Artificial intelligence (AI) is making and improving customer service better, faster, and more helpful in 2025. Many businesses found how artificial intelligence improve customer service in a good way. It is done in a way they communicate with customers, solve problems quickly, and even prevent issues before they happen.
Here’s how AI is changing customer service this year:
1) AI Helps Businesses Communicate More Kindly
Sometimes, customer service emails can sound unemotional, cold or harsh. That’s why Allstate, a major insurance company, is using AI, Open AI’s GPT models, to make emails more polite and understanding. Unlike other companies globally believing humans are better at showing empathy, Allstate thinks AI did it better, clearer, which is easy to understand.
Their AI helps write about 50,000 emails a day, making sure messages sound clear and respectful. It also helps them to write sentences that match the company’s style and policies. Even though they are using AI to help companies write emails and communicate with customers better, it is still being checked by real people before sending them.
2) AI Speeds Up Customer Support
Nobody likes waiting a long time for customer service. Octopus Energy, a power company, uses AI to write summaries of customer issues and suggest helpful replies. According to Tech UK, the company uses Magic Ink, Kraken’s Gen AI tool, for customer service and the AI writings are reviewed very carefully by their team members. This allows human agents to respond faster while still sounding warm and friendly. With the AI tool, it has helped with 35% of customer emails, boosted satisfaction to 70%, summarized over 6.2 million calls (695,379 hours), and created 9.4 million messages, all with human oversight.
3) AI Fixes Problems Before Customers Notice Them
Telstra, a large Australian telecom company, is using AI to monitor its network and fix issues before customers even notice a problem. AI looks at over a billion data points every day to find small problems and fix them quickly. With the help of technologies like Infinera’s optical solutions and Blue Planet’s network management systems, this means there are fewer complaints and smoother service for everyone. In 5 years, they planned to have a smart network that helps to automatically spot problems and make improvements when needed.
4) AI Helps Store Employees Assist Customers
Bunnings, a hardware store in Australia, has created an AI assistant called “Ask Lionel” to help employees. It quickly finds product details so staff can answer customer questions on the spot. This makes shopping easier and ensures customers get the right information without waiting.
5) AI Makes Interactions More Personalized in Banking
National Australia Bank (NAB) is using AI powered by Pega Customer Decision Hub™, to personalize customer interactions and optimize sales and service experiences. By using AI to process vast amounts of customer data, NAB can deliver more accurate and timely recommendations, improving the overall customer experience. AI is taking care of these tasks, which has led to many major improvements, like gaining three times more opportunities with accurate targeting and lead delivery that is done timely.
Final Thoughts
AI is changing the way businesses help customers. It’s making communication kinder, support faster, and service smoother. Companies that use AI wisely in 2025 will be able to solve problems before they happen, assist customers better, and create a more positive experience for everyone.
