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AI vs. Human Support: Let’s Do a Cost-Benefit Showdown

AI has been a bubbling phenomenon for quite some time, but the release of OpenAI’s ChatGPT has really stoked the fire. This has given businesses a once-in-a-lifetime chance to use AI to their advantage, now that consumers all over the world are getting accustomed to these technologies and riding the AI wave. That is the reason 83% of companies have re-prioritized AI in their business strategies.


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But the question is still, is AI a better investment than human support? This post provides an in-depth cost-effective comparison of AI versus human support by analyzing efficiency, scalability, and quality through which it guides businesses about the right choice.




Cost Analysis: AI vs. Human Support


The cost of AI and human support is another important consideration. Clearly, some initial investment is needed to infuse AI into customer support by way of technology, software, and integration.

Over time, however, it incrementally saves the human element required to constitute a large support team. Human support, however, involves continuous expenses on employee salaries, training, benefit packages, and the like.



AI Support Costs:



  • Initial setup and integration

  • Maintenance and updating

  • Automation that minimizes operational costs



Human Support Costs:


  • Reducing human resources staff would also lead
  • Training and development
  • Increased operational cost through manual labor


Efficiency and Scalability



This will allow increased efficiency and scalability for AI in performing repetitive tasks and processing large inquiry volumes at once.

As a result, the business can scale its support operations without a commensurate growth in costs.

This allows Human Support to be empathetic and personalized in interactions but, in most cases, has proven to have a hard time scaling with the number of inquiries.


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AI Efficiency and Scalability:


  • Can process more than one query at once
  • All day, every day availability without getting tired
  • Fast completion of everyday responsibilities

Alternative 1— The IT administrator promises to look for the

  • Limited by workforce capacity
  • Potential delays during peak hours
  • Greater likelihood of errors and contradictions



Support Quality: AI Can Be More Humane


There is quite a difference in quality between the kind of support that AI can provide and what a human agent can provide. AI can provide quick, consistent, and accurate responses, especially for routine queries, but at times, it may lack the empathy a human agent shows in assisting customers.

Human support is bright, complex, difficult, sensitive, and emotionally charged, hence resulting in each stated response being personalized and empathetic.

Here are the key differences:


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Quality of AI Support:

  • Consistent and correct answers

  • Lacks abilities in emotional intelligence

  • Ideal for routine and straightforward inquiries

Human Support Quality:

  • More Appropriate for Complex and Sensitive Issues

  • High emotional intelligence and empathy

  • Tailored and sophisticated answers




Real Adaptive Life Examples Using AI and Human Oversight


HumanWare: Introduction Of Using xF


As one leading player in the realm of innovative SaaS solutions, xFusion has managed to successfully inculcate AI into its customer support model without losing the human essence.

Chatbots handling routine queries and live human agents serving more complex issues have optimized the support operation for xFusion.



Major accomplishments:

  • Response times decreased by 60%
  • Increased customer satisfaction rates by 50%
  • Automated 80% of repetitive queries


Intercom AI Support



The system; from one of the global customer messaging platforms, Intercom uses AI in the development of greater support capabilities with AI chatbots.

The AI chatbots handle the common questions from customers, thus enabling human agents to focus on more complex customer interactions.

This company’s hybrid approach has realized immense gains in efficiency and is a significant step forward in adding value to the customer experience.


Key accomplishments:

  • Enhanced cross-selling and upselling opportunities. Examples:

– 70% of  Enhanced FR Times by 40%

– Customer engagement and loyalty


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Hootsuite’s Customer Service Journey


Artificial intelligence has become part of the journey for one of the leading social media management platforms used worldwide: Hootsuite.

AI augmentations include real-time suggestions and automated ticket routing to save valuable seconds in customer interactions, to yield faster and more effective service to their customers.


Key accomplishments:

  • Lowered resolution times on tickets by 50%
  • Increased productivity of agents by 45%
  • Enhanced customer satisfaction on the whole



Benefits of Blending AI with Human Support


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Each combination of AI with human support provides efficiency, saves money, raises satisfaction among the customers, and a mix that can further deal with larger volumes of questions but at the same time has personalized and empathetic support where needed.

Improved Effectiveness AI can automate the monotonous types of tasks, and hence human agents focus on more complex and value-added activities. 





Striking the Right Balance 


It’s all about balance in this whole AI-versus-human-support conversation. Allowing the art of AI to carry out routine tasks, thousands of queries, etc., while at the same time allowing the human agent’s free movement for highly complex interactions and emotionally charged interactions is a clear winner.

If integrated correctly, AI will bring out optimal efficiency, cost savings, and customer satisfaction with human support. Our focus is assisting organizations in successfully going through the complexities involved in the integration of AI—thus finally rendering exemplary support outcomes.



Author

  • Jim is the Co-Founder of xFusion, and is a seasoned business operator with a background in operations leadership at private equity fund. Jim’s also a passionate multi-time business owner, and is eager to help others in the industry. Outside work, he devotes himself to adoption and raising foster children, and he aspires to maximize his impact on developing countries.

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