As enterprises look to transform their contact centers into customer experience centers, technologies, including generative AI (Gen AI), automation, and analytics, take center stage. Evolving customer journeys and the need for seamless experiences across channels push enterprises to offer omnichannel support and digital self-service options. Service providers have allocated 27% of their investments toward emerging technology integration and 35% dedicated to new tools and platforms, as noted in our Contact Center Business Process Transformation 2023–2024 RadarView.
The introduction of Gen AI has significantly changed contact center outsourcing. This technology’s impact on employee productivity in contact centers cannot be overstated. It has revolutionized contact center operations by enhancing efficiency and improving customer service.
However, the rise of AI in contact centers presents both job displacement risks and productivity gains. AI’s integration into contact centers could automate routine tasks, potentially reducing entry-level positions and streamlining workflows, necessitating fewer manual roles. While some jobs may vanish, new AI management and development roles could arise. On the productivity front, AI enhances agent performance with real-time assistance, optimizes workforce management, and elevates customer satisfaction through faster, personalized service. The overall effect on employment remains uncertain, influenced by the rate of AI adoption, the complexity of tasks, and the commitment to workforce reskilling.
The Role of Gen AI in Employee Productivity
Contact center agents grapple with high volumes of repetitive tasks, risking burnout and diminished productivity. Gen AI offers a solution by automating routine tasks and providing real-time support, enabling agents to deliver personalized and efficient customer service. It facilitates seamless communication across languages, interprets customer sentiment for empathetic interactions, and accelerates agent training with interactive simulations. Gen AI empowers agents to focus on complex tasks, enriching their work experience and boosting productivity.
Figure 1: Some examples of Gen AI applications across various contact center functions, from Avasant Contact Center BPT 2023–2024 RadarView
Real-life Use Cases to Enhance Agent Productivity
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- Intelligent virtual assistants: AI-powered chatbots handle routine inquiries, freeing up agents for complex issues and reducing wait times; for instance, HDFC bank’s EVA offers 24/7 assistance, handling customer inquiries and streamlining processes, improving efficiency.
- Real-time knowledge assistance: AI systems analyze vast knowledge bases and suggest relevant information and solutions to agents during calls, improving first-call resolution rates. For example, KLM Royal Dutch Airlines’ AI assistant provides real-time flight information, enhancing agent performance.
- Personalized communication: AI algorithms tailor language, tone, and recommendations based on customer data and sentiment analysis, fostering positive interactions and building rapport. For example, Marriott International’s AI-powered chatbots personalize communication based on guest preferences, leading to higher satisfaction scores.
- Automated report generation: AI tools summarize calls, transcribe conversations, and generate reports, reducing administrative burdens for agents and providing valuable data for improvement. For instance, Gong.io automatically records and transcribes customer calls, removing the need for agents to take detailed notes.
- Sentiment analysis: AI models detect customer emotions and suggest appropriate responses, helping agents navigate challenging situations and de-escalate conflict. For example, ANZ Bank’s AI assistant analyzes customer sentiment during calls, enabling agents to adjust their communication style accordingly.
Real-life Use Cases in Training
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- Personalized learning journeys: AI creates individualized training modules based on strengths, weaknesses, and learning styles, ensuring optimal knowledge acquisition. (For instance, Deutsche Telekom’s AI-powered platform tailors training content to individual needs, improving agent performance)
- Microlearning: Bite-sized, engaging modules facilitated by AI foster better knowledge retention and reduce training fatigue, enhancing overall learning effectiveness. (For instance, Rezolve.ai is an AI-powered micro-learning tool designed for remote and hybrid teams.)
- Realistic scenario-based training: AI simulates various customer interactions, allowing agents to practice handling challenging situations in a safe, controlled environment. Enterprises utilize AI-powered simulations to train agents on complex insurance scenarios, preparing them for real-world interactions.
- Personalized feedback: AI-powered virtual coaches offer immediate and specific feedback on agent performance during simulations, pinpointing areas for improvement and accelerating skill development. (For example, Amazon uses Gen AI tools that provide real-time feedback during agent simulations, helping employees refine their skills and fostering continuous improvement)
Limitations and Challenges of Gen AI in Contact Centers
Implementing Gen AI in contact centers presents several challenges, including technical limitations like accuracy and bias, human-AI interaction issues such as over-reliance and job displacement fears, ethical concerns including data privacy and algorithm transparency, and practical considerations such as integration costs and infrastructure needs. Addressing these challenges is crucial for realizing the productivity benefits of generative AI.
Way Forward
The harmonious integration of humans and AI in contact centers is contingent upon a strategic, responsible, and ethical approach. Transparency, data privacy, and human oversight are paramount to fostering trust and counteracting AI’s inherent biases. Cultivating a culture of continuous learning and development is crucial, as it equips agents with the necessary skills to effectively collaborate with AI, while ongoing refinement of AI algorithms ensures they evolve in tandem with real-world applications.
Gen AI will play a key role in streamlined contact center operations, automated mundane tasks, and enhanced customer interactions, leading to a marked increase in productivity. Agents can now manage more interactions without sacrificing quality, signaling a transformative shift in outsourced customer service with Gen AI at the helm.
As this technology progresses, it promises to further revolutionize the industry, underscoring its clear benefits to contact center agents. The future of customer service lies in a human-AI partnership that amplifies efficiency and empathy, personalization, and authenticity. This synergy is the cornerstone of a new era in customer service excellence, where technology augments human capabilities, fostering deeper connections, greater satisfaction, and a future where customers feel genuinely valued and understood.
By Surya Teja, Senior Research Analyst, Avasant, and Aditya Jain, Research Leader, Avasant