Customer service makes a massive difference to the success of online services, with operators that get a poor reputation finding it difficult to change public opinion. One way that many companies are streamlining processes is by implementing AI chatbots to help customers with common issues.
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The automation of some elements of customer service has seen the introduction of AI chatbots, with a mixed reception from customers. We explore the benefits and drawbacks of AI chatbots to determine their worth.

Benefits of AI Chatbots
Making the most of emerging technologies can be a bit hit or miss, but implementing AI to streamline how online businesses deal with customer queries is something that could transform customer service over the coming years.
Efficiency and Customer Access
Most websites provide customers with a ‘frequently asked questions’ section, helping them find any answers they might have. AI chatbots offer an interactive version of this, with systems able to answer many straightforward questions.
Not only do customers get the answers they need quickly, but they can also be directed to the relevant departments if their query can’t be resolved. This service is available to all customers without having to wait for a live call handler, improving access and dramatically reducing waiting times.
Automating the early stages of the customer service experience is something that can help resolve the majority of simple issues.
Cost Effective
The automation of these processes reduces the number of customer service assistants required to efficiently resolve customer issues. While having a level of real customer service, agents will always be needed to resolve trickier issues; high staffing levels will no longer be required to maintain high standards.
Data Gathering
AI chatbots not only resolve customer issues quickly and easily, but they can also collate important data that can help improve the customer journey. If an operator finds that chatbots are regularly asked specific questions, they can explore ways to simplify the customer experience.
An improved customer journey will result in improved conversion rates, with consumers able to navigate the site and find the products or services they need before making a purchase.
Automation of Repetitive Tasks
AI chatbots can automate a variety of other tasks outside of resolving frequently asked questions. Repetitive tasks that take up a lot of time can be automated, with AI services able to schedule appointments and track orders.
Order tracking is one of the most common issues that customers might have, and the information live call handlers have access to can be related directly to the customer. If there is an issue with the tracking or a parcel has not updated, the automation of escalations can free up people to spend time carrying out more difficult tasks.
Drawbacks of AI Chatbots
The automation of processes is a massive development for online businesses and can help to streamline customer service. While there are many benefits to this, there are undoubted drawbacks, and many customers want to speak to someone in person.
Not All Customers are Computer Literate
Some customers struggle with modern technology and feel like automated online customer services are beyond their capabilities. AI chatbots are typically straightforward, but mobile, tablet, laptop, and desktop users might still struggle to engage with the service.
This can lead to frustration for many, and other customers can feel less valued when they are being dealt with by non-human customer service operators.
Limited Ability to Resolve Issues
AI is still a developing technology and is likely to improve in the future, but AI customer service chatbots are still limited by what they can resolve. An automated FAQ service is useful, but customers contacting a company regarding a real problem could find themselves having to jump through hoops before they can speak to someone.
AI chatbots will either ask customers to describe the issue they are having, or customers will choose a category relevant to their problem. The issue with this is that there is not always a category that relates directly to the issue they are having.
Going through an AI chatbot’s questions can cause frustration for customers, and when they get through to a live customer service agent, they often have to go over everything again. This will often result in the customer regarding the service as a poor experience, and in the worst cases, can also result in them becoming abusive to customer service agents.
Data Reliance
AI improves through being fed data, which means that early editions of customer service AI chatbots might have a limited knowledge base. It can also result in bias depending on the information it is fed.
Tech Reliance
AI chatbots also rely on tech, both with the operator and the customer. Customers must have devices that can facilitate chats in a way that they can see and easily reply. A good internet connection will also be required, or they run the risk of the chat dropping and having to start over again.
Operators can save money by automating processes, but they must also consider the ongoing costs of the tech required to run systems like this, and to implement improvements and developments as they come up.
If the website suffers from technical issues and the chat is not available, operators must rely on other forms of customer service. If the company has already switched to automated processes, this can leave live call handlers with a massive backlog of customers, long waiting times, and the ability to resolve issues significantly hampered.
AI chatbots can complement existing customer service procedures, but complete reliance on tech can result in catastrophic results if something goes wrong with the technology used to run the system.

Founder Dinis Guarda
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