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TELUS: AI Customer Support Automation

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February 2, 2025
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Introduction:

While we’re currently the front runners in the telecommunications sector, the crucial

factor for success is improving customer service. The application of AI in customer service is a

groundbreaking idea for the company to increase productivity, minimize expenses, and ensure

customer satisfaction. AI-enabled virtual assistants can answer a multitude of inquiries

simultaneously, which allows human representatives to handle more advanced issues. To keep up

with the competition and advancements in technology, we need to implement AI in our customer

support service channels.

Trend Analysis:

The global market for AI is projected to grow from $214.6 billion in 2024 to $1,339.1

billion in 2030 (MarketsAndMarkets, 2024). AI-based customer support has become a common

standard in the telecommunications field. Similarly, Joshi states that the conversational AI

market is set to reach nearly $30 billion by 2028, indicating that it's on a strong path of growth.

More precisely, the chatbot market is projected to be worth $24.64 billion by 2030 (Joshi, 2024).

These kinds of numbers give us a very good reason to adopt AI as a means of staying

competitive. Furthermore, AI chatbots have been found to reduce problems with service

efficiency. A study by McKinsey & Company found that companies which utilized AI-powered

customer service could enhance responses to requests by as much as 80%, which in turn

improved customer satisfaction and brand loyalty (Psico-smart, 2024). In addition, 73% of the

consumers expect the companies to deliver the solutions tailored to their needs, and AI is of great

help in achieving that (Ackerman, 2023). Lastly, combinations of natural language processing

and machine learning in AI programs result in more systems being able to tackle complex issues

by themselves and provide an experience that is closer to human interaction. Pursuing

innovations in technology prompted by the demand for AI-powered customer support has

become a necessity. New developments in deep learning provide more contextual and simplistic

solutions as well as case learning. Consequently, customers now find it easier to communicate

with automated systems that are now less irritating and better overall.

(Appendix A)
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Market Impact:

Our competitors, Rogers and Bell, are already using AI to boost their customer support

services. A 2023 survey by Statista estimated the reduction of costs because of artificial

intelligence in eight business areas. About 4% of all enterprises reported cost savings of at least

20%, whereas 28% reduced costs by 10% or less after AI was implemented. One-tenth of the

enterprises experienced a cost reduction by 10 to 19% (Flatt, 2024). If we don't make our move

right now, we run the risk of being left behind. Additionally, research predicts that the AI call

center market cap will rise to $8.55 billion by 2030, with a CAGR of 22.3% (GlobeNewswire,

2023). This statistic indicates that AI would benefit us in terms of cost and service quality. The

only way to be stay ahead of the game is to have AI chatbots in our customer service

deployments.

Company Implications:

AI-powered customer support boasts several key benefits, like rapid response times, cost

savings, personalized customer interaction, and 24/7 accessibility. AI-driven chatbots are capable

of managing a variety of inquiries all at once, in turn minimizing waiting times and improving

customers' experience. IBM states that chatbots powered by AI can provide fast and accurate

answers without any human intervention. (Holdsworth, 2024). The automation of customer

support also leads to a reduction in labor costs, which would be more cost savings for TELUS.

A report by Accenture indicated that the introduction of AI can bring an overhead cut of 35% for

service delivery costs, all while maintaining the same quality (Accenture, 2023). AI can also

offer the most personalized responses because it applies the machine learning algorithm to
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analyze customer data. A research study by Salesforce found that " 63% of service professionals

say AI will help them serve their customers faster” (Salesforce, 2023). In contrast to human staff,

AI chatbots are always available, creating a situation where questions from customers will

always be answered. This is particularly beneficial during times where customers express their

concerns on issues outside working hours.

AI chatbots tend to minimize customer interaction errors and are able to give accurate

and consistent replies. Generative AI chatbots can reduce misinformation by providing credible

and reliable sources of information. (Morita, 2024). The accuracy of the information given

reduces the need for follow-up questions, leading to an increase in productivity for human

agents. Furthermore, AI can recognize the feelings of a customer, allowing us to solve issues

before they escalate any further. The organizational ability of AI to digest big data in a frugal

way can mean that companies discover and sort out customer pain points directly.

Additionally, AI drives the creation of useful information and data, which has the right

potential for building a more efficient customer support experience. Drawing from the

experience derived in AI's understanding of customer queries, these concepts are also valuable in

product development, service delivery innovations, and customer engagement techniques, all of

which enhance customer's perspective of TELUS as a prioritized customer. By employing this

with the purpose of predictive analysis, we’ll be able to foresee the customers' needs even before

they are expressed.

