Airline in hot water over AI chatbot

Chatbots in Industry: Customer Service Case Studies

The excitement about AI chatbots is still strong. However, stories of chatbot failures often get more attention. You probably heard all about the airline chatbot promising a passenger a nonexistent discount last year. Landing the airline in some hot water.

Like the news, success stories are rarely in the spotlight making them less accessible to those who need to study them. So we’ve compiled a number of successful chatbot examples and the various use cases.

The Rise of AI Assistants in Customer Service

AI chatbots are rapidly changing customer service by automating responses, reducing wait times, and improving customer satisfaction. With advancements in generative AI, chatbots for customer service are becoming more intelligent, helping businesses handle customer queries efficiently.

How AI Assistants Enhance Customer Experience

Businesses have mostly used AI chatbots to provide real-time assistance via their website, but there are various integration options. By accessing a vast knowledge base, chatbots deliver relevant information instantly, reducing the pressure on human representatives. Support teams can then focus on resolving complex issues, ensuring seamless customer experiences.

Before you ask if AI customer service agents are going to take over your customer support teams – the answer is no. Customers are still going to want to talk to a human, but customer support teams augmented with AI tools will be a step ahead.

Examples of AI in Customer Service

From retail and travel to e-commerce, startups and local government, frontrunners are setting the pace for AI use. Here, we will explore various real-world uses of AI assistants in customer service teams. From technical support and shopping assistance to a crime fighting AI grandma.

Vodafone’s TOBi

Vodafone UK’s AI assistant, TOBi, handles an impressive 1 million interactions per month. With a 70% first-time resolution rate—cutting down customer wait times significantly.

Meanwhile, its VOXI Mobile brand introduced a large language model (LLM) generative AI chatbot. It worked so well that it won the ‘Innovation of the Year (Product and Service)’ at the Mobile Industry Awards.

Rather than replacing human agents, Vodafone’s AI chatbots act as time-saving assistants, summarising past conversations. Allowing human agents to jump straight into resolving issues. Boosting efficiency, reducing manual workload, and improving customer satisfaction—a win-win for both businesses and their customers.

People supporting people
Photo by Josue Michel on Unsplash

Carrefour's Hopla

Carrefour, one of the world’s largest food retailers, is shopping with AI. Its chatbot, Hopla, delivers personalised recommendations based on budgets, dietary needs, and meal ideas. Making grocery shopping efficient and more convenient.

Hopla also supports Carrefour’s anti-waste initiative, suggesting alternative ingredients and meal plans to reduce food waste. AI has enhanced over 2,000 product descriptions, improving online product knowledge and customer decision-making.

Carrefour uses AI to streamline procurement, optimising tender processes and quote analysis. Carrefour is positioning itself at the forefront of AI-driven retail innovation.

O2's AI Granny

Now the last one is definitely a public service. Fraud is a growing menace, with 22% of Brits facing scam attempts every single week.

O2 has been fighting back with Daisy, the AI Granny, an unrelenting scambaiter, preventing scammers from scamming real people.

She behaves just like a real grandma. She charms scammers with stories about knitting, family drama, and made-up personal details. Operating 24/7, Daisy holds scammers on the line for up to 40 minutes per call, turning their own tactics against them

How can AI chatbots improve e-commerce user experience?

According to Salesforce 81% of customers expect faster service as technology advances. Speed and availability of customer support is becoming more important than ever. AI chatbots provide instant support, helping customers find products, process orders, and resolve issues efficiently.

By delivering personalised experiences and reducing response times, they prioritise user satisfaction and boost conversions. Personalising customers shopping experiences based on customers data like browsing history, making personal recommendations and support.

How to automate customer support using AI chatbots?

Businesses can use AI assistants on their website, email, and social media. AI assistants will be able to answer common questions and help customers with self-service options. They can also pass on complex issues to human agents when the customer requests to speak to a human agent. The AI agent can also initiate a handover when it recognises its own limitations.

AI chatbots are capable of improving based on past interactions, improving accuracy and relevance of responses. They become more efficient with time. You can integrate your AI assistant with your own knowledge base providing it with the training it needs to support your customers. Your knowledge base can include your FAQs, product information, step-by-step troubleshooting guidelines and any customer support guidelines.

Companies could use AI agents to make automatic CRM updates. Capturing the conversation details and outcomes, saving your support team time and reducing admin.

How will AI benefit customers?

AI chatbots provide 24/7 support, instant responses, and personalised recommendations, provide product or service information. They can help your customers book appointments, update their account details, deliver order status information.

AI in finance
Photo by Carlos Muza on Unsplash

What are the 5 factors that can influence chatbot pricing?

  • Complexity of AI & NLP Capabilities – More advanced AI chatbots with deep learning cost more.
  • Integration with Existing Systems – Chatbots that work with CRMs and databases affects pricing.
  • Customisation & Personalisation – Tailored solutions are more expensive than standard models.
  • Scalability & Usage Volume – The number of interactions impacts the cost.
  • Support & Maintenance – Ongoing updates and technical support contribute to pricing variations.

What are the best use cases of chatbots?

AI chatbots are widely used for:

  • E-commerce – Assisting with product searches and order tracking amongst other uses.
  • Banking – Mostly providing financial guidance and fraud alerts.
  • Healthcare – Scheduling appointments and answering patient queries.
  • Telecommunications – Troubleshooting service issues and managing billing.

What makes you buy an AI chatbot?

Key factors influencing chatbot adoption include ease of integration, customisation options, AI sophistication, cost-effectiveness. Overall a positive ROI in improving customer service efficiency will determine if its worth it.

Why do e-commerce brands need advanced AI chatbots?

E-commerce brands gain from AI chatbots. They improve customer engagement and boost sales. Chatbots also lower operational costs. They offer instant help, which leads to higher conversion rates and better brand loyalty.

The Future of AI Chatbots in Customer Service

As AI technology advances, chatbots will become even more sophisticated, providing more personalised experiences and improving customer engagement. Businesses that use AI for customer service will have an advantage. They can provide faster and better support.

By using AI chatbots, companies can automate repetitive tasks. This helps reduce the pressure on support teams and improves efficiency. The case studies above illustrate how AI-powered solutions are transforming the customer service landscape.

If you’re looking for customer service AI chatbot development services, please don’t hesitate to get in touch.

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Emily Coombes

Hi! I'm Emily, a content writer at Japeto and an environmental science student.

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