AI answering services: what are they and how to pick one?

Artificial intelligence is growing fast, and it’s revolutionizing different industries. 

Today we'll talk about the growth of AI in telecommunications. 

Imagine a world where every customer query is answered instantly, accurately, and without the need for human intervention. 

Wait, what? Is it possible? Yes.

AI answering services are revolutionizing the customer service landscape. 

How? They are capable of understanding and responding to a wide array of queries, from simple FAQs to complex support issues, making them indispensable tools for modern businesses.

In this blog post, we'll dive into how AI answering services work, explore different use cases and their benefits, and share how to pick the best service for your company. You'll discover how integrating AI into your customer service strategy can enhance efficiency, and also provide a seamless, satisfying experience for your customers.

What is an AI answering service?

Let’s start with a quick definition.

An AI answering service is a technology-driven solution that uses artificial intelligence to automatically respond to customer inquiries and support their requests. 

These services leverage natural language processing and machine learning algorithms to understand, interpret, and provide accurate answers to a wide range of questions, offering instant and efficient customer support without the need for human intervention.

Here’s what an AI answering service can sound like from a customer point of view:

Now, let’s take a look at how an AI answering system works.

How does an AI phone answering system work?

First, the service needs to understand what callers say. To do so, it relies on Automatic Speech Recognition (ASR), which converts spoken words into text. The ASR system captures the audio input from the caller, and transcribes them into a text format that the AI can understand.

Once the speech is converted to text, Natural Language Processing (NLP) comes into play. NLP algorithms analyze the text to understand the context, intent, and meaning behind the caller's words. This involves parsing the text, identifying key phrases, and determining the overall intent of the query.

The system then uses machine learning models to recognize the caller's intent. Based on the recognized intent, the AI decides on the appropriate action, which could be providing an answer, asking for more information, taking a voicemail or routing the call to a human agent.

When the action has been determined, the system generates a text response that is then converted back into speech using Text-to-Speech (TTS) technology. The TTS engine synthesizes a human-like voice to deliver the response to the caller, ensuring a smooth and natural conversation flow.

At Allô, we rely on ElevenLabs to generate the voice response. Here’s what it can sound like:

AI answering services continuously learn and improve over time. They collect data from each interaction, which is then used to refine and enhance the models. This iterative process helps the system become more accurate and efficient in understanding and responding to queries.

How does an AI phone answering service compare with traditional answering services?

In short, while traditional phone answering services excel in providing a personal touch and handling complex queries, AI phone answering services offer significant advantages in terms of efficiency, consistency, scalability, and cost-effectiveness. 

The choice between the two depends on the specific needs and priorities of the business.

Here’s a more detailed comparison.

Now, let’s cover the features that you can expect from an AI call answering service.

What are the key features of an AI answering service?

While AI services differ from one to the other. They usually offer the following options:

• Customizable Greetings: AI answering services usually let you create a professional and personalized greeting that reflects your brand identity and sets the tone for the interaction.

• Multi-Language Support: Most AI services support multiple languages, allowing you to expand your reach.
• Call Routing: AI answering systems can direct calls to the most appropriate department or staff member based on the caller's needs. This ensures efficient problem-solving and avoids frustrating call transfers.
• Appointment Scheduling: these systems also simplify scheduling by integrating with your existing calendar or scheduling software. This allows callers to book appointments directly through the phone.

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• SMS Notifications: some AI assistants can send text messages to keep callers informed about their inquiries, appointments, or order confirmations.
• Call Transcription and Summarization: AI assistants transcribe calls and provide summaries, allowing you to easily review interactions and follow up effectively.

• Reporting and Analytics: these platforms usually provide valuable insights into call volume, caller demographics, and common inquiries. You can then use this data to optimize your AI assistant's performance and make data-driven business decisions.

What are the main benefits of using an AI phone answering assistant?

Increased revenue

AI assistants usually translate into more revenue because:

• They work around the clock, allowing you to capture more business.
• They answer immediately to your clients, which usually translates into a higher deal closing rate.

Time savings

AI phone answering services avoid a lot of calls.

On average, our users receive 115 calls per month, with an average duration per call of 2 minutes and 13 seconds. So, in total, they save 4h15 per month.

They also save time because Âllo pre-qualifies the callers and avoids spending time with prospects who are not a good fit for the company.

These systems are also quicker to set up than a traditional phone answering service.

Data-Driven Insights

AI systems collect and store valuable data from each interaction, creating a rich repository of information. By thoroughly analyzing these insights, you can identify emerging trends, gain a deeper understanding of customer needs and preferences, and make more informed business decisions. 

Cost savings

If you’re already working with a traditional answering service, you’re likely to save money by switching to an AI answering system.

While the latter charge for each call they handle, most AI answering services charge a reasonably priced monthly subscription.

Curious to understand how much you’ll save? Let’s take a look at the cost of the most popular AI telephone answering services.

How much does an AI answering service cost?

Prices for an AI answering service vary a lot depending on the provider, but also the options that you select and for some of them, the number of minutes spent answering your calls.

While reviewing the most popular services, we found prices ranging from $29/month for the cheapest Dialzara plan to $299/month for Slang.ai.

Now, let’s take a deeper look at these services.

What are the best AI answering services?

Now, let’s start this comparison with a disclaimer:

• Most of these services are recent, so it was difficult to find third-party reviews to evaluate the different options.
• These answering services all rely on third-party APIs that evolve quickly. So while some demos sound quite outdated, it is likely that these services have evolved since. We decided not to use the public demos to evaluate the accuracy or the quality of the service.
• We excluded Slang.ai from this comparison as they focus on restaurants.

To provide the least partial possible review, we focused on quantifiable elements to compare these services.

Here’s a quick summary of what we found:

• Allô looks like the best option for small businesses because of its mobile apps that let you handle your business on the go.
• Dialzara is the cheapest and might be the best option for cost-conscious entrepreneurs who don’t receