AI-Based Call Center: How It Benefits Your Business + What’s Next

April 15, 2024 7 min read

Alex Doan

Alex Doan

What is an AI-based call center?

An AI-based call center uses artificial intelligence to handle customer interactions, automating time-consuming tasks to boost efficiency and satisfaction.

In the race for a competitive edge, businesses are constantly seeking innovative ways to deliver exceptional customer experiences. This is where an AI-based call center comes in.

AI (artificial intelligence) has the power to enhance customer connections, streamline support processes, and provide valuable insights from customer data. In this post, we’ll explore the benefits of integrating AI into your contact center, common use cases for AI-based call centers, and future trends to help you stay ahead of the curve.

Benefits of AI Call Center Solutions

AI-based call centers offer solutions that have plenty of benefits that transform the way businesses handle customer interactions and optimize contact center operations. Here are some advantages you’ll get by deploying AI into your contact center. 

Five ways AI can improve call center efficiency

Improves agent efficiency

With the help of AI, you can automate routine tasks to streamline operations. For instance, during high call volume periods, AI can efficiently manage simple customer queries, allowing agents to dedicate their attention to addressing more complex inquiries.

In fact, chatbots can handle up to 80% of routine questions, significantly reducing agent workload. This efficiency boost helps agents handle more customer calls effectively, leading to higher productivity and shorter wait times for customers.

Enhances customer experience

By combining the power of live human agents and artificial intelligence, you can greatly enhance your customer experience (CX).

Nextiva call center software dashboard

For example, AI enables hyper-personalized interactions, a feature sought by 76% of customers in their call center experiences. 

AI algorithms can analyze vast sets of customer data, including past interactions, purchase history, preferences, and demographics. By processing this information, AI can generate detailed customer profiles that agents can use to tailor interactions based on customers’ needs and preferences. 

Reduces costs

With automated tasks and optimized resource management, AI offers opportunities to reduce costs. For example, intelligent virtual agents can efficiently handle tasks that would otherwise require human intervention, leading to potential labor cost savings of up to 30%. Organizations can decrease operational expenses by streamlining processes and minimizing human involvement without compromising service quality.

Provides real-time customer insights

AI call center solutions offer actionable customer insights through real-time data analysis, enabling organizations to identify trends and areas for improvement. For example, sentiment analysis tools can detect customer dissatisfaction during calls, prompting agents to intervene and resolve issues proactively. By using these metrics and insights, businesses can continuously optimize operations, improve service quality, and effectively adapt to evolving customer preferences.

Lowers agent turnover

With AI handling repetitive tasks, agents can focus on more complex and meaningful interactions, reducing burnout and churn rates. This shift results in significant cost savings for organizations, with each agent turnover costing around $20,000 annually in replacement costs alone. 

Graphic showing why call center turnover rates matter

Organizations can improve employee satisfaction and retention by empowering agents with AI-powered tools, which maximizes operational efficiency.

Top 5 Use Cases for Call Center AI

From streamlining interactions to minimizing mistakes, there are plenty of use cases for call center AI. Check out how you can use artificial intelligence in your contact center. 

Top uses for AI call centers: Predictive analytics, intelligent product recs, repetitive tasks, natural language processing, regulatory compliance.

Predictive analytics

AI-based call centers can use the power of predictive analytics to personalize the customer experience. Call center predictive analytics analyzes various data points about a caller. These analytics can include:

  • Past interactions
  • Purchase history
  • Demographics

For example, if a customer contacts a telecom company’s call center about their internet service, predictive analytics analyzes their history to gauge their technical expertise and past issues. Based on this, the AI system uses machine learning to predict the likely reason for the inquiry and suggests custom solutions to the agent.

Intelligent product recommendations

AI algorithms can also provide intelligent product recommendations during customer interactions. AI can suggest relevant upsells or cross-sells to customers by analyzing customer data and purchase history. 

For instance, when a customer orders an appliance, AI can recognize the context and suggest compatible accessories or warranty extensions. This ensures your customer is getting the most out of their purchase.

Virtual agents and chatbots call deflection

Businesses increasingly use virtual agents and chatbots to deflect routine inquiries away from human agents to reduce wait times and improve overall efficiency. These AI-driven systems can handle repetitive tasks, like answering frequently asked questions or processing simple transactions. These can help free your human agents to focus on more complex issues. 

Organizations can streamline their operations by automating customer service and delivering faster, more responsive customer service.

