"In 1998, the leading PC maker [Dell] began investing in a customer service initiative that uses artificial intelligence (AI) software to automatically provide its telephone-based service agents a series of increasingly “educated” and specific responses to give to customers who are having problems with their computers. Gone is the frustrating interaction in which the first question the agent posed was the inscrutable “Have you tried reloading Windows?” Instead, agents are ready to ask relevant troubleshooting questions that quickly address and resolve almost any problem.
Dell’s returns from this AI system have been impressive: Today, 90 percent of customer issues can be handled in one phone call, and costly product returns from dissatisfied customers have declined. This service network contributed to a Dell cost-cutting campaign that reduced overall operating expenses by $1 billion between 1998 and 2003. Even though more complicated repairs are now being handled on the phone, average call times have been trimmed by 8 percent.
Dell is also learning from these interactions with customers by viewing every problem as a potential defect in product hardware, software, or documentation. By communicating call-center data to its engineering unit, Dell expects that any defects can be fixed in subsequent product releases. In other words, at the same time Dell is reducing the expense of customer service, it is using its customer service system to improve the quality of its products."
(strategy+business)