AI Business Use Case in Customer Service - High Volume customer Inquires

Author: Erfan[email protected]
Publish on: 2023-10-06
An Extensive Examination of how AI Technologies are Being Employed to Effectively Manage and Streamline the Handling of High Volume Customer Inquiries in a Timely and Efficient Manner
Blog Pic AI Business Use Case in Customer Service - High Volume customer Inquires

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Artificial Intelligence (AI) has emerged as a critical asset in the Customer Service domain, particularly in managing high volume customer inquiries. The implementation of AI, primarily through chatbots, significantly enhances efficiency by providing instant and accurate responses to common questions. These automated services are prevalent post-purchase where consumers often seek clarifications on their acquisitions, and during the consideration phase, assisting in furnishing detailed product information. By reducing the wait times traditionally associated with customer service, AI fosters a more streamlined and satisfying customer experience.

The strategic integration of AI extends beyond enhanced customer engagement to substantial cost reduction. By automating the responses to recurring inquiries, companies can markedly reduce the workforce required for managing customer service, a benefit that holds substantial significance for large enterprises inundated with high volumes of inquiries. The financial prudence in AI implementation is mirrored in the strategic initiatives of a vast majority of companies, with 83% considering it a high-priority, and 95% either already employing AI or planning its integration within their contact centers in the near future.

Moreover, the advanced nature of AI technologies enables human-like interactions, delivering a more personalized and relevant customer service experience. This advancement not only meets the evolving expectations of consumers but also contributes to revenue generation, with a notable increase in average order value (AOV) by up to 47%. As AI continues to mature, its capability to mimic human interactions while automating processes establishes a compelling case for its adoption in customer service, setting a trajectory for improved efficiencies, cost reductions, and elevated customer satisfaction.

Historical Trend

Before the advent of Artificial Intelligence (AI) in the Customer Service domain, handling high volume customer inquiries was a significant challenge for many organizations. Here are some of the difficulties and methods used to manage high inquiry volumes:

1. Deflection Strategy

Companies often employed a strategy known as "deflection" to manage high inquiry volumes. This strategy involved directing customer inquiries to other channels that didn't require human intervention, thereby reducing the load on customer service representatives.

2. Staff Scheduling

Proper staff scheduling was crucial to manage surges in customer inquiries. Companies needed to ensure that they had enough personnel on hand to handle the increase in call volume, and they had to account for any factors that might affect their staff's availability, such as vacations or sick leaves.

3. Preemptive Measures

Some organizations attempted to preempt high call volumes by addressing common customer queries proactively, although this was not always successful in significantly reducing the volume of inquiries.

These methods were often reactive rather than proactive, and could not always ensure timely and satisfactory responses to customer inquiries. Moreover, the manual handling of high inquiry volumes was resource-intensive and could be costly for organizations, both in terms of finances and manpower. There was also a limit to how much the inquiry load could be reduced through deflection or preemptive measures, and high inquiry volumes could still result in long wait times for customers, affecting their overall satisfaction and experience.

The evolution of AI technology introduced a more efficient and cost-effective way to manage high volume customer inquiries. AI-powered chatbots and automated response systems have since become a game changer, enabling organizations to provide quicker responses to customer inquiries, reduce operational costs, and improve customer satisfaction, without the need for extensive human intervention.

Advent of AI

AI has provided a robust solution to the problem of handling high-volume customer inquiries in the Customer Service domain. Here are some of the ways AI has helped overcome the challenges:

1. Automated Responses

AI-powered chatbots and virtual assistants provide instant automated responses to a variety of common customer inquiries. This has dramatically reduced wait times and has ensured that customers receive timely responses to their questions. Unlike traditional methods, AI can handle an unlimited number of inquiries simultaneously, ensuring efficiency even during peak times.

2. Cost Efficiency

By automating the response process, AI significantly reduces the need for a large customer service workforce. This translates to substantial cost savings for organizations in terms of salaries, training, and infrastructure. The cost-effectiveness of AI solutions allows companies to allocate resources to other critical areas of the business.

3. 24/7 Availability

AI systems are available around the clock, providing customer support even outside of traditional business hours. This 24/7 availability enhances customer satisfaction as customers can have their inquiries addressed at any time.

4. Data Analysis and Insights

AI technologies can analyze vast amounts of customer interaction data to provide valuable insights. This analysis helps in understanding common customer issues, improving services, and even in anticipating and preempting customer inquiries. This proactive approach is a leap forward from the reactive methods traditionally used.

5. Personalization

AI can offer a personalized customer service experience by utilizing data to understand individual customer preferences and history. This personalization can lead to enhanced customer satisfaction and increased loyalty.

6. Scalability

AI solutions are highly scalable, allowing businesses to easily adjust to fluctuating volumes of customer inquiries without the need for significant operational changes. This scalability is crucial for handling high-volume inquiries, especially for growing businesses or during peak seasons.

