The Role of AI Chatbots in Customer Service: Advantages and Challenges

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School of Business | Bachelor's thesis
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Date

2024

Department

Tieto- ja palvelujohtamisen laitos

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Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

27

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Abstract

The rapid development of artificial intelligence (AI) in recent years has transformed customer service operations, with AI-based chatbots becoming increasingly prominent solutions for businesses to integrate into their customer service. This Bachelor’s thesis investigates the advantages and challenges associated with implementing an AI chatbot as a customer service agent. Additionally, it explores ways to overcome these challenges and identifies key aspects businesses should consider when adopting chatbots for customer service. Through a literature review, the study identifies key advantages, such as cost efficiency, improved response times, enhanced service accessibility, and consistent quality in service delivery. It also highlights critical challenges, including user resistance, data privacy concerns, biases in chatbot responses, and the need for significant initial investments. The research suggests strategies to address these challenges, such as designing chatbots with human-like characteristics aligned with the company’s brand and integrating human customer service to complement the chatbot. Ultimately, this thesis aims to provide valuable insights for businesses considering the implementation of chatbots in customer service.

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Thesis advisor

Bragge, Johanna

Keywords

chatbot, artificial intelligence, customer service, AI

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https://urn.fi/URN:NBN:fi:aalto-202501261795

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[kand] Kauppakorkeakoulu / BIZ