How to Use ChatGPT in Customer Service: 2026 Guide

Now that we’ve all seen what ChatGPT can do, it’s natural to begin casting about for ways to put it to work. An obvious place where a generative AI language model can be used is in contact centers, which involve a great deal of text-based tasks like answering customer questions and resolving their issues.

But is ChatGPT ready for the on-the-ground realities of contact centers? What if it responds inappropriately, abuses a customer, or provides inaccurate information?

We at Quiq pride ourselves on being experts in customer experience and customer service, and we’ve been watching recent developments in generative AI for some time. This piece presents our conclusions about what ChatGPT is, the ways in which ChatGPT can be used for customer service, and the techniques that exist to optimize it for this domain.

What is ChatGPT?

ChatGPT is an application built on top of GPT-4, a large language model. Large language models like GTP-4 are trained on huge amounts of textual data, and they gradually learn the statistical patterns present in that data well enough to output their own, new text.

How does this training work? Well, when you hear a sentence like “I’m going to the store to pick up some _____”, you know that the final word is something like “milk”, “bread”, or “groceries”, and probably not “sawdust” or “livestock”.

This is because you’ve been using English for a long time, you’re familiar with what happens at a grocery store, and you have a sense of how a person is likely to describe their exciting adventures there (nothing gets our motor running like picking out the really good avocados).

GPT-4, of course, has none of this context, but if you show it enough examples, it can learn to imitate natural language quite well. It will see the first few sentences of a paragraph and try to predict what the final sentence is.

At first, its answers are terrible, but with each training run its internal parameters are updated, and it gradually gets better. If you do this for long enough, you get something that can write its own emails, blog posts, research reports, book summaries, poems, and codebases.

Can ChatGPT be used for customer service?

Short answer: not on its own.

While tools like ChatGPT can support customer service workflows, relying on them as a standalone solution introduces serious risks. Here’s why.

It makes things up (and sounds confident doing it)

One of the biggest issues is hallucination, where the model generates incorrect answers that sound completely believable. In customer service, this can mean:

  • Invented refund policies
  • Incorrect pricing or product details
  • Fake troubleshooting steps

These errors are not rare edge cases that happen every now and then in customer inquiries. They happen because the model predicts likely words, not verified facts.

Even worse, it often delivers these answers with high confidence, which makes them harder to catch and more damaging to trust.

It doesn’t know your business

ChatGPT is trained on general internet data, not your:

  • Internal policies and knowledge base data
  • Product catalog
  • Customer history and relevant customer queries
  • Real-time updates

That means it can’t reliably answer company-specific questions unless heavily customized. Out of the box, it simply lacks context, which leads to vague or irrelevant responses and it cannot address customers’ concerns well.

For customer support, that’s a deal breaker.

It can’t guarantee accuracy or compliance

In industries like finance, healthcare, or legal services, even small mistakes carry real consequences.

  • Companies can be legally liable for incorrect chatbot responses
  • AI errors from automated responses can lead to compliance violations or financial loss
  • Wrong advice can damage customer relationships permanently

Unlike human agents, ChatGPT has no built-in accountability or understanding of risk. If you want accurate responses that actually improve customer satisfaction, relying on ChatGPT alone is dangerous.

It raises data privacy concerns when handling customer inquiries

Using ChatGPT for support often involves sharing customer data. That introduces risk:

  • Conversations may be stored or used for training
  • Sensitive information could be exposed
  • Compliance with regulations like GDPR becomes harder as data gets passed through multiple systems

This is especially problematic for businesses handling personal or financial data.

It lacks true understanding and judgment, ultimately affecting customer experience

ChatGPT can mimic conversation, but it does not:

  • Understand customer intent in complex customer issues
  • Handle emotional or sensitive situations well and give personalized responses
  • Apply judgment in edge cases

It can escalate frustration instead of resolving it, especially when a customer needs nuance or empathy beyond the average call center script.

It still needs human customer service agents to work properly

Even in advanced setups, companies don’t rely on ChatGPT alone. They use:

  • Human review and escalation paths
  • Structured knowledge bases
  • Guardrails and validation layers

Without these, results become inconsistent and risky. In fact, most real-world deployments combine AI with human oversight because fully automated support is still unreliable.

So, where does ChatGPT for customer service actually fit?

ChatGPT works best as a supporting tool, not a replacement. For example:

  • Drafting replies for agents
  • Summarizing tickets
  • Assisting with internal documentation such as knowledge base articles

But when it comes to customer-facing support, especially in high-stakes scenarios, it still falls short without a proper system around it.

Why purpose-built customer service platforms make more sense

If ChatGPT alone is not reliable for handling real customer interactions, the next step is not to abandon AI. It is to use it inside systems that are built for the realities of the customer service space.

This is where platforms like Quiq come in. They take large language models and connect them to real workflows, real data, and real oversight. Instead of acting like a generic customer service chatbot, the AI becomes part of a structured system that customer service leaders can actually trust in production environments.

Built for real customer service interactions

Standalone tools do not reflect how support actually works. Real teams deal with queues, SLAs, escalations, and multiple channels at once.

Purpose-built platforms are designed around these realities and key challenges:

  • Intelligent routing ensures customer interactions go to the right customer support agents based on intent, priority, or account value
  • Omnichannel support brings chat, voice, SMS, and social messaging into one place, so customer service agents are not switching tools
  • Context is preserved across conversations, giving every customer service representative full visibility into previous interactions, orders, and issues

This structure removes friction from daily operations. Instead of reacting to messages one by one, customer service teams can manage volume in a controlled, predictable way. Once you’re past the initial setup, you can easily generate responses that are accurate, helpful and empathetic.

It also improves consistency. When workflows are standardized, every customer interaction follows a defined path, which reduces errors and helps deliver exceptional customer service at scale.

Grounded in your data, not generic knowledge

One of the biggest gaps with a standalone customer service chatbot is that it relies on general knowledge instead of your business context.

Purpose-built platforms solve this by connecting AI directly to:

  • Internal knowledge bases and help centers
  • CRM systems with detailed customer history
  • Order management and billing systems
  • Product documentation and release notes

This changes how responses are generated. Instead of guessing, the AI pulls from verified sources tied to your business.

For example, when handling customer interactions about billing issues or subscription changes, the system can reference real account data instead of producing a generic answer. That leads to fewer mistakes and faster resolutions.

For customer service leaders, this is critical. Accurate answers directly impact customer satisfaction, and grounding AI in real data is what makes that possible.

AI with guardrails and human oversight for true customer satisfaction

Uncontrolled AI is risky. That is why production systems rely on layered safeguards.

Purpose-built platforms introduce guardrails such as:

  • Predefined rules that limit what the AI can say in sensitive scenarios
  • Confidence thresholds that trigger escalation when the model is unsure
  • Approval workflows where customer support agents review or edit responses before they are sent

This ensures that AI supports customer service agents rather than replacing judgment.

Human oversight remains central when AI answers customer inquiries. Complex or emotionally sensitive customer interactions can be handed off instantly to a customer service representative, while routine questions are handled automatically.

This hybrid approach is what allows companies to scale without sacrificing quality. Customer service teams stay in control, and AI operates within clearly defined boundaries.

Designed for scale in customer support teams, without breaking quality

Scaling support is not just about handling more tickets. It is about maintaining quality across thousands of customer interactions.

Standalone tools often break down under pressure because they lack structure. Purpose-built systems are designed to:

  • Handle spikes in volume without overwhelming customer service agents
  • Automate repetitive requests like order status, refunds, or FAQs
  • Maintain consistent tone and accuracy across every response

They also provide visibility into performance. Customer service leaders can track metrics such as response times, resolution rates, and customer satisfaction across channels.

This makes it easier to identify bottlenecks and improve processes over time.

In fast-growing companies, this kind of infrastructure is essential. Without it, scaling support usually leads to slower responses and inconsistent experiences.

Better outcomes across the entire customer journey

When AI is properly integrated into a customer service platform, its impact goes beyond handling tickets.

It improves the entire experience by:

  • Assisting customer service agents with suggested replies based on past customer interactions
  • Reducing response times while keeping answers accurate and relevant
  • Ensuring consistent communication across every touchpoint, from first contact to resolution

It also supports proactive engagement. Instead of waiting for issues, systems can trigger messages based on behavior, such as abandoned carts or failed payments.

Over time, this leads to stronger relationships and higher customer satisfaction. Customers get faster answers, fewer errors, and a smoother experience overall.

For businesses competing in the customer service space, this is a clear advantage.

Where this leaves ChatGPT

ChatGPT still plays a role, but not as a standalone solution or a customer-facing chatbot.

On its own, it behaves like a general-purpose customer service chatbot, which makes it unreliable for real-world use. It lacks the structure, data access, and safeguards needed for consistent performance.

Inside a purpose-built platform, it becomes far more useful. It can assist customer support agents, speed up workflows, and improve response quality, all while operating within controlled systems.

For customer service teams and customer service leaders, the takeaway is simple. AI is valuable, but only when it is implemented in a way that supports real workflows, real data, and real accountability.

Where ChatGPT actually works in customer service

While ChatGPT is not reliable as a standalone solution, it can still improve customer service when used in the right context. The key is keeping it behind the scenes, supporting people instead of replacing them.

Drafting replies for support requests

One of the most practical uses is helping customer service agents respond faster.

Instead of writing every reply from scratch, agents can use ChatGPT to:

  • Generate human-like responses based on the context of the request
  • Rephrase messages to match tone and clarity
  • Turn rough notes into polished replies

This is especially useful when dealing with high volumes of support requests. It reduces writing time without removing human oversight.

Agents still review and edit everything, which keeps responses accurate and aligned with company policies.

Summarizing support tickets and conversations

Customer interactions often span multiple messages, channels, and agents. That makes it hard to quickly understand what is going on.

ChatGPT can:

  • Summarize long support tickets into short, clear overviews
  • Highlight key issues, actions taken, and next steps
  • Help new agents jump into ongoing conversations without confusion

This improves handoffs between customer support agents and reduces the risk of missed details.

It also helps managers review conversations faster and spot patterns across tickets.

Handling repetitive and low-risk queries

For simple, repeatable questions, ChatGPT can assist with first-line responses.

Examples include:

  • Basic product questions
  • Order status updates
  • Account or login guidance

These types of support requests do not usually require deep judgment. When paired with verified data sources, ChatGPT can respond quickly and consistently.

This frees up customer service agents to focus on more complex or sensitive cases, including human interactions that require empathy or decision-making.

Assisting with customer feedback analysis

Customer feedback is often scattered across emails, chats, and surveys.

ChatGPT can help by:

  • Grouping feedback into themes or categories
  • Identifying recurring complaints or feature requests
  • Summarizing large volumes of responses into key insights

This gives customer service teams a clearer view of what customers are saying, without manually reviewing every message.

Over time, this can improve customer service by helping teams prioritize fixes and respond to common issues more effectively.

Supporting agents during difficult conversations

Handling angry customers is one of the hardest parts of the job.

ChatGPT can act as a support tool by:

  • Suggesting calm, professional responses in tense situations
  • Helping agents adjust tone to avoid escalation
  • Providing alternative ways to explain policies or decisions

This does not replace human judgment, but it gives agents a starting point when they are under pressure.

It can be especially helpful for less experienced customer service representatives who are still learning how to manage difficult interactions.

Internal knowledge and training support

ChatGPT is also useful internally, not just in live conversations.

Teams can use it to:

  • Answer internal questions about processes or policies
  • Generate training materials based on past support tickets
  • Help new hires learn how to handle common scenarios

This reduces the time it takes to onboard new customer support agents and ensures more consistent responses across the team.

Final thoughts: ChatGPT is a tool, not a solution

ChatGPT has earned its place in the conversation around AI, and for good reason. It can generate human-like responses, support customer service agents, and speed up how teams handle support requests.

But as you’ve seen, it breaks down in the areas that matter most for real customer interactions and more complex tickets. It lacks business context, struggles with accuracy, introduces risk around compliance and data privacy, and still depends heavily on human oversight to avoid mistakes.

That’s why more customer service leaders are moving away from standalone tools and toward purpose-built platforms like Quiq.

Quiq takes everything that makes ChatGPT useful and removes the parts that make it risky:

  • Instead of guessing, it pulls from your actual data and systems
  • Instead of operating alone, it works alongside customer support agents with clear guardrails
  • Instead of inconsistent answers, it delivers controlled, reliable responses across every customer interaction
  • Instead of adding risk, it is built for compliance, security, and real business use

The result is not just faster replies. It is better customer satisfaction, more confident customer service teams, and a system that can handle real-world complexity without falling apart.

If your goal is to improve customer service in a meaningful way, ChatGPT on its own will not get you there. But used within a platform like Quiq, it becomes part of something far more reliable, scalable, and ready for the demands of modern customer service.

Get a free demo of Quiq to find out the real capabilities of AI in CX.

LLM Integration: How-to Guide for Businesses

Key takeaways:

  • LLM integrations turn static products into interactive systems by connecting large language models to real workflows and business data
  • The real value comes from context, not just the model, retrieval and clean data are what make responses accurate and useful
  • Without guardrails and clear prompt design, LLM outputs can become inconsistent or unreliable in production
  • A successful integration depends on the full system, backend logic, frontend experience, and data flow all matter
  • Most issues come from poor planning, unclear use cases and weak success metrics lead to wasted effort
  • Real-world testing is critical, user inputs are messy and expose problems that demos never show
  • LLM integrations require ongoing work, continuous monitoring and iteration are what drive long-term performance

Large language models have revolutionized just about every aspect of how we work and think in the past few years, and it seems like every business out there wants to add AI to their platforms. But does it make sense to add an LLM integration to your SaaS tool, website, or business model?

Today, we show you what an LLM integration is, the pros and cons of adding AI models to your current setup, and a full guide on how to make those integrations go live.

What is an LLM integration, and how does it work?

An LLM integration is the process of connecting large language models to your existing systems so they can read, reason, and respond using your business data. Instead of treating an LLM like a standalone chatbot, you plug it into your product, support stack, CRM, or internal tools and let it operate inside real workflows.

At a basic level, it works through API requests. You send a request to an API endpoint provided by the model vendor, authenticate it with an API key, and include the input you want the model to process. That input could be a customer message, a support ticket, or structured data from your backend. The model returns a response, which your application then displays or uses to trigger an action.

That’s the simple version. In practice, most useful implementations go a step further with retrieval augmented generation. Instead of relying only on what the model already knows, your system fetches relevant data, like help center articles, past conversations, or account details, and includes it in the request. The model then generates a response grounded in that context, which makes answers more accurate and business-specific.

Here’s how it typically plays out in a real workflow:

  • A user asks a question in your app or support channel
  • Your system pulls relevant data from internal sources
  • You send everything to the model via an API request
  • The model generates a response using that context
  • The response is returned through the API endpoint and shown to the user

This is why LLM integration is so powerful: you are turning your existing data and systems into something that can interact, assist, and act in real time.

The benefits of adding an LLM integration to your product or service

Adding an LLM integration changes how your product communicates, supports users, and delivers value.

More natural communication

Most products still rely on predefined responses, rigid flows, or static content. That can create friction, especially when users ask something slightly outside the expected path.

With LLMs, you can generate human-like language that adapts to each situation. The tone can match your brand. The level of detail can be adjusted based on the question. Instead of forcing users through menus or forms, your product can respond directly.

This matters most in support, onboarding, and search experiences. Users get answers faster, and they do not feel like they are talking to a script.

Better control over outputs

There is a misconception that LLMs are unpredictable. In reality, you can guide them quite precisely.

You define the desired format for responses depending on the use case. For example, you can return short answers for chat, structured bullet summaries for internal tools, or step-by-step instructions for onboarding flows.

This level of control is especially useful in web apps where consistency matters. You are shaping how information is presented across your product.

Works with your existing stack

One of the biggest advantages is how easy LLMs are to integrate from a technical perspective.

They rely on API interactions, which means you can connect them to your product using almost any modern stack. Most teams already work with programming languages like JavaScript or Python, so adding LLM capabilities does not require a complete rebuild.

You send a request, include the necessary context, and receive a response. From there, you decide how that response is used, whether it is shown to a user, stored, or used to trigger another action.

Responses that reflect your business

Out of the box, LLMs are general-purpose, which is not enough for real products.

When you connect them to your own data, you unlock tailored responses that reflect your business logic, content, and users. That could include pulling in account details, referencing internal documentation, or using past interactions to shape the answer.

This is where the experience improves significantly: users are now getting answers that feel relevant and accurate.

New product capabilities without heavy rebuilds

Once you have the integration in place, you can start building new features on top of it without major engineering effort.

Common examples include:

  • intelligent search that understands intent instead of keywords
  • automated support that can handle a large portion of incoming questions
  • in product assistants that guide users through complex workflows
  • internal tools that help teams find information and complete tasks faster

The key point is that you are not replacing your product. You are extending it. And because everything runs through API interactions, you can keep iterating without slowing down your team.

The downsides of integrating LLMs

LLM integrations can unlock a lot of value, but they are not plug-and-play. Once you move beyond simple demos, a few consistent challenges show up. If you ignore them, you end up with unreliable features or frustrated users.

Unpredictable outputs

LLMs work with natural language, not fixed logic. That makes them flexible, but also harder to control.

The same input can produce slightly different answers. Small changes in user inputs can lead to completely different outputs. For simple use cases, this is manageable. For anything customer-facing or tied to business logic, it can become a problem.

You need guardrails. That includes validation layers, response checks, and clear boundaries on what the model is allowed to do.

Working with unstructured data

Most business data is not clean or standardized. It lives in documents, conversations, tickets, and notes.

LLMs can process unstructured data, but that does not mean they automatically understand it correctly. If your data is messy, outdated, or inconsistent, the output will reflect that.

To get reliable results, you need to organize and filter what you send to the model. That often means adding retrieval augmented generation layers, cleaning your data sources, and deciding what should or should not be included in each request.

Prompt engineering is not optional

Getting useful results from an LLM is not just about calling LLM APIs. How you structure the request matters just as much as the model itself.

Prompt engineering becomes a core part of the system. You need to define instructions, format inputs, and guide the model toward the right type of response.

This takes iteration. What works in testing may not hold up in production, especially when real users start sending unpredictable inputs.

Handling complex tasks is harder than it looks

LLMs are great at generating text, summarizing content, and answering questions. They are less reliable when tasks require strict logic, multiple steps, or exact accuracy.

When you try to use them for complex tasks, things can break down. The model may skip steps, misinterpret context, or produce confident but incorrect answers.

The solution is usually to combine LLMs with traditional logic. Let the model handle language, while your system handles rules, workflows, and validation.

Risk around sensitive data

Sending data to LLM APIs introduces real concerns around privacy and security.

If you are dealing with sensitive data, you need to be very clear about what is being sent, where it is processed, and how it is stored. That includes customer information, internal documents, and anything tied to compliance requirements.

In many cases, you will need to filter or redact data before making a request. You may also need stricter controls around access and logging.

Inconsistent model performance

Even with the right setup, the model’s performance can vary.

Changes in user inputs, updates from the provider, or shifts in your data can all impact results. What works well today may degrade over time if you are not monitoring it.

That is why ongoing evaluation matters. You need to track outputs, test edge cases, and continuously refine how your system interacts with the model.

LLMs are powerful, but they are not deterministic systems. Treating them like one is where most integrations fail.

10-point checklist: should you integrate an LLM into your product?

Before you jump into building, it is worth stepping back and pressure testing the idea. LLM integrations can unlock real value, but only if they fit your product, your data, and your users. Use this checklist to quickly sanity check whether it makes sense for you right now.

1. Do you have a real use case, not just curiosity?

Are you solving a clear problem, like improving support, search, or onboarding? If the idea is vague, the implementation will be too.

2. Will natural language actually improve the experience?

Does your product benefit from users typing or asking questions freely? If structured inputs already work well, you may not need it.

3. Do you have access to useful data?

LLMs are far more valuable when connected to your own data. Think knowledge bases, tickets, CRM data, or product usage history.

4. Is your data in a usable state?

If most of your data is messy or scattered across tools, you will struggle. Unstructured data can work, but it still needs some level of organization.

5. Can you define the desired output clearly?

Do you know what a “good” response looks like? Without a clear desired format, results will feel inconsistent.

6. Are you ready to handle unpredictable user inputs?

Users will ask unexpected questions and phrase things in strange ways. Your system needs guardrails to handle that safely.

7. Do you have the resources to iterate on prompt engineering?

This is not a one-time setup. You will need to refine prompts, test outputs, and improve over time.

8. Are you comfortable working with LLM APIs?

Your team should be able to handle API interactions, manage keys, and handle failures.
If not, expect a learning curve.

9. Have you thought about sensitive data?

Will you be sending customer or internal data through the system? If yes, you need a plan for filtering, compliance, and security.

10. Do you have a way to measure the model’s performance?

You need feedback loops. That could be user ratings, internal reviews, or tracking success rates on specific tasks.

If you are answering “yes” to most of these, you are in a strong position to move forward. If not, it is better to tighten the fundamentals first before adding another layer of complexity.

How to create an LLM integration, step by step

Wondering if you need conversational agents or some other shape or form of LLM integration? Here’s how you can get started, step by step.

1. Define the exact use case and success criteria

Before writing a single line of code, you need to get very clear on what you are actually building. This is where most LLM integrations fail. Teams jump straight into software development without defining the problem, and end up with something impressive but not useful.

Start with a specific use case.

Not “add AI to our product,” but something concrete like improving support response times, helping users find information faster, or assisting agents with replies. The narrower the scope, the easier it is to build something that works.

Then define what success looks like. That could be:

  • reducing response time
  • increasing resolution rates
  • lowering support volume.

Without this, you will have no way to evaluate whether the integration is doing its job.

You also need to consider constraints early. Think about computational resources, expected usage, and how often the model will be called. A feature that looks simple on paper can become expensive or slow if you do not plan for scale.

Finally, align the use case with your existing workflows. Where will this live? Who will use it? What triggers it? If you cannot answer these questions clearly, the rest of the integration will feel disconnected from your product.

Get this step right, and everything that follows becomes much easier.

2. Choose the right model and provider

Once your use case is clear, the next step is picking the right model and provider. This decision has a direct impact on LLM performance, cost, and how reliable your integration will be in real use.

Start by matching the model to the task.