7. Continuous Learning and Improvement

Machine learning, a subset of AI, enables automated systems to learn from customer interactions and continuously improve. This learning leads to more accurate and helpful responses over time, further enhancing the customer service experience.

8. Integration with Other Channels

AI can be integrated with various communication channels such as email, messaging apps, and social media platforms, providing a unified and seamless customer service experience across different touchpoints.

By addressing the core challenges associated with handling high-volume customer inquiries, AI has not only revolutionized customer service operations but also paved the way for organizations to offer a superior and more efficient customer service experience.

Real Life Application of AI to volume customer inquiries

Here are five real-world case studies of how AI has been instrumental in handling high volume customer inquiries in the Customer Service domain:

  1. Microsoft AI in Manufacturing: While not directly related to customer service, Microsoft AI's application in the manufacturing sector is notable. Companies like National Oilwell Varco (NOV) have utilized AI to optimize manufacturing processes and maximize profitability. This example demonstrates how AI can be used to train autonomous systems, improve employee training, and identify new efficiencies, which could be paralleled in a customer service setting.
  2. Amazon’s Alexa: Alexa, Amazon’s voice-activated AI, serves as a personal assistant to users, responding to inquiries, playing preferred music, setting reminders, and more. This showcases how AI can be employed to handle a myriad of customer inquiries effectively, providing a seamless customer service experience.
  3. Nordic Insurance Company: A leading Nordic insurer employed conversational AI to resolve 97% of all internal support queries, showcasing how AI can significantly reduce the volume of inquiries directed to human customer service representatives.
  4. Telecommunications in Scandinavia: Scandinavia’s largest telecom company hit its ROI goals in under 12 months by employing conversational AI, demonstrating the cost-efficiency and effectiveness of AI in handling customer inquiries.
  5. Banking Sector: Conversational AI has also been used in the banking sector to enhance customer service, as indicated by While the exact case study wasn't detailed, it's a testament to the versatility and effectiveness of AI across various industries in handling high-volume customer inquiries.

Future Trend

The handling of high-volume customer inquiries in Customer Service is an evolving domain with many trends shaping its future. Here are several future trends identified from various sources:

1. Operational Excellence

The focus is shifting towards improving operational excellence to meet rising customer expectations. As simple issues are increasingly resolved through self-service, service leaders are ensuring their service and support functions remain flexible to customer needs.

2. Business Growth

Growing the business is a significant goal, with service functions pivoting to contribute to top-line revenue. Addressing inefficiencies and making right trade-offs are strategies employed to improve profitability amidst economic challenges.

3. Data and Analytics

Understanding customer needs and expectations through robust data and analytics is crucial for improving loyalty and creating customer value. Collecting actionable customer data across channels through a robust voice of customer program is advised to improve customer experience strategies.

4. Branding Through Customer Service

Customer service is increasingly becoming a brand differentiator. Companies are expected to lead with their values, emphasizing agility, and ensuring transparency in data handling, which in turn enhances the customer service experience.

5. Automation and Chatbots

The utilization of chatbots is predicted to save businesses up to $8 billion by 2023, reflecting the economic advantage of AI in handling common customer inquiries. The harmony between humans and automation is a notable trend as customer demands continue to rise and the service process becomes more complex.

6. Messaging and Digital Channels

The rise of messaging and digital channels is a trend to watch, as customer service extends beyond traditional phone support to email, live chat, in-app support, and social media channels. This shift caters to an ever-expanding variety of technology at customers' fingertips and their preference for using interconnected devices.

These trends are driven by the evolving expectations of customers, advancements in technology, and the economic landscape. They reflect the ongoing efforts to streamline operations, enhance customer engagement, and leverage data for insightful decision-making in the realm of customer service.


The trajectory of Customer Service in handling high-volume inquiries has been significantly reshaped by the advent of Artificial Intelligence. From the historical challenges of managing surges in customer inquiries with manual labor and reactive strategies, AI has propelled the domain into an era of proactive, efficient, and customer-centric service delivery. The real-life applications of AI across various sectors, as evidenced by the case studies, underscore the transformative impact of AI in managing high-volume inquiries, reducing operational costs, and enhancing the customer experience. Moreover, the unfolding trends hint at a future where automation, data analytics, and digital channels will continue to redefine customer service, making it more personalized, agile, and aligned with brand values.

As we delve into the future, the blend of human and AI-driven customer service is poised to become the new norm. Organizations are increasingly leveraging AI to not only handle high-volume customer inquiries but also to glean actionable insights from customer interactions, drive business growth, and carve a distinctive brand identity. The continuous evolution of AI technologies, coupled with a deeper understanding of customer expectations, is set to further enrich the customer service landscape. Businesses adapting to these advancements are likely to stay ahead in delivering exceptional customer service, thereby fostering stronger customer loyalty, and achieving a competitive edge in the market.

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