AI customer service enters next phase as businesses focus on optimisation rather than adoption: Report
New Delhi, July 31
The AI customer service industry is entering a new phase, with businesses focusing less on adopting AI receptionists and more on improving their performance, according to a report by the AI company Upfirst.
The company analysed 450,702 inbound calls handled by 503 AI receptionists to identify which setup choices help reduce customer hang-ups.
The findings suggest that while every AI receptionist experiences hang-ups, businesses are increasingly refining greetings, workflows and AI capabilities to improve customer engagement rather than simply deploying AI tools.
The report found that only about 13 per cent of the difference in hang-up rates between businesses could be explained by AI settings such as greetings, voice, or training.
The remaining variation was largely linked to factors outside the AI's control, with many hang-ups occurring within the first few seconds of a call before customers interacted with the AI.
According to the analysis, businesses can still improve customer engagement by optimising how AI answers calls. Greeting callers with the business name instead of mentioning the owner's absence, ending the greeting with a question, disclosing that the caller is speaking to an AI assistant, informing callers that calls may be recorded, and enabling AI agents with capabilities such as appointment booking, call transfers and text messaging were all associated with lower hang-up rates.
The report also found that some commonly debated factors had little impact. The choice of a male or female AI voice, the length of the greeting and the style of the opening question showed no measurable difference in hang-up rates once other factors were taken into account.
Alfredo Salkeld, Co-founder, Upfirst stated that "The common worry is that admitting it's AI answering the phone will make people recoil. We found the opposite to be true. Disclosing it's an AI is associated with about 20 per cent lower hang-ups..... Your raw hang-up rate grades your phone number's reputation more than your receptionist. Judge the AI on the calls where someone actually speaks."
The findings indicate that as AI receptionists become more widely used, businesses are shifting their attention towards improving customer experience through better deployment and optimisation. Rather than treating AI as a standalone tool, companies are increasingly focusing on how it interacts with customers, integrates with business workflows and delivers measurable outcomes.
The report analysis was based on AI receptionists that had handled at least 200 completed, non-test inbound calls, making it one of the largest studies of AI-powered customer interactions conducted by the company.
— ANI
Reader Comments
The part about disclosing it's an AI reducing hang-ups is fascinating! In India, we're used to talking to IVRs (Interactive Voice Response) and it's so frustrating when you can't reach a human. But if the AI is upfront and capable, customers might actually prefer it. I'd rather book a dentist appointment with an AI that's efficient than wait 10 minutes for a human to pick up. 👍
I appreciate the data, but as a customer, I still feel uneasy when I realize I'm talking to an AI. Maybe it's the older generation mindset, but sometimes you just need to talk to a real person, especially for complex issues. This report seems very US-centric. Indian businesses need to be careful - our customers value personal touch a lot more.
"Admitting it's AI makes people hang up less" - this is counterintuitive but makes so much sense! When you're honest, people trust you more. I work in a startup in Bengaluru and we're using AI for first-level support. The key is making the AI sound natural and letting it transfer to a human when needed. That flexibility is crucial. 💡
Great insights! The fact that only 13% of hang-up differences are due to AI settings is a wake-up call. Businesses in India need to look at the whole customer journey, not just the AI. Maybe the "recording" disclosure and clear workflows help more than just the AI voice. Also, the point about greeting with business name instead of "owner is away" is brilliant - it's about professionalism.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.