Risk Assessment:

Despite the many advantages AI might offer, there are still challenges that need to be

overcome, one of which is that some customers feel more comfortable in human interactions. To

address this, we can go for a hybrid approach where AI is assigned to basic inquiries while

complex issues are dealt with by human staff members. The AI engine which runs on customer

data is a great data processor. However, the PIPEDA and other data protection regulations will

have to be respected to maintain customer trust. AI models which give erroneous information

will also need constant updating and monitoring to keep their performance stable. On top of this,

we have to commit to regular AI training and system upgrades. AI bias can be an issue too. A

report by MIT Technology Review explains how AI models are not accurately trained and can

produce findings that do not reflect reality, in turn, negatively impacting customer experiences

(MIT Technology Review, 2023).

Implementation Plan:

To successfully incorporate AI into our customer support, we should take these actions: First, a

pilot program can be proposed to initiate AI chatbots handling queries like billing and service

troubleshooting. Training should be offered for employees to work with the AI tools, creating

more time for them to care about higher value interactions. We should have a customer education

program to let users know about the AI support options. Continuous improvement must be a

priority with the regular tracking of AI performance and the updates of algorithms based on

customer feedback and the innovations of AI. Additionally, we should perform quarterly AI

audits to confirm the precise functioning and reliability of the system.

Conclusion:

In conclusion, AI-powered customer support poses a big opportunity for us to enhance

efficiency, cut costs, and make our customers happy. Some of our competitors already utilize AI,

and by not doing so we could be at a disadvantage. With the strategic implementation of AI, we

can expand our market share and provide better services to the customers. It is crucial to define

how we’ll use AI at the present time to keep up with technology. The right implementation of

AI-based client support will not only improve our status in the telecommunications industry but

also pave the way for both clients and staff to have a better experience.

Reference List:

Accenture. (2024). New Accenture Research Finds that Companies with AI-Led Processes

Outperform Peers. Accenture.com. https://newsroom.accenture.com/news/2024/new-

accenture-research-finds-that-companies-with-ai-led-processes-outperform-peers

Flatt, K. (2024, May 21). AI in Business: Enhancing Efficiency and Reducing Costs. InData

Labs. https://indatalabs.com/blog/ai-cost-reduction

Holdsworth, J. (2024, January 18). Benefits of Chatbots | IBM. Ibm.com.

https://www.ibm.com/think/insights/unlocking-the-power-of-chatbots-key-benefits-for-

businesses-and-customers

Joshi, S. (2024, October 24). AI in customer service: The ultimate guide for 2025. Sendbird.

https://sendbird.com/blog/ai-in-customer-service
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Markets and Markets. (2023). Artificial Intelligence Market - 2025 | MarketsandMarkets.

Marketsandmarkets.com. https://www.marketsandmarkets.com/Market-Reports/artificial-

intelligence-market-74851580.html

Morita, P. P., Lotto, M., Kaur, J., Chumachenko, D., Oetomo, A., Espiritu, K. D., & Hussain, I.

Z. (2024). What is the impact of artificial intelligence-based chatbots on infodemic

management?. Frontiers in public health, 12, 1310437.

https://doi.org/10.3389/fpubh.2024.1310437

psico-smart.com. (2022). The Role of Artificial Intelligence in Enhancing Continuous Feedback

Tools. Psico-Smart.com. https://psico-smart.com/en/blogs/blog-the-role-of-artificial-

intelligence-in-enhancing-continuous-feedback-tools-165626

Salesforce. (n.d.). AI in Customer Service. Salesforce.

https://www.salesforce.com/service/ai/customer-service-ai/

SNS Insider. (2023, September 18). Call Center AI Market to Surpass USD 8.55 Billion With a

Growing CAGR of 22.3% Over the Forecast Period 2023-2030 | Research by SNS

Insider. GlobeNewswire News Room; SNS Insider pvt ltd.

https://www.globenewswire.com/news-release/2023/09/18/2744847/0/en/Call-Center-AI-

Market-to-Surpass-USD-8-55-Billion-With-a-Growing-CAGR-of-22-3-Over-the-

Forecast-Period-2023-2030-Research-by-SNS-Insider.html
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Appendix:

Appendix A: The market of generative AI for customer service is growing fast and is expected to

reach $2.89 billion by 2032, with North America contributing about 48% of it. This indicates the

increased importance of AI tools in serving customers. Inclusion of AI chatbots will go a long

way in saving money and achieving efficiency, while giving the customer superior service all the

time. TELUS will now be able to stay ahead and get differentiated in the industry with such

usage of technology.