The Role of ServiceNow AI in Customer Experience

We are moving into an era of new frontiers of customer experience. Customer experience can make or break a brand’s reputation. In fact, 69% of customers would likely switch brands based on poor CX. There comes, every now and then, a buzzword gaining tremendous traction, that is artificial intelligence (AI). Nearly all leaders around are considerate about AI’s potential to improve customer experience, but only 3 in 10 said AI is often used within the customer experience today. This gap highlights the excitement around AI’s capabilities and the challenges businesses face in integrating AI into their operations. As companies race to adopt this technology, the question remains imperative: how can AI be harnessed effectively to truly enhance the customer journey?

Down the line, integrating AI in customer experience is more complex than it looks, as challenges remain.

Well, we understand your pain and want to help in any way we can, so we are here to address some of your top challenges. So, what exactly is AI-powered CX, and how is ServiceNow helping you improve customer experience?

AI-Powered CX: What it is and why your business needs it

AI-powered CX is a concept that uses AI technology such as chatbots, and digital agents to deliver fast, efficient, personalized, and proactive experiences at length. Activating AI for CX starts with automating manual tasks such as emails, appointment scheduling, customer queries, and manual data entry, leaving ample space for creative tasks that enhance customer engagement and strategy.

For example, Amazon uses generative AI to create personalized recommendations. Apple uses AI to streamline customer services, providing customized solutions and automating inquiries.

AI capabilities allow organizations to create more intuitive, meaningful, and personalized interactions, profoundly transforming customer experience (CX). Here are some of the key areas where AI is making a big difference:

1. Streamlined Workflows

AI simplifies complex processes by automating repetitive tasks, allowing teams to focus on more value-added activities. From ticket management to processing requests, AI tools save both time and effort.

2. Enhanced Agent Performance

AI-driven insights help agents work smarter, not harder. AI enables agents to resolve customer queries faster and more accurately by providing real-time suggestions, predictive analytics, and next-step guidance.

3. 24/7 Customer Service

AI-powered chatbots and virtual assistants offer round-the-clock support, ensuring customers are never left waiting. They can handle multiple queries simultaneously, reducing response times and improving customer satisfaction.

4. Predicting Customer Behavior

AI uses data to anticipate what customers want, even before they ask. Businesses can offer personalized recommendations by analyzing past behaviour and purchase patterns, creating a more engaging experience.

5. Self-service Tools

AI empowers customers to solve problems independently through smart self-service platforms. These tools answer frequently asked questions, troubleshoot issues, and guide users through processes without human intervention.

6. Onboarding New Customers Faster

AI can simplify and speed up onboarding, automatically collecting and verifying customer information. This reduces friction and ensures a smoother start for new clients.

7. Personalized Customer Interactions

AI allows companies to tailor every interaction to the individual. By leveraging data on customer preferences, behaviours, and history, businesses can offer more relevant and personalized support, enhancing loyalty and satisfaction.

8. Reduced Errors

Automating tasks like answering FAQs and processing orders reduces human error. AI ensures that responses are accurate, analyzes customer data quickly, and even detects mistakes in real-time, offering corrections during live interactions.

9. Simplified Processes

From managing customer inquiries to processing returns, AI simplifies processes across the board. This leads to more efficient operations, fewer delays, and a seamless customer experience.

Let’s consider a hypothetical scenario illustrating how a customer interacts with brands where exactly AI helps:

Daniel is a busy professional who loves music and values efficient, personalized interactions. Recently, he wanted to purchase a new music system, so he visited an eCommerce platform. Upon entering the website, an AI-powered chatbot greeted him. Drawing on his previous browsing data, the chatbot provided personalized recommendations tailored to his past purchases.

Daniel had specific requirements for his new music system: it needed to be wireless, have Bluetooth access, be at least 200 watts, come with a remote control, and feature mood lights. The AI chatbot quickly presented options that matched Daniel’s criteria, assisting him in making informed decisions.

During checkout, the AI also suggested relevant accessories, like headphones and cables, enhancing his shopping experience through personalization and upselling.

This entire scenario resulted in an intuitive and personalized experience for Daniel, all without significant manpower or time-consuming processes for the brand.

AI-capabilities of ServiceNow in customer experience

With all the craze around AI-powered CX, organizations strive to revolutionize the customer experience. ServiceNow helps you achieve more proactive customer service, next-level self-service, and breaking down silos. Since your competitors already do so, here are some use cases and capabilities where ServiceNow can help you accomplish an AI-powered customer experience.

1. Become proactive with your customer service

We know that good customer service is reactive, but great customer service is proactive. ServiceNow’s purpose-built AI helps fix tough problems before they arise.

Key Features:

• Anomaly detection: ServiceNow uses AI to detect anomalies and pinpoint factors likely to increase case volumes. This visibility allows you to anticipate and resolve potential issues before customers even reach out.
• Classification and routing: Machine learning automates the classification and routing of tasks, incidents, and cases at scale, reducing manual work.
• Smart Recommendations: Automatically generated task and content suggestions help agents solve issues faster.

2. Deliver personalized CX the way your customers desire at scale

Delivering personalized customer experiences at scale can be challenging, but with AI-powered insights and automated conversations, you can foster deeper engagement and more meaningful interactions. ServiceNow AI enhances customer understanding, enabling more relevant conversations and personalized brand experiences.

