AI agents bring a new world of possibilities for companies to provide seamless customer support 24/7, empower their employees, and drive business growth. The market size of AI agents is expected to grow from $5.1 billion in 2024 to an astonishing $47.1 billion by 2030. Meaning a Compound Annual Growth Rate (CAGR) of 44.8% over the next six years. In fact, recent industry insights show that these tools are now integral to 80% of business leaders’ strategies focused on elevating the customer experience and spearheading digital transformation. So why are AI agents becoming the new must-have?
Transforming customer engagement: Chatbots vs. AI agents
Not all customer engagement tools are the same. Chatbots and AI agents are both integral elements of digital interaction, yet they serve different purposes on different levels. Chatbots are primarily designed to simulate conversations with users, often relying on predefined scripts or rule-based frameworks. They are good at handling straightforward queries, such as answering frequently asked questions or providing basic customer support. However, their features are generally limited to the scope of their programming, which means they may struggle with nuanced or hard interactions. Chatbots typically do not learn from user interactions and require manual updates to improve their responses.
On the other hand, AI agents represent a more advanced class of artificial intelligence systems that can perform many tasks autonomously. These agents use machine learning algorithms to adapt and learn from user interactions, allowing them to provide personalized responses and handle complex scenarios. Agents can analyze data, make decisions, and even execute actions based on real-time information, making them suitable for applications like virtual assistants, recommendation systems, and phone callers. Their ability to understand context and learn from experiences sets them apart from traditional chatbots, this way, AI tools can offer a more dynamic and engaging user experience.
AI agents for business: Impacting multiple sectors
According to a recent McKinsey report, 92% of companies plan to increase their AI investments in the next three years in the next three years. The adoption of AI agents is accelerating across several industries, with the highest adoption rates in healthcare (90%), HR (75%) and retail (69%). For instance, according to Salesforce, 90% of hospitals are expected to adopt AI agents by 2025, using predictive analytics and automation to improve patient outcomes.
The AI Software of Choice report shows AI is transforming multiple sectors by enhancing efficiency, accuracy, and customer engagement. Where does AI provide the greatest advantages in business?
- Customer support: 29.8% say 29.8% say AI tools enable their businesses to understand customer needs and improve their experience through tools like chatbots and virtual assistants. Natural Language Processing analyses customer sentiment, while biometrics and predictive personalisation enhance security and provide tailored recommendations.
- Image and video recognition: AI employs deep learning for advanced image processing, for instance, object detection and recognition are applied in various industries for security and analysis.
- Data analysis: AI streamlines data processing, allowing for quick insights and improved decision-making. Machine learning algorithms identify patterns and generate reports in real-time, gathering together customer data for better marketing outcomes and business predictions.
- Demand forecasting: By analysing historical data, AI improves demand forecasting accuracy and helps businesses to align supply with customer needs.
- Fraud prevention: Solutions for automated verification and pattern recognition are able to detect fraudulent activities in real-time, including identity theft and payment fraud.
- Predicting customer behavior: AI solutions can analyse purchasing patterns to inform marketing strategies, enhance communication, and predict market trends.
- Productivity: In manufacturing, these tools optimise operations through predictive maintenance, automated procurement, and regulatory compliance.
What problems do they solve?
AI tools can solve business problems on several levels, from automating routines to improving employee performance and reducing operation costs. With the help of AI agents companies not only enhance efficiency and productivity but also improve customer satisfaction and drive innovation.
Automation of routine processes
According to statistics, 76% of companies use AI automation for standardizing daily workflows. By taking over repetitive tasks such as data processing, scheduling, and report generation, AI gives employees time to concentrate on more complex and strategic activities. In customer support, AI-powered chatbots handle frequently asked questions and provide real-time assistance. For instance, SMEs don’t need to hire a part-time receptionist, they use voice agents to easily automate essential tasks like appointment scheduling.
