
Shivani Srivastava
Content Specialist
Author Bio:
With a passion for unraveling the complexities of the technical landscape, she specializes in transforming intricate concepts into engaging, accessible narratives that inform, inspire, and connect.
With great customers comes great customer service responsibility. The question is how businesses handle the latter part. With the arrival of AI virtual assistants, the race to revolutionize customer service has begun. A report suggests this market will skyrocket from $5.1 billion (2024) to $47.1 billion (2030).
What are AI Agents in Customer Service?
Simply put, businesses leverage technologies such as Natural Language Processing (NLP), Machine Learning (ML), etc., to provide a seamless customer service experience.
The AI agents are intelligent enough to handle customer queries, generate relevant responses, and continuously work to improve their data. They employ LLMs and are trained rigorously on vast amounts of data to provide a tailored customer service experience.
Types of Virtual Assistants in Customer Service:
Chatbots
- They handle basic responsibilities, such as answering FAQs and guiding customers.
- Mostly are ML-powered
Virtual Agents
- Handles more complex tasks such as booking appointments, tracking orders, opening bank accounts, paying bills, etc.
- Use advanced NLU, and employ LLMs
Voice Assistants
- A type of virtual agent used in the form of voice command
- Use NLP, trained on voice recognition models, etc.
Examples from Various Industries
Let’s explore why businesses and customers increasingly rely on AI virtual agents:
E-commerce Sector
A classic chatbot to tell the whereabouts of the order. Today, most e-commerce businesses employ virtual assistants to make the customer experience a piece of cake.

Online Food Delivery Services
Similarly, online food delivery businesses leverage AI agents to assist their customers in tracking, ordering, or raising complaints in real-time.

Banking Services
AI agents are transforming customer service in the banking industry for a seamless customer service experience. These virtual assistants help customers to avoid unnecessary hassles and get things done on the go.

Medical Services
No more busy telephone lines to book a health appointment! The healthcare sector is on a journey to revolutionize its operations with the help of AI agents.

Aviation Services
Traveling is both a necessity and a leisure. Thus, virtual assistants are proving to be a boon for managing all the minute customer queries and providing best-in-class customer support.

How are Virtual Assistants Changing the Game in Customer Service
By Assessing Customer Behaviour
These AI agents are constantly on the run to interpret, track and update data according to customer interactions. As these AI agents employ LLMs to process huge amounts of datasets, there is a quest to train them as a highly intelligible and emotive assistant.
Providing Quick, Relevant, and Consistent Support
AI agents respond in no time with appropriate and well-tailored responses, thereby raising the customer service bar. Furthermore, they are available 24x7, automatically making the customer service experience location independent.
Working as a Multitasker
As the AI agents are based on complex sets of data, they navigate and troubleshoot the problems of customers ranging from basic to complex. Whether it is about paying bills, tracking orders in real-time, or extracting financial information, these virtual assistants employ advanced algorithms to handle multiple tasks in one go.
Analyzing Past, Present and Future
As these AI agents are constantly interacting with vast amounts of customer data, they imbibe and store past experiences. Next, after in-depth analysis and segmentation, these virtual assistants try to simulate past experiences to provide intelligent solutions to the present customers as well as predict potential outcomes for the future.
Helping in Brand Building
Businesses and brands are constantly working to provide a top-notch experience to their customers going from personalization to hyper-personalization. Amidst this, customers expect the same service in resolving the issues they face. When AI agents deliver successful customer service experience, it automatically lifts the brand image, reputation, and loyalty.
Overcoming Language Barriers
As AI agents employ NLU to process text-based or voice-based commands, it makes sure the conversation is humanistic, natural, and without linguistic constraints.
A Quick Checklist of the Challenges yet to be Resolved
Conversational Loop of AI Agents
At times, the conversation with a virtual assistant enters a cycle of similar responses, thereby, elevating customer dissatisfaction.
Lack of Empathy and Emotions
AI agents are still not at par with understanding the complexities of human emotions.
The Problem in Understating Linguistic Nuances
There’s still a long way to go in training AI agents to understand idioms, proverbs, and regional languages.
Data Privacy Concerns
Customers are always skeptical of how their personal information is stored. It deters some of them to interact with a virtual assistant.
Biases and Discrimination
AI agents need to undergo a lot of training to forgo biases such as racial, regional, gender etc.
Way Forward
With time, AI agents will consume more data and analyze customer behaviour to bring a revolution into the domain of customer service experience. It all boils down to making this experience more seamless, quick and smooth. The days of hyper-personalization in customer service via AI agents is almost here.