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IBM AI Fundamentals: Best Use Cases for Chatbots in Retail Customer Service

Learn when chatbots are most effective for retail customer service, from answering FAQs to handling complex issues. Insights from the IBM AI Fundamentals certification exam.

Table of Contents

Question

Imagine you are the CEO of a large retail company. You are considering implementing chatbots on your website to interact with customers.

Which of the following situations would be the most appropriate use of a chatbot?

A. Handling situations where customers are unsure of what kind of support they need
B. Handling situations with customers that require empathy and judgment
C. Answering frequently asked questions (FAQs) about store policy, product availability, and return procedures
D. Negotiating personalized discounts and deals with customers

Answer

The most appropriate use of a chatbot in this retail scenario would be:

C. Answering frequently asked questions (FAQs) about store policy, product availability, and return procedures

Explanation

FAQs are typically straightforward and rule-based, making them well-suited for chatbot automation.

Chatbots excel at quickly and accurately addressing common, straightforward customer queries by accessing a knowledge base of information. FAQs related to store policies, product stock, and the returns process are typically repetitive questions that have clear, factual answers. A well-designed chatbot can efficiently assist customers with these types of inquiries 24/7 without needing a human agent.

In contrast, the other options are less suitable for chatbots:

A) When customers are unsure what help they need, a chatbot may struggle to determine their intent and route them to the appropriate resource. Human agents are better equipped to probe and clarify ambiguous support requests.

B) Situations requiring empathy and judgment, such as an angry customer or complex issue, are best handled by human representatives who can provide the nuanced, personalized care needed. Today’s chatbots still lack the emotional intelligence for these cases.

D) Personalized discounts and special deals often involve considering a customer’s history, loyalty status, and unique circumstances to arrive at a tailored offer. Negotiating these one-off arrangements requires the discretion and decision-making that human agents possess. Chatbots are not well-suited for this.

So in summary, deploying chatbots to handle FAQs leverages their strengths in quickly dispensing information for common queries, freeing up human agents to tackle more complex and sensitive customer interactions. The IBM AI Fundamentals certification exam emphasizes aligning AI capabilities with the right use cases for optimal results.

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