The Role of Artificial Intelligence in Enhancing Customer Experience in Business

Abstract

The purpose of artificial intelligence (AI) in the process of customer experience improvement has been a crucial concern of contemporary companies. The paper will discuss the way AI can enhance efficiency, accuracy, and personalization of customer service using chatbots and recommendation engines. On a mixed-methods basis, we studied more than 10,000 interactions among customers in a retail setting. Well-developed algorithms trained and tuned AI models and evaluated them by their performance tariffs, including precision, recall, and accuracy. The qualitative data used was the feedback of customers obtained through surveys given out. As the most important findings, chatbot model obtained an accuracy rate of 90 percent, and the recommendation engine demonstrated an accuracy of 83 percent. All these results were further enhanced through hyperparameter tuning that resulted in a 5% accuracy increase in the recommendation engine and significant decrease in the response time and the resolution rate. Another finding of the study was that customer satisfaction has been steadily increasing with time meaning that algorithmic incremental AI additions have a beneficial influence on customer experience. These results indicate that AI may positively impact customer service, offering fast, correct, and prompt communications with customers. Nevertheless, the study also states the role of human supervision to resolve complicated questions and stay emphatic. Such insights underline the businesses on the right way of actually using AI and are hinting at the future research potential in hybrid human-AI models, to enhance customer experiences even more.