Not every use case needs the most advanced GPT model. Simpler tasks like summarization or classification can run well on lighter models, while more complex workflows need stronger reasoning and better context handling. Picking something too powerful can quickly increase costs, while picking something too limited will hurt output quality.

You also need to think about how this will feel for users.

If you are building AI assistants that interact in real time, response speed matters just as much as accuracy. Users expect quick replies, and even small delays can make the experience feel clunky. In many cases, a faster model with slightly lower capability is the better choice.

Next, consider your LLM usage. How often will the model be called, and under what conditions? Will it handle occasional requests or run on every user action? You also need to think about traffic spikes and whether your provider can handle them without performance issues. These factors will shape both cost and scalability.

Finally, look at the provider as a whole. Some platforms make it easier to manage API access, monitor usage, and scale over time. Others focus more on flexibility or pricing. The goal is not to pick the most advanced option available, but the one that fits your product and how you plan to use it.

3. Decide where the integration will live in your product

This is where things start getting real.

You already know what you want to build. Now you need to figure out where it actually fits. And this is a decision that affects adoption, performance, and whether the feature gets used at all.

Start by looking at your existing product flows.

Where are users getting stuck? Where do they need help, context, or faster answers? That is usually where an LLM integration makes the most sense.

For example, dropping it into a support chat is the obvious move. But sometimes the better play is less visible, like embedding it into a search bar, a dashboard, or even behind the scenes to assist your team instead of your users.

You also need to think about how it gets triggered. Is it always on, reacting to every user input, or does it activate in specific moments? If you overuse it, the product can feel noisy or unpredictable. If you hide it too much, people will not even realize it is there.

Another thing people underestimate is context. Wherever you place the integration, it needs access to the right data at the right moment. A support assistant inside a ticket view should see conversation history. A product assistant inside your app should understand what the user is doing right now.

The goal here is to place it where it naturally improves the experience, without forcing users to change how they already use your product.

4. Map the data sources the model needs to access

At this point, the integration starts to depend less on the model and more on your data.

LLMs are only as useful as the input data you give them. If you send vague or incomplete context, you will get vague answers back. If you send the right information, the model’s outputs become far more accurate and relevant.

Start by identifying what the model actually needs to do its job. For a support assistant, that might include help center articles, past conversations, and customer account details. For an internal tool, it could be documentation, reports, or product data.

Then look at where that data lives.

It is usually spread across multiple systems, your CRM, knowledge base, databases, or even third-party tools. You do not need to connect everything, but you do need to be intentional about what gets included.

Quality matters just as much as access.

If your data is outdated, duplicated, or inconsistent, the model will reflect that. This is where many integrations quietly break down. The model is fine, but the data feeding it is not.

You also need to think about how that data is retrieved. In most cases, you will not send everything at once. Instead, you pull only the most relevant pieces based on the situation, then include them in the request.

The goal here is simple. Make sure the model sees the right context at the right time. That is what turns generic responses into something genuinely useful.

5. Set up API access, authentication, and permissions

Now you are getting into the actual connection between your product and the model.

Large language models are typically accessed through APIs, so the first step is setting up secure access. This usually means generating an API key from your provider and making sure it is stored safely on your backend, never exposed in client-side code.

From there, you define how your system will communicate with the model. Every request needs to include the right input data, instructions, and any additional context you want the model to use. This is what shapes the model’s behavior and enables tailored responses instead of generic ones.

You also need to think about permissions early. Not every part of your system should have the same level of access. For example, an internal tool might be allowed to generate detailed summaries or assist with code generation, while a customer-facing feature should be more controlled and limited.

Data privacy is a big part of this step.

Before sending anything to the model, decide what data is safe to include and what needs to be filtered out. That could mean removing sensitive fields, anonymizing user data, or restricting certain types of requests entirely.

Finally, plan for failure cases. API calls can time out, fail, or return unexpected results. Your system should handle that gracefully, whether that means retrying the request, falling back to a default response, or prompting the user to try again.

This step is less about building features and more about building a reliable foundation. If the connection is not secure and stable, everything built on top of it will be shaky.

6. Design the prompt structure and response rules

This is the part that decides whether your integration feels sharp or sloppy.

A lot of teams assume the model will “figure it out” if they send enough text data and a loosely written instruction. Sometimes that works in a demo. In a real product, it usually does not. If you want reliable answers, you need to be deliberate about how each request is structured.

Start with the basics. What should the model do, what context should it use, and what should the answer look like? Those instructions need to be clear, consistent, and tied to the use case. If the model is helping with support, tell it how to answer, what sources to prioritize, and what it should avoid saying. If it is summarizing previous interactions, define what matters most, like key actions, unresolved issues, or customer sentiment.

You also need response rules.

Should the model answer only from approved sources? Should it say “I don’t know” when the context is weak? Should it keep answers short, or explain them in more detail? These decisions shape the experience more than most people expect.

This is also where error handling starts to matter. If the input is incomplete, contradictory, or missing context, your system should know what happens next. Maybe the model asks a follow-up question. Maybe it falls back to a safer default. Maybe it hands things off to a human.

A well-designed prompt structure will not magically solve everything, but it does give you consistency. And consistency is what turns an LLM feature from a novelty into a real competitive edge.

7. Add retrieval and context handling for smarter responses

Up to this point, you have a working connection and a structured prompt. Now comes the step that actually makes the experience feel useful instead of generic.

If you rely only on the model’s built-in knowledge, responses will sound decent but lack depth. They will not reflect your product, your users, or your data. To fix that, you need to bring in context at the moment the request is made.

This usually means pulling in relevant text data based on the situation. That could be help articles, account details, or previous interactions with the user. Instead of sending everything, you select only what matters and include it in the request.

This is how you move from generic replies to something that feels grounded and accurate. It is also what enables more interactive experiences. The model is reacting to what is happening in real time.

You should also think about flexibility here. Different LLMs handle context in slightly different ways. Some perform better with shorter, focused inputs, while others can manage larger chunks of information. Your setup should allow you to adjust how context is passed in without rewriting everything.

When this is done well, the difference is obvious. Instead of producing surface-level answers, the model can generate human-like text that actually reflects the user’s situation. That is what makes the integration feel like a real feature, not just an add-on.

8. Build the backend logic for requests, responses, and fallbacks

This is where everything starts to come together behind the scenes.

At a basic level, your backend is responsible for deciding when to send prompts, what goes into them, and what happens with the response. But in practice, it does a lot more than that. It becomes the control layer between your product and the model.

Start by defining how requests are triggered. That could be a user action, a system event, or part of a workflow. Once triggered, your backend gathers the right context, builds the prompt, and sends it to the model. The response then needs to be processed before it is returned to the user or used elsewhere in your system.

This is also where you introduce structure. For example, you might route different types of requests to different AI agents, each responsible for a specific task like answering questions, summarizing content, or handling internal queries. This helps keep things organized, especially as your integration grows.

You also need to think about scale. What works for a small feature can break under large scale usage. That means handling retries, managing timeouts, and making sure your system does not fail when the model is slow or unavailable.

Fallbacks are critical here. If the model cannot produce a reliable answer, your system should know what to do next. That could mean returning a default response, asking for clarification, or handing things off to a human.

Finally, keep in mind that large language models rely on general knowledge unless you guide them otherwise. If you need more specialized behavior, you may explore fine-tuning or additional layers of control, but even then, your backend logic is what keeps everything predictable and usable.

9. Create the frontend experience for user inputs and outputs

Now it is time to think about what users actually see and interact with.

You can have a powerful backend, but if the frontend experience is clunky, people will not use it. The goal here is to make interactions feel simple, even when the system behind them is handling complex problems.

Start with how users provide input. This could be a chat interface, a search bar, or a structured form. Keep it intuitive. Users should not need instructions to understand how to interact. In many cases, a simple text field is enough, especially when you want them to ask questions in their own words.

On the output side, clarity matters more than anything. The response should be easy to read and match the context of your product. Sometimes that means plain text. Other times, it means structured responses in a JSON format that your UI can render into tables, lists, or action steps.

You also need to handle feedback loops. Give users a way to react to responses, whether that is thumbs up, corrections, or follow-up questions. This helps you improve the system over time.

From a technical perspective, keep sensitive details out of the frontend. Things like your API key should always stay on the backend, typically stored in an ENV file. The frontend should only communicate with your own services, not directly with the model provider.

If you are integrating with tools like Power Automate or other workflow systems, make sure the experience stays consistent. The user should not feel like they are jumping between disconnected tools.

A clean frontend turns your LLM integration from a technical feature into something people actually rely on.

10. Add guardrails for security, accuracy, and sensitive data handling

This is the step that separates a clever demo from something you can trust in a real product.

LLMs can produce useful answers, but they can also get things wrong, overstate confidence, or respond in ways that do not fit your policies. That is why guardrails matter. You need clear limits around what the model can see, what it can say, and what it is allowed to do.

Start with data controls. Decide what information can be passed into the model and what should never leave your system in raw form. Customer records, payment details, private messages, and internal documents all need careful handling. In some cases, you may need to redact fields before the request is sent. In others, you may block certain data entirely.

Then focus on output control. The model should not be free to answer anything in any way. You can set rules for tone, length, approved sources, and restricted topics. You can also require the system to decline when confidence is low instead of guessing.

Validation matters too. If the model returns a response that triggers an action, like updating a record or sending a message, that output should be checked before anything happens. Let the model handle language, but keep sensitive decisions behind rules and verification.

It is also smart to log responses, flag risky cases, and review failures regularly. Not because the system is broken, but because real users will always find edge cases you did not plan for.

This part is not glamorous, but it is one of the most important steps in the entire integration. Without guardrails, even a good model becomes hard to trust.

11. Test with real scenarios, edge cases, and messy inputs

This is where you find out if your integration actually works.

Testing LLM features is very different from testing traditional software. You are not just checking if something runs without errors. You are evaluating the quality, consistency, and usefulness of LLM outputs across a wide range of situations.

Start with realistic scenarios. Use actual customer support conversations, real user queries, and typical workflows from your product. Synthetic examples are useful early on, but they rarely reflect how people behave in practice.

Then push beyond the obvious cases. What happens when users are vague, frustrated, or unclear? What if they provide incomplete information or mix multiple questions into one? These edge cases are where large models tend to struggle, and where poor experiences show up.

You should also test how the system behaves under different conditions. Try switching prompts, adjusting context, or even comparing responses across different configurations from your LLM provider. Small changes can have a big impact on output quality.

Another important area is failure handling. What happens when the model does not know the answer, or returns something incorrect? Does your system catch it, or does it pass straight through to the user?

Finally, involve real people in testing. Internal teams, especially those in customer support, are great at spotting issues quickly because they know what good answers should look like.

The goal here is not perfection. It is confidence that your system can handle real-world usage without breaking or frustrating users.

12. Measure performance, iterate, and improve over time

Launching the integration is not the finish line. It is the starting point.

LLMs are not static systems.

The quality of the LLM’s response can change based on user behavior, data quality, and even updates from your provider. If you are not actively measuring performance, things can quietly degrade without you noticing.

Start by defining what success looks like in practice. That could be resolution rates in customer support, accuracy of answers, user satisfaction, or how often the system completes specific tasks without human intervention. Pick a few metrics that actually reflect value, not just usage.

Then track how the system performs in real conditions. Look at where it succeeds, but pay even more attention to where it struggles. Are there patterns in failures? Are certain types of questions consistently producing weak answers? That is where your biggest improvements will come from.

User feedback is especially valuable here. If people correct the system, ask follow-up questions, or abandon the interaction, those signals tell you something is off.

From there, you iterate. You adjust prompts, refine how context is passed in, improve data quality, and tweak how your system handles edge cases. Sometimes small changes can lead to much more optimal results.

Over time, this is how your integration becomes reliable. It learns from real usage, adapts to new scenarios, and gets better at helping users perform tasks without friction.

The teams that treat LLM integrations as evolving systems, not one-time features, are the ones that see long-term impact.

Why Quiq is the smarter choice for CX focused LLM integrations

Most LLM integrations look good in a demo. Clean prompts, perfect inputs, ideal conditions. Then real customers show up, and things start to break.

Questions are messy. Context is missing. Conversations jump between topics. And suddenly, your “AI feature” is either giving vague answers or making things up with confidence.

That is exactly where Quiq fits in.

Quiq is not trying to be a general-purpose AI layer for any app. It is built specifically for customer experience, where the stakes are higher, and the margin for error is smaller. Every interaction needs to be accurate, consistent, and grounded in a real business context.

Instead of just passing prompts to a model, Quiq focuses on orchestration. It connects large language models with your data, your workflows, and your support systems in a way that actually holds up in production. That means better handling of context, cleaner handoffs between automation and human agents, and responses that reflect what is actually happening with the customer.

It also gives you more control where it matters. You can shape how conversations are handled, how data is used, and when the system should step back instead of guessing. That is critical in customer support, where a wrong answer is worse than no answer.

If your goal is to build something flashy, you have plenty of options. If your goal is to deliver consistent customer experiences at scale, Quiq is built for that.

And that is the difference that shows up when real users start interacting with your system.Book a demo with Quiq to see how we can improve your customer experience with AI.

The 12 Most Asked Questions About AI, Answered Plainly

Key Takeaways

  • Today’s AI is narrow, not general: deployed AI systems excel at specific tasks like fraud detection or customer queries but cannot perform broad human-like reasoning across domains.
  • Generative AI creates content while agentic AI takes autonomous actions: generative models produce text and images, whereas agentic systems execute tasks, call APIs, and make decisions independently.
  • AI model quality depends entirely on training data quality: biased, sparse, or unrepresentative data produces biased, brittle, or underperforming AI outputs.
  • Current evidence shows AI augments jobs rather than eliminates them: MIT research found generative AI in contact centers accelerated junior agent learning and reduced turnover instead of replacing workers.
  • Successful AI deployment requires defined success criteria, configurable guardrails, and human oversight loops: projects fail most often from unclear KPIs, unconstrained AI behavior, or lack of feedback mechanisms.

People have a lot of questions about AI right now — and most of the answers they find online are either too shallow or too technical to be useful. I’ve spent years working at the intersection of AI and customer experience, and the questions about AI I hear most often fall into a predictable set: What is it, really? What can it do? What should we be worried about? This article answers all twelve of the most common ones, directly and without hype.

1. Questions about AI: Where they come from and why they matter?

The term “artificial intelligence” was first used at the Dartmouth Conference in 1956, organized by John McCarthy, Marvin Minsky, and Claude Shannon. Their ambition was to build machines that could use language, form concepts, and solve problems reserved for human creativity. They estimated a summer’s work would get them most of the way there.

They were off by about seven decades — and counting.

The gap between that optimism and reality isn’t a failure. It’s a testament to how genuinely hard it is to replicate human intellect. What has emerged instead is something more useful than the original vision: a set of specific, powerful capabilities that are changing how businesses operate and how people work. Understanding those capabilities — and their limits — is what separates organizations that get real value from AI from those that chase demos.

2. Artificial intelligence: What actually is it?

Artificial intelligence is the ability of machines to perform tasks that normally require human intelligence — learning, problem-solving, pattern recognition, and decision making. AI systems learn from data to identify patterns and make predictions, rather than following rigid, hand-coded rules.

The most useful framework I’ve found comes from Stuart Russell and Peter Norvig’s textbook Artificial Intelligence: A Modern Approach. They describe four approaches:

  • Think like humans: Replicate human cognitive processes, including the messy, intuitive parts.
  • Act like humans: Behave in ways indistinguishable from a human — the standard behind the Turing test.
  • Think rationally: Reason according to formal logic and probability.
  • Act rationally: Choose actions that maximize outcomes, even without full deliberation.

From a practical standpoint, AI today spans several distinct branches:

  • Agentic AI: Systems that take autonomous, goal-directed actions, rather than simply responding to prompts.
  • Machine learning: Algorithms that improve performance over time by learning from existing data.
  • Natural language processing (NLP): Enables human-computer interaction through text and speech.
  • Computer vision: Powers machines to interpret and analyze visual data — including self driving cars and medical imaging.
  • Robotics: Autonomous systems that perform tasks in the physical world.
  • Expert systems: Encode domain-specific knowledge to support decision making.

Each branch unlocks different AI applications. The right one depends entirely on what problem you’re trying to solve.

3. AI systems: What are narrow vs. general?

Most AI deployed today is narrow AI — also called weak AI — meaning it performs one specific task well. A spam filter is narrow. So is a fraud detection algorithm. These systems are highly capable within their domain and perform poorly outside it.

The theoretical counterpart is general AI, sometimes called strong AI or AGI. A general AI system could perform any intellectual task a human can. We don’t have this yet. What we have is an expanding set of narrow capabilities that, when combined, can handle increasingly complex workflows.

Understanding the difference matters because it shapes expectations. When a contact center deploys an AI agent to handle customer queries, that agent is narrow AI — extremely good at a defined set of tasks, not a replacement for human judgment across the board.

4. AI tools: What can they actually do today?

The most common question I get from CX leaders isn’t philosophical — it’s practical: what can these AI tools actually do for my business?

Here’s what’s working right now, with evidence behind it:

  • Contact center automation: Large language models can handle routine, repetitive tasks like answering FAQs, summarizing conversations, and drafting responses — freeing agents to focus on complex issues.
  • Drug discovery: AI is identifying molecular candidates at a pace no human research team could match.
  • Fraud detection: Machine learning models use data points to flag anomalous transactions in real time, with far fewer false positives than rule-based systems.
  • Language translation: Neural machine translation has made real-time, high-quality translation available at scale.
  • Predictive maintenance: Automated systems analyze equipment sensor data to predict failures before they happen, reducing downtime in manufacturing, essential for things like autonomous vehicles.
  • Virtual assistants: Consumer-facing AI handles scheduling, information retrieval, and task execution across millions of daily interactions.
  • Personalized education: AI-powered learning platforms track each student’s performance in real time, adjusting difficulty and identifying gaps without a teacher having to manually monitor every learner.

Generative AI specifically — the category that includes large language models and generative adversarial networks — has expanded what’s possible. These generative AI models don’t just analyze real data; they produce new content. Text, code, images, audio. That’s a meaningful shift in what AI can contribute to knowledge work.

5. AI models: How do they learn and why does data quality matter?

Every AI model is only as good as the data it was trained on. This is not a caveat — it’s a fundamental constraint of how these systems work.

The way it learns works roughly like this: a model is exposed to massive datasets, adjusts its internal parameters based on feedback, and gradually improves its ability to make accurate predictions or generate useful outputs. The three main approaches are:

  • Supervised learning: The model learns from labeled examples — inputs paired with correct outputs.
  • Unsupervised learning: The model finds patterns in unlabeled data without explicit guidance.
  • Reinforcement learning: The model learns by receiving rewards or penalties based on the outcomes of its actions.

Deep learning models — the kind that power most modern AI — use neural networks with many layers to extract increasingly abstract features from data. Its underlying architecture is what enables capabilities like natural language understanding and image recognition.

The implication for businesses is direct: poor data produces poor AI. Biased data produces biased outputs. Sparse data produces brittle models. AI adoption that skips the data preparation step tends to produce AI that underperforms or fails in production, instead of streamline operations.

More data, structured correctly, generally means better results — but only up to a point. The composition and representativeness of the data matters as much as the volume.

6. AI technologies: What’s the difference between generative and agentic AI?

I want to be precise here, because these two terms get conflated constantly.

Generative AI creates new content — text, images, code, audio — by learning patterns from training data. ChatGPT is generative AI. Midjourney is generative AI. These systems are extraordinarily useful for content creation, summarization, and drafting.

Agentic AI goes further. It takes autonomous, goal-directed actions in the world. It doesn’t just generate a response — it executes tasks, calls APIs, makes decisions, and adapts based on outcomes. An agentic AI system handling a customer complaint doesn’t just draft a reply; it looks up the order, checks the return policy, initiates the refund, and sends the confirmation.

The distinction matters for deployment. Generative AI is a powerful tool. Agentic AI is a capable collaborator. The AI technologies underlying both — deep learning, natural language processing (NLP), reinforcement learning, and more — are often the same. What differs is the architecture and the degree of autonomy granted to the system.

For a deeper dive into how agentic AI works in practice, our overview of agentic AI covers the mechanics in detail.

7. AI ethics: What to know about bias, accountability, and the black box problem?

AI ethics is not a soft topic. It has hard, measurable consequences.

When AI systems are trained on biased or unrepresentative data, they replicate and amplify those biases at scale. In hiring, lending, law enforcement, and healthcare, that means real harm to real people. In contact centers, it can mean systematically worse service for certain customer segments — a problem that’s easy to miss and hard to fix after deployment.

The “black box” problem compounds ethical considerations. Many deep learning models make decisions through processes that are difficult to interpret, even for the engineers who built them. This lack of transparency creates accountability gaps: if a model denies a loan or misclassifies a medical image, who is responsible?

The answer today is: the organization that deployed it. AI is a tool, not a legal entity. That means companies bear full responsibility for what their AI does. Responsible deployment requires:

  • Diverse, representative training data that reflects the populations the system will serve.
  • Regular bias audits that test model outputs across demographic groups.
  • Human review in high-stakes decisions — AI assists, humans decide.
  • Audit trails that document how outputs were produced.
  • Explainability tools like SHAP and LIME that help teams understand model behavior.
  • Adherence to frameworks like NIST’s AI Risk Management Framework or ISO/IEC 42001.

Bias prevention requires ongoing vigilance as models are updated, data drifts, and deployment contexts change.

8. Data security: What are the risks no one talks about enough?

AI systems require access to large volumes of data to function. That creates data security exposure that many organizations underestimate at the start of an AI project.

The primary concerns are:

  • Training data protection: The data used to train models often contains sensitive customer, employee, or business information. If that data is mishandled or exposed, the consequences extend far beyond the AI system itself.
  • Inference-time privacy: When users interact with AI systems, those interactions may contain personal information. How that data is stored, used, and protected matters.
  • Adversarial attacks: Bad actors can craft inputs designed to manipulate AI outputs — a real concern for systems that handle financial transactions or customer authentication.
  • Regulatory compliance: GDPR, CCPA, HIPAA, and other regulations impose specific obligations on how AI systems handle personal data.

At Quiq, we treat data security as a foundational requirement, not an afterthought. Our platform is SOC 2 Type II certified, HIPAA-compliant, and GDPR-ready. All customer data is encrypted in transit and at rest. Your data in Quiq belongs to you — we never use it for any purpose other than serving your business.