Improving employee performance
AI agents and employee productivity go hand-in-hand. AI agents don’t merely follow commands; they proactively identify inefficiencies, plan strategies, recommend solutions, and execute actions autonomously. Real-world examples from companies like Radisson Hotel Group and Wiley illustrate the substantial results achieved through agentic AI. For instance, the Raddison Hotel Group uses agentic AI solutions built with Google Gemini to support marketing groups. This technology helped to increase productivity by 50%, and the revenue they get from AI-powered campaigns has increased by 20%.
Improving customer experience
By analysing customer data and behaviour, AI agents can provide tailored product recommendations and respond to inquiries in a human-like way. They can analyse past interactions to anticipate customer needs, reaching out with relevant information or offers before customers even ask.
Reducing operation costs
AI agents help to reduce operational costs while enabling scalability, allowing businesses to manage a high volume of inquiries without giving up on quality. For example, in the world of sales, the early stages often mean countless hours spent on cold-calling. An AI sales voice assistant can take charge of outbound calls, automating the process and effectively warming up leads. For example, the language AI platform Smartcat partnered with Synthflow to enhance its lead qualification process using Voice AI Agents. It helped to increase the number of answered calls, lead reactivation, and closed sales, while reducing booking costs by 70%. This way Smartcat’s sales team was able to focus on high-value conversations and boost overall efficiency.
How AI agents help companies stay ahead of the competition
Recent investments by Amazon and Swedish fintech leader Klarna highlight the impact of AI deployments on both internal operations and customer experiences.
How does it work for corporations?
Amazon is improving its logistics with a growing fleet of warehouse robots that outperform humans in picking, packing, and moving merchandise. AI applications optimize storage layouts and streamline routes within warehouses, enabling robots to detect defective or damaged items better than human workers. It allows human employees to focus on supervisory and maintenance roles, enhancing overall efficiency. As a result, Amazon has significantly improved delivery times, claiming that 60% of Amazon Prime orders were delivered within the same or the next day across the top 60 metropolitan areas in the U.S. The company is also aiming for a 25% reduction in cost-to-serve during peak seasons at its next-generation warehouses.
AI tools in customer service
On the other hand, Klarna is redefining customer service with its AI-powered assistant, launched in 2024. Serving 85 million active users, this solution managed a workload equivalent to 700 full-time agents within its first month. Customer satisfaction remained consistent with previous levels achieved by human agents, but the AI assistant brought measurable improvements: repeated inquiries dropped by 25% due to enhanced accuracy, and service speed skyrocketed, with issues resolved in under 2 minutes (compared to 11 minutes previously). By September 2024, Klarna introduced new features for its AI assistant, including open-ended research, product comparisons, and price checks, projecting an additional $40 million in profits for the year.
Online sales in the beauty industry
Sephora employs an AI chatbot on its website and mobile app to assist customers with product recommendations and virtual try-ons. The implementation of the AI assistant led to a 40% increase in online sales and improved customer retention rates.
Voice technology for business
Voice technology is being quickly adopted, for instance, 60% of smartphone users were regularly using voice assistants in 2024, up from 45% in 2023. VoiceTech solutions are evolving thanks to several technological advancements, such as improvements in Natural Language Processing (NLP), integration of Edge Computing, and multilingual support. Voice assistants provide immediate support, allowing customers to access help 24/7 and automating routine tasks for employees. Businesses can get significant cost savings by reducing the need for large customer service teams and providing international customer support taking into account various regions and dialects.
What’s next for AI agents?
AI agents demonstrate their transformative potential across various industries. From drug discovery and financial analysis to customer service and HR automation, companies are using its potential to enhance efficiency, improve decision-making, and drive innovation.
The future of AI agents is bright and full of potential, with advancements promising to reshape industries, enhance everyday life, and help solve complex global challenges. AI agents will become more capable of learning from their environments and experiences without human intervention. Improved NLP will lead to more sophisticated conversational agents that understand context, tone, and emotion, making interactions more human-like. At the same time there will be a stronger focus on developing AI systems that are fair, transparent, and accountable.
