Posted On: November 7, 2020

Customer service efficiency: AI chatbots, knowledge management, and more!

10 mins read

A chatbot is a computer program or software that functions as an online chat messenger providing information without the involvement of a live human agent. It is programmed using Artificial Intelligence (AI) and Machine Learning (ML) in a way that it can convincingly behave as a real person would. Chatbots are best used with knowledge management software, utilizing data to predict problem patterns, and therefore add value to User Experience (UX). It may require continuous changes and updates in its programming to keep with the times, but is still a cost-friendly and effective way of providing customer service.

Although chatbots cannot replace human customer service in their entirety, they can facilitate better opportunities for human resources. Today, therefore, the use of chatbots is no longer a rare sight. There is a need for these bots, and for knowledge management to prepare these bots with essential customer information.

Need for customer service chatbot

Customer service chatbot is convenient to customers

Today, consumers want quick & easy solutions, with minimal effort. They prefer brands/ & services that provide online AI messengers accessible to them from anywhere and everywhere. Companies need to recruit for one less position as well – leading to a lowered cost of training!

Better uses of human resources

Gone are the days when employees have to answer the same questions from different customers, multiple times. With chatbots, simple queries and issues can be resolved without any external help. Employees can be assigned potentially better jobs, productivity levels increase, and finally, your AI investments start to pay off.

User interaction

Another reason why chatbots are trending today is that they lead to better user interaction.  Data of users is saved and therefore it helps in understanding consumers from the get-go, saving time and frustration. Customers shouldn’t have to repeat their problems every time they call – and chatbots are a constant companion, offering solutions.

AI chatbot is cost-effective

One of the biggest positives of having a chatbot is that it is extremely cost-efficient. While an entity would require a team of agents to resolve customer problems, a chatbot can single-handedly deal with multiple queries at once.

Customer service chatbot saves time

When answers are saved, limited, and readily available to the seeker, it is a given that a lot of time will be saved. A good knowledge management plan stores information and transmits data to relevant sources like your chatbot instantaneously. It doesn’t get faster than that.

While it has been established why there’s a need for these AI bots, it is important to understand that they have to be programmed with different abilities for respective uses. The uses and benefits of a chatbot depend on the area of expertise in which it has to be launched.

How knowledge management comes into the picture

Customer support chatbots get to the user’s actual query by asking enough questions. After analyzing language and query, it looks for an answer in its knowledge base. If there’s a lack of content or outdated information, the chatbot will fail at its task – the chatbot is somewhat dependent on an updated, reliable KMS.

Features of customer service chatbot

Once the chatbots have been backed by a powerful knowledge base, they are capable of carrying out various functions:

Programmed for conversations

Chatbots are trained to converse with customers. They rely on data to operate but will understand the customer and their queries.


Chatbots are trained in advance to understand specific knowledge and work-related terms. They are also trained to answer the most common problems in the industry, even before those problems have been asked to them by customers.


Chatbots can perform perfectly well without any human guidance. They are not dependent on customer agents.

Emotional intelligence

Coded with emotional intelligence, chatbots can understand sentiments, traits, and tones while interacting with a customer through keywords or phrases. If they believe that a particular query is beyond their programming, they are also capable of directing the person to an agent.

These features of chatbots prove to be extremely useful across various fields-

Chatbots in customer service

Consistent user experience

Chatbots play a vital role in enhancing UX. They make note of the most often reported problems and are available 24×7 to answer queries.

More context on each customer

A lot of firms have a hard time trying to understand their user base. But this system of KM collects and stores user data after every interaction, making it comparatively easy for the entity to understand each customer as the interaction continues.

Instant gratification

Chatbots function as self-service customer care, granting people access to instant help – no matter the time. Customers are no longer willing to face a ‘hold’ tone and churn possibility if left unattended too long.

Reduces expenses

With automation and chatbots taking over the service segment, training and recruitment expenses fall. Chatbots also free up human agents to do more complex tasks – allowing your company to operate efficiently.

Top 3 uses of customer service chatbot in e-commerce

Offer recommendations

Can be used as a great tool in increasing sales. It provides recommendations to registered users based on their preferences, measurements, and order history. For potential customers, it can showcase the product that it wishes to sell.

Customer support

Complaints about late deliveries, product quality, having received the wrong size – your chatbot will be equipped to handle all these queries and will resolve the issue accordingly.

Completes purchases

Chatbots also help purchasers complete their order placements, offer payment information, delivery options, and more.

Top 4 uses of customer service chatbot in healthcare

Eases medical professionals’ burden

Chatbots analyze patient data and provide online consultation and scheduling with medical professionals. This reduces the presence of long numbers of patients at hospitals or clinics, making more room for those whose problems need immediate attention or higher involvement.

Guides patients unsure of their diagnosis

If users are unsure of their symptoms or diagnosis, chatbots help them reach an answer through data application, and further connecting unresolved issues to medical professionals online.

Schedules appointments

Chatbots can replace telephone calls made to schedule appointments. Patients who travel to the clinic to get an appointment can do so from the comfort of their homes. No long waiting hours or queues to go through!

Health tracking

For those patients who require frequent check-ups or medical assistance over a short period, chatbots can help by tracking their health. They can also form a connection between the patients and their doctors so that they can reach out to each other immediately.

Top 3 uses of customer service chatbot in telecom

Enhance customer experience

Chatbots provide personalized advice and cut waiting periods. They make it easier for users to derive information, as compared to scrolling through numerous FAQs or looking for a representative to contact.

Solve technical issues

No matter how technical an issue is, all the information made available by knowledge management makes it possible for a bot to resolve a customer’s problem. Whereas not every customer service agent or FAQ may have an answer to these.

Reduce fraud

Customer bots are usually found on authentic websites and do not approach customers unbeckoned. Rather, the customers approach chatbots. They are therefore secure and do not ask for unrequired details. This leaves zero room for fraudsters to call customers and dupe them into a scam.

The benefits of chatbots across industries are plenty to see. Today, a lot of businesses use AI bots in their practice, and for these chatbots to function accurately, they have to be trained with the correct data. This data accuracy is provided by the right implementation of a KMSWith an efficient chatbot now in play, customer service as a field has officially evolved. Invest in the future, and keep pace.


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