9. AI impact: What happens to jobs?

The concern that AI will eliminate human labor is not new. It was raised when mechanized looms appeared, when computers arrived, and when the internet changed how work was organized. Each time, the technology shifted the composition of work, rather than eliminating it.

The evidence so far on large language models is consistent with that pattern. MIT economists Erik Brynjolfsson, Danielle Li, and Lindsey R. Raymond studied generative AI use in a large contact center and found it accelerated the learning process for junior agents — helping them reach senior-level performance faster.

The result was lower stress, reduced turnover, and higher output. Not job displacement.

That doesn’t mean job displacement is impossible. It means the current evidence points toward AI changing what people do, not whether they work. Simple tasks get automated. Agents focus on judgment, empathy, and complex problem solving, enhancing productivity. Manufacturing jobs that involve purely repetitive physical tasks face the most direct pressure. Knowledge work is more likely to be augmented than replaced.

Common sense says that broader adoption of AI will require workers to develop new skills and organizations to redesign workflows. That’s real disruption. But it’s different from the apocalyptic scenario that dominates headlines.

10. AI solutions: What makes deployment succeed or fail?

I’ve seen AI projects succeed and fail, and the pattern is consistent. The ones that fail usually share one of three problems:

  1. Unclear success criteria. Teams deploy AI without agreeing on what “working” looks like. Without defined KPIs, there’s no way to know whether the system is performing or not.
  2. Weak guardrails. AI systems that can say anything, do anything, or access anything tend to go wrong in ways that are hard to predict. Enterprise-grade AI solutions need configurable guardrails that constrain AI behavior to what the business actually wants.
  3. No human oversight loop. AI that operates without any human review — especially early in deployment — accumulates errors without correction. The process requires feedback.

The deployments that work share a different set of characteristics: a specific, high-value use case, clean and well-structured data, rigorously tested prompt engineering, configurable guardrails, and a clear escalation path to humans when the AI reaches its limits.

At Quiq, our AI Studio is built around this model. You bring your content as-is, guide the agent with process guides, set guardrails, run simulations, and get step-by-step visibility into every decision. That’s how you maintain control while deploying AI at enterprise scale.

11. AI impact on society: What are the risks worth taking seriously?

I want to address impact at a broader level, because some of the risks are real and deserve honest treatment.

Near-term social risks are already visible. Generative AI makes it dramatically cheaper to produce disinformation at scale, including deepfakes that are increasingly difficult to detect. Political and commercial actors are already using these capabilities. This is not speculative — it’s happening.

Longer-term risks involve the trajectory of AI capabilities themselves. AI research has produced systems that improve rapidly and in ways that are difficult to predict. The leap from GPT-2 to GPT-3 was large. The leap from GPT-3 to GPT-4 was larger. The architecture of these systems — neural networks trained on massive datasets — produces capabilities that emerge from the training process, rather than being explicitly programmed.

The concern that a superintelligent AI system could pursue goals misaligned with human values is not science fiction. It’s a recognized research problem in computer science. The “specification gaming” failure mode — where a system maximizes a proxy objective in ways its designers didn’t intend — is well documented in reinforcement learning.

A famous example: DeepMind’s boat-racing agent discovered it could maximize its reward by spinning in circles to collect bonus points, rather than actually racing.

biggest questions about AI

The same dynamic at the scale of a truly capable general AI system is what concerns researchers working on AI alignment. Whether that risk is near-term or distant is genuinely uncertain. What’s not uncertain is that it’s worth taking seriously now, while the field is still developing the tools to address it.

Does this mean current AI systems pose existential risks? No. Today’s systems — including the most capable large language models — are narrow AI. They don’t have goals in the sense that creates alignment risk. But the pace of progress in AI research makes it worth building governance frameworks now rather than later.

12. What does the future of AI look like?

Honestly, I don’t think anyone can answer this with confidence. The trajectory of AI capabilities has consistently surprised even the researchers closest to the work. What I can say with confidence:

  • AI will continue to get better at specific tasks, particularly those involving language, pattern recognition, and decision making under uncertainty.
  • Adoption will accelerate as deployment costs fall and the tooling matures.
  • The organizations that build governance and oversight into their AI programs now will be better positioned than those that treat it as an afterthought.
  • Key questions remain genuinely open — around alignment with human values, accountability, and the long-term direction of general AI.

The near-term picture for contact centers is clearer. AI is already helping human agents resolve queries faster, handle more volume, and improve customer satisfaction. Quiq customers see 67% reductions in cost per interaction, 89% CSAT scores matching human agents, and resolution rates that continue to improve as more integrations come online.

Those are the results that matter right now. The deeper questions about AI’s long-term trajectory deserve attention, too — but they shouldn’t distract from the practical work of deploying AI responsibly and effectively today.

The bottom line

The questions about AI that matter most are practical. What can it do, what are the real risks, and how do you deploy it responsibly? The answers are clearer than the noise around AI suggests. Current AI systems are powerful, specific, and genuinely useful. They’re also limited, data-dependent, and require real governance to deploy well.

If you’re evaluating AI for your contact center or customer experience operation, the gap between a well-deployed system and a poorly deployed one is significant. The right platform gives you transparency into every AI decision, guardrails you control, and the ability to maintain your brand voice at scale.

Book a demo to see how Quiq approaches AI deployment for enterprise CX — and what it looks like when it’s working.

Frequently Asked Questions (FAQs)

What is artificial intelligence in simple terms?

Artificial intelligence is the ability of machines to perform tasks that normally require human intelligence — including learning, reasoning, and problem solving. AI systems learn from data to identify patterns, then use those patterns to make predictions or take actions, rather than following hand-coded rules.

What are the main types of AI?

The main types of AI are narrow (designed for specific tasks), general (theoretical, not yet achieved), machine learning, natural language processing, computer vision, and agentic. Virtually all AI deployed in production today is narrow — highly capable within a defined domain and unable to generalize beyond it.

How does AI actually learn?

AI models learn by processing large volumes of data and adjusting their internal parameters to improve prediction accuracy over time. The three primary learning approaches are supervised learning (labeled examples), unsupervised learning (pattern discovery without labels), and reinforcement learning (behavior shaped by rewards and penalties). Deep learning models apply layered neural networks to extract increasingly complex patterns from that data.

Will AI take my job?

Current evidence indicates AI changes the nature of work, rather than eliminating jobs. An MIT study of generative AI in a large contact center found it accelerated junior agent performance and reduced turnover — it did not replace workers. Routine tasks are the most likely to be automated; roles requiring judgment, empathy, and complex problem solving are more likely to be augmented.

Is AI dangerous?

AI poses real, documented near-term risks — including large-scale disinformation, deepfakes, and algorithmic bias — that require active governance and human oversight to manage. Long-term risks from advanced AI systems, including misalignment with human values, are taken seriously by researchers, but remain speculative and do not apply to today’s narrow systems. Responsible deployment, bias auditing, and ongoing human oversight are the appropriate response to both categories of risk.

How do I address AI bias in my organization?

Addressing bias requires using diverse, representative training data, conducting regular bias audits across demographic groups, applying explainability tools such as SHAP and LIME, and maintaining human review in high-stakes decision loops. Bias prevention is an ongoing operational discipline — not a one-time setup task — because model updates, data drift, and changing deployment contexts can reintroduce bias over time.

What should enterprises prioritize in AI adoption?

Enterprises should begin AI adoption with a specific, high-value use case and define measurable success criteria before deployment. Clean, well-structured data, configurable guardrails that constrain AI behavior, and a clear escalation path to human agents are the operational foundations that separate successful deployments from failed ones.

How to Improve Customer Retention: 12 Proven Tactics

Key Takeaways

  • Acquiring new customers costs five to seven times more than retaining existing ones, yet most companies still allocate the majority of resources to acquisition rather than retention.
  • Customer retention rate is calculated as ((Customers at End of Period – New Customers Acquired) / Customers at Start of Period) × 100, providing a clear metric to track loyalty performance.
  • The 12 proven retention tactics center on three core drivers: delivering fast and effective customer service, personalizing interactions at every touchpoint, and using predictive analytics to identify at-risk customers before they churn.
  • AI enables customer retention strategies to scale by handling routine inquiries instantly, maintaining consistent experiences across all channels, and identifying churn risk patterns for proactive intervention.

Acquiring a new customer costs five to seven times more than keeping an existing one. Yet most companies still pour the majority of their resources into customer acquisition while retention gets treated as an afterthought.

The math doesn’t add up—and the businesses that figure this out tend to outperform those that don’t. Below, we’ll cover how to calculate your retention rate, the key metrics that matter, and 12 tactics that actually move the needle.

What is customer retention?

Customer retention is a business’s ability to keep existing customers over a specific period. Put simply, it measures how many people stick around versus how many leave.

The connection to customer experience is direct: when customers feel valued and supported, they stay. When interactions feel frustrating or impersonal, they look elsewhere.

Every touchpoint either strengthens or weakens that relationship.

Why is customer retention important?

One way to answer is with another question: How much repeat business do you want to drive?

Keeping existing customers costs far less than finding new ones. Retained customers also tend to spend more over time and refer others without being asked, which creates a compounding effect on revenue.

Here’s why retention deserves attention:

  • Lower acquisition costs: Selling to someone who already knows your product takes less effort and marketing spend than convincing a stranger.
  • Higher lifetime value: Loyal customers often expand into additional products or services as the relationship deepens, increasing customer lifetime value over time.
  • Organic growth: Satisfied customers tell colleagues and friends, bringing in new business without referral incentives.
  • Repeat business: Customers who stay become repeat customers, generating purchase frequency that compounds over time.

A strong customer retention strategy also creates predictable revenue, which makes planning and business growth far more manageable.

How to calculate your customer retention rate

The formula is straightforward:

Customer Retention Rate = ((Customers at End of Period – New Customers Acquired) / Customers at Start of Period) × 100

For example, if you started the quarter with 1,000 customers, acquired 150 new ones, and ended with 1,050, your calculation would be: ((1,050 – 150) / 1,000) × 100 = 90%. That tells you 900 of your original 1,000 customers stayed, while 100 churned.

Tracking your repeat customer rate alongside this figure gives a fuller picture of how well your customer retention efforts are working.

What is a good rate for retaining customers?

A good customer retention rate varies by industry, but falls between 35-84%.

What matters more is that you increase customer retention over time and understand why customers are lost in the first place.

Benchmarking your customer rate against industry peers helps set realistic targets, but the goal should always be to reduce customer churn quarter over quarter.

Key customer retention metrics to track

Retention rate alone doesn’t tell the whole story. A few additional metrics round out the picture.

Customer churn rate

Churn rate is the flip side of retention—the percentage of customers who leave during a given period. If retention is 90%, churn is 10%.

Tracking when churn happens matters as much as how much, and measuring customer effort can reveal underlying causes. A spike after onboarding points to a different problem than churn at renewal time.

Customer lifetime value

Customer lifetime value (CLV) measures total revenue a customer generates over their entire relationship with you. Someone who stays five years and expands their account is worth far more than someone who leaves after six months.

Customer lifetime value CLV helps prioritize where to focus retention efforts. If your highest-value customers share certain characteristics, you can concentrate resources on keeping similar customers engaged.

Customer satisfaction

Customer satisfaction (CSAT) measures how well your product or service meets customer expectations at specific moments in the relationship. Customers rate their experience—typically on a scale of 1 to 5—after key interactions like a support conversation, onboarding session, or feature launch.

Unlike NPS, which captures overall loyalty, CSAT zeroes in on individual touchpoints. A low score after a support interaction can flag a process problem before it compounds into broader dissatisfaction and eventual churn.

Net promoter score

Net Promoter Score (NPS) measures customer loyalty based on one question: how likely are you to recommend us? Scores range from -100 to 100.

NPS often acts as a leading indicator. Drops in NPS frequently show up before customers actually leave, giving you early warning to intervene before poor customer service becomes a pattern.

Purchase frequency rate

Purchase frequency rate tracks how often customers return to buy within a given period. A rising purchase frequency rate signals strong customer engagement and brand loyalty, while a declining rate can be an early warning sign of disengagement.

12 effective customer retention strategies

The tactics below address the core drivers of loyalty: service quality, personalization, and proactive engagement. Together, they form a set of effective customer retention strategies that work across industries.

1. Deliver fast and effective service

Speed and resolution quality form the foundation of retention. Customers who get issues resolved quickly and completely are far more likely to stay than those who wait days for partial answers.

Meeting expectations here doesn’t mean rushing through interactions. It means having the right information, context, and authority to actually solve problems. AI-powered support can help by handling routine inquiries instantly while routing complex issues to the right human agent with full context intact.

2. Offer omnichannel support across every channel

Customers expect to reach you on their preferred channel—voice, chat, SMS, or social—without repeating themselves when they switch. The phrase “without repeating themselves” is key.

True omnichannel support maintains context across channels.

A customer who starts on chat and moves to phone shouldn’t have to re-explain their issue. Platforms that maintain continuous conversation context make this possible, and customers notice the difference. A seamless customer experience across every touchpoint is one of the strongest signals that you value their time.

One often overlooked factor in customer retention is experience consistency across touchpoints. When interfaces, flows, or messaging feel disjointed, even strong products can become frustrating to use. Superside’s research into customer experience design shows that consistent UI patterns, predictable interactions, and clear visual hierarchy reduce friction and build trust over time, especially as products scale and teams grow.

3. Personalize customer interactions at every touchpoint

Generic responses feel impersonal. Tailored ones feel like you’re paying attention.

Personalization includes remembering customer history, making relevant recommendations, and customizing communications based on past behavior. Even small touches—using a customer’s name, referencing previous purchases—signal that you see them as an individual rather than a ticket number. Personalized experiences and personalized support are among the most effective ways to keep customers coming back.

When you personalize customer interactions consistently, customers feel seen, which builds the kind of long term loyalty that drives repeat purchases.

4. Use predictive analytics to identify at-risk customers

Data patterns can signal churn before it happens. Declining engagement, support ticket spikes, and usage drops all suggest a customer might be considering alternatives.

Acting early on warning signs is what makes the difference.

When you identify customers who may churn proactively, a check-in when engagement drops can address concerns before they become deal-breakers. Using customer data this way turns a reactive process into a proactive one.

5. Self-service resources that actually resolve issues

Effective self-service resources empower customers to solve problems on their own timeline. Knowledge bases, AI agents, and well-designed FAQs all contribute.

The emphasis here is on “actually resolves.”

Self-service that deflects customers without solving their problems creates frustration, not satisfaction. The goal is resolution, not ticket avoidance.

6. Reduce friction across the customer journey

Long wait times, complicated processes, and having to repeat information all create friction. Every unnecessary step is an opportunity for frustration.

Audit your customer journey for friction points:

  • How many clicks does it take to get help?
  • How often do customers re-explain their situation?
  • Where do customers interact with your brand and encounter unnecessary barriers?

Reducing barriers makes staying with you easier than leaving.

7. Create a strong onboarding experience

Customers who understand how to get value from your product stay longer. Those who struggle during onboarding often never reach the point where your product becomes indispensable.

Effective onboarding includes tutorials, proactive guidance, and early wins. The goal is helping customers succeed quickly so they experience value before frustration sets in.

When a customer experiences early success, they’re far more likely to remain loyal.

8. Gather and act on customer feedback

Soliciting customer feedback is only half the equation. The other half is implementing changes and telling customers what you changed based on their input.

When customers see their feedback reflected in product updates or service improvements, they feel invested in your success. Closing the loop matters—and it’s one of the clearest ways to demonstrate that customer satisfaction drives your decisions.

9. Maintain proactive customer communication

Reaching out before problems arise—with updates, check-ins, or relevant information—demonstrates investment in the relationship.

There’s a line between valuable communication and spam, though. The test is whether your outreach helps the customer or just promotes your products. Keeping customers engaged through genuinely useful communication is what separates strong retention programs from noise.

10. Build customer loyalty programs that reward repeat customers

Tiered loyalty programs with exclusive perks give customers tangible reasons to stay. Loyalty incentives such as early access to products, free shipping, or personalized discounts all create switching costs.

Exclusive access to new features or events can also reward repeat customers in ways that feel meaningful rather than transactional.

Rewards work best when they feel genuinely valuable. A meaningful discount beats a points system that requires a spreadsheet to understand. Your most loyal customers should feel that status is worth maintaining.

11. Stay transparent and build customer trust

Honesty about issues, clear pricing, and visibility into decisions build lasting relationships. Customers stay with brands they trust, even when competitors offer lower prices.

And transparency extends to how you handle mistakes. Acknowledging problems and explaining how you’re fixing them often strengthens customer relationships more than pretending nothing went wrong.

12. Be a partner, not a vendor

The shift from transactional to relational changes everything. Partners understand customer goals, offer guidance, and invest in customer success beyond the immediate sale.

Prioritizing customer retention means treating every interaction as an opportunity to deepen the relationship.

Proactively sharing relevant industry insights, connecting customers with resources they didn’t ask for, and treating their success as your success all signal that you’re invested for the long haul.

Customer retention examples: What good looks like in practice

Seeing customer retention programs in action makes them easier to apply. Here are a few customer retention examples that illustrate the principles above:

  • Proactive outreach: A SaaS company notices a drop in product usage and sends a personalized check-in email before the customer considers canceling. The customer achieves a resolution before churn ever becomes a possibility.
  • Closed-loop feedback: A retailer surveys customers after purchase, identifies a recurring complaint about shipping, fixes it, and emails affected customers to let them know. Customer satisfaction improves and repeat purchases increase.
  • Loyalty tiers: A subscription service creates tiered loyalty programs that reward customers with exclusive access to new features based on tenure. The most loyal customers feel recognized, and churn among that segment drops significantly.
  • Community building: A brand builds an online community around its product, creating a forum where users share tips, and connect. Building a community around your brand turns customers into advocates.

How to build a strong customer community

A strong customer community gives customers a reason to stay that goes beyond the product itself. Online forums, user groups, and brand-hosted events all contribute to a sense of belonging.

When customers engage with each other and with your team in a shared space, they develop connections that make switching feel like a loss—not just of a product, but of a community.

Referral programs can also grow naturally from a strong community. Satisfied customers who feel connected to your brand are far more likely to refer others, turning your loyal customer base into a growth engine.

How AI improves customer retention

AI enables many of the tactics above at scale. What once required large teams can now happen automatically, consistently, and around the clock.

  • Faster resolution: AI agents handle routine inquiries instantly, freeing human agents for complex issues that require judgment and empathy.
  • Consistent experience: AI delivers the same quality regardless of volume or time of day, helping meet customer expectations at every interaction.
  • Proactive engagement: AI identifies patterns that signal churn risk before customers leave, enabling early intervention and keeping customers engaged.
  • Personalization at scale: AI uses customer data to tailor every interaction without requiring manual effort, which increases CLV and drives repeat business.

The key is AI transparency and governance. Brands that can see how their AI makes decisions maintain control over the customer experience. Those operating with black-box AI risk inconsistent or off-brand interactions that erode customer trust.

Build a customer retention plan that scales

Retaining customers improves when service, personalization, and proactive engagement work together across channels.

No single tactic works in isolation—the combination creates an experience customers don’t want to leave, resulting in fewer customers lost.

A complete customer retention plan should address every stage of the customer journey, from onboarding through renewal, and should be revisited regularly as customer expectations evolve. Proven customer retention strategies share one trait: they treat retention not as a department, but as a company-wide commitment.

For enterprise CX leaders ready to improve customer retention with AI that stays transparent and on-brand, book a demo with Quiq.

FAQs about improving customer retention

What is the difference between client retention and customer retention?

Client retention and customer retention refer to the same concept. “Client” is typically used in B2B or professional services contexts, while “customer” is more common in B2C and retail.

Which customer retention strategy delivers the fastest results?

While results vary by industry, prioritizing quick response times and omnichannel support often yields immediate impact. Customers notice when you’re easy to reach and proactive in resolving issues – on the channels they prefer using to contact you. Acknowledging their pain points promptly can quickly build trust and prevent customer churn.

How long does it take to see improvements in customer retention rates?

Most businesses see measurable retention improvements within three to six months of implementing new approaches. Building lasting loyalty, though, is an ongoing effort rather than a one-time project.

What are the 4 pillars of customer retention?

The four pillars typically cited are service quality, personalized experiences, proactive communication, and loyalty programs. Each addresses a different driver of why customers stay or leave.

Understanding LLMs vs Generative AI for Business Leaders

Key Takeaways

  • Large language models (LLMs) are a specific subset of generative AI that focuses exclusively on text-focused tasks, while generative AI encompasses all AI systems that create new content including images, audio, video, and code.
  • LLMs like GPT-4 and Claude excel at text-based business applications such as customer service automation, content creation, document summarization, and code generation, but cannot produce visual or multimedia content.
  • Generative AI works by using different architectures for different content types—transformers power LLMs for text, diffusion models create images in tools like DALL-E, and GANs generate realistic visual content.
  • As a broader concept, agentic AI represents the next evolution beyond basic generative AI by combining LLM capabilities with autonomous workflow execution, enabling systems to complete multi-step tasks and solve problems rather than just respond to prompts.

The terms “generative AI” and “LLM” get tossed around interchangeably in boardrooms and vendor pitches, but they’re not the same thing. Generative AI focuses on creating new content—text, images, audio, video—while large language models (LLMs) are a specific subset focused exclusively on understanding and generating text.

Getting this distinction right matters when you’re evaluating AI solutions, talking to vendors, or explaining technology choices to stakeholders. Key differences between these technologies become clear once you understand how they relate.

This guide breaks down how these technologies relate, where each excels, and what enterprise leaders should look for when bringing AI into customer experience.

Generative AI vs LLM: What’s the actual difference?

Generative AI is the broad category of artificial intelligence that creates new content—text, images, audio, video, and code—based on patterns learned from training data. Large language models, or LLMs, are a specific type of generative AI designed to understand and generate human-like text.

Put simply: all LLMs are generative AI, but not all generative AI systems are LLMs.

The easiest way to picture this relationship is as an umbrella. Generative AI is the umbrella, and LLMs sit underneath it alongside image creators like DALL-E, music composers, and video synthesis tools.

When you chat with ChatGPT, you’re using an LLM to engage in language generation. When you create marketing visuals with Midjourney, you’re using generative AI that isn’t an LLM.

