The AI revolution in customer service and the future of BPO and contact centers

Klarna’s Success and Teleperformance’s Response

In the ever-evolving landscape of customer service, artificial intelligence (AI) has made a groundbreaking entry, promising to redefine the way businesses interact with their customers. The recent announcement by Klarna, a Swedish fintech giant, serves as a testament to this transformation. Klarna ’s AI assistant, powered by OpenAI , has not only streamlined customer service operations but also sparked a significant reaction in the stock market, particularly affecting TP , a global leader in outsourced omnichannel customer experience management.

Klarna’s AI Assistant: A Game-Changer?

Klarna’s AI assistant has apparently been a marvel of efficiency and effectiveness. Within just one month of its deployment, it has handled 2.3 million conversations, which is two-thirds of Klarna’s customer service chats. This is equivalent to the workload of 700 full-time agents. The AI assistant has maintained customer satisfaction scores on par with human agents while reducing repeat inquiries by 25%. Customers now enjoy a resolution time of less than 2 minutes, a significant improvement from the previous 11 minutes.

The AI assistant operates in 23 markets, offers support in over 35 languages, and is available 24/7. It’s estimated to contribute a $40 million USD profit improvement to Klarna in 2024.

Teleperformance’s Stock Reaction

The success of Klarna’s AI assistant raised concerns among investors about the potential disruption to Teleperformance’s call-center business, leading to a sharp decline in the company’s stock price. However, Teleperformance’s CFO, Olivier Rigaudy, clarified that the share price plunge was the result of a misunderstanding of how artificial intelligence (AI) is integrated into Teleperformance's solutions. He also stated that that Teleperformance has been operating the same sort of chatbots for many years and that their 25,000 chatbots are already replacing the work of approximately 150,000 people.

Despite the initial panic, Teleperformance reported a robust annual revenue of €8.35 billion for 2023 and anticipates a pro forma organic sales growth of 2% to 4% in 2024. The company views AI as an opportunity for growth, particularly in areas requiring more moderators due to the rise of AI-generated deepfakes and cybersecurity risks.

The Future of BPO and Contact Centers

The story of Klarna and Teleperformance is a harbinger of the changes to come in the Business Process Outsourcing (BPO) industry and in contact centers. AI’s integration into customer service is inevitable and brings with it both challenges and opportunities. For BPOs and contact centers, the near future will be about adapting to this new technology, leveraging it to improve service quality, and finding new ways to add value.

AI can handle routine inquiries and transactions, allowing human agents to focus on complex and sensitive issues that require empathy and nuanced understanding. This shift can lead to more fulfilling roles for employees and higher satisfaction for customers. However, it also necessitates a reevaluation of workforce strategies and a focus on upskilling employees to work alongside AI.

In conclusion, AI in customer service is not a replacement for human interaction but a complement that can lead to more efficient operations and better customer experiences. As companies like Klarna make waves leading the way in AI adoption, it’s crucial for the BPO business and contact centers to embrace this change, ensuring they remain competitive and relevant in a rapidly transforming industry. ????