Generative AI in customer service: Benefits & risks
Using artificial intelligence (AI) in customer service has gone from persona non grata to being more enthusiastically embraced than gräddtårta on Nationaldagen.
But here’s the thing:
Many still don’t know how to implement AI successfully in customer service, what to expect, or why combining generative AI with conversational AI is a winning formula.
And who are we, if not the superheroes 🦸♀️ here to bridge that gap?
So buckle up as we explore the evolution of conversational and generative AI — including the benefits, risks, and how to use them wisely in customer support.
Ready? Let’s go!
The Overpromise Phase
Although the first chatbot was created back in the 1960s, chatbots didn’t gain real popularity until the 2010s. That’s when we entered what we like to call The Overpromise Phase — a time full of high expectations.
Big companies like Facebook, H&M, and Bank of America invested heavily in chatbot solutions. The problem? The tech wasn’t ready yet.
Early chatbots struggled to understand natural language, leading to clunky conversations and frustrated customers. In short: lots of hype, not a lot of delivery.
The “Does it Work?” Phase
Fast-forward to 2018, when a game-changer arrived: advances in Natural Language Processing (NLP).
Before NLP, bots could only respond to exact keywords. But with NLP, chatbots began to understand context — even if users phrased things differently.
That meant companies could finally use AI-powered bots to handle specific tasks efficiently, even if they weren’t quite ready to sound like a human.
Welcome to the “Does it work?” phase.
The Rise of Generative AI: A New Era Begins
Jump to 2023 — the year that generative AI officially took over the conversation.
But first, a quick breakdown of terms:
- Conversational AI: The tech behind most chatbots, using NLP to understand and respond to users.
- Generative AI: A more advanced approach that can create entirely new responses using machine learning, trained on massive amounts of data.
These terms get thrown around a lot — but knowing the difference is crucial.
With the launch of ChatGPT in late 2022, generative AI took center stage. It became the fastest-growing AI system in history, gaining over a million users in just a week.
But here’s what made 2023 different:
This time, the tech didn’t just meet expectations — it exceeded them.
For the first time, AI felt truly helpful in a conversation.
Generative AI in Customer Service 🤝
Generative AI brings real value to customer support:
✅ Human-like responses
✅ Smoother conversations
✅ 24/7 scalability
But it also introduces new risks that businesses can’t ignore:
❌ Misinterpretation & Errors
Even advanced models can misunderstand questions or provide incorrect answers — especially when details matter (like shipping updates or refund policies).
❌ Privacy & Confidentiality
Generative AI systems might accidentally reveal sensitive customer data or internal company info — a serious risk when it comes to compliance and GDPR.
❌ Lack of Actionability
Generative AI can generate great replies — but it can’t take action like fetching order details or making updates in a CRM.
The Solution: Combine Generative AI with Conversational AI
Do these challenges mean you shouldn’t use generative AI in customer support?
Hell no. 🙅♂️
The real solution?
Combine generative AI with conversational AI — to get the best of both worlds.
Let generative AI handle the tone, creativity, and flow.
Let conversational AI handle secure integrations, data actions, and system control.
Together, they create a powerful, safe, and scalable support solution — one that feels personal but doesn’t compromise security or functionality.
Conclusion
Generative language models have revolutionized how we think about chatbots. They’re smarter, faster, and more human than ever before.
But to make them truly work in a customer service setting, you have to address challenges like privacy, misinterpretation, and system limitations.
By combining conversational and generative AI, you can deliver better support without giving up control, security, or efficiency. ✨
About Ebbot 🤖
Ebbot is a Swedish tech company specializing in conversational AI.
We offer advanced live chat and AI chatbot solutions that help companies automate support, streamline operations, and deliver truly excellent customer experiences.
Psst…!
We’ve launched EbbotGPT — our own generative AI model built specifically for customer service and 100% GDPR compliant.
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