Revolutionising Customer Service with AI: Real-World Applications is the hot topic discussed in this episode.
With Tracy Heatley – Chartered Marketer & AI Marketing Specialist
Hi, I’m Tracy Heatley, and welcome to another episode of the Better Marketing podcast, bringing you marketing magic in minutes.
Over the last few episodes, we’ve explored AI’s role in content creation, customer engagement and strategic marketing. Today, we’re diving into an area that sits at the very heart of every business – customer service, more specifically, how AI is revolutionising it.
In this podcast episode, I’ll share how service businesses are using AI to save time, enhance the customer experience and build more meaningful connections – without losing that all-important human touch.
What Do We Mean by AI in Customer Service?
Let’s start by clarifying what AI in customer service looks like. This is not about replacing your team. It’s about supporting them, and making your service more efficient, consistent and responsive.
Here are a few practical examples:
- AI-powered chatbots that answer FAQs 24/7
- Voice assistants that book appointments or give directions
- Smart email autoresponders for common queries
- CRM systems that flag when a customer needs a follow-up
- AI tools that summarise conversations or track review sentiment
This might sound like something reserved for big businesses, but I’ve helped many small businesses implement these tools effectively – and affordably. The good news? These systems are more accessible than ever before.
Real-World Applications for Small Service-Based Businesses
Let’s look at how these tools can work in your business:
- A chatbot on your website can answer questions, recommend services, or help customers book a discovery call.
- AI tools can scan and sort messages, prioritising urgent ones.
- You can use automated follow-up emails when someone signs up for a freebie or makes a purchase – nurturing your leads, even while you sleep.
- Your CRM system can remind you when a loyal customer hasn’t been in touch for a while – helping you reconnect and potentially drive repeat business.
These are smart, simple ways to enhance service, save time and avoid missed opportunities. And you don’t need to be a tech wizard to make them work.
Is AI Right for Your Business?
As a CIM Certified AI Marketing Specialist, this may surprise you, but I’ll say it anyway – AI isn’t always the answer.
For example, some of my clients in professional services must follow strict regulations. In those cases, automating responses with AI could put the business at risk.
That’s why every AI strategy session I run begins with one key question:
Is it right for you?
- Will it enhance your brand?
- Will it improve customer service?
- Or could it lead to confusion or compliance issues?
It’s not about following the latest trend. It’s about doing what works for your business.
The Payoff with AI: Better Customer Experience
When used well, AI delivers major benefits:
- Faster response times
- Consistent messaging
- Less admin for your team
- Improved customer satisfaction
Even if you’re not available in real time, customers can still feel seen, heard and valued. That’s the real power of AI – combining speed and connection.
If you haven’t already, listen to Episode 9: Enhancing Customer Engagement with AI. It pairs perfectly with this episode and is packed with practical ways to use AI to strengthen customer relationships.
Automation With a Human Touch
You’ve probably heard me say this before – I love automation, but never at the expense of being human.
AI can handle repetitive tasks, but complaints, sensitive topics or big decisions need real people. Always.
The key is to train your AI tools – like chatbots – to reflect your brand’s tone and values. And always give customers a way to reach a real person when they need to.
Even though I work with AI every day, I get frustrated when I can’t speak to a human in other businesses. If I feel that way, I can only imagine how others feel – especially those who don’t use AI themselves.
When I work with business owners or train teams, we focus on finding the right blend of automation and authentic connection.
Mistakes to Avoid With Using AI In Customer Service
Here are three common pitfalls to steer clear of:
- Over-automating – Don’t block customers from reaching real people. It creates frustration.
- Neglecting reviews – AI still needs regular human oversight. Review how it’s working.
- Poor integration – Ensure your AI tools seamlessly integrate with your existing systems. Sometimes it helps to run them alongside your current processes before fully integrating.
And of course, always follow ethical and legal best practices. If you missed my episode on AI Ethics in Marketing, it’s one to catch up on. I’m passionate about keeping ethics and AI firmly linked.
In Summary
AI can transform your customer service when used strategically. It’s not about cutting corners, it’s about creating a better experience.
Select the right tools, blend automation with a human touch, and ensure everything aligns with your business model and goals.
If you’d like help building an AI strategy that works for your business, feel free to:
- Book a free discovery call via tracyheatley.com
- Join one of my AI strategy sessions, consultancy programmes or training sessions – all delivered online
And don’t forget to download your free strategy guide, The Business Owner’s Roadmap to a Better Strategy. Use the code POD2025 and you’ll be entered into my monthly draw to win a Power Hour with me.
Thank you for tuning in. I’m Tracy Heatley, Chartered Marketer and CIM Certified AI Marketing Specialist.
Next time, I’ll be talking about predictive analytics – and how AI can help you make smarter marketing decisions using real data.
Until then, remember…
Better Marketing, means Better Business.