Generative AILLMs
ScopeBroad (text, images, video, audio, code)Text-focused only
Output typesMultiple content formatsWritten language
ExamplesDALL-E, Midjourney, GPT, WhisperGPT-4, Claude, Llama, Gemini
RelationshipThe umbrella categoryA subset of generative AI

What are LLMs in AI?

Large language models are AI systems trained on vast amounts of text data using a neural network architecture called transformers. LLMs focus on text-based tasks like writing, summarization, coding, translation, and conversation. The “large” in LLM refers to the billions of parameters—adjustable settings that help the model recognize language patterns in textual data.

How large language models process and generate text

LLMs work by predicting the next word, or “token,” based on patterns learned during training. When you type a prompt, the model analyzes your input and generates a response one token at a time. Each prediction builds on everything that came before it.

A token isn’t always a complete word. It might be a word fragment, punctuation mark, or space. GPT-4, for instance, breaks text into roughly 100,000 different tokens. Tokenization allows the model to handle unfamiliar words by assembling them from known pieces.

Common LLM applications for business

In enterprise settings, LLMs power a range of practical applications:

  • Content creation: Blog posts, emails, product descriptions, and marketing copy.
  • Document summarization: Condensing lengthy reports, research papers, or meeting transcripts.
  • Code generation tools: Writing, explaining, and debugging code across programming languages.
  • Language translation: Converting text between languages while preserving context and tone, allowing teams to translate languages at scale.
  • Conversational AI: Powering chatbots and virtual assistants for customer interactions.

What is generative AI?

Generative AI refers to any artificial intelligence system capable of consistent content creation rather than simply analyzing or classifying existing data. Generative AI encompasses a wide range of tools and architectures.

While LLMs handle text, other gen AI platforms produce images, audio, video, and more, often using entirely different underlying architectures.

Types of content generative AI creates

The range of outputs from generative AI continues to expand:

  • Text: Via LLMs like GPT-4 and Claude.
  • Images: Tools like DALL-E, Midjourney, and Stable Diffusion.
  • Audio: Speech synthesis, voice cloning, and music generation.
  • Video: AI-generated video content from tools like Sora.
  • Code: Both text-based code generation and visual development tools.

How generative AI extends beyond text

Image generators like Midjourney use diffusion models—a completely different architecture from the transformers powering LLMs. Audio tools like Whisper handle speech recognition and speech-to-text transcription, while Sora generates video from text prompts, making video generation increasingly accessible.

Some newer systems are multimodal, meaning they can process and generate multiple content types. GPT-4, for example, can analyze images alongside text.

Multimodal capabilities are blurring the lines between categories, though the underlying distinction remains useful for understanding what each tool does well.

Artificial intelligence, generative AI, and LLMs: How they relate to each other

The relationship between AI, generative AI, and LLMs is hierarchical. Each category nests inside a broader one:

  • Artificial Intelligence (AI): The broadest field, encompassing any system designed to perform tasks requiring human-like intelligence.
  • Generative AI: AI that creates new content based on learned patterns.
  • LLMs: Generative AI specialized for understanding and producing text.

Machine learning sits between AI and generative AI in this hierarchy. LLMs specifically use deep learning techniques—a subset of machine learning that employs neural networks with many layers. The transformer architecture, introduced in 2017, made modern LLMs possible by allowing models to process entire sequences of text simultaneously rather than word by word.

Generative adversarial networks and other generative AI architectures

Not all generative AI uses transformer models.

Generative adversarial networks (GANs) were among the first architectures capable of producing realistic images by pitting two neural networks against each other—a generator and a discriminator. GANs can create realistic images and other media by learning the underlying patterns in input data.

Diffusion models have since become dominant for image generation, but GANs remain an important part of the broader generative AI landscape and the history of AI development in computer science.

Foundation models and their role in the AI landscape

Foundation models are large-scale AI models trained on extensive text data and other data types, then adapted for a wide range of downstream tasks.

Both LLMs and many generative AI models are built on foundation model principles—they are trained once on vast amounts of data and fine-tuned for specific applications.

Understanding these models helps clarify why generative AI and LLMs have become so capable so quickly. Model evaluation typically examines performance across language tasks, reasoning, and generalization to new data.

AI models: LLM vs generative AI advantages and limitations

Each approach has distinct strengths and constraints. Understanding the tradeoffs helps when selecting AI for specific business applications.

LLM strengths for enterprise use

LLMs bring several capabilities that matter for business applications:

  • Nuanced language understanding: LLMs grasp context, tone, and intent in ways earlier natural language processing tools couldn’t match.
  • Conversational continuity: They maintain context across multi-turn interactions, remembering what was discussed earlier in a conversation.
  • Specialized text tasks: Summarization, translation, and writing assistance are particular strengths.
  • Code assistance: Many LLMs excel at generating, explaining, and debugging code.

LLM limitations for business applications

At the same time, LLMs have real constraints:

  • Text-only output: Standard LLMs can’t generate images, audio, or video.
  • Hallucination risk: They sometimes produce plausible-sounding but incorrect information with complete confidence.
  • Governance requirements: Enterprise deployment requires guardrails and oversight to prevent problematic outputs.
  • Context window constraints: Even large context windows have limits when processing very long documents.

Generative AI strengths for enterprise use

Broader gen AI platforms offer different advantages:

  • Multimodal content: Create visuals, audio, and video alongside text.
  • Creative applications: Product design mockups, marketing visuals, and multimedia campaigns.
  • Wider use cases: Address communication formats that extend beyond written text.

Generative AI limitations for business applications

However, generative AI also comes with challenges:

  • Tool fragmentation: Different content types often require different platforms.
  • Consistency challenges: Maintaining brand voice across modalities can be difficult.
  • Quality variation: Output quality differs significantly across tools and use cases, making data quality a key concern.

AI vs manual processes: When to use LLMs vs generative AI

The choice between LLMs and broader gen AI depends largely on what you’re trying to accomplish. Here’s how the decision typically breaks down.

Customer service and support automation

LLMs excel at text-based customer conversations—chat, email, and messaging support. They handle complex, multi-turn dialogues where context matters, and they can adapt responses based on conversation history.

Basic LLMs alone don’t maintain context when customers switch channels or move between AI and human agents. Agentic AI platforms add value here by connecting LLM capabilities with workflow execution and cross-channel continuity.

Content creation and marketing

For written content like blog posts, email campaigns, product descriptions, and social copy, LLMs are the natural fit. For marketing visuals, product mockups, video content, or audio ads, gen AI platforms designed for specific outputs work better.

Many marketing teams use generative AI and LLMs together: an LLM for copy and a separate image generator for visuals. The key is matching the tool to the output type you’re creating.

Data analysis and business insights

LLMs help with document summarization, report generation, and extracting insights from unstructured text. They can analyze customer feedback, synthesize research findings, or draft executive summaries.

Other gen AI platforms assist with data visualization, though traditional business intelligence platforms often handle visualization better.

AI systems and AI tools: Examples of large language models

The LLM landscape evolves quickly, but several major players dominate enterprise conversations today. Both generative AI systems and LLMs and generative AI tools more broadly are advancing rapidly, so understanding the leading options matters for any AI vs status-quo evaluation.

GPT models

OpenAI’s GPT family powers ChatGPT and remains the most widely recognized language model. GPT-4 introduced multimodal capabilities, allowing it to analyze images alongside text.

Claude

Anthropic’s Claude models emphasize helpfulness and safety. Claude is known for longer context windows and strong performance on analysis tasks.

Gemini

Google DeepMind’s Gemini models are natively multimodal, trained from the ground up on text, images, and other data types.

Llama

Meta’s open-source Llama family allows organizations to run capable models on their own infrastructure, addressing data privacy and customization requirements.

Generative AI options beyond LLMs

For non-text content generation, different tools apply:

  • DALL-E and Midjourney for images
  • Whisper for audio transcription
  • Sora for video generation

Each uses architectures distinct from the transformer models powering LLMs. Advanced models in each category continue to improve the ability to produce images, generate human language, and create realistic images from simple prompts.

What business leaders should consider when evaluating AI

Beyond the technical distinctions, several strategic factors matter when selecting AI solutions for enterprise use.

Transparency and explainability

Enterprises benefit from understanding how AI reaches conclusions. “Black box” intelligent systems create risk—when something goes wrong, diagnosing the cause becomes difficult. Decision visibility matters for compliance, brand protection, and troubleshooting.

Governance and guardrails

Control over AI outputs, audit trails for compliance, and configurable boundaries all factor into enterprise readiness. AI that produces off-brand or inappropriate responses can damage customer relationships and reputation.

Integration and scalability

How does the AI fit with existing CRM, support systems, and workflows? Can you scale from pilot to production without rebuilding? Model-agnostic approaches offer flexibility as the underlying technology evolves.

Continuous context across channels

For customer experience use cases, maintaining conversation context across voice, chat, SMS, and social matters enormously. Customers shouldn’t have to repeat themselves when switching channels or moving between AI and human agents.

Where agentic AI fits in the gen AI and LLM landscape

Agentic AI represents the next evolution: AI that goes beyond generating content to taking goal-oriented actions. Rather than simply responding to prompts, agentic systems can execute workflows, make decisions, and complete multi-step tasks autonomously.

Agentic platforms typically use LLMs as their foundation but add layers of autonomy, reasoning, and action-taking capability. The distinction matters: a basic LLM responds to questions, while an agentic AI resolves problems.

For customer experience, agentic AI means systems that don’t just answer questions but actually solve problems—processing returns, updating accounts, troubleshooting issues—while maintaining context and operating within defined guardrails. Reinforcement learning is increasingly used to train these systems to make better decisions over time, and artificial general intelligence remains a longer-term horizon that agentic AI is beginning to approach in narrow domains.

Choosing the right AI for your customer experience

The difference between generative AI and LLMs matters for selecting the right tools. For customer experience specifically, what matters most is transparency, continuous context, and control.

Enterprise leaders benefit from AI that operates as an extension of their brand rather than a black box. Visibility into how decisions are made, context that persists across channels and handoffs, and guardrails that keep interactions on track all contribute to successful deployment.

If you’re exploring how agentic AI can improve your customer experience while maintaining the control and visibility your enterprise requires, book a demo to see how it works in practice.

FAQs about LLMs and generative AI

Is ChatGPT an LLM or generative AI?

ChatGPT is both. Powered by GPT—a large language model—and LLMs are a type of generative AI, ChatGPT falls into both categories by definition.

What is the difference between LLM and GPT?

GPT (Generative Pre-trained Transformer) is a specific family of large language models (LLMs) created by OpenAI. LLM is the broader category that includes GPT along with models like Claude, Gemini, and Llama. Think of GPT as a brand name and LLM as the product category.

Can LLMs generate images or only text?

Standard LLMs generate text only. Creating images requires different generative AI models—like DALL-E or Midjourney—that use architectures designed specifically for visual content. Some multimodal models can analyze images as input, but text generation remains their primary function.

Are all AI chatbots powered by LLMs?

Not all chatbots use LLMs. Some rely on rule-based systems or simpler models with predefined conversation flows. However, most modern conversational AI platforms use LLMs to handle complex, natural language interactions that older approaches couldn’t manage effectively.

What is the difference between LLM and machine learning?

Machine learning is the broad field of AI that learns from data. LLMs are a specific application of machine learning—they use deep learning and transformer architecture to understand and generate human language. All LLMs use machine learning, but most machine learning applications aren’t LLMs.

How is a generative AI model trained?

Generative AI models are trained by exposing them to massive datasets and having them learn to predict patterns — such as what word comes next in a sentence — with their internal parameters adjusted iteratively until they improve. They are then refined through human feedback and safety testing to make their outputs more helpful, accurate, and aligned with intended behavior.

Interpretability vs Explainability: Key Differences

Key takeaways

  • Interpretability and explainability aren’t the same: Interpretability helps you understand how a model works, while explainability helps you understand why it made a specific decision.
  • Both concepts help make AI less of a black box: They give teams clearer visibility into the model’s behavior and outputs.
  • These approaches are increasingly important as AI is adopted in real-world settings: Contact centers, in particular, benefit from understanding how AI models support agents and customers.
  • Interpretability goes deeper than explainability: Knowing the inner mechanics of a model provides a stronger foundation for trust, safety, and better decision-making.

In recent months, we’ve produced a tremendous amount of content about generative AI – from high-level primers on what large language models are and how they work, to discussions of how they’re transforming contact centers, to deep dives on the cutting edge of generative technologies.

Much of this progress comes from pre-trained models, which are trained on massive datasets and then adapted to specific tasks, making them powerful but harder to fully understand.

This amounts to thousands of words, much of it describing how models like ChatGPT were trained, e.g., by iteratively predicting the final sentence of a paragraph given the previous sentences.

But for all that, there’s still a tremendous amount of uncertainty about the inner workings of advanced machine-learning systems. Even the people who build them generally don’t understand how specific functions emerge or what a particular circuit does in real-world applications.

Much of this uncertainty comes from the complexity of a deep learning system, where millions or even billions of parameters interact in ways that are difficult to trace.

It would be more accurate to describe these systems as having been grown, like an inconceivably complex garden. And just as you might have questions if your tomatoes started spitting out math proofs, it’s natural to wonder why generative models are behaving in the way that they are.

These questions are only going to become more important as these technologies are further integrated into contact centers, schools, law firms, medical clinics, and the economy in general.

If we use machine learning algorithms to decide who gets a loan, who is likely to have committed a crime, or to have open-ended conversations with our customers, it really matters that we know how all this works in real, human terms.

The two big approaches to this task are explainability and interpretability.

Before going further: the black box model

One of the biggest challenges in modern AI is the rise of the black box model. These are systems where inputs and outputs are visible, but the internal decision-making process is difficult or impossible to fully understand.

Most advanced AI today, especially large language models and other deep learning systems, fall into this category. Even model developers often cannot clearly explain how specific outputs are generated, only that the model has learned patterns from vast amounts of data.

This lack of transparency is what makes concepts like interpretability and explainability so important. When working with complex black box models, teams need tools and techniques that help uncover either how the model works internally or why it made a particular decision.

For example, instead of directly inspecting the internal structure of a model, explainability techniques like SHAP or LIME approximate its behavior to provide insights into individual predictions. Interpretability approaches, on the other hand, attempt to open up the model itself and understand its internal logic.

As AI systems are increasingly used in high-stakes environments like healthcare, finance, and customer support, relying on black box models without understanding them is no longer acceptable. Teams need visibility into these systems to ensure accuracy, fairness, and accountability.

Interpretability and explainability defined

Interpretability is the ability to understand how an AI model processes information and arrives at a specific output. It focuses on revealing which input data, features, or patterns most influenced the interpretable model’s decision-making process. High interpretability helps users trust and validate the interpretable model’s behavior because it makes the decision-making process more transparent.

Some models are easier to understand than others. Inherently interpretable models, such as linear regression or decision trees, are designed in a way that makes their decision-making process transparent from the start.

Explainability is the ability of an AI system to clearly communicate why it produced a certain result in a way humans can understand. It provides context, reasoning, or simplified representations of the model’s internal logic. Effective explainability bridges the gap between complex algorithms and user comprehension, making AI outputs more actionable and trustworthy.

Explainability is the ability of an AI system to clearly communicate why it produced a certain result in a way humans can understand.

This is where explainable AI (XAI) comes in, a set of methods and tools that help make complex models more transparent and their decisions easier to interpret. This concept is central to explainable artificial intelligence, which focuses on making complex models more transparent and their decisions easier to understand.

Comparing explainability and interpretability

Broadly, explainability means analyzing the behavior of a model to understand why a given course of action was taken. If you want to know why data point “a” was sorted into one category while data point “b” was sorted into another, you’d probably turn to one of the explainability techniques described below.

InterpretabilityExplainability
Core focusUnderstanding how a model works internallyUnderstanding why a model made a specific decision
Main goalReveal model structure, features, and mechanicsProvide human-friendly reasoning behind outputs
Level of detailDeeper, focuses on inner workings like weights, coefficients, and data flowHigher-level, focuses on outcomes and reasoning
Type of insightTechnical insight into model behaviorContextual insight into individual predictions
Typical questions answered“How does this model process inputs?”“Why did the model make this prediction?”
Techniques usedMechanistic interpretability, model inspection, feature and data analysisSHAP, LIME, natural language explanations, visualizations
ScopeGlobal, covers the entire modelOften local, focused on specific predictions
Ease of understandingMore technical, suited for engineers and data scientistsEasier to understand, suitable for non-technical stakeholders
Use casesModel debugging, validation, fairness checks, model selectionDecision justification, stakeholder communication, compliance
ExampleUnderstanding how feature weights influence outcomes in a regression modelExplaining why a loan application was approved or rejected
StrengthBuilds deep trust by exposing model logicBuilds practical trust by clarifying decisions
LimitationCan be difficult with complex models like deep neural networksMay simplify or approximate true model behavior

Interpretability means making features of a model, such as its weights or coefficients, comprehensible to humans. Linear regression models, for example, calculate sums of weighted input features, and interpretability would help you understand what exactly that means.

Interpretability is often highest in simpler or inherently interpretable models, while complex black box models require explainability techniques to understand their decisions.

Here’s an analogy that might help: you probably know at least a little about how a train works. Understanding that it needs fuel to move, has to have tracks constructed a certain way to avoid crashing, and needs brakes in order to stop would all contribute to the interpretability of the train system.

But knowing which kind of fuel it requires and for what reason, why the tracks must be made out of a certain kind of material, and how exactly pulling a brake switch actually gets the train to stop are all facets of the explainability of the train system.

Explainability in machine learning

Before we turn to the techniques utilized in machine learning explainability, let’s talk at a philosophical level about the different types of explanations you might be looking for.

Different types of explanations

There are many approaches you might take to explain an opaque machine-learning model. Here are a few:

  • Explanations by text: One of the simplest ways of explaining a model is by reasoning about it with natural language. The better sorts of natural-language explanations will, of course, draw on some of the explainability techniques described below. You can also try to talk about a system logically, by i.e. describing it as calculating logical AND, OR, and NOT operations.
  • Explanations by visualization: For many kinds of models, visualization will help tremendously in increasing explainability. Support vector machines, for example, use a decision boundary to sort data points and this boundary can sometimes be visualized. For extremely complex datasets this may not be appropriate, but it’s usually worth at least trying. Visualization is especially useful in areas like computer vision, where image classification models can highlight which parts of an image influenced a prediction.
  • Local explanations: There are whole classes of explanation techniques, like LIME, that operate by illustrating how a black-box model works in some particular region. In other words, rather than trying to parse the whole structure of a deep neural network, we zoom in on one part of it and say “This is what it’s doing right here.”

Approaches to explainability in machine learning and artificial intelligence

Now that we’ve discussed the varieties of explanation, let’s get into the nitty-gritty of how explainability in machine learning works. There are a number of different explainability techniques, but we’re going to focus on two of the biggest: SHAP and LIME.

Shapley Additive Explanations (SHAP) are derived from game theory and are a commonly-used way of making models more explainable. The basic idea is that you’re trying to parcel out “credit” for the model’s outputs among its input features. In game theory, potential players can choose to enter a game, or not, and this is the first idea that is ported over to SHAP.

SHAP “values” are generally calculated by looking at how a model’s output changes based on different combinations of features. If that same model has, say, 10 input features, you could look at the output of four of them, then see how that changes when you add a fifth.

By running this procedure for many different feature sets, you can understand how any given feature contributes to the ML model’s overall predictions.

Local Interpretable Model-Agnostic Explanation (LIME) is based on the idea that our best bet in understanding a complex model is to first narrow our focus to one part of it, then study a simpler model that captures its local behavior.

Example of model explainability in machine learning

Let’s work through an example. Imagine that you’ve taken an enormous amount of housing data and fit a complex random forest model that’s able to predict the price of a house based on features like how old it is, how close it is to neighbors, etc.

LIME lets you figure out what the random forest is doing in a particular region, so you’d start by selecting one row of the data frame, which would contain both the input features for a house and its price. Then, you would “perturb” this sample, which means that for each of its features and its price, you’d sample from a distribution around that data point to create a new, perturbed dataset.

You would feed this perturbed dataset into your random forest model and get a new set of perturbed predictions. On this complete dataset, you’d then train a simple model, like a linear regression.

Linear models are almost never as flexible and powerful as a random forest, but they do have one advantage: they comes with a bunch of coefficients that are fairly easy to interpret.

This LIME approach won’t tell you what the model is doing everywhere, but it will give you an idea of how the model is behaving in one particular place. If you do a few LIME runs, you can form a picture of how the model is functioning overall.

Benefits of explainability and explainable artificial intelligence

Explainability brings several key advantages that strengthen both model performance and stakeholder trust:

  • Builds confidence and transparency: By revealing why a model made a certain prediction, explainability reduces the “black box” effect and helps users feel more comfortable relying on AI-driven decisions. Interpretability helps teams understand which features influence predictions, turning model behavior into actionable insights and supporting knowledge discovery.
  • Improves error and bias detection: Clear insights into model reasoning make it easier to spot inaccuracies, unintended patterns, or biased outcomes before they create real-world issues.
  • Supports accountability in high-stakes use cases: Industries like healthcare, finance, and employment require explainable decisions to ensure fairness, compliance, and ethical use of AI.
  • Speeds up debugging and optimization: Engineers can more efficiently identify which features drive model behavior, enabling faster iteration and more targeted improvements.
  • Enhances communication with non-technical stakeholders: Explainability simplifies complex model logic so business leaders can validate results, make informed decisions, and better integrate AI into workflows.

Together, these benefits make explainability a crucial component of deploying machine learning systems that are trustworthy, safe, and effective.

Model interpretability in machine learning

In machine learning, interpretability refers to a set of approaches that shed light on a model’s internal workings.

SHAP, LIME, and other explainability techniques can also be used for interpretability work. Rather than go over territory we’ve already covered, we’re going to spend this section focusing on an exciting new field of interpretability, called “mechanistic” interpretability.

Mechanistic interpretability: a new frontier for the interpretable model

Mechanistic interpretability is defined as “the study of reverse-engineering neural networks”. Rather than examining subsets of input features to see how they impact a model’s output (as we do with SHAP) or training a more interpretable local model (as we do with LIME), mechanistic interpretability involves going directly for the goal of understanding what a trained neural network is really, truly doing.

