AI in Customer Engagement: Are We Getting It Right?

March 6, 2025 at 10:50 AM

By: Sanjini Munaweera

I recently interacted with a chatbot for a simple service request, expecting a quick and easy solution. Instead, I found myself stuck in a loop of scripted responses, with no way to get the assistance I needed. What should have been a straightforward experience became frustrating and time-consuming.

This made me wonder—are businesses actually using AI to improve customer service, or are they just automating inefficiency? While Conversational AI and WhatsApp automation have the potential to transform customer interactions, many businesses are still relying on rigid, rule-based chatbots that follow pre-scripted flows and struggle with anything outside their programmed responses.

Where Traditional Chatbots Fail in Customer Service

Most of us have experienced situations where chatbots—designed to automate customer interactions—end up making things harder. The issue isn’t automation itself but how it’s being implemented. Here are some common examples:

1. Getting Stuck in an Endless Loop
Imagine trying to check your mobile data balance through a telecom provider’s chatbot. You ask, “How much data do I have left?” but instead of answering, it responds with “Here are our latest data packages!” You try again, and it gives you the same response.

The problem here? The chatbot isn’t designed to understand intent – it’s simply matching keywords to scripted responses. It doesn’t realize that you’re looking for your current balance, not new data plans. A Conversational AI system, on the other hand, would understand the request, retrieve the information, and even ask a follow-up like “Would you like to set a reminder before your data runs out?”

2. No Way to Handle Open-Ended Requests
A customer forgets their mobile banking password and tries to reset it using a bank’s chatbot on WhatsApp. The bot presents a fixed menu of options: “Check balance,” “View recent transactions,” “Report a lost card.” Resetting a password isn’t listed.

Since traditional chatbots can only process predefined inputs, they don’t handle open-ended queries well. In contrast, Conversational AI could recognize, “I need to reset my password,” ask clarifying questions, and then either guide the customer through a secure reset process or escalate to a human agent.

3. Turning Simple Tasks into a Frustrating Experience
A customer orders a phone case from an online store and wants to check their delivery status. They open the store’s WhatsApp chatbot, expecting a quick response like Your package will arrive on Tuesday.” Instead, they are asked to log into an account, enter an order number, and navigate multiple menu options.

A Conversational AI-powered WhatsApp experience, on the other hand, could instantly recognize the user based on their phone number, retrieve the latest tracking information, and even proactively update them if the delivery is delayed.

4. AI That Pushes Sales Instead of Understanding the Customer
A customer buys a pair of sneakers from a retail app. A week later, they message the chatbot via WhatsApp to return them because they don’t fit. Instead of assisting, the bot responds with Here are some other sneaker options you might like!”

This happens because most basic chatbots are designed for sales automation, not customer support. Conversational AI, however, could identify that the user is making a return request, guide them through the process, and even ask if they’d prefer an exchange or refund—just like a human customer service agent would.

How Businesses Can Get AI-Powered Customer Service Right

AI is not the problem – poor implementation is. Here’s how businesses can move beyond rigid chatbots and start leveraging Conversational AI and WhatsApp automation effectively:

1. Move from Scripted Responses to Real Conversations
Basic chatbots operate on fixed decision trees, meaning they only understand pre-programmed inputs. If a customer asks something outside of those options, the bot fails. Conversational AI changes this by understanding intent, handling follow-up questions, and providing contextually relevant responses – allowing for natural, free-flowing dialogue.

2. Ensure AI Can Recognize When It’s Out of Its Depth
Not all queries can be fully automated, and that’s okay. The best Conversational AI systems seamlessly transfer complex or high-priority cases to human agents without making customers repeat themselves. If a business uses WhatsApp for customer engagement, this means ensuring the chatbot can switch to a live agent within the same conversation when needed.

3. Focus on Customer Convenience, Not Just Automation
Businesses should ask themselves: Are we using AI to genuinely improve customer service, or just to cut costs? The best AI-powered experiences are proactive – anticipating customer needs, reducing steps, and delivering personalized assistance.

For example, instead of making a customer request an update on their order, why not have WhatsApp automation proactively send real-time delivery updates? Instead of making a user ask for a refund, why not let Conversational AI detect dissatisfaction and offer assistance first?

The Future of AI in Customer Engagement
Customers today don’t just want faster responses – they want smarter interactions. Businesses that move beyond traditional chatbots and embrace Conversational AI on WhatsApp and other messaging platforms will create experiences that are more natural, efficient, and human-like.

The key takeaway? AI should work for customers, not against them. Businesses that prioritize customer convenience over automation for the sake of automation are the ones truly benefiting from AI.

 

Author: Sanjini Munaweera

Sanjini Munaweera is a regional business leader specializing in AI-driven customer engagement, Conversational AI, and digital transformation across South Asia. She helps businesses leverage WhatsApp automation and intelligent customer interactions to enhance efficiency while maintaining a human touch. Passionate about bridging technology with real-world business needs, she focuses on market strategy, leadership, and business innovation in emerging economies.