It is an overcrowded and competitive business landscape. Keeping your customers engaged isn’t always easy because they will go to someone who cares and values them. If your omnichannel experience is poor and full of friction, it cannot alleviate their pain. Your customers would silently leave you. 

As per a report by Coveo, 56% of customers would switch to a brand after a negative experience without complaining. 

It is a failure of customer engagement strategies. Your customer support is traditional. Service agents are overburdened. Backlogs are piling up, making it worse to handle customer queries and impacting overall customer engagement processes. 

AI-driven customer engagement can unleash the full potential of AI tools to manage end-to-end customer support needs. Let’s learn why AI customer engagement is critical to your business growth and why you should adopt it.

In a very fundamental way, providing every type of support to meet customer needs through meaningful interactions can be referred to as customer engagement. 

Customer engagement prioritizes active participation and emotional bonding with the brand. It is apparent to promote healthy customer engagement tactics across all touchpoints, from social media platforms to ecommerce sites and business sites to knowledge bases and anywhere where your customers are. 

For example, your customer visits your ecommerce site, wants to buy a product, but it is out of stock at the time of purchase. To keep your customer engaged, you can provide all the necessary information to help them make a favorable decision and eventually take action. If they want to know when the product becomes available, or if it can be made available in the next week, you must give a quick reply to their questions. Restock alerts sent to their communication apps can help you engage them with your brand. 

Fostering meaningful interactions for your customers on any platform you use to connect with your customers helps you build healthy relationships, earn customer loyalty, reduce churn, and build revenue streams.

There are a lot of advancements in customer service. Only a handful of businesses seem to take advantage. This is why most companies have yet to unlock the full potential of AI agents for customer engagement. McKinsey’s 2025 workplace AI report indicates that only 1% have reached AI maturity. This means that many businesses are in the early stage of adoption only and not fully utilizing AI agents. For customer support, businesses follow the old-school methods, which are inefficient and error-prone. 

Traditional tools work in silo and lack integration:

Do you deny that your businesses use only one integrated tool for communication? It is not that your customer support work in silo. Many companies use emails, CRM, Chatbots, and social media platforms for customer engagement. Built on legacy systems, these tools don’t integrate and are restrictive to a unified experience. 

Slow and reactive services: 

Fragmented systems don’t provide a single source of truth for your customer support agents. Without any context of previous user issues, traditional tools cannot help much. Customer service representatives also lack real-time context to provide a response, which is unfortunately reactive, prompting customers to return to the service desk again.  

Overworked teams: 

Your agents are busy handling repetitive and mundane tasks, leading to errors in delivering responses. Backlogs pile up, forcing teams to stretch hours. Customer support teams become exhausted and fatigued, which is a significant reason for agent attrition. 

AI agents for customer engagement can fill this gap and provide a smooth and seamless way to transform customer service and make the end-to-end process efficient and automatic.

According to Salesforce, 82% of CS representatives say customers want more than they used to. There is also a rise in workloads for service desk agents, given the volume of changing customer demands and the monotonous nature of requests. 

Traditional customer engagement methods, including non-agentic AI systems, fall short of the tools to meet the growing challenges. Enter AI agents for customer engagement. 

AI-driven customer engagement, powered by Agentic AI automation, mimics human-level agency to make independent decisions at every step of complex workflows and solve problems. 

Trained on massive data resources or LLMs and designed to process NLP and NLG, AI agents can instantly provide answers to customer queries and escalate them to human agents when needed to minimize MTTR and boost customer experience efficiently.  

The ability to learn over time by observing ongoing customer interactions, past history, and changing patterns in customer behavior enables AI agents to easily self-train and adapt to new conditions to solve customer problems at scale. 

AI customer engagement is the way forward to shape customer support. With AI-powered customer support, you can transform how customer problems are solved, provide more strategic ways for service desk agents to nurture their creative side, and provide more quality support.

AI agents can reason, memorize instances from one day to the next, and analyze the intent and context of a human query before surfacing a meaningful answer. This ability gives it human-level agency to make independent decisions for multi-step or multi-turn queries. AI agents can ask questions if needed. To boost customer engagement, AI agents can offer proper guidance and resolve their tickets by providing personalized answers.

For example, call it a travel AI agent. Connected to external business systems and contextual data resources, the travel AI agent can help a family plan a trip. Based on existing user preferences, the AI agent can create an itinerary, map routes, recommend hotels, and also help with booking rooms—all without any intervention from a human agent

AI in customer engagement unlocks massive potential for unlimited ways to help customers find answers and autonomously solve their problems. On the other hand, traditional methods are limited, and they don’t help scale support. Beyond the fundamental differences, AI agents for customer engagement outperform traditional methods in many quarters. 