It’s a very young field that so far has only tackled networks like GPT-2 – no one has yet figured out how GPT-4 functions – but already its results are remarkable. It will allow us to discover the actual machine learning algorithms being learned by large language models, which will give us a way to check them for bias and deceit, understand what they’re really capable of, and how to make them even better.

Benefits of interpretability

Interpretability offers essential advantages by making it clearer how a model processes inputs and arrives at its outputs:

  • Increases transparency into model behavior: Interpretability helps teams understand which features or data points influence predictions, reducing uncertainty around how the model “thinks.”
  • Improves debugging and quality control: When engineers can trace decision paths, they can more easily diagnose performance issues, identify data problems, and refine the model’s structure.
  • Supports fairness and bias mitigation: By revealing which factors drive decisions, interpretability makes it easier to spot and correct biased patterns early in the modeling process.
  • Strengthens stakeholder trust: Clear visibility into model logic reassures users, especially in regulated industries, that the system behaves logically and consistently.
  • Enables better model selection: Interpretability allows teams to compare models not just on accuracy, but on how understandable and predictable their decision-making is, leading to more reliable deployment choices.

Overall, interpretable machine learning models are not only high-performing but also transparent, responsible, and easier to validate in real-world settings.

Why are interpretability and explainability important?

Interpretability and explainability are both very important areas of ongoing research. Not so long ago (less than twenty years), neural networks were interesting systems that weren’t able to do a whole lot.

Today, they are feeding us recommendations for news, entertainment, driving cars, trading stocks, generating reams of content, and making decisions that affect people’s lives, forever.

This technology is having a huge and growing impact, and it’s no longer enough for us to have a fuzzy, high-level idea of what they’re doing.

We now know that they work, and with techniques like SHAP, LIME, mechanistic interpretability, etc., we can start to figure out why they work.

Final thoughts

Large language models are reshaping how contact centers operate, delivering new levels of efficiency and customer satisfaction. Yet despite their impact, much of what happens inside these models remains difficult to fully understand, even for model developers. While no contact center manager needs to become an expert in interpretability or explainability, understanding these general concepts can help you make smarter, safer decisions about how to adopt generative AI.And if you’re ready to explore those possibilities, consider partnering with one of the most trusted names in agentic AI. Quiq’s platform now includes powerful tools designed to make agents more efficient and customers more satisfied. Set up a demo today to see how we can help you elevate your contact center.

Frequently Asked Questions (FAQs)

What’s the difference between interpretability and explainability?

 Interpretability shows you how a model works, what features it uses, and how it processes information. Explainability shows you why the model made a specific decision, giving you a clear, human-friendly rationale for an output. Together, they help demystify AI behavior.

Why are these concepts important?

They provide visibility into systems that would otherwise operate as black boxes. This transparency helps teams trust model outputs, validate that the system behaves as expected, and ensure AI aligns with business goals and ethical standards.

Can a model be explainable without being fully interpretable?

Yes. Complex models like large language models may not reveal every internal mechanism, but they can still provide useful explanations for their predictions. This allows teams to work confidently with high-performing models without needing full access to their internal logic.

How do interpretability and explainability support better decision-making?

They help teams pinpoint why an output occurred, identify potential issues like bias or data drift, and troubleshoot unexpected behavior. This leads to safer, more reliable AI deployments and faster iteration on model improvements.

Do contact centers need deep expertise in these areas?

Not at all. Leaders simply need enough understanding to ask the right questions and evaluate whether an AI tool behaves consistently, safely, and in line with customer experience goals. A vendor like Quiq helps handle the heavy lifting.

AI Model Evaluation: 2026 Guide

Key takeaways

  • AI performance starts with evaluation. Metrics and human insight work together to keep models accurate, reliable, and bias-free.
  • Use the right tools for the job. Regression relies on MSE or RMSE; classification leans on accuracy, precision, and recall.
  • Generative AI needs extra care. Scores like BLEU and BERT help, but human review ensures outputs sound natural and on-brand.
  • Trust is built through testing. Continuous evaluation keeps AI aligned with real-world performance and customer expectations.

Machine learning is an incredibly powerful technology. That’s why it’s being used in everything from autonomous vehicles to medical diagnoses to the sophisticated, dynamic AI Assistants that are handling customer interactions in modern contact centers.

But for all this, it isn’t magic. The engineers who build these systems must know a great deal about how to evaluate them. How do you know when a model is performing as expected, or when it has begun to overfit the data? How can you tell when one of the multiple models is better than another?

That’s where AI model evaluation comes in. At its core, AI model evaluation is the process of systematically measuring and assessing an AI system’s performance, accuracy, reliability, and fairness. This includes using quantitative metrics (like accuracy or BLEU), testing with unseen data, and incorporating human review to check for issues such as biased outcomes or coherence.

It’s a critical step for determining a model’s readiness for real-world deployment, ensuring trustworthiness, and guiding continuous improvement.

This subject will be our focus today. We’ll cover the basics of evaluating a machine learning model with metrics like mean squared error and accuracy, then turn our attention to the more specialized task of evaluating the generated text of a large language model like ChatGPT.

How to evaluate model performance

A machine learning model is always aimed at some task. It might be predicting sales, grouping topics, generating text, or some other type of model performance.

How does the model know when it’s gotten the optimal line or discovered the best way to cluster documents?

In the next few sections, we’ll talk about a few common evaluation methods for a machine-learning model. If you’re an engineer, this will help you create better models yourself, and if you’re a layperson, it’ll help you better understand how the machine-learning pipeline works and you’ll get the baseline of how the evaluation process looks like.

To answer that, the evaluation must assess multiple dimensions:

  1. performance (are the predicted values accurate?)
  2. weaknesses (does it generalize to unseen data or overfit?)
  3. trustworthiness (can it be explained and trusted?)
  4. fairness (is it biased toward certain groups?).

Together, these components give a complete picture of model quality.

Model evaluation metrics for regression models

Regression is one of the two big types of basic machine learning, with the other being classification.

In tech-speak, we say that the purpose of a regression model is to learn a function that maps a set of input features to a real value (where “real” just means “real numbers”).

This is not as scary as it sounds; you might try to create a regression model that predicts the number of sales you can expect given that you’ve spent a certain amount on advertising, or you might try to predict how long a person will live on the basis of their daily exercise, water intake, and diet.

In each case, you’ve got a set of input features (advertising spend or daily habits), and you’re trying to predict a target variable (sales, life expectancy).

The relationship between the two is captured by a model, and a model’s quality is evaluated with a metric. Popular metrics for regression models include:

  • mean squared error (MSE)
  • root mean squared error (RMSE)
  • mean absolute error (MAE)

However, there are plenty of others if you feel like going down a nerdy rabbit hole.

Model evaluation metrics for classification models

People tend to struggle less with understanding classification models because it’s more intuitive: you’re building something that can take a data point (the price of an item) and sort it into one of a number of different categories (i.e., “cheap”, “somewhat expensive”, “expensive”, “very expensive”).

Regardless, it’s just as essential to evaluate the performance of a classification model as it is to evaluate the performance of a regression model. Some common evaluation metrics for classification models are accuracy, precision, and recall.

Accuracy is simple, and it’s exactly what it sounds like. You find the accuracy of a classification model by dividing the number of correct predictions it made by the total number of predictions it made altogether. If your classification model made 1,000 predictions and got 941 of them right, that’s an accuracy rate of 94.1% (not bad!)

Both precision and recall are subtler variants of this same idea. The precision is the number of true positives (correct classifications) divided by the sum of true positives and false positives (incorrect positive classifications). It says, in effect, “When your model thought it had identified a needle in a haystack, this is how often it was correct.”

The recall is the number of true positives divided by the sum of true positives and false negatives (incorrect negative classifications). It says, in effect, “There were 200 needles in this haystack, and your model found 72% of them.”

Accuracy tells you how well your model performed overall, precision tells you how confident you can be in its positive classifications, and recall tells you how often it found the positive classifications.

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How do I start with evaluating AI models and their performance?

Now, we arrive at the center of this article. Everything up to now has been background context that hopefully has given you a feel for how models are evaluated, because from here on out, it’s a bit more abstract.

Using reference text for evaluating generative models against training data

When we wanted to evaluate a regression model, we started by looking at how far its predictions were from actual data points.

Well, we do essentially the same thing with generative language models. To assess the quality of text generated by a model, we’ll compare it against high-quality text that’s been selected by domain experts.

The bilingual evaluation understudy (BLEU) score

The BLEU score can be used to actually quantify the distance between the generated and reference text. It does this by comparing the amount of overlap in the n-grams [1] between the two using a series of weighted precision scores.

The BLEU score varies from 0 to 1. A score of “0” indicates that there is no n-gram overlap between the generated and reference text, and the model’s output is considered to be of low quality. A score of “1”, conversely, indicates that there is total overlap between the generated and reference text, and the model’s output is considered to be of high quality.

Comparing BLEU scores across different sets of reference texts or different natural languages is so tricky that it’s considered best to avoid it altogether.

Also, be aware that the BLEU score contains a “brevity penalty” which discourages the model from being too concise. If the model’s output is too much shorter than the reference text, this counts as a strike against it.

The Recall-Oriented Understudy for Gisting Evaluation (ROGUE) Score

Like the BLEU score, the ROGUE score examines the n-gram overlap between an output text and a reference text. Unlike the BLEU score, however, it uses recall instead of precision.

There are three types of ROGUE scores:

  • rogue-n: Rogue-n is the most common type of ROGUE score, and it simply looks at n-gram overlap, as described above.
  • rogue-l: Rogue-l looks at the “Longest Common Subsequence” (LCS), or the longest chain of tokens that the reference and output text share. The longer the LCS, of course, the more the two have in common.
  • rogue-s: This is the least commonly-used variant of the ROGUE score, but it’s worth hearing about. Rogue-s concentrates on the “skip-grams” [2] that the two texts have in common. Rogue-s would count “He bought the house” and “He bought the blue house” as overlapping because they have the same words in the same order, despite the fact that the second sentence does have an additional adjective.

The Metric for Evaluation of Translation with Explicit Ordering (METEOR) Score

The METEOR Score takes the harmonic mean of the precision and recall scores for 1-gram overlap between the output and reference text. It puts more weight on recall than on precision, and it’s intended to address some of the deficiencies of the BLEU and ROGUE scores while maintaining a pretty close match to how expert humans assess the quality of model-generated output.

BERT Score

At this point, it may have occurred to you to wonder whether the BLEU and ROGUE scores are actually doing a good job of evaluating the performance of a generative language model. They look at exact n-gram overlaps, and most of the time, we don’t really care that the model’s output is exactly the same as the reference text – it needs to be at least as good, without having to be the same.

The BERT score is meant to address this concern through contextual embeddings. By looking at the embeddings behind the sentences and comparing those, the BERT score is able to see that “He quickly ate the treats” and “He rapidly consumed the goodies” are expressing basically the same idea, while both the BLEU and ROGUE scores would completely miss this.

How to choose the right evaluation metrics for your use case

Choosing the right evaluation metrics starts with understanding what your model is supposed to do and how its outputs will be used in practice. A model that predicts numerical values, such as sales forecasts, should be evaluated differently from one that classifies categories or generates text.

First, align metrics with your objective. For regression tasks, focus on how close your predicted and actual values are using metrics like MAE or RMSE. For classification, look at accuracy, average precision, and recall depending on whether false positives or false negatives matter more. For generative systems, combine automated scores with human review to judge quality and relevance.

Next, consider the quality and structure of your test data. Your evaluation results are only as reliable as the data you test on. Make sure it reflects real-world scenarios, edge cases, and variations your model will face after deployment.

You should also evaluate across multiple dimensions, not just a single score. A model may show strong model performance on average but fail in specific segments or edge cases. Looking at different metrics together gives a more balanced view of model predictions.

Finally, aim for a robust evaluation process that evolves over time. As your data changes and your model is updated, your evaluation approach should adapt as well. Regularly reviewing evaluation results helps catch performance drops early and ensures your model continues to meet expectations in real-world conditions.

Why AI Model Evaluation is Critical

Agentic AI is redefining how businesses operate – automating reasoning, decision-making, and task execution across fields like engineering and CX. But with that autonomy comes risk. Every AI agent must be carefully evaluated, monitored, and fine-tuned to ensure it performs reliably and aligns with your brand’s goals. Otherwise, even a small model error can compound into major consequences for your brand

If you’re enchanted by the potential of using agentic AI in your contact center but are daunted by the challenge of putting together an engineering team, reach out to us for a demo of the Quiq agentic AI platform. We can help you put this cutting-edge technology to work without having to worry about all the finer details and resourcing issues.

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Footnotes

[1] An n-gram is just a sequence of characters, words, or entire sentences. A 1-gram is usually single words, a 2-gram is usually two words, etc. [2] Skip-grams are a rather involved subdomain of natural language processing. You can read more about them in this article, but frankly, most of it is irrelevant to this article. All you need to know is that the rogue-s score is set up to be less concerned with exact n-gram overlaps than the alternatives.

Frequently Asked Questions (FAQs)

What does AI model evaluation mean?

It’s how teams measure whether an AI system is performing as intended, accurate, fair, and ready for real-world use.

Why does AI model evaluation matter?

Evaluation exposes blind spots early and helps build confidence that the model can be trusted with customer-facing tasks.

How are generative models evaluated?

Metrics like BLEU, ROUGE, and BERT gauge quality, while human reviewers check tone, clarity, and usefulness.

Can metrics replace human judgment?

Not yet. Automated scores quantify performance, but humans still define what “good” sounds like.

How do I know if my model is ready?

When it performs consistently across test data, aligns with business goals, and earns trust through transparent evaluation.

What is NLP Preprocessing? Top 12 Techniques

Along with computer vision, natural language processing (NLP) is one of the great triumphs of modern machine learning. While ChatGPT is all the rage and large language models (LLMs) are drawing everyone’s attention, that doesn’t mean that the rest of the NLP field just goes away.

NLP endeavors to apply computation to human-generated language, whether that be the spoken word or text existing in places like Wikipedia. There are a number of ways in which this would be relevant to customer experience and service leaders, including:

  • Using it to power customer-facing AI agents
  • Creating question-answering systems
  • Classifying sentiment from e.g., customer reviews
  • Automatically transcribing client calls

Today, we’re going to briefly touch on what NLP is, but we’ll spend the bulk of our time discussing how textual training data can be preprocessed to get the most out of an NLP system. There are a few branches of NLP, like speech synthesis and text-to-speech recognition, which we’ll be omitting.

Armed with this context, you’ll be better prepared to evaluate using NLP in your business (though if you’re building customer-facing AI agents, you can also let the Quiq platform do the heavy lifting for you).

What is Natural Language Processing (NLP)?

In the past, we’ve jokingly referred to NLP as “doing computer stuff with words after you’ve tricked them into being math.” This is meant to be humorous, but it does capture the basic essence.

Remember, your computer doesn’t know what words are; all it does is move 1’s and 0’s around. A crucial step in most NLP applications, therefore, is creating a numerical representation out of the words in your training corpus.

There are many ways of doing this, but today, a popular method is using word vector embeddings. Also known simply as “embeddings”, these are vectors of real numbers. They come from a neural network or a statistical algorithm like word2vec and stand in for particular words.

The technical details of this process don’t concern us in this post, what’s important is that you end up with vectors that capture a remarkable amount of semantic meaning. Words with similar meanings also have similar vectors, for example, so you can do things like find synonyms for a word by finding vectors that are mathematically close to it.

These embeddings are the basic data structures used across most of NLP. They power sentiment analysis, topic modeling, and many other applications.

For most projects, it’s enough to use pre-existing word vector embeddings without going through the trouble of generating them yourself.

Are large language models natural language processing?

Large language models (LLMs) are a subset of natural language processing. Training an LLM draws on many of the same techniques and best practices as the rest of NLP, but NLP also addresses a wide variety of other language-based tasks.

Conversational AI is a great case in point. One way of building a conversational agent is by hooking your application up to an LLM like ChatGPT, but you can also do it with a rules-based approach, through grounded learning, or with an ensemble that weaves together several methods.

Data preprocessing for NLP

If you’ve ever sent a well-meaning text that was misinterpreted, you know that language is messy. For this reason, NLP places special demands on the data engineers and data scientists who must transform text in various ways before machine learning models can be trained on it. With higher data quality comes improved model performance.

In the next few sections, we’ll offer a fairly comprehensive overview of data preprocessing for NLP. This will not cover everything you might encounter in the course of preparing data for your NLP application, but it should be more than enough to get started.

Why is text data preprocessing important?

They say that data is the new oil, and just as you can’t put oil directly in your gas tank and expect your car to run, you can’t plow a bunch of garbled, poorly-formatted language data into your algorithms and expect magic to come out the other side.

But what, precisely, counts as text preprocessing will depend on your goals. You might choose to omit or include emojis, for example, depending on whether you’re training a model to summarize academic papers or write tweets for you.

That having been said, there are certain steps you can almost always expect to take, including standardizing the case of your language data, removing punctuation, white spaces, and stop words, segmenting and tokenizing, etc.

Top text preprocessing techniques to make unstructured text data usable

NLP preprocessing techniques are the steps used to clean and prepare raw text before it is analyzed by a Natural Language Processing model. Raw text data contains noise such as punctuation, inconsistent casing, spelling variations, and irrelevant information. Preprocessing transforms that text into a structured format that machines can understand, analyze and finally generate human language themselves.

Here are the most common NLP preprocessing steps and techniques.

1. Segmentation and tokenization

An NLP model is always trained on some consistent chunk of the full data. When ChatGPT was trained, for example, they didn’t put the entire internet in a big truck and back it up to a server farm, they used self-supervised learning.

Simplifying greatly, this means that the underlying algorithm would take, say, the first few sentences of a paragraph and then try to predict the remaining sentence on the basis of the text that came before. Over time it sees enough language to guess that “to be or not to be, that is ___ ________” ends with “the question.”

But how was ChatGPT shown the first three sentences? How does that process even work?

A big part of the answer is segmentation and tokenization.

With segmentation, we’re breaking a full corpus of training text – which might contain hundreds of books and millions of words – down into units like words or sentences.

This is far from trivial. In the English language, sentences end with a period, but words like “Mr.” and “etc.” also contain them. It can be a real challenge to divide text into sentences without also breaking “Mr. Smith is cooking the steak” into “Mr.” and “Smith is cooking the steak.”

Tokenization is a related process of breaking a corpus down into tokens. Tokens are sometimes described as words, but in truth, they can be words, short clusters of a few words, sub-words, or even individual characters.

This matters a lot to the training of your NLP model. You could train a generative language model to predict the next sentence based on the preceding sentences, the next word based on the preceding words, or the next character based on the preceding characters.

Regardless, in both segmentation and tokenization, you’re decomposing a whole bunch of text down into individual units that your algorithm can work with.

2. Lowercasing

Lowercasing is the text preprocessing technique of converting all text to lowercase before it is processed by an NLP model.

Human language is not consistent about capitalization. The same word may appear as “Apple,” “APPLE,” or “apple,” depending on whether it starts a sentence, refers to a company, or is simply written in a different style.

For an NLP model, these variations can create unnecessary complexity. If capitalization is left untouched, the model may treat each version as a completely different token. That means “Apple,” “apple,” and “APPLE” could all end up as separate entries in the vocabulary.

Lowercasing reduces this variation. Instead of learning three separate representations for “Apple,” “apple,” and “APPLE,” the model only needs to learn one.

There is a tradeoff here. In some cases, capitalization carries meaning. “Apple” might refer to the company, while “apple” refers to the fruit. If everything is converted to lowercase, that distinction disappears.

Because of that, some NLP systems keep capitalization intact when the task requires it, such as named entity recognition. But for many applications, especially those focused on general language patterns, lowercasing is a useful step that reduces noise and helps the model learn more efficiently.

3. Stop word removal

Stop word removal is the preprocessing technique of removing very common words that appear frequently in language but often contribute little meaning to the text.

Words such as “the,” “is,” “and,” “of,” and “in” appear extremely often in English. These are known as stop words.

Imagine a sentence like this:

“The product is available in the store and on the website.”

If the goal is to understand the main topic of the sentence, the most important words are probably “product,” “available,” “store,” and “website.” The rest mainly help the grammar of the sentence.

Removing stop words reduces noise in the dataset. If every document contains the same handful of extremely common words, those words do not help much in distinguishing one piece of text from another.

For some tasks, such as search engines or topic modeling, removing stop words helps models focus on the words that actually describe the subject of a document.

However, stop word removal is not always appropriate. In tasks such as sentiment analysis or conversational AI, even small words can carry meaning. The difference between “I like this” and “I do not like this” depends on a single word.

Because of that, whether stop words should be removed depends heavily on the goal of the NLP system.

4. Stemming

Stemming is the preprocessing technique of reducing words to a simplified root form by removing prefixes or suffixes.

Human language often expresses the same concept through multiple word forms. Words such as “run,” “running,” “runs,” and “ran” all refer to the same basic action, but they appear differently in text.

Without preprocessing, an NLP model may treat each of these forms as completely separate tokens.

Stemming attempts to solve this by trimming words down to a shared base or root form.

For example:

running → run
played → play
studies → studi

That final example of a base form or stem word shows an important limitation. The resulting word is not always a real dictionary term. Stemming relies on simple rules that remove common endings rather than a deep understanding of language, and it may not always lead to improving data quality.

Even with that limitation, stemming can be useful because it reduces vocabulary size and helps the model connect related words during training.

For applications such as search engines or document retrieval systems, this kind of simplification is often good enough.

5. Lemmatization

Lemmatization is the preprocessing technique of reducing words to their true base or dictionary form, known as the lemma.

Like stemming, lemmatization attempts to connect different word forms that share the same meaning. However, instead of simply trimming suffixes, it relies on vocabulary resources and grammatical analysis.

For example:

running → run
better → good
studies → study

Unlike stemming, the result is usually a valid word found in a dictionary.

To determine the correct lemma, the system often needs to understand the grammatical role of the word in a sentence. For instance, the word “saw” could be the past tense of “see,” or it could refer to a cutting tool. The correct interpretation depends on context.

Because this process requires linguistic knowledge and sometimes part-of-speech tagging, lemmatization is typically more computationally expensive than stemming.

However, it also produces cleaner and more accurate representations of language, which makes it useful in applications where preserving meaning is important.

