Since Generation Z detests phone conversations, businesses are placing a lot of money on AI-powered chatbots, including the $9.7 billion buy-now, pay-later behemoth Affirm.
Speaking on a Wednesday earnings call, Affirm CEO Max Levchin stated that voice-averse consumers may now address issues online thanks to the bots.
“We’ve been investing really heavily in this idea that Gen Z consumers really love chatting versus calling and they have no problem chatting with an Al, especially if the Al is intelligent,” Levchin stated.
According to Levchin, Affirm employs chatbots to handle simple inquiries like policy questions, while actual people handle more complex instances. According to the PayPal alum, chatbots are assisting Affirm in growing its customer support staff.
An AI-based assistant developed by Affirm was evaluated throughout the most recent quarter. In a letter to shareholders, Levchin stated that after utilizing the bot, fewer than 40% of consumers need assistance from a human.
On the call on Wednesday, Levchin stated, “No one has yet to lose their job to be replaced by a robot at a firm, so that’s not a short-term cost saving.” He went on to say that AI might save the company money over the course of the next one to three years.
By 2026, artificial intelligence (AI) is predicted by tech research firm Gartner to replace 20–30% of customer care representatives.
For certain businesses, the emerging technology is already significantly affecting their bottom line.
During a panel discussion in Davos in January, Microsoft Americas President Deb Cupp said that the software giant had saved $100 million in its customer-service operation by implementing AI. Microsoft also offers AI-driven customer support solutions.
Automation Anywhere’s CEO, Mihir Shukla, reported at Davos that the company has seen a 40% reduction in customer-service expenses and an improvement in performance since implementing AI.
Not all firms have found success with AI customer service, though. In December, an AI customer support system at a car dealership was deceived and hijacked, and in January, a UK mail service’s bot cursed at a customer.
Furthermore, AI bots are still very new. According to a poll conducted by Gartner between December 2022 and February 2023, just 8% of consumers claimed to have utilized a chatbot during their most recent customer support interaction. Just 25% of people who used a chatbot indicated they would use it again in the future.