A quick view into traditional non-agentic systems vs. AI agents for customer engagement: 

AI agents have massively taken over generative AI and are being viewed as an essential AI tool to enhance customer engagement. From crypto trading to seat reservation, AI agents unlock exceptional abilities to accomplish many use cases and help with customer engagement. According to McKinsey, AI-driven customer engagement can boost customer retention up to 40%, which is highly efficient in increasing sales and revenue growth. Here are various use cases of AI agents that boost customer engagement. 

eCommerce product assistant: 

What is your ecommerce business type—apparel, cosmetics, books, gardening tools, and anything? Your customers can have multiple questions about the product, its variety, price, suitable recommendations, etc. AI agents can assist your customers. They can read and analyze customer preferences and recommend the best product tailored to their needs. For example, if a customer needs tools for their small roof garden, the AI agent can recommend the most suitable tools for them. 

Event and booking concierge AI agent:

In travel, hospitality, and event domains, AI agents can maintain processes independently end-to-end. Whether booking tickets, uncovering the agenda of an event, or asking for details about availability, AI agents can guide you properly without any human assistance. You can accurately provide answers on pricing, offers, and discounts, and you can also help with rescheduling and follow-up communications. 

Customer support and FAQ AI agent: 

Your customers can come and ask common questions related to your product or service. By integrating with your business-related resources or intranet, AI agents can easily guide customers to find accurate answers and solve their queries. When critical questions arise, AI agents are designed to escalate them to the right person to handle them efficiently. 

eCommerce and retail customer success:

AI for customer engagement can play a pivotal role in boosting customer loyalty. AI agents can assist with customer onboarding onto your product platform, answer FAQs, facilitate order management, exchanges and refunds, and discover products, to name a few. Also, you can have AI agents capture customer details to let you create powerful marketing initiatives and build prospects. 

Finance and banking AI agents: 

Financial services, especially with banking operations, involve multiple customer engagement activities. If not done on time, your customers can face transaction-related disruptions. AI agents accomplish tasks such as KYC, opening/closing accounts, loan applications, finding ATM, etc. Your customers would be more engaged because AI agents deliver real-time, contextual, personalized recommendations and insights. 

Telecommunication AI agents: 

Customers of telecommunication services can have numerous queries related to their billing, service disruptions, poor connectivity, etc. Instead of waiting for human agents to solve their problems, AI agents alleviate hurdles efficiently. These agents can solve common issues, help them pay bills, assist with refunds, and get new connections among many without seeking human help. 

The advantage of LLMs and advancements in AI helps you use AI agents for any use cases for any business functions. You can customize workflows to manage operations across airlines, education, automotive, insurance, and anything you name. 

AI agents bring excellent promise to the customer support area. They make handling customer service easy and flexible, engaging customers with all the necessary information and consistent assistance to solve their problems. There are several ways in which AI agents drive an AI-driven customer experience on a grand scale. 

24/7 availability 

According to an article by Inc., 51% of customers expect their customer service to be available 24/7. AI agents are driving this expectation to the fullest potential. By offering guided assistance through FAQs and LLM-grounded company knowledge, AI agents can solve multi-step problems and help accomplish various tasks independently. It makes it easy to provide support 24/7 without having to rely on human agents. 

Instant responses 

AI agents have transformed how customer support automates interactions and problem-solving. Not just predefined questions, but any unique questions can be answered instantly using AI agent-driven customer support. Service desk agents also harness the effectiveness of agentic automation to retrieve instant context of a user problem and quickly address customer issues. 

Scalability 

Unlike traditional customer engagement, AI agentic-led customer support can easily adapt to the growing volume of tickets, reduce backlogs, solve customer issues steadily, and become available to handle more critical queries.  

Cost efficiency 

In a study, Gartner predicts that Agentic AI will autonomously resolve 80% of repetitive or common customer support queries without human intervention, leading to a 30% operational cost reduction. 

Continuous customer experience

AI agents are designed to unleash multifaceted abilities that can help customer support provide answers at any time of the day, facilitate smart escalations for complex queries, interact in the familiar language of a user, and ask follow-up questions to provide a continuous customer experience without any friction. 

Omnichannel support 

AI agents can sync with any business systems to provide continuous customer service. You can assist your customers across Slack, MS Teams, WhatsApp, Facebook Messenger, Instagram, Website, Intranet, and Knowledge base. 

Hyper-personalization

Based on previous interaction data, AI agents can efficiently analyze user preferences and personalize requests. For example, if a user wants to buy a running shoes, AI agents can suggest shorts, a t-shirt, and other necessary materials. 

Improved customer retention 

AI agents are good at harnessing customer interaction data and analyzing it to build a robust sales funnel. For example, AI agents can automatically send reminders and special offers tailored to a buyer’s needs. 

Reduced human errors 

With no more repetitive tasks, there is less probability of errors that otherwise occur due to the monotony and lack of attention. AI agents help boost productivity and gain efficiency with multi-turn complex tasks. 

Lean team 

SBMs can work with a lean team to help their customers. Yes, AI agents make it possible. AI can provide relevant answers to repetitive customer queries and free up support agents to focus on other strategic operations. 

AI in customer engagement changes how it works. It shows much promise and provides a massive scope for a large-scale adoption. Gartner also predicts that 25% of customer service operations will rely on AI agents by 2027. Harnessing this new technology opens up opportunities for growth and an elevated experience. 

Finding AI agent success requires strategic implementation. Just harnessing the tool doesn’t materialize your plan; instead, it needs concrete action.  The best practices include, 

Identifying pain points in your customer engagement workflows:  

Know where your customer's engagement workflows fail to serve your customers. Are there response delays, inconsistent responses, or other factors? Identify these pain points and design your workflows. 

Focusing on hybrid support 

AI can’t scale alone. Build synergy between AI and humans for your AI-agentic-led customer engagement. It helps you tackle repetitive queries while managing complex queries with human support. 

Integrating AI agents with enterprise-grade systems 

AI agents are more productive and efficient when they are deeply integrated into business systems. They can talk with the systems, fetch relevant data to simplify interactions, and solve problems for administrative operations. Besides, AI agents can resolve common customer queries at scale and help boost customer experience. 

Monitoring KPIs for performance enhancements 

Monitoring the AI agents' performance regularly is key to keeping your AI-based customer engagement effective and successful. Finetuning AI agents with accurate knowledge bases, company data, etc, can help improve response delivery and reduce latency. Another effective idea is to ask for user feedback. It enables you to improve AI agents’ performance. 

Upskilling support agents 

Helping your service agents work alongside AI agents can boost productivity. With AI agents accomplishing every repetitive task at speed, human agents can learn ways to handle AI tools and utilize AI insights to improve customer interactions.

pagergpt is a powerful customer engagement platform to enable businesses to manage all-encompassing support needs and increase CSAT and boost growth for businesses. pagergpt harnesses the best LLM models to unleash knowledge discovery and customer engagement with loads of AI tools. 

No-code setup: pagergpt’s AI agent studio offers AI tools to create out-of-the-box agents and sub-agents without writing a single code. IT helps you build customer engagement bots and handle multi-turn complex workflows seamlessly. 

Support on autopilot: pagergpt’s AI agents are trained with multiple datapoints to translate into a powerful self-service that helps autopilot your support. Your customers can harness information and solve their problems independently. 

Smart escalation: For complex support that needs human assistance, pagergpt facilitates smart escalation instantly to help resolve the problems at scale. 

AI copilot: Your customer support agents can use AI copilot for every activity they perform to address an issue. AI copilot can help them fetch the real-time context of a user query, summarize a note, translate a message, and provide help, making solving customer queries seamless and effortless.  

Shared live inbox: Your agents can collaborate over a customer query, share information, use mentions for immediate help with resources, and leverage instant notifications to speed up the resolution rates of tickets. 

Lead capture: You can use pagergpt’s AI customer support agent to build excellent client prospects. pagergpt can be harnessed as a lead capture tool, driving thriving customer success. 

Multichannel support: AI agents built what pagergpt can be synced across your business channels where your customers stay. You can provide help across MS Teams, Slack, WhatsApp, websites, knowledge bases, and anywhere you like. 

Multi-lingual AI support: pagergpt never lets you stop for an unfamiliar language your support doesn’t understand. You can build more engaging support by helping your customers get answers in over 90 languages and speed up issue resolutions. 

Deep analytics and customer history: With pagergpt, you can tap data across multiple channels to build deeper customer behavior analytics. Analyze purchase history, website interactions, and customer service logs to find complex patterns and improve customer service performance. 

Massive advancements are taking place across AI agentic development. With machine learning and natural language processing advancing at a great scale, businesses can personalize customer experience with real-time data and offer more steady support. With that, AI agents seem to connect with IoT systems seamlessly and provide interconnected and intuitive support more than ever before. 

It clearly indicates that AI agents can handle a larger number of queries and offer a more consistent experience across any channel, and deliver a predictive and consistent customer experience. 

pagergpt opens up enormous opportunities for your business, no matter which vertical you are operating in. To build a robust AI agent and drive real AI customer engagement, connect with pagergpt. Schedule a demo today.

How do AI agents improve customer engagement?

AI customer engagement offers all-purpose support for customers. Whether your customers want to solve a common problem or a complex problem, AI agents can efficiently address them. Your customers can book a ticket, make payments, submit a complaint, follow up on communications, and more. 

How do AI agents personalize customer interactions?

AI agents keep a tab on customer interactions and learn eventually. AI agents can easily uncover the user's preferences and personalize offerings whenever a user interaction happens. For example, if a customer bought a hair care product in their previous orders, AI agents can recommend new launches and offers in the same category to the user. 

How can AI agents enhance the self-service experience for customers?

AI agents put customer support on autopilot. It means your self-service can single-handedly manage customer queries for repetitive issues. Users can fetch consolidated information and improve problem-solving by leveraging FAQs and company data. 

Can AI agents perform autonomous tasks like refunds or account updates?

AI agents are adept at handling many tasks that human agents do. With autonomous decision-making abilities across multi-step complex workflows, AI agents can perform refunds, account updates, KYC, transactions, etc. 

What are the emerging trends in AI agent technology for customer engagement?

AI agents are increasing the chances of rapid integration with various systems, such as email, chat, CRM, ERP, social channels, etc, to build a unified and frictionless customer experience. There is also a vast possibility for AI agents to connect with IoT and offer an interconnected experience.