Key Features:

• ServiceNow IntegrationHub: IntegrationHub maximizes the value of your external data, turning numbers into insights that improve customer interactions.
• ServiceNow Virtual Agent: Virtual Agent provides pre-built, easily configurable conversation templates with natural language understanding (NLU) allow for personalized exchanges powered by generative AI, offering relevant, intelligent responses to users.
• Conversational Interfaces: Custom conversational design tools let you build and test your own chatbot conversations, offering flexibility to match your organization’s needs.
• Agentic AI: The all new ServiceNow AI agents are expected to reduce mean-time-to-resolution and make live agents more productive.
• Next Best Action: Powered by ServiceNow’s LLM Model Card, Next Best Action tailors service experiences based on customer value and satisfaction levels, maximizing your ROI.
• AI regression analysis: Predict resolution times with AI regression analysis, giving agents and field service teams accurate estimates to empower better customer service.

3. Optimize processes for operational excellence

Siloed data can lead to frustration for both employees and customers. Streamlined processes and digital workflows strengthen operations and improve efficiency.

Key Features:

• ServiceNow Predictive Intelligence: Identifies patterns in data, eliminating bottlenecks and errors, and pinpointing underlying issues for continuous improvement.
• Automation Discovery: Analyzes records to discover new automation opportunities and improve existing workflows, helping streamline operations.

4. Enhance Productivity with fast-track ServiceNow AI

With features like multi-language support, conversational analytics, and live agent handoff, ServiceNow reduces mundane, repetitive tasks, allowing people to focus on more creative and strategic work.

Key Features:

• Knowledge Articles: ServiceNow AI helps fast-track improvements by enhancing your knowledge base by using scattered data and stored knowledge articles.
• Knowledge Demands Insights: Identify knowledge gaps and improve your knowledge base content, enhancing self-service and case resolutions.
• Sentiment Analysis: Measure customer emotions through task intelligence, enabling you to adapt to customer sentiment and provide more empathetic and compassionate customer experiences.
• SLA breach Prediction: ServiceNow uses machine learning to predict the likelihood of SLA breaches, helping you prioritize tickets based on their impact.

Product Highlight – ServiceNow CSM

ServiceNow offers a wide range of solutions tailored to specific use cases, such as sales and order management, field service management, and automation. Among these, ServiceNow CSM stands out for leveraging AI to accelerate self-service and empower agents to resolve customer queries more efficiently, enhancing overall customer satisfaction. It optimizes the entire customer lifecycle by enabling seamless process flows across departments, promoting frictionless collaboration for personalized support. With ServiceNow CSM, organizations can resolve issues faster, reduce errors, gain actionable insights, and boost customer loyalty, ultimately driving operational excellence and delivering superior experiences.

Transform Customer Experience with ServiceNow AI: Specific Industry-Wide Benefits

When embracing AI for customer experience, each industry has its own unique objectives and seeks tailored solutions to meet specific goals. Here are a few use cases from manufacturing, healthcare, finance, and telecommunications.

1. Manufacturing

The manufacturing industry processes remain full of friction, leading to an uneven customer experience. Be it organizational silos, lack of data and analytics, disconnected systems are impacting their ability to provide efficient customer service.

To help manufacturers elevate sales and service experiences for customers and manufacturers, ServiceNow automates end-to-end order management, support, and service operations, enabling new business models while reducing the cost to serve. ServiceNow helps in:

• Automating complex order management and order exception processes
• Adopting on-demand insights to improve service levels
• Enabling self-service for customers
• Providing predictive and proactive field service
• Creating an intelligent workspace for customer-facing teams

2. Healthcare

In healthcare, experiences matter more than ever with rapid technological transformation. Customers expect health care and insurers to be equally accessible both online and offline. To embrace this new change, ServiceNow is helping modernize clinical and operational workflows and experiences. ServiceNow is:

• Freeing employees to spend more one-on-one time with patients via automation for manual tasks.
• Improving customer data visibility to respond faster to calls, chats, and emails.
• Giving the ability to act fast to avoid potential regulatory issues.

3. Banking and Financial Service Providers

Modern banks and financial service providers (FSPs) are rapidly transforming as customers move towards more personalized and accessible banking services. To deliver top-notch services for FSPs, ServiceNow is:

• Supporting day-to-day operations by unifying disparate systems
• Providing better control in quality and consistency across touchpoints.
• AI and automation for cross-selling and customer services.

4. Telecommunications

Delivering effortless experiences is a considerable expectation from telecommunication service providers. Hence, to let a telecommunication provider thrive, ServiceNow can help telecom companies to improve customer experience:

• Integration and interoperability of different systems seamlessly
• End-to-end managed service bundling connectivity
• Quickly understand service problems and resolve issues faster with generative AI.

Customer Success Story: RADCOM

RADCOM, a large telecommunications provider needed a solution that can allow users to manage queries individually while maintaining privacy. They wanted to integrate a knowledge base for self-service, enable real-time notifications for query prioritization, and improve data accuracy for better decision-making. RADCOM reached out to Aelum Consulting for its expertise in ServiceNow implementation to redesign its CSM application, focusing on enhancing operational efficiency and improving the overall user experience. The results were:

• 50% increase in NPS score.
• 75% increase in self-service.
• 3X faster time for case submission with new portal UI.

Read the full success story of RADCOM

Going Forward with AI-powered ServiceNow Customer Experience

There’s no doubt about the efficiency of ServiceNow’s AI capabilities, especially when tackling enterprise-level challenges such as data fragmentation, budget constraints, a limited labor market, and the balance between human and AI interactions. Ultimately, AI-powered CX is poised to become a game-changer for your organization, making customer interactions seamless. Connect with our experienced consultants, and let’s implement real-time AI capabilities to enhance your customer experience.