio flow templates and discover what you can use them for.

The 3 tasks AI can’t do in customer service

Even though AI is a great customer service tool that can bring many benefits for your business, there are some tasks you shouldn’t use it for. Here are the main three:

1. Transactions processing

AI customer service tools can assist with guiding customers through the buying journey, but they shouldn’t be responsible for processing financial transactions. 

Handling payments requires strict security, compliance with financial regulations, and verification processes that demand human oversight or specialized secure systems. If left to AI, there’s a higher risk of fraud, errors, or data breaches. And you don’t want to face the damage that can harm customer trust and lead to serious financial consequences.

2. Customer care and success

True customer care goes beyond answering questions. It involves building long-term relationships and understanding individual customer goals to effectively guide them toward success. 

While AI can automate routine support, it can’t genuinely empathize or tailor solutions in a way that fosters loyalty. This human touch is critical in customer success roles, where understanding context and providing reassurance play a major role in retention and satisfaction.

3. Emotional understanding 

AI can detect sentiment in text or tone to some extent, but it lacks the depth of human emotional intelligence. Complex customer situations, such as frustration, disappointment, or sensitive issues, require a nuanced understanding that AI cannot replicate. 

A scripted or algorithmic response may come across as cold or dismissive. This will make the customer feel unheard. And in these cases, a human agent is essential to provide empathy and appropriate judgment.

What can AI customer service do: key takeaway

From boosting sales to providing 24/7 support, AI can handle repetitive tasks with unmatched speed and efficiency. But the truth is, great customer service requires more than automation. It requires things like empathy and the ability to truly connect with people that only human agents can provide.

That’s why the most successful businesses don’t choose between humans and AI. They combine them. 

AI-powered systems like Tidio’s Lyro AI ensure accurate and scalable support, while your human team steps in to provide emotional understanding where it matters most. This balance reduces workloads for your team, but also creates a seamless experience where customers feel understood.

If you’re ready to elevate your customer service, Lyro AI is the perfect partner. It integrates effortlessly with your existing workflows, learns from your knowledge base, and delivers meaningful conversations. By blending the power of AI with the empathy of your support team, you can future-proof your customer experience and build loyalty that lasts.

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