6. Removing punctuation and special characters

Removing punctuation and special characters is the preprocessing technique of eliminating symbols such as commas, quotation marks, parentheses, and other non-alphabetic characters from text.

Natural text contains many formatting elements that help human readers understand structure or tone. Punctuation marks, emojis, and special symbols all play a role in written communication.

However, in many NLP tasks, these characters do not contribute much to the core meaning of the text.

For example:

“Hello!!! How are you?”

A preprocessing pipeline might convert this to something simpler:

“Hello how are you”

Removing punctuation helps standardize the input data and reduces noise in the training corpus.

That said, punctuation can sometimes carry useful signals. In sentiment text analysis, repeated exclamation marks may indicate excitement or emphasis.

Because of this, some NLP systems remove punctuation entirely, while others keep specific characters that might contain meaningful information.

The goal is always the same. Clean the text enough that the model can focus on meaningful patterns instead of being distracted by formatting variations.

7. Text normalization

Text normalization is the preprocessing technique of converting text into a consistent and standardized form before it is analyzed by an NLP model.

Natural language contains many variations that refer to the same thing. People use abbreviations, contractions, spelling variants, and informal expressions all the time. If these differences are left untouched, the model may treat them as unrelated tokens.

Normalization reduces this variation by converting different forms into a common representation.

For example:

don’t → do not
can’t → cannot
USA → United States

Normalization may also include spelling corrections, standardizing numbers, or expanding abbreviations.

Consider a dataset containing the words “color” and “colour.” Without normalization, the model treats them as separate tokens even though they represent the same concept.

By standardizing these variations, normalization makes the training data more consistent and easier for the model to learn from. Proper text preprocessing can mean eliminating misspelled words, but also deciding on which version of a spelling is correct for your use case.

The exact normalization rules depend heavily on the application. Informal chat messages, for example, may require normalization of slang and abbreviations that would never appear in formal documents. In those cases, preparing text data is crucial as it impacts data quality.

8. Removing numbers

Removing numbers is the preprocessing technique of eliminating numeric values from text when they do not contribute meaningful information to the task.

Many text datasets contain numbers that may not help the model understand the underlying meaning of the text.

For example:

“The product costs $49 and was released in 2024.”

If the goal is topic classification or general language modeling, the numbers themselves may not add much value. In such cases, they can simply be removed.

After preprocessing, the sentence might look like this:

“The product costs and was released in”

Of course, this technique must be used carefully. In some applications, numbers carry extremely important information. Financial analysis, medical data, and scientific documents often rely heavily on numerical values.

Because of this, many NLP pipelines only remove numbers when they are clearly irrelevant to the problem being solved.

The general idea is to simplify the dataset and reduce unnecessary variation in the vocabulary.

9. Part of speech tagging

Part-of-speech tagging (also called grammatical tagging) is the preprocessing technique of assigning grammatical labels to each word in a sentence.

In English, words can function as nouns, verbs, adjectives, adverbs, and other grammatical categories. Identifying these roles helps an NLP system understand how words relate to each other.

For example:

“The dog runs quickly.”

A part-of-speech tagger might label the words like this:

The → determiner
dog → noun
runs → verb
quickly → adverb

These tags give the model information about the structure of the sentence.

Part-of-speech tagging is often used as an intermediate step in more advanced NLP tasks. Named entity recognition, dependency parsing, and information extraction all rely on grammatical structure to interpret meaning.

Although modern deep learning models sometimes learn this structure automatically, explicit POS tagging is still widely used in traditional NLP pipelines.

10. Named entity recognition preprocessing

Named entity recognition, often abbreviated as NER, is the preprocessing technique of identifying and labeling specific real-world entities within text.

Human language frequently refers to people, organizations, locations, dates, and other identifiable entities. Recognizing these elements helps NLP solutions extract useful information from text.

For example:

“Apple released a new iPhone in California in 2023.”

An NER system might identify the entities as:

Apple → organization
iPhone → product
California → location
2023 → date

This allows the model to distinguish between general words and references to real-world objects or institutions.

Named entity recognition is widely used in applications such as news analysis, text classification, knowledge extraction, and search engines.

By identifying these entities early in the preprocessing pipeline, NLP systems can build richer representations of the information contained in text.

11. Noise removal

Noise removal is the text preprocessing technique of eliminating irrelevant or distracting elements from text that do not contribute to the meaning of the content.

Real-world text data rarely comes in a clean form. It may contain HTML tags, URLs, emojis, repeated characters, formatting artifacts, or other elements that are useful for humans but confusing for NLP models.

For example, a sentence taken from a webpage might look like this:

“Check out our new product!!! 👉 https://example.com <br> Limited time offer!!!”

Before an NLP model processes the text, a preprocessing pipeline might remove the URL, HTML tags, and extra punctuation so that the remaining text is easier to analyze.

After removing HTML tags and other noise, the sentence might look like this:

“Check out our new product limited time offer”

Removing this kind of noise helps reduce unnecessary variation in the dataset and makes it easier for the model to identify meaningful patterns in the language.

The exact definition of “noise” depends on the application. In social media posts, for example, emojis may actually carry useful sentiment information and might be preserved rather than removed because they contribute as much value as individual words.

The goal of noise removal is simply to eliminate elements that distract from the linguistic structure of the text.

12. Vectorization and feature extraction

Vectorization and feature extraction are text preprocessing techniques that convert text into numerical representations that machine learning models can process.

Computers cannot directly understand words or sentences. Instead, text must be translated into numbers that represent patterns in the language.

One of the simplest approaches is the bag of words model, where a document is represented by counting how often each word appears.

For example, consider two short sentences:

“I like coffee”
“I like tea”

A bag-of-words representation might convert these into numerical vectors based on the frequency of each word in the vocabulary.

Another widely used technique is TF IDF, which stands for term frequency inverse document frequency. Instead of simply counting words, TF IDF gives higher importance to words that appear frequently in a document but not across every document in the dataset.

More advanced NLP systems use word embeddings, which represent words as vectors in a high-dimensional space. In this space, words with similar meanings appear closer together.

For instance, the vectors representing “king” and “queen” would be closer to each other than the vectors for “king” and “table.”

These numerical representations allow machine learning models to analyze patterns, relationships, and meaning within large collections of text.

Vectorization is often the final step of text preprocessing before the text is fed into an NLP algorithm or neural network.

Supercharging your NLP applications

Natural language processing is an enormously powerful constellation of techniques that allow computers to do worthwhile work on textual data. It can be used to build question-answering systems, tutors, chatbots, and much more.

But to get the most out of it, you’ll need to preprocess the data. No matter how much computing you have access to, machine learning isn’t of much use with bad data. Techniques like removing stopwords, expanding contractions, and lemmatization create a corpora of text that can then be fed to NLP algorithms. Of course, there’s always an easier way. If you’d rather skip straight to the part where cutting-edge conversational AI directly adds value to your business, you can also reach out to see what the Quiq platform can do.

Why LLM Observability Matters (and Strategies for Getting it Right)

When integrating Large Language Models (LLMs), or agentic AI, into applications, you can’t afford to treat them like “black boxes.” As your LLM application scales and becomes more complex, the need to monitor, troubleshoot, and understand how the LLM impacts your application becomes critical. In this article, we’ll explore the observability strategies we’ve found useful here at Quiq.

Key Elements of an Effective LLM Observability Strategy

  1. Provide Access: Encourage business users to engage actively in testing and optimization.
  2. Encourage Exploration: Make it easy to explore the application under different scenarios.
  3. Create Transparency: Clearly show how the model interacts within your application, reveal decision-making processes, system interactions, and how outputs are verified.
  4. Handle Errors Gracefully: Proactively identify and handle deviations or errors.
  5. Track System Performance: Expose metrics like response times, token usage, and errors.

LLMs add a layer of unpredictability and complexity to an application. Your observability tooling should allow you to actively explore both known and unknown issues while fostering an environment where engineers and business users can collaborate to create a new kind of application.

5 Strategies for LLM Observability

We will discuss strategies from the perspective of a real world event. An “event” triggers an application to process input and provides output back to the world.

A few examples of events include:

  • Chat user message input > Chat response
  • An email arriving into a ticketing system > Suggested reply
  • A case being closed > Case updated for topic or other classifications

You may have heard of these events referred to as prompt chains, prompt pipelines, agentic workflows, or conversational turns. The key takeaway; an event will require more than a single call to an LLM. Your LLM application’s job is to orchestrate LLM prompts, data requests, decisions and actions. The following strategies will help you understand what’s happening inside your LLM application.

1. Tracing Execution Paths

Any given event may follow different execution paths. Tracing the execution path should allow you to understand what state is set, which knowledge was retrieved, functions called, and generally how and why the LLM generated and verified the response. The ability to trace the execution path of an event will provide invaluable visibility into your application behavior.

For example, if your application delivers a message that offers a live agent; was it because the topic was sensitive, the user was frustrated or there was a gap in the knowledge resources? Tracing the execution path will help you pinpoint the prompt, knowledge or logic that drove the response. This is the first step in monitoring and optimizing an AI application. Your LLM observability should provide a full trace of the execution path that led to a response being delivered.

2. Replay Mechanisms for Faster Debugging

In real-world applications, being able to reproduce and fix errors quickly is critical. Implementing an event replay mechanism—where past events can be replayed against the current system configuration will provide a fast feedback loop.

Replaying events also helps when modifying prompts, upgrading models, adding knowledge or editing business rules. Changing your LLM application should be done in a controlled environment where you can replay events and ensure the desired effect without introducing new issues.

3. State Management & Monitoring

Another key aspect of LLM observability is capturing how your application’s field values or state changes during an event, as well as, across related events such as a conversation. Understanding the state of different variables can help you better understand and recreate the results of your LLM application.

Many use cases will also make use of memory. You should strive to manage this memory consistently and use caching for order or product info to reduce unnecessary network calls. In addition to data caches, multi-turn conversations may react differently based on the memory state. Suppose a user types “I need help” and you have implemented a next-best-action classifier with the following options:

  • Clarify the inquiry
  • Find Information
  • Escalate to live agent

The action taken may depend on whether “I need help” is the 1st or 5th message of the conversation. The response could also depend on whether the inquiry type is something you want your live agents handling.

The key takeaway – LLMs introduce a new kind of intelligence, but you’ll still need to manage state and domain specific logic to ensure your application is aware of its context. Clear visibility into the state of your application and your ability to reproduce it are vital parts of your observability strategy.

4. Claims Verification

A critical challenge with LLMs is ensuring the validity of the information they generate. Some refer to these made up answers as hallucinations. A hallucination is a statement made up by the LLM, usually because it makes semantic sense.

A claims verification process provides confidence that a response is grounded, attributable and verified by approved evidence from known knowledge or API resources. A dedicated verification model should be used to provide a confidence score and handling should be put in place to align answers that fail verification. The verification process should use metrics such as the maximum, minimum, and average scores and attribute answers to one or many resources.

For example:

  • On Verified: Define actions to take when a claim is verified. This could involve attributing the answer to one or many articles or API responses and then delivering a response to the end user.
  • On Unverified: Set workflows for unverified claims, such as retrying a prompt pipeline, aligning a corrective response, or escalating the issue to a human agent.

By integrating a claims verification model and process into your LLM application, you gain the ability to prevent hallucinations and attribute responses to known resources. This clear and traceable attribution will equip you with the information you need to field questions from stakeholders and provide insight into how you can improve your knowledge.

5. Regression Tests

After optimizing prompts, upgrading models, or introducing new knowledge; you’ll want to ensure that these changes don’t introduce new problems. Earlier, we talked about replaying events and this replay capability should be the basis for creating your test cases. You should be able to save any event as a regression test. Your test-sets should be run individually or in batch as part of a continuous integration pipeline.

The models are moving fast and your LLM application will be under constant pressure to get faster, smarter and cheaper. Test sets will give you the visibility and confidence you need to stay ahead of your competition.

Setting Performance Goals

While the above strategies are essential, it’s also important to evaluate how well your system is achieving its higher-level objectives. This is where performance goals come into play. Goals should be instrumented to track whether your application is successfully meeting the business objectives.

  • Goal Success: Measure how often your application achieves a defined objective, such as confirming an upcoming appointment, rendering an order status, or receiving positive user feedback.
  • Goal Failure: Track instances where the LLM fails to complete a task or requires human assistance.

Keep in mind that an event such as a live agent escalation could be considered success for one type of inquiry, and a failure in a different scenario. Goal instrumentation should provide a high degree of flexibility. By setting clear success and failure criteria for your application, you will be better positioned to evaluate its performance over time and identify areas for improvement.

Applying Segmentation to Hone In

Segmentation is a powerful tool for diving deeper into your LLM application’s performance. By grouping conversations or events based on specific criteria, such as inquiry type, user type or product category; you can focus your analysis on areas that matter most to your application.

For instance, you may want to segment conversations to see if your application behaves differently on web versus mobile, or across sales versus service inquiries. You can also create more complex segments that filter interactions based on specific events, such as when an error occurred or when a specific topic category was in play. Segmentation allows you to tailor your observability efforts to the use cases and specific needs of your business.

Using Funnels for Conversion and Performance Insights

Funnels provide another layer of insight by showing how users progress through a series of steps within a customer journey or conversation. A funnel allows you to visualize drop-offs, identify where users disengage, and track how many complete the intended goal. For example, you can track the steps a customer takes when engaging with your LLM application, from initial inquiry to task completion, and analyze where drop-offs occur.

Funnels can be segmented just like other data, allowing you to drill down by platform, customer type, or interaction type. This helps you understand where improvements are needed and how adjustments to prompts or knowledge bases can enhance the overall experience.

By combining segmentation with funnel analysis, you get a comprehensive view of your LLM’s effectiveness and can pinpoint specific areas for optimization.

A/B Testing for Continuous Improvement

A/B testing is a vital tool for systematically improving LLM application performance by comparing different versions of prompts, responses, or workflows. This method allows you to experiment with variations of the same interaction and measure which version produces better results. For instance, you can test two different prompts to see which one leads to more successful goal completions or fewer errors.

By running A/B tests, you can refine your prompt design, optimize the LLM’s decision-making logic, and improve overall user experience. The results of these tests give you data-backed insights, helping you implement changes with confidence that they’ll positively impact performance.

Additionally, A/B testing can be combined with funnel analysis, allowing you to track how changes affect customer behavior at each step of the journey. This ensures that your optimizations not only improve specific interactions but also lead to better conversion rates and task completions overall.

Final Thoughts on LLM Observability

LLM observability is not just a technical necessity but a strategic advantage. Whether you’re dealing with prompt optimization, function call validation, or auditing sensitive interactions, observability helps you maintain control over the outputs of your LLM application. By leveraging tools such as event debug-replay, regression tests, segmentation, funnel analysis, A/B testing, and claims verification, you will build trust that you have a safe and effective LLM application.

Curious about how Quiq approaches LLM observability? Watch our video on observability in AI Studio:

Ready to talk to our team about LLM observability at your company? Get in touch with us.

Current Large Language Models and How They Compare

Key Takeaways

  • Not all LLMs are created equal: They differ in architecture, size, openness (open vs. closed source), and specialization across industries and tasks.
  • Fine-tuning and RAG improve performance: Custom training or adding external data through retrieval-augmented generation helps LLMs perform better on domain-specific needs.
  • Open vs. closed trade-offs matter: Closed models offer ease and polish, while open models provide flexibility and control for customization.
  • Choosing the right LLM depends on your goals: The best model is the one that aligns with your business priorities, whether that’s speed, accuracy, customization, or cost-efficiency.

From ChatGPT and Bard to BLOOM and Claude, there is a veritable ocean of current LLMs (large language models) for you to choose from. Some are specialized for specific use cases, some are open-source, and there’s a huge variance in the number of parameters they contain.

If you’re a CX leader and find yourself fascinated by the potential of using this technology in your contact center, it can be hard to know how to run proper LLM comparisons.

Today, we’re going to tackle this issue head-on by talking about specific criteria you can use to compare LLMs, sources of additional information, and some of the better-known options.

But always remember that the point of using an LLM is to deliver a world-class customer experience, and the best option is usually the one that delivers multi-model functionality with a minimum of technical overhead.

With that in mind, let’s get started!

What is Generative AI?

While it may seem like large language models (LLMs) and generative AI have only recently emerged, the work they’re based on goes back decades. The journey began in the 1940s with Walter Pitts and Warren McCulloch, who designed artificial neurons based on early brain research. However, practical applications became feasible only after the development of the backpropagation algorithm in 1985, which enabled effective training of larger neural networks.

By 1989, researchers had developed a convolutional system capable of recognizing handwritten numbers. Innovations such as long short-term memory networks further enhanced machine learning capabilities during this period, setting the stage for more complex applications.

The 2000s ushered in the era of big data, crucial for training generative pre-trained models like ChatGPT. This combination of decades of foundational research and vast datasets culminated in the sophisticated generative AI and current LLMs we see transforming contact centers and related industries today.

What’s the Best Way to do a Large Language Models Comparison?

If you’re shopping around for a current LLM for a particular application, it makes sense to first clarify the evaluation criteria you should be using. We’ll cover that in the sections below.

Large Language Models Comparison By Industry Use Case

One of the more remarkable aspects of current LLMs is that they’re good at so many things. Out of the box, most can do very well at answering questions, summarizing text, translating between natural languages, and much more.

But there might be situations in which you’d want to boost the performance of one of the current LLMs on certain tasks. The two most popular ways of doing this are retrieval-augmented generation (RAG) and fine-tuning a pre-trained model.

Here’s a quick recap of what both of these are:

  • Retrieval-augmented generation refers to getting one of the general-purpose, current LLMs to perform better by giving them access to additional resources they can use to improve their outputs. You might hook it up to a contact-center CRM so that it can provide specific details about orders, for example.
  • Fine-tuning refers to taking a pre-trained model and honing it for specific tasks by continuing its training on data related to that task. A generic model might be shown hundreds of polite interactions between customers and CX agents, for example, so that it’s more courteous and helpful.

So, if you’re considering using one of the current LLMs in your business, there are a few questions you should ask yourself. First, are any of them perfectly adequate as-is? If they’re not, the next question is how “adaptable” they are. It’s possible to use RAG or fine-tuning with most of the current LLMs, the question is how easy they make it.

Of course, by far the easiest option would be to leverage a model-agnostic conversational AI platform for CX. These can switch seamlessly between different models, and some support RAG out of the box, meaning you aren’t locked into one current LLM and can always reach for the right tool when needed.

What’s a Good Way To Think About an Open-Source or Closed-Source Large Language Models Comparison?

You’ve probably heard of “open-source,” which refers to the practice of releasing source code to the public so that it can be forked, modified, and scrutinized.

The open-source approach has become incredibly popular, and this enthusiasm has partially bled over into artificial intelligence and machine learning. It is now fairly common to open-source software, datasets, and training frameworks like TensorFlow.

How does this translate to the realm of large language models? In truth, it’s a bit of a mixture. Some models are proudly open-sourced, while others jealously guard their model’s weights, training data, and source code.

This is one thing you might want to consider as you carry out your LLM comparisons. Some of the very best models, like ChatGPT, are closed-source. The downside of using such a model is that you’re entirely beholden to the team that built it. If they make updates or go bankrupt, you could be left scrambling at the last minute to find an alternative solution.

There’s no one-size-fits-all approach here, but it’s worth pointing out that a high-quality enterprise solution will support customization by allowing you to choose between different models (both close-source and open-source). This way, you needn’t concern yourself with forking repos or fret over looming updates, you can just use whichever model performs the best for your particular application.

Getting A Large Language Models Comparison Through Leaderboards and Websites

Instead of doing your LLM comparisons yourself, you could avail yourself of a service built for this purpose.

Whatever rumors you may have heard, programmers are human beings, and human beings have a fondness for ranking and categorizing pretty much everything – sports teams, guitar solos, classic video games, you name it.

Naturally, as current LLMs have become better known, leaderboards and websites have popped up comparing them along all sorts of different dimensions. Here are a few you can use as you search around for the best current LLMs.

Leaderboards for Comparing LLMs

In the past couple of months, leaderboards have emerged which directly compare various current LLMs.

One is AlpacaEval, which uses a custom dataset to compare ChatGPT, Claude, Cohere, and other LLMs on how well they can follow instructions. AlpacaEval boasts high agreement with human evaluators, so in our estimation, it’s probably a suitable way of initially comparing LLMs, though more extensive checks might be required to settle on a final list.

Another good choice is Chatbot Arena, which pits two anonymous models side-by-side, has you rank which one is better, then aggregates all the scores into a leaderboard.

Finally, there is Hugging Face’s Open LLM Leaderboard, which is similar. Anyone can submit a new model for evaluation, which is then assessed based on a small set of key benchmarks from the Eleuther AI Language Model Evaluation Harness. These capture how well the models do in answering simple science questions, common-sense queries, and more, which will be of interest to CX leaders.

When combined with the criteria we discussed earlier, these leaderboards and comparison websites ought to give you everything you need to execute a constructive large language models comparison.

What are the Currently-Available Large Language Models?

Okay! Now that we’ve worked through all this background material, let’s turn to discussing some of the major LLMs that are available today. We make no promises about these entries being comprehensive (and even if they were, there’d be new models out next week), but they should be sufficient to give you an idea as to the range of options you have.

ChatGPT and GPT

Obviously, the titan in the field is OpenAI’s ChatGPT, which is really just a version of GPT that has been fine-tuned through reinforcement learning from human feedback to be especially good at sustained dialogue.

ChatGPT and GPT have been used in many domains, including customer service, question answering, and many others. As of this writing, the most recent GPT is version 4o (note: that’s the letter ‘o’, not the number ‘0’).

LLaMA

In April 2024, Facebook’s AI team released version three of its Large Language Model Meta AI (LLaMa 3). At 70 billion parameters it is not quite as big as GPT; this is intentional, as its purpose is to aid researchers who may not have the budget or expertise required to provision a behemoth LLM.

Gemini

Like GPT-4, Google’s Gemini is aimed squarely at dialogue. It is able to converse on a nearly infinite number of subjects, and from the beginning, the Google team has focused on having Gemini produce interesting responses that are nevertheless absent of abuse and harmful language.

StableLM

StableLM is a lightweight, open-source language model built by Stability AI. It’s trained on a new dataset called “The Pile”, which is itself made up of over 20 smaller, high-quality datasets which together amount to over 825 GB of natural language.

