Top Challenges of Using Generative AI in Customer Service

Top Challenges of Using Generative AI in Customer Service

Top Challenges of Using Generative AI in Customer Service

Find out the key challenges BFSI businesses face when integrating Generative AI into their customer service.

Parul Chouhan

Chief of Staff

Think about it this way -

You call a company for help with a problem, and instead of being stuck on hold, you’re greeted by an AI that understands your issue and responds instantly. Sounds pretty great, right? But then, as the conversation goes on, you realize it’s struggling with your more complex questions. You find yourself wishing for a human to step in.

Or maybe you’re on the other side, managing a customer support team. You hear all about the wonders of AI and decide to give it a shot. But as you start using it, challenges start popping up—data privacy worries, trouble integrating AI with your old systems, and that nagging feeling that something’s missing in the customer experience.

If any of this feels familiar, you’re not alone.

Generative AI, like those voice agents and chatbots that promise to transform customer service, comes with its own set of challenges. Let’s dig into what these challenges are and how businesses, like yours, can tackle them.

Data Privacy & Security: Why It’s a Big Deal

We all know that customer data is like gold. It’s valuable, but it needs to be handled with care.

When you bring generative AI into the mix, keeping this data safe becomes even more important. A recent survey found that 57% of IT professionals see data privacy as the biggest roadblock to adopting generative AI. It’s not just about following laws like GDPR or CCPA—it's about earning your customers' trust.

Why is this such a challenge?

Generative AI needs lots of data to train well, which means it has access to large databases, sometimes containing sensitive info. If that data isn’t handled right, there’s a real risk of leaks or breaches. And that’s not just a tech problem—it’s a trust problem. A data breach can be costly in more ways than one.

So, what can you do about it?

Focus on setting up strong security measures and make sure your AI tools and platforms comply with privacy regulations. Regular audits, data anonymization, and training your team on privacy best practices can make a world of difference.

Keeping It Human: Why Empathy Still Matters

Let’s be honest—most people don’t love talking to a robot, especially when their issue is complex or sensitive. Yes, AI can handle up to 80% of routine questions, but what about those situations that need a little empathy? Here Voice AI solutions come in.

One of the coolest things about Voice AI solutions is their ability to have more human-like conversations. With advanced natural language processing (NLP), AI can even pick up on customer emotions, adjusting its tone to show empathy.

So, when should you lean on AI, and when should you bring in a human? The key is balance.

Use AI to handle the straightforward stuff—answering FAQs, guiding through basic processes, or providing quick updates. For more complex or sensitive issues, make sure the AI can easily transfer the customer to a human agent. This way, your customers feel heard and valued, whether they’re talking to an AI agent or a human.

Integrating AI with Your Existing Systems: Easier Said Than Done

You’ve got your CRM, your customer database, your analytics tools... and now you’re trying to add AI into the mix. 22% of companies say that integrating AI into their current systems is a major headache. It’s like trying to fit a new piece into a puzzle where the pieces don’t quite match.

How do you make it work?

Start with a solid plan. Map out your existing systems and see where AI can plug in without disrupting everything. Focus on small wins first—like using AI for automating simple tasks—before tackling bigger projects. And most importantly, choose AI tools and platforms like Intelekt AI that are designed to integrate well with what you already have.

Keeping AI Updated: It’s Not Set-and-Forget

Generative AI is amazing because it learns and evolves—but that also means you can’t just set it up and walk away. 35% of businesses struggle with finding the right skills to keep their AI tools updated. If your AI isn’t keeping up with changes in customer behavior or market trends, it’s not going to deliver the results you’re hoping for.

Why does continuous learning matter?

Think of AI as a student. The more you teach it, the better it gets at answering questions. But if you stop teaching, it falls behind. It’s the same with generative AI—it needs fresh data and regular training to stay sharp.

What can you do?

Invest in training your team, not just your AI. Make sure there are people on your team who understand how the AI works and can keep it updated. And even better, consider partnering with experts who can help you fine-tune your AI models like Intelekt AI.

Dealing with Inaccurate or Biased Responses

Let’s be real—sometimes, AI gets things wrong. It might generate responses that sound confident but are factually off, or even reflect biases present in the training data. In fact, 43% of professionals worry about bias and transparency issues in AI.

Why is this a risk?

When AI gives a wrong or biased answer, it can damage your brand’s reputation. Think of an AI giving incorrect financial advice or showing bias in customer interactions—these can have real consequences.

Here’s how to fix it:

Create a strong evaluation process. Regularly review the responses your AI generates and adjust as needed. Use diverse datasets for training to reduce biases and set up a system where a human can quickly step in if the AI gives an off-base response. At Intelekt AI, we do this for you.


Let’s Turn These Challenges into Opportunities

At Intelekt AI, we’re all about helping businesses deal with these challenges. We know that generative AI isn’t perfect, but when it’s done right, it can be a game-changer for customer interactions—offering fast, 24/7 assistance without losing that personal touch.

The key? Treat AI as a partner to your human agents, not a replacement. Focus on security, keep your systems updated, and always be ready to adapt as you learn. That’s how you turn AI’s potential into real results.

Related Posts

Explore how Agentic AI is transforming India’s call center industry into a cognitive powerhouse from autonomous voice agents.

Explore how Agentic AI is transforming India’s call center industry into a cognitive powerhouse from autonomous voice agents.

Discover how agentic AI workflows are transforming fintech operations from autonomous decision-making to real-time risk management.

Discover how agentic AI workflows are transforming fintech operations from autonomous decision-making to real-time risk management.

Oct 2, 2025

Discover 5 powerful Agentic AI use cases in BFSI, Retail & Healthcare. Learn how Indian enterprises drive ROI with AI agents.

Oct 2, 2025

Discover 5 powerful Agentic AI use cases in BFSI, Retail & Healthcare. Learn how Indian enterprises drive ROI with AI agents.

Explore how Agentic AI is transforming India’s call center industry into a cognitive powerhouse from autonomous voice agents.

Discover how agentic AI workflows are transforming fintech operations from autonomous decision-making to real-time risk management.

Ready to Transform Your Calling Operations?

Replace scripted calls with self-learning meaningful conversations that qualify leads, resolve issues, and deliver outcomes.

Ready to Transform Your Calling Operations?

Replace scripted calls with self-learning meaningful conversations that qualify leads, resolve issues, and deliver outcomes.

Ready to Transform Your Calling Operations?

Replace scripted calls with self-learning meaningful conversations that qualify leads, resolve issues, and deliver outcomes.

©2025 Intelekt AI. All rights reserved. | Crafted with ❤️ for enterprise teams

Agentic AI for enterprises.

Automate conversations, workflows, and outcomes — end to end.

SOC I & SOC II

ISO/IEC 27001:2022

ISO/IEC 27701:2019

ISO/IEC 42001:2023

©2025 Intelekt AI. All rights reserved.

Crafted with ❤️ for enterprise teams

©2025 Intelekt AI. All rights reserved. | Crafted with ❤️ for enterprise teams