Natural language processing (NLP) for smarter communication

Natural language processing helps call center AI grasp and reply to customer queries in everyday language, which can streamline communication. AI systems have the capacity to do the following:

  • Chat naturally with your customers. 
  • Pick out important details in a conversation.
  • Give fitting replies, whether spoken or written. 

This knack for understanding and responding suits interactions better, easing customer frustration and boosting satisfaction and loyalty levels.

Industry or regulatory compliance

Call center AI plays an important role in ensuring industry or regulatory compliance by monitoring customer conversations in real time. AI can ensure that mandatory disclosures are communicated to callers effectively by analyzing dialogue and detecting specific keywords or phrases. 

For example, in financial call centers, AI can verify that an agent made a disclosure to a customer before pulling their credit report. This ensures adherence to regulatory requirements and mitigating compliance risks.

Call Center in Action

💡Our collection of case studies shows how thousands of companies grow and succeed using Nextiva’s AI-powered contact center solutions.

Future Trends and Predictions for AI-Based Call Centers

Call centers evolve with AI technology and changing expectations, shaping customer service. Here are key trends to note.

Future trends and predictions for AI-based call centers.

Omnichannel becomes even more important

As communication preferences change, traditional phone support is no longer the only choice for customers. Live chat is now the preferred channel, which 41% of customers favored.

However, phone calls still remain a popular support method, especially when dealing with complex customer inquiries. Having an omnichannel system in place is essential to meet evolving customer expectations. This includes integrating communication channels to provide a seamless experience across all touchpoints. With AI, maintaining consistency and streamlining communication becomes more manageable.

Hyper-personalization becomes the CX norm

As businesses strive to deliver better customer experiences, hyper-personalization is emerging as the new standard. By leveraging AI, companies can tailor interactions to individual preferences, customer behaviors, and past engagements. 

This approach fosters deeper connections and drives brand loyalty, from personalized product recommendations to customized marketing messages. Embracing hyper-personalization allows companies to stand out in the competitive landscape by delivering memorable experiences that resonate with customers on a personal level.

Customer support benefits from AI-driven quality assurance

AI-driven quality assurance is changing the game in customer support. With AI analyzing customer interactions, it spots patterns and trends, helping businesses improve service quality. 

Plus, AI can give instant feedback, helping improve agent performance so they can provide top-notch service every time. It also helps call centers stay on top of regulations, catching potential issues early. By using AI, businesses can: 

  • Make their customer support smoother
  • Keep customers happy
  • Work more efficiently

Answer More Calls with Nextiva

Consider implementing AI-based call center solutions to boost your team and enhance customer experiences. Start by adding features like website chat to engage customers instantly. If you feel swamped with inquiries, deploy chatbots to handle basic queries, freeing up your team for more complex interactions. With AI platforms handling routine tasks, your team of live agents can focus on delivering personalized support.

Nextiva’s AI-based tools, including our advanced interactive voice response (IVR) system, offer unparalleled efficiency for phone systems. They automate tasks and facilitate seamless support across channels, allowing your team to assist customers without interruptions.

Scale up with contact center AI.

The modern contact center has arrived. See how Nextiva helps you deliver the best customer experience at scale.

AI-Based Call Center FAQ

Discover more about AI-based call centers with the answers to these frequently asked questions below.

Will AI replace call center agents?

AI won’t replace call center agents; instead, it’ll boost their abilities to add more value along the customer journey. According to HubSpot, 62% of customer service specialists believe AI and automation help them understand customers better. While they support using AI, they also advise against over-reliance on it.

How does AI help improve customer service?

AI improves customer service by making service available 24/7, streamlining processes, and offering real-time insights for better decision-making. For instance, customer service professionals have reported saving an average of 2 hours and 11 minutes per day by utilizing generative AI to craft responses to customer queries.

What are the challenges of implementing AI in call center operations?

The challenges of implementing AI in call centers may include integration with existing systems and ensuring effective training for agents to use AI tools efficiently. In fact, a HubSpot report found that 32% of teams found it difficult to integrate tools with existing systems. 

Can I add AI functionality to my call center?

Artificial intelligence functionality requires connectivity between customer data and a large language model (LLM) provider to deliver AI benefits to customers and agents. However, businesses can gracefully transition their call center to the cloud using Nextiva one team or department at a time. Whenever ready, you can easily enable modern AI features as your business needs.

Alex Doan


Alex Doan

Alex Doan is an experienced senior marketing professional specializing in propelling growth for both B2B and B2C companies. Proficient in streamlining marketing operations for seamless sales transitions, utilizing analytics and consumer insights to achieve measurable outcomes. Committed to enhancing lead and customer experiences through effective journey mapping.

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