GPT4All

What would you get if you trained an LLM on “…on a massive curated corpus of assistant interactions, which included word problems, multi-turn dialogue, code, poems, songs, and stories,” and then released it on an Apache 2.0 license? The answer is GPT4All, an open-source model whose purpose is to encourage research into what these technologies can accomplish.

BLOOM

The BigScience Large Open-Science Open-Access Multilingual Language Model (BLOOM) was released in late 2022. The team that put it together consisted of more than a thousand researchers from all over the worlds, and unlike the other models on this list, it’s specifically meant to be interpretable.

Pathways Language Model (PaLM)

PaLM is from Google, and is also enormous (540 billion parameters). It excels in many language-related tasks, and became famous when it produced really high-level explanations of tricky jokes. The most recent version is PaLM 2.

Claude

Anthropic’s Claude is billed as a “next-generation AI assistant.” The recent release of Claude 3.5 Sonnet “sets new industry benchmarks” in speed and intelligence, according to materials put out by the company. We haven’t looked at all the data ourselves, but we have played with the model and we know it’s very high-quality.

Command and Command R+

These are models created by Cohere, one of the major commercial platforms for current LLMs. They are comparable to most of the other big models, but Cohere has placed a special focus on enterprise applications, like agents, tools, and RAG.

What are the Best Ways of Overcoming the Limitations of Large Language Models?

Large language models are remarkable tools, but they nevertheless suffer from some well-known limitations. They tend to hallucinate facts, for example, sometimes fail at basic arithmetic, and can get lost in the course of lengthy conversations.

Overcoming the limitations of large language models is mostly a matter of either monitoring them and building scaffolding to enable RAG, or partnering with a conversational AI platform for CX that handles this tedium for you.

An additional wrinkle involves tradeoffs between different models. As we discuss below, sometimes models may outperform the competition on a task like code generation while being notably worse at a task like faithfully following instructions; in such cases, many opt to have an ensemble of models so they can pick and choose which to deploy in a given scenario. (It’s worth pointing out that even if you want to use one model for everything, you’ll absolutely need to swap in an upgraded version of that model eventually, so you still have the same model-management problem.)

This, too, is a place where a conversational AI platform for CX will make your life easier. The best such platforms are model-agnostic, meaning that they can use ChatGPT, Claude, Gemini, or whatever makes sense in a particular situation. This removes yet another headache, smoothing the way for you to use generative AI in your contact center with little fuss.

What are the Best Large Language Models?

Having read the foregoing, it’s natural to wonder if there’s a single model that best suits your enterprise. The answer is “it depends on the specifics of your use case.” You’ll have to think about whether you want an open-source model you control or you’re comfortable hitting an API, whether your use case is outside the scope of ChatGPT and better handled with a bespoke model, etc.

Speaking of use cases, in the next few sections, we’ll offer some advice on which current LLMs are best suited for which applications. However, this advice is based mostly on personal experience and other people’s reports of their experiences. This should be good enough to get you started, but bear in mind that these claims haven’t been born out by rigorous testing and hard evidence—the field is too young for most of that to exist yet.

What’s the Best LLM if I’m on a Budget?

Pretty much any open-source model is given away for free, by definition. You can just Google “free open-source LLMs”, but one of the more frequently recommended open-source models is LLaMA 2 (there’s also the new LLaMA 3), both of which are free.

But many LLMs (both free and paid) also use the data you feed them for training purposes, which means you could be exposing proprietary or sensitive data if you’re not careful. Your best bet is to find a cost-effective platform that has an explicit promise not to use your data for training.

When you deal with an open-source model, you also have to pay for hosting, either your own or through a cloud service like Amazon Bedrock.

What’s the Best LLM for a Large Context Window?

The context window is the amount of text an LLM can handle at a time. When ChatGPT was released, it had a context window of around 4,000 tokens. (A “token” isn’t exactly a word, but it’s close enough for our purposes.)

Generally (and up to a point), the longer the context window the better the model is able to perform. Today’s models generally have context windows of at least a few tens of thousands, and some getting into the lower 100,000 range.

But, at a staggering 1 million tokens–equivalent to an hour-long video or the full text of a long novel–Google’s Gemini simply towers over the others like Hagrid in the Shire.

That having been said, this space moves quickly, and context window length is an active area of research and development. These figures will likely be different next month, so be sure to check the latest information as you begin shopping for a model.

Choosing Among the Current Large Language Models

With all the different LLMs on offer, it’s hard to narrow the search down to the one that’s best for you. By carefully weighing the different metrics we’ve discussed in this article, you can choose an LLM that meets your needs with as little hassle as possible.

Pulling back a bit, let’s close by recalling that the whole purpose of choosing among current LLMs in the first place is to better meet the needs of our customers.

For this reason, you might want to consider working with a conversational AI platform for CX, like Quiq, that puts a plethora of LLMs at your fingertips through one simple interface.

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Frequently Asked Questions (FAQs)

What is a Large Language Model (LLM)?

A Large Language Model (LLM) is an advanced AI system trained on massive text datasets to understand and generate human-like language.

How do different LLMs compare to each other?

LLMs vary in architecture, training data, openness (open vs. closed source), and specialization. Some are optimized for creativity and reasoning, while others excel in technical accuracy or enterprise security.

What’s the difference between open-source and closed-source LLMs?

Open-source LLMs allow full customization and transparency, making them ideal for organizations that want control and flexibility. Closed-source LLMs are proprietary, typically offering higher polish, security support, and easier deployment.

What is Retrieval-Augmented Generation (RAG)?

Retrieval-Augmented Generation is a method that enhances an LLM’s accuracy by allowing it to access external data sources in real time, ensuring responses are grounded in the latest, most relevant information.

How does fine-tuning improve LLM performance?

Fine-tuning adjusts a base model with domain-specific data, improving accuracy and relevance for specialized tasks like customer support, healthcare insights, or financial analysis.

How can I choose the right LLM for my business?

Start by defining your goals: speed, accuracy, cost, or customization. Then, evaluate models against benchmarks, integrations, and data privacy needs to find the best fit for your use case.

What industries benefit most from LLMs?

LLMs are transforming industries like customer experience, education, healthcare, and software development – helping teams automate workflows, summarize data, and personalize communication at scale.

The Truth About APIs for AI: What You Need to Know

Large language models hold a lot of power to improve your customer experience and make your agents more effective, but they won’t do you much good if you don’t have a way to actually access them.

This is where application programming interfaces (APIs) come into play. If you want to leverage LLMs, you’ll either have to build one in-house, use an AI API deployment to interact with an external model, or go with a customer-centric AI for CX platform. The latter choice is most ideal because it offers a guided building environment that removes complexity while providing the tools you need for scalability, observability, hallucination prevention, and more.

From a cost and ease-of-use perspective this third option is almost always best, but there are many misconceptions that could potentially stand in the way of AI API adoption.

In fact, a stronger claim is warranted: to maximize AI API effectiveness, you need a platform to orchestrate between AI, your business logic, and the rest of your CX stack.

Otherwise, it’s useless.

This article aims to bridge the gap between what CX leaders might think is required to integrate a platform, and what’s actually involved. By the end, you’ll understand what APIs are, their role in personalization and scalability, and why they work best in the context of a customer-centric AI for CX platform.

How APIs Facilitate Access to AI Capabilities

Let’s start by defining an API. As the name suggests, APIs are essentially structured protocols that allow two systems (“applications”) to communicate with one another (“interface”). For instance, if you’re using a third-party CRM to track your contacts, you’ll probably update it through an API.

All the well-known foundation model providers (e.g., OpenAI, Anthropic, etc.) have a real-world AI API implementation that allows you to use their service. For an AI API practical example, let’s look at OpenAI’s documentation:

(Let’s take a second to understand what we’re looking at. Don’t worry – we’ll break it down for you. Understanding the basics will give you a sense for what your engineers will be doing.)

The top line points us to a URL where we can access OpenAI’s models, and the next three lines require us to pass in an API key (which is kind of like a password giving access to the platform), our organization ID (a unique designator for our particular company, not unlike a username), and a project ID (a way to refer to this specific project, useful if you’re working on a few different projects at once).

This is only one example, but you can reasonably assume that most protocols built according to AI API best practices will have a similar structure.

This alone isn’t enough to support most AI API use cases, but it illustrates the key takeaway of this section: APIs are attractive because they make it easy to access the capabilities of LLMs without needing to manage them on your own infrastructure, though they’re still best when used as part of a move to a customer-centric AI orchestration platform.

How Do APIs Facilitate Customer Support AI Assistants?

It’s good to understand what APIs are used for in AI assistants. It’s pretty straightforward—here’s the bulk of it:

  • Personalizing customer communications: One of the most exciting real-world benefits of AI is that it enables personalization at scale because you can integrate an LLM with trusted systems containing customer profiles, transaction data, etc., which can be incorporated into a model’s reply. So, for example, when a customer asks for shipping information, you’re not limited to generic responses like “your item will be shipped within 3 days of your order date.” Instead, you can take a more customer-centric approach and offer specific details, such as, “The order for your new couch was placed on Monday, and will be sent out on Wednesday. According to your location, we expect that it’ll arrive by Friday. Would you like to select a delivery window or upgrade to white glove service?”
  • Improving response quality: Generative AI is plagued by a tendency to fabricate information. With an AI API, work can be decomposed into smaller, concrete tasks before being passed to an LLM, which improves performance. You can also do other things to get better outputs, such as create bespoke modifications of the prompt that change the model’s tone, the length of its reply, etc.
  • Scalability and flexibility in deployment: A good customer-centric, AI-for-CX platform will offer volume-based pricing, meaning you can scale up or down as needed. If customer issues are coming in thick and fast (such as might occur during a new product release, or over a holiday), just keep passing them to the API while paying a bit more for the increased load; if things are quiet because it’s 2 a.m., the API just sits there, waiting to spring into action when required and costing you very little.
  • Analyzing customer feedback and sentiment: Incredible insights are waiting within your spreadsheets and databases, if you only know how to find them. This, too, is something APIs help with. If, for example, you need to unify measurements across your organization to send them to a VOC (voice of customer) platform, you can do that with an API.

Looking Beyond an API for AI Assistants

For all this, it’s worth pointing out that there’s still many real-world AI API challenges. By far the quickest way to begin building an AI assistant for CX is to pair with a customer-centric AI platform that removes as much of the difficulty as possible.

The best such platforms not only allow you to utilize a bevy of underlying LLM models, they also facilitate gathering and analyzing data, monitoring and supporting your agents, and automating substantial parts of your workflow.

Crucially, almost all of those critical tasks are facilitated through APIs, but they can be united in a good platform.

3 Common Misconceptions about Customer-Centric AI for CX Platforms.

Now, let’s address some of the biggest myths surrounding the use of AI orchestration platforms.

Myth 1: Working with a customer-centric AI for CX Platform Will be a Hassle

Some CX leaders may worry that working with a platform will be too difficult. There are challenges, to be sure, but a well-designed platform with an intuitive user interface is easy to slip into a broader engineering project.

Such platforms are designed to support easy integration with existing systems, and they generally have ample documentation available to make this task as straightforward as possible.

Myth 2: AI Platforms Cost Too Much

Another concern CX leaders have is the cost of using an AI orchestration platform. Platform costs can add up over time, but this pales in comparison to the cost of building in-house solutions. Not to mention the potential costs associated with the risks that come with building AI in an environment that doesn’t protect you from things like hallucinations.

When you weigh all the factors impacting your decision to use AI in your contact center, the long-run return on using an AI orchestration platform is almost always better.

Myth 3: Customer-Centric AI Platforms are Just Too Insecure

The smart CX leader always has one eye on the overall security of their enterprise, so they may be worried about vulnerabilities introduced by using an AI platform.

This is a perfectly reasonable concern. If you’re trying to choose between a few different providers, it’s worth investigating the security measures they’ve implemented. Specifically, you want to figure out what data encryption and protection protocols they use, and how they think about compliance with industry standards and regulations.

At a minimum, the provider should be taking basic steps to make sure data transmitted to the platform isn’t exposed.

Is an AI Platform Right for Me?

With a platform focused on optimizing CX outcomes, you can quickly bring the awesome power and flexibility of generative AI into your contact center – without ever spinning up a server or fretting over what “backpropagation” means. To the best of our knowledge, this is the cheapest and fastest way to demo this API technology in your workflow to determine whether it warrants a deeper investment.

Does Quiq Train Models on Your Data? No (And Here’s Why.)

Customer experience directors tend to have a lot of questions about AI, especially as it becomes more and more important to the way modern contact centers function.

These can range from “Will generative AI’s well-known tendency to hallucinate eventually hurt my brand?” to “How are large language models trained in the first place?” along with many others.

Speaking of training, one question that’s often top of mind for prospective users of Quiq’s conversational AI platform is whether we train the LLMs we use with your data. This is a perfectly reasonable question, especially given famous examples of LLMs exposing proprietary data, such as happened at Samsung. Needless to say, if you have sensitive customer information, you absolutely don’t want it getting leaked – and if you’re not clear on what is going on with an LLM, you might not have the confidence you need to use one in your contact center.

The purpose of this piece is to assure you that no, we do not train LLMs with your data. To hammer that point home, we’ll briefly cover how models are trained, then discuss the two ways that Quiq optimizes model behavior: prompt engineering and retrieval augmented generation.

How are Large Language Models Trained?

Part of the confusion stems from the fact that the term ‘training’ means different things to different people. Let’s start by clarifying what this term means, but don’t worry–we’ll go very light on technical details!

First, generative language models work with tokens, which are units of language such as a part of a word (“kitch”), a whole word (“kitchen”), or sometimes small clusters of words (“kitchen sink”). When a model is trained, it’s learning to predict the token that’s most likely to follow a string of prior tokens.

Once a model has seen a great deal of text, for example, it learns that “Mary had a little ____” probably ends with the token “lamb” rather than the token “lightbulb.”

Crucially, this process involves changing the model’s internal weights, i.e. its internal structure. Quiq has various ways of optimizing a model to perform in settings such as contact centers (discussed in the next section), but we do not change any model’s weights.

How Does Quiq Optimize Model Behavior?

There are a few basic ways to influence a model’s output. The two used by Quiq are prompt engineering and retrieval augmented generation (RAG), neither of which does anything whatsoever to modify a model’s weights or its structure.

In the next two sections, we’ll briefly cover each so that you have a bit more context on what’s going on under the hood.

Prompt Engineering

Prompt engineering involves changing how you format the query you feed the model to elicit a slightly different response. Rather than saying, “Write me some social media copy,” for example, you might also include an example outline you want the model to follow.

Quiq uses an approach to prompt engineering called “atomic prompting,” wherein the process of generating an answer to a question is broken down into multiple subtasks. This ensures you’re instructing a Large Language Model in a smaller context with specific, relevant task information, which can help the model perform better.

This is not the same thing as training. If you were to train or fine-tune a model on company-specific data, then the model’s internal structure would change to represent that data, and it might inadvertently reveal it in a future reply. However, including the data in a prompt doesn’t carry that risk because prompt engineering doesn’t change a model’s weights.

Retrieval Augmented Generation (RAG)

RAG refers to giving a language model an information source – such as a database or the Internet – that it can use to improve its output. It has emerged as the most popular technique to control the information the model needs to know when generating answers.

As before, that is not the same thing as training because it does not change the model’s weights.

RAG doesn’t modify the underlying model, but if you connect it to sensitive information and then ask it a question, it may very well reveal something sensitive. RAG is very powerful, but you need to use it with caution. Your AI development platform should provide ways to securely connect to APIs that can help authenticate and retrieve account information, thus allowing you to provide customers with personalized responses.

This is why you still need to think about security when using RAG. Whatever tools or information sources you give your model must meet the strictest security standards and be certified, as appropriate.

Quiq is one such platform, built from the ground-up with data security (encryption in transit) and compliance (SOC 2 certified) in mind. We never store or use data without permission, and we’ve crafted our tools so it’s as easy as possible to utilize RAG on just the information stores you want to plug a model into. Being a security-first company, this extends to our utilization of Large Language Models and agreements with AI providers like Microsoft Open AI.

Wrapping Up on How Quiq Trains LLMs

Hopefully, you now have a much clearer picture of what Quiq does to ensure the models we use are as performant and useful as possible. With them, you can make your customers happier, improve your agents’ performance, and reduce turnover at your contact center.

Does GenAI Leak Your Sensitive Data? Exposing Common AI Misconceptions (Part Three)

This is the final post in a three-part series clarifying the biggest misconceptions holding CX leaders like you back from integrating GenAI into their CX strategies. Our goal? To assuage your fears and help you start getting real about adding an AI Assistant to your contact center — all in a fun “two truths and a lie” format.

There are few faux pas as damaging and embarrassing for brands as sensitive data getting into the wrong hands. So it makes sense that data security concerns are a major deterrent for CX leaders thinking about getting started with GenAI.

In the first post of our AI Misconceptions series, we discussed why your data is definitely good enough to make GenAI work for your business. Next, we explored the different types of hallucinations that CX leaders should be aware of, and how they are 100% preventable with the right guardrails in place.

Now, let’s wrap up our series by exposing the truth about GenAI potentially leaking your company or customer data.

Misconception #3: “GenAI inadvertently leaks sensitive data.”

As we discussed in part one, AI needs training data to work. One way to collect that data is from the questions users ask. For example, if a large language model (LLM) is asked to summarize a paragraph of text, that text could be stored and used to train future models.

Unfortunately, there have been some famous examples of companies’ sensitive information becoming part of datasets used to train LLMs — take Samsung, for instance. Because of this, CX leaders often fear that using GenAI will result in their company’s proprietary data being disclosed when users interact with these models.

Truth #1: Public GenAI tools use conversation data to train their models.

Tools like OpenAI’s ChatGPT and Google Gemini (formerly Bard) are public-facing and often free — and that’s because their purpose is to collect training data. This means that any information that users enter while using these tools is free game to be used for training future models.

This is precisely how the Samsung data leak happened. The company’s semiconductor division allowed its engineers to use ChatGPT to check their source code. Not only did multiple employees copy/paste confidential code into ChatGPT, but one team member even used the tool to transcribe a recording of an internal-only meeting!

Truth #2: Properly licensed GenAI is safe.

People often confuse ChatGPT, the application or web portal, with the LLM behind it. While the free version of ChatGPT collects conversation data, OpenAI offers an enterprise LLM that does not. Other LLM providers offer similar enterprise licenses that specify that all interactions with the LLM and any data provided will not be stored or used for training purposes.

When used through an enterprise license, LLMs are also Service Organization Control Type 2, or SOC 2, compliant. This means they have to undergo regular audits from third parties to prove that they have the processes and procedures in place to protect companies’ proprietary data and customers’ personally identifiable information (PII).

The Lie: Enterprises must use internally-developed models only to protect their data.

Given these concerns over data leaks and hallucinations, some organizations believe that the only safe way to use GenAI is to build their own AI models. Case in point: Samsung is now “considering building its own internal AI chatbot to prevent future embarrassing mishaps.”

However, it’s simply not feasible for companies whose core business is not AI to build AI that is as powerful as commercially available LLMs — even if the company is as big and successful as Samsung. Not to mention the opportunity cost and risk of having your technical resources tied up in AI instead of continuing to innovate on your core business.

It’s estimated that training the LLM behind ChatGPT cost upwards of $4 million. It also required specialized supercomputers and access to a data set equivalent to nearly the entire Internet. And don’t forget about maintenance: AI startup Hugging Face recently revealed that retraining its Bloom LLM cost around $10 million.

GenAI Misconceptions

Using a commercially available LLM provides enterprises with the most powerful AI available without breaking the bank— and it’s perfectly safe when properly licensed. However, it’s also important to remember that building a successful AI Assistant requires much more than developing basic question/answer functionality.

Finding a Conversational CX Platform that harnesses an enterprise-licensed LLM, empowers teams to build complex conversation flows, and makes it easy to monitor and measure Assistant performance is a CX leader’s safest bet. Not to mention, your engineering team will thank you for giving them optionality for the control and visibility they want—without the risk and overhead of building it themselves!

Feel Secure About GenAI Data Security

Companies that use free, public-facing GenAI tools should be aware that any information employees enter can (and most likely will) be used for future model-training purposes.

However, properly-licensed GenAI will not collect or use your data to train the model. Building your own GenAI tools for security purposes is completely unnecessary — and very expensive!

Will GenAI Hallucinate and Hurt Your Brand? Exposing Common AI Misconceptions (Part Two)

This is the second post in a three-part series clarifying the biggest misconceptions holding CX leaders like you back from integrating GenAI into their CX strategies. Our goal? To assuage your fears and help you start getting real about adding an AI Assistant to your contact center — all in a fun “two truths and a lie” format.

Did you know that the Golden Gate Bridge was transported for the second time across Egypt in October of 2016?

Or that the world record for crossing the English Channel entirely on foot is held by Christof Wandratsch of Germany, who completed the crossing in 14 hours and 51 minutes on August 14, 2020?

Probably not, because GenAI made these “facts” up. They’re called hallucinations, and AI hallucination misconceptions are holding a lot of CX leaders back from getting started with GenAI.

In the first post of our AI Misconceptions series, we discussed why your data is definitely good enough to make GenAI work for your business. In fact, you actually need a lot less data to get started with an AI Assistant than you probably think.

Now, we’re debunking AI hallucination myths and separating some of the biggest AI hallucination facts from fiction. Could adding an AI Assistant to your contact center put your brand at risk? Let’s find out.

Misconception #2: “GenAI will hallucinate and hurt my brand.”

While the example hallucinations provided above are harmless and even a little funny, this isn’t always the case. Unfortunately, there are many examples of times chatbots have cussed out customers or made racist or sexist remarks. This causes a lot of concern among CX leaders looking to use an AI Assistant to represent their brand.

Truth #1: Hallucinations are real (no pun intended).

Understanding AI hallucinations hinges on realizing that GenAI wants to provide answers — whether or not it has the right data. Hallucinations like those in the examples above occur for two common reasons.

AI-Induced Hallucinations Explained:

  1. The large language model (LLM) simply does not have the correct information it needs to answer a given question. This is what causes GenAI to get overly creative and start making up stories that it presents as truth.
  2. The LLM has been given an overly broad and/or contradictory dataset. In other words, the model gets confused and begins to draw conclusions that are not directly supported in the data, much like a human would do if they were inundated with irrelevant and conflicting information on a particular topic.

