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Automated CX with AI Agents | How Engaige is transforming the CX Market

Tijmen van den Elzen
January 24, 2024

Engaige AI-Agents are transforming the customer service market

Flexmarkt wrote an article about the changing circumstances in the customer service market. Here is the link to the full article:
https://www.flexmarkt.nl/algemeen/werkloosheid-stijgt-door-generatieve-ai-deze-chatbot-verslaat-nu-al-een-klantenservicemedewerker/

In a time where artificial intelligence (AI) is rapidly changing the workplace, the recent vision document "Generative AI" from the Dutch government has attracted significant attention. The document highlights the increasing impact of generative AI - an advanced form of AI capable of independently creating content - on employment, particularly within customer service departments.

AI chatbots lead to more efficient customer interactions

The recent success story of the AI chatbot "Anna," developed by Engaige, is a striking example of how AI is transforming customer service. "Anna" has optimized the customer service of HelloPrint to such an extent that the company was able to reduce the number of customer service representatives from 100 to 32. "Anna" is so efficient that she can handle up to 62% of customer inquiries independently by learning from information and processes within the company.

The Future of Customer Service Representatives

However, AI-powered automation also presents challenges. While the overall number of jobs would not significantly decrease in the long term, the labor market may change. Specific professions and sectors vulnerable to the impact of generative AI - such as creative professions and office support - may undergo a transition of labor to other sectors. This could lead to increased short-term unemployment and pose challenges for workers who cannot quickly reskill or find new jobs.

Income distribution and labor market evolution

With the rise of generative AI technologies, a growing divide could arise between "skilled workers" who have the necessary skills and access, and workers whose skills become less relevant. This polarization can lead to increased income inequality - an effect that has already been observed in previous waves of automation.

Conclusion

The technological progress represented by generative AI, such as AI chatbots, promises unprecedented opportunities for efficiency improvement in customer service. At the same time, organizations, governments, and educational institutions will need to collaborate to protect and adapt employment to the changing demands of the market. This transitional period requires well-thought-out strategies to harness the opportunities of AI while managing the risks, in order to maintain a balanced and inclusive labor market.