The Rise of Chatbots in Customer Service

As contact centres continue to search for ways to improve efficiency while delivering great customer experiences, chatbots have emerged as a key solution.

Their growing adoption is no accident, it’s driven by both economic benefits and evolving customer expectations.

To find out more, we asked Jonathan “Kenu” Escobedo, Customer Success Manager at Miarec, to explain why chatbot use is on the rise, the challenges that still exist, and how contact centres can get the most out of their chatbot investment.

Video: Why Are Chatbots Growing in Popularity?

Watch the video below to hear Jonathan explain why chatbots are growing in popularity:

With thanks to Jonathan “Kenu” Escobedo, Customer Success Manager at Miarec, for contributing to this video.

This video was originally published in our article ‘Are Chatbots the Tech We All Love to Hate?’

5 Reasons Chatbots Are Gaining Ground

1. Cost Savings

Chatbots offer significant cost-reduction opportunities, as Jonathan explains:

By automating routine enquiries, companies reduce their reliance on live agents and free up resources for more complex tasks.

2. 24/7 Availability

Unlike human agents, chatbots don’t need breaks. They offer around-the-clock support, giving customers instant answers regardless of time zone or business hours.

This reduces wait times and improves customer satisfaction.

3. Preference for Self-Service

Customers increasingly prefer to try resolving issues themselves before contacting an agent.

A well-designed chatbot gives them that option, making the experience faster and more convenient.

4. Advancements in AI and NLP

Thanks to ongoing improvements in artificial intelligence and natural language processing, chatbot interactions are now more fluid, intuitive, and human-like.

This makes it easier for customers to engage with bots and get the help they need without feeling like they’re talking to a machine.

5. Efficiency in Handling Volume

Chatbots excel at managing high volumes of repetitive queries, allowing human agents to focus on higher-value, more complex interactions. This improves overall team productivity and elevates service quality.

Challenges to Consider

Despite their many benefits, chatbots still come with a few hurdles:

Difficulty With Complex or Nuanced Issues

Chatbots can struggle to interpret complicated queries or respond appropriately when the language is vague or emotional.

Lack of Sentiment Awareness

Without sentiment analysis, bots may miss sarcasm, frustration, or urgency, potentially leading to interactions that feel robotic, rude, or dismissive.

Escalation Gaps

When a chatbot fails to escalate at the right moment, the result can be longer resolution times and increased customer frustration.

Best Practices for Better Chatbot Performance

To ensure chatbots are a positive addition to the customer experience, contact centres should adopt a proactive, data-driven approach:

Continuous Training and Improvement

Regularly monitor and update chatbots using real customer interactions. This helps improve response accuracy and ensures bots stay aligned with evolving customer needs and product updates.

Invest in Advanced AI Capabilities

Leverage AI-powered chatbots equipped with:

• Natural language understanding (NLU)
• Sentiment analysis
• Machine learning models

These enhancements allow bots to adapt their tone, respond appropriately to customer emotions, and hold more natural conversations.

Use a Hybrid Approach

Implement seamless hand-offs to live agents when a chatbot hits its limits. This hybrid model ensures that complex or sensitive queries get human attention, without interrupting the overall experience.

Reviewed by: Xander Freeman