Truth #2: There’s more than one type of hallucination.

Contrary to popular belief, hallucinations aren’t just incorrect answers: They can also be classified as correct answers to the wrong questions. And these types of hallucinations are actually more common and more difficult to control.

For example, imagine a company’s AI Assistant is asked to help troubleshoot a problem that a customer is having with their TV. The Assistant could give the customer correct troubleshooting instructions — but for the wrong television model. In this case, GenAI isn’t wrong, it just didn’t fully understand the context of the question.

GenAI Misconceptions

The Lie: There’s no way to prevent your AI Assistant from hallucinating.

Many GenAI “bot” vendors attempt to fine-tune an LLM, connect clients’ knowledge bases, and then trust it to generate responses to their customers’ questions. This approach will always result in hallucinations. A common workaround is to pre-program “canned” responses to specific questions. However, this leads to unhelpful and unnatural-sounding answers even to basic questions, which then wind up being escalated to live agents.

In contrast, true AI Assistants powered by the latest Conversational CX Platforms leverage LLMs as a tool to understand and generate language — but there’s a lot more going on under the hood.

First of all, preventing hallucinations is not just a technical task. It requires a layer of business logic that controls the flow of the conversation by providing a framework for how the Assistant should respond to users’ questions.

This framework guides a user down a specific path that enables the Assistant to gather the information the LLM needs to give the right answer to the right question. This is very similar to how you would train a human agent to ask a specific series of questions before diagnosing an issue and offering a solution. Meanwhile, in addition to understanding what the intent of the customer’s question is, the LLM can be used to extract additional information from the question.

Referred to as “pre-generation checks,” these filters are used to determine attributes such as whether the question was from an existing customer or prospect, which of the company’s products or services the question is about, and more. These checks happen in the background in mere seconds and can be used to select the right information to answer the question. Only once the Assistant understands the context of the client’s question and knows that it’s within scope of what it’s allowed to talk about does it ask the LLM to craft a response.

But the checks and balances don’t end there: The LLM is only allowed to generate responses using information from specific, trusted sources that have been pre-approved, and not from the dataset it was trained on.

In other words, humans are responsible for providing the LLM with a source of truth that it must “ground” its response in. In technical terms, this is called Retrieval Augmented Generation, or RAG — and if you want to get nerdy, you can read all about it here!

Last but not least, once a response has been crafted, a series of “post- generation checks” happens in the background before returning it to the user. You can check out the end-to-end process in the diagram below:

RAG

Give Hallucination Concerns the Heave-Ho

To sum it up: Yes, hallucinations happen. In fact, there’s more than one type of hallucination that CX leaders should be aware of.

However, now that you understand the reality of AI hallucination, you know that it’s totally preventable. All you need are the proper checks, balances, and guardrails in place, both from a technical and a business logic standpoint.

Is Your CX Data Good Enough for GenAI? Exposing Common AI Misconceptions (Part One)

If you’re feeling unprepared for the impact of generative artificial intelligence (GenAI), you’re not alone. In fact, nearly 85% of CX leaders feel the same way. But the truth is that the transformative nature of this technology simply can’t be ignored — and neither can your boss, who asked you to look into it.

We’ve all heard horror stories of racist chatbots and massive data leaks ruining brands’ reputations. But we’ve also seen statistics around the massive time and cost savings brands can achieve by offloading customers’ frequently asked questions to AI Assistants. So which is it?

This is the first post in a three-part series clarifying the biggest misconceptions holding CX leaders like you back from integrating GenAI into their CX strategies. Our goal? To assuage your fears and help you start getting real about adding an AI Assistant to your contact center — all in a fun “two truths and a lie” format. Prepare to have your most common AI misconceptions debunked!

Misconception #1: “My data isn’t good enough for GenAI.”

Answering customer inquiries usually requires two types of data:

  1. Knowledge (e.g. an order return policy) and
  2. Information from internal systems (e.g. the specific details of an order).

It’s easy to get caught up in overthinking the impact of data quality on AI performance and wondering whether or not your knowledge is even good enough to make an AI Assistant useful for your customers.

Updating hundreds of help desk articles is no small task, let alone building an entire knowledge base from scratch. Many CX leaders are worried about the amount of work it will require to clean up their data and whether their team has enough resources to support a GenAI initiative. In order for GenAI to be as effective as a human agent, it needs the same level of access to internal systems as human agents.

Truth #1: You have to have some amount of data.

Data is necessary to make AI work — there’s no way around it. You must provide some data for the model to access in order to generate answers. This is one of the most basic AI performance factors.

But we have good news: You need a lot less data than you think.

One of the most common myths about AI and data in CX is that it’s necessary to answer every possible customer question. Instead, focus on ensuring you have the knowledge necessary to answer your most frequently asked questions. This small step forward will have a major impact for your team without requiring a ton of time and resources to get started

Truth #2: Quality matters more than quantity.

Given the importance of relevant data in AI, a few succinct paragraphs of accurate information is better than volumes of outdated or conflicting documentation. But even then, don’t sweat the small stuff.

For example, did a product name change fail to make its way through half of your help desk articles? Are there unnecessary hyperlinks scattered throughout? Was it written for live agents versus customers?

No problem — the right Conversational CX Platform can easily address these AI data dependency concerns without requiring additional support from your team.

The Lie: Your data has to be perfectly unified and specifically formatted to train an AI Assistant.

Don’t worry if your data isn’t well-organized or perfectly formatted. The reality is that most companies have services and support materials scattered across websites, knowledge bases, PDFs, .csvs, and dozens of other places — and that’s okay!

Today, the tools and technology exist to make aggregating this fragmented data a breeze. They’re then able to cleanse and format it in a way that makes sense for a large language model (LLM) to use.

For example if you have an agent training manual in Google Docs and a product manual in PDF, this information can be disassembled, reformatted, and rewritten by an AI-powered transformation that makes it subsequently usable.

What’s more, the data used by your AI Assistant should be consistent with the data you use to train your human agents. This means that not only is it not required to build a special repository of information for your AI Assistant to learn from, but it’s not recommended. The very best AI platforms take on the work of maintaining this continuity by automatically processing and formatting new information for your Assistant as it’s published, as well as removing any information that’s been deleted.

Put Those Data Doubts to Bed

Now you know that your data is definitely good enough for GenAI to work for your business. Yes, quality matters more than quantity, but it doesn’t have to be perfect.

The technology exists to unify and format your data so that it’s usable by an LLM. And providing knowledge around even a handful of frequently asked questions can give your team a major lift right out the gate.

5 Tips for Coaching Your Contact Center Agents to Work with AI

Generative AI has enormous potential to change the work done at places like contact centers. For this reason, we’ve spent a lot of energy covering it, from deep dives into the nuts and bolts of large language models to detailed advice for managers considering adopting it.

Here, we will provide tips on using AI tools to coach, manage, and improve your agents.

How Will AI Make My Agents More Productive?

Contact centers can be stressful places to work, but much of that stems from a paucity of good training and feedback. If an agent doesn’t feel confident in assuming their responsibilities or doesn’t know how to handle a tricky situation, that will cause stress.

Tip #1: Make Collaboration Easier

With the right AI tools for coaching agents, you can get state-of-the-art collaboration tools that allow agents to invite their managers or colleagues to silently appear in the background of a challenging issue. The customer never knows there’s a team operating on their behalf, but the agent won’t feel as overwhelmed. These same tools also let managers dynamically monitor all their agents’ ongoing conversations, intervening directly if a situation gets out of hand.

Agents can learn from these experiences to become more performant over time.

Tip #2: Use Data-Driven Management

Speaking of improvement, a good AI platform will have resources that help managers get the most out of their agents in a rigorous, data-driven way. Of course, you’re probably already monitoring contact center metrics, such as CSAT and FCR scores, but this barely scratches the surface.

What you really need is a granular look into agent interactions and their long-term trends. This will let you answer questions like “Am I overstaffed?” and “Who are my top performers?” This is the only way to run a tight ship and keep all the pieces moving effectively.

Tip #3: Use AI To Supercharge Your Agents

As its name implies, generative AI excels at generating text, and there are several ways this can improve your contact center’s performance.

To start, these systems can sometimes answer simple questions directly, which reduces the demands on your team. Even when that’s not the case, however, they can help agents draft replies, or clean up already-drafted replies to correct errors in spelling and grammar. This, too, reduces their stress, but it also contributes to customers having a smooth, consistent, high-quality experience.

Tip #4: Use AI to Power Your Workflows

A related (but distinct) point concerns how AI can be used to structure the broader work your agents are engaged in.

Let’s illustrate using sentiment analysis, which makes it possible to assess the emotional state of a person doing something like filing a complaint. This can form part of a pipeline that sorts and routes tickets based on their priority, and it can also detect when an issue needs to be escalated to a skilled human professional.

Tip #5: Train Your Agents to Use AI Effectively

It’s easy to get excited about what AI can do to increase your efficiency, but you mustn’t lose sight of the fact that it’s a complex tool your team needs to be trained to use. Otherwise, it’s just going to be one more source of stress.

You need to have policies around the situations in which it’s appropriate to use AI and the situations in which it’s not. These policies should address how agents should deal with phenomena like “hallucination,” in which a language model will fabricate information.

They should also contain procedures for monitoring the performance of the model over time. Because these models are stochastic, they can generate surprising output, and their behavior can change.

You need to know what your model is doing to intervene appropriately.

Wrapping Up

Hopefully, you’re more optimistic about what AI can do for your contact center, and this has helped you understand how to make the most out of it.

If there’s anything else you’d like to go over, you’re always welcome to request a demo of the Quiq platform. Since we focus on contact centers we take customer service pretty seriously ourselves, and we’d love to give you the context you need to make the best possible decision!

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AI Gold Rush: How Quiq Won the Land Grab for AI Contact Centers (& How You Can Benefit)

There have been many transformational moments throughout the history of the United States, going back all the way to its unique founding.

Take for instance the year 1849.

For all of you SFO 49ers fans (sorry, maybe next year), you are very well aware of the land grab that was the birth of the state of California. That year, tens of thousands of people from the Eastern United States flocked to the California Territory hoping to strike it rich in a placer gold strike.

A lesser-known fact of that moment in history is that the gold strike in California was actually in 1848. And while all of those easterners were lining up for the rush, a small number of people from Latin America and Hawaii were already in production, stuffing their pockets full of nuggets.

176 years later, AI is the new gold rush.

Fast forward to 2024, a new crowd is forming, working toward the land grab once again. Only this time, it’s not physical.

It’s AI in the contact center.

Companies are building infrastructure, hiring engineers, inventing tools, and trying to figure out how to build a wagon that won’t disintegrate on the trail (AKA hallucinate).

While many of those companies are going to make it to the gold fields, one has been there since 2023, and that is Quiq.

Yes, we’ve been mining LLM gold in the contact center since July of 2023 when we released our first customer-facing Generative AI assistant for Loop Insurance. Since then, we have released over a dozen more and have dozens more under construction. More about the quality of that gold in a bit.

This new gold rush in the AI space is becoming more crowded every day.

Everyone is saying they do Generative AI in one way, shape, or form. Most are offering some form of Agent Assist using LLM technologies, keeping that human in the loop and relying on small increments of improvement in AHT (Average Handle Time) and FCR (First Contact Resolution).

However, there is a difference when it comes to how platforms are approaching customer-facing AI Assistants.

Actually, there are a lot of differences. That’s a big reason we invented AI Studio.

AI Studio: Get your shovels and pick axes.

Since we’ve been on the bleeding edge of Generative AI CX deployments, we created called AI Studio. We saw that there was a gap for CX teams, with the myriad of tools they would have had to stitch together and stay focused on business outcomes.

AI Studio is a complete toolkit to empower companies to explore nuances in their AI use within a conversational development environment that’s tailored for customer-facing CX.

That last part is important: Customer-facing AI assistants, which teams can create together using AI Studio. Going back to our gold rush comparison, AI Studio is akin to the pick axes and shovels you need.

Only success is guaranteed and the proverbial gold at the end of the journey is much, much more enticing—precisely because customer-facing AI applications tend to move the needle dramatically further than simpler Agent Assist LLM builds.

That brings me to the results.

So how good is our gold?

Early results are showing that our LLM implementations are increasing resolution rates 50% to 100% above what was achieved using legacy NLU intent-based models, with resolution rates north of 60% in some FAQ-heavy assistants.

Loop Insurance saw a 55% reduction in email tickets in their contact center.

Secondly, intent matching has more than doubled, meaning the percentage of correctly identified intents (especially when there are multiple intents) are being correctly recognized and responded to, which directly correlates to correct answers, fewer agent contacts, and satisfied customers.

That’s just the start though. Molekule hit a 60% resolution rate with a Quiq-built LLM-powered AI assistant. You can read all about that in our case study here.

And then there’s Accor, whose AI assistant across four Rixos properties has doubled (yes, 2X’ed) click-outs on booking links. Check out that case study here.

What’s next?

Like the miners in 1848, digging as much gold out of the ground as possible before the land rush, Quiq sits alone, out in front of a crowd lining up for a land grab.

With a dozen customer-facing LLM-powered AI assistants already living in the market producing incredible results, we have pioneered a space that will be remembered in history as a new day in Customer Experience.

Interested in harnessing Quiq’s power for your CX or contact center? Send us a demo request or get in touch another way and let’s talk.

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Google Business Messages: Meet Your Customers Where They’re At

The world is a distracted and distracting place; between all the alerts, the celebrity drama on Twitter, and the fact that there are more hilarious animal videos on YouTube than you could ever hope to watch even if it were your full-time job, it takes a lot to break through the noise.

That’s one reason customer service-oriented businesses like contact centers are increasingly turning to text messaging. Not only are cell phones all but ubiquitous, but many people have begun to prefer text-message-based interactions to calls, emails, or in-person visits.

In this article, we’ll cover one of the biggest text-messaging channels: Google Business Messages. We’ll discuss what it is, what features it offers, and various ways of leveraging it to the fullest.

Let’s get going!

Learn More About the End of Google Business Messages

 

What is Google Business Messages?

Given that more than nine out of ten online searches go through Google, we will go out on a limb and assume you’ve heard of the Mountain View behemoth. But you may not be aware that Google has a Business Message service that is very popular among companies, like contact centers, that understand the advantages of texting their customers.

Business Messages allows you to create a “messaging surface” on Android or Apple devices. In practice, this essentially means that you can create a little “chat” button that your customers can use to reach out to you.

Behind the scenes, you will have to register for Business Messages, creating an “agent” that your customers will interact with. You have many configuration options for your Business Messages workflows; it’s possible to dynamically route a given message to contact center agents at a specific location, have an AI assistant powered by large language models generate a reply (more on this later), etc.

Regardless of how the reply is generated, it is then routed through the API to your agent, which is what actually interacts with the customer. A conversation is considered over when both the customer and your agent cease replying, but you can resume a conversation up to 30 days later.

What’s the Difference Between Google RCS and Google Business Messages?

It’s easy to confuse Google’s Rich Communication Services (RCS) and Google Business Messages. Although the two are similar, it’s nevertheless worth remembering their differences.

Long ago, text messages had to be short, sweet, and contain nothing but words. But as we all began to lean more on text messaging to communicate, it became necessary to upgrade the basic underlying protocol. This way, we could also use video, images, GIFs, etc., in our conversations.

“Rich” communication is this upgrade, but it’s not relegated to emojis and such. RCS is also quickly becoming a staple for businesses that want to invest in livelier exchanges with their customers. RCS allows for custom logos and consistent branding, for example; it also makes it easier to collect analytics, insert QR codes, link out to calendars or Maps, etc.

As discussed above, Business Messages is a mobile messaging channel that integrates with Google Maps, Search, and brand websites, offering rich, asynchronous communication experiences. This platform not only makes customers happy but also contributes to your business’s bottom line through reduced call volumes, improved CSAT, and better conversion rates.

Importantly, Business Messages are sometimes also prominently featured in Google search results, such as answer cards, place cards, and site links.

In short, there is a great deal of overlap between Google Business Messages and Google RCS. But two major distinctions are that RCS is not available on all Android devices (where Business Messages is), and Business Messages doesn’t require you to have a messaging app installed (where RCS does).

The Advantages of Google Business Messaging

Google Business Messaging has many distinct advantages to offer the contact center entrepreneur. In the next few sections, we’ll discuss some of the biggest.

It Supports Robust Encryption

A key feature of Business Messages is that its commitment to security and privacy is embodied through powerful, end-to-end encryption.

What exactly does end-to-end encryption entail? In short, it ensures that a message remains secure and unreadable from the moment the sender types it to whenever the recipient opens it, even if it’s intercepted in transit. This level of security is baked in, requiring no additional setup or adjustments to security settings by the user.

The significance of this feature cannot be overstated. Today, it’s not at all uncommon to read about yet another multi-million-dollar ransomware attack or a data breach of staggering proportions. This has engendered a growing awareness of (and concern for) data security, meaning that present and future customers will value those platforms that make it a central priority of their offering.

By our estimates, this will only become more important with the rise of generative AI, which has made it increasingly difficult to trust text, images, and even movies seen online—none of which was particularly trustworthy even before it became possible to mass-produce them.

If you successfully position yourself as a pillar your customers can lean on, that will go a long way toward making you stand out in a crowded market.

It Makes Connecting With Customers Easier

Another advantage of Google Business Messages is that it makes it much easier to meet customers where they are. And where we are is “on our phones.”

Now, this may seem too obvious to need pointing out. After all, if your customers are texting all day and you’re launching a text-messaging channel of communication, then of course you’ll be more accessible.

But there’s more to this story. Google Business Messaging allows you to seamlessly integrate with other Google services, like Google Maps. If a customer is trying to find the number for your contact center, therefore, they could instead get in touch simply by clicking the “CHAT” button.

This, too, may seem rather uninspiring because it’s not as though it’s difficult to grab the number and call. But even leaving aside the rising generations’ aversion to making phone calls, there’s a concept known as “trivial inconvenience” that’s worth discussing in this context.

Here’s an example: if you want to stop yourself from snacking on cookies throughout the day, you don’t have to put them on the moon (though that would help). Usually, it’s enough to put them in the next room or downstairs.

Though this only slightly increases the difficulty of accessing your cookie supply, in most cases, it introduces just enough friction to substantially reduce the number of cookies you eat (depending on the severity of your Oreo addiction, of course).

Well, the exact same dynamic works in reverse. Though grabbing your contact center’s phone number from Google and calling you requires only one or two additional steps, that added work will be sufficient to deter some fraction of customers from reaching out. If you want to make yourself easy to contact, there’s no substitute for a clean integration directly into the applications your customers are using, and that’s something Google Business Messages can do extremely well.

It’s Scalable and Supports Integrations

According to legend, the name “Google” originally came from a play on the word “Googol,” which is a “1” followed by a 100 “0”s. Google, in other words, has always been about scale, and that is reflected in the way its software operates today. For our purposes, the most important manifestation of this is the scalability of their API. Though you may currently be operating at a few hundred or a few thousand messages per day, if you plan on growing, you’ll want to invest early in communication channels that can grow along with you.

But this is hardly the end of what integrations can do for you. If you’re in the contact center business there’s a strong possibility that you’ll eventually end up using a large language model like ChatGPT in order to answer questions more quickly, offboard more routine tasks, etc. Unless you plan on dropping millions of dollars to build one in-house, you’ll want to partner with an AI-powered conversational platform. As you go about finding a good vendor, make sure to assess the features they support. The best platforms have many options for increasing the efficiency of your agents, such as reusable snippets, auto-generated suggestions that clean up language and tone, and dashboarding tools that help you track your operation in detail.

Best Practices for Using Google Business Messages

Here, in the penultimate section, we’ll cover a few optimal ways of utilizing Google Business Messages.

Reply in a Timely Fashion

First, it’s important that you get back to customers as quickly as you’re able to. As we noted in the introduction, today’s consumers are perpetually drinking from a firehose of digital information. If it takes you a while to respond to their query, there’s a good chance they’ll either forget they reached out (if you’re lucky) or perceive it as an unpardonable affront and leave you a bad review (if you’re not).

An obvious way to answer immediately is with an automated message that says something like, “Thanks for your question. We’ll respond to you soon!” But you can’t just leave things there, especially if the question requires a human agent to intervene.

Whatever automated system you implement, you need to monitor how well your filters identify and escalate the most urgent queries. Remember that an agent might need a few hours to answer a tricky question, so factor that into your procedures.

This isn’t just something Google suggests; it’s codified in its policies. If you leave a Business Messages chat unanswered for 24 hours, Google might actually deactivate your company’s ability to use chat features.

Don’t Ask for Personal Information

As hackers have gotten more sophisticated, everyday consumers have responded by raising their guard.

On the whole, this is a good thing and will lead to a safer and more secure world. But it also means that you need to be extremely careful not to ask for anything like a social security number or a confirmation code via a service like Business Messages. What’s more, many companies are opting to include a disclaimer to this effect near the beginning of any interactions with customers.

Earlier, we pointed out that Business Messages supports end-to-end encryption, and having a clear, consistent policy about not collecting sensitive information fits into this broader picture. People will trust you more if they know you take their privacy seriously.

Make Business Messages Part of Your Overall Vision

Google Business Messages is a great service, but you’ll get the most out of it if you consider how it is part of a more far-reaching strategy.

At a minimum, this should include investing in other good communication channels, like Apple Messages and WhatsApp. People have had bitter, decades-long battles with each other over which code editor or word processor is best, so we know that they have strong opinions about the technology that they use. If you have many options for customers wanting to contact you, that’ll boost their satisfaction and their overall impression of your contact center.

The prior discussion of trivial inconveniences is also relevant here. It’s not hard to open a different messaging app under most circumstances, but if you don’t force a person to do that, they’re more likely to interact with you.

Schedule a Demo with Quiq

Google has been so monumentally successful its name is now synonymous with “online search.” Even leaving aside rich messaging, encryption, and everything else we covered in this article, you can’t afford to ignore Business Messages for this reason alone.

But setting up an account is only the first step in the process, and it’s much easier when you have ready-made tools that you can integrate on day one. The Quiq conversational AI platform is one such tool, and it has a bevy of features that’ll allow you to reduce the workloads on your agents while making your customers even happier. Check us out or schedule a demo to see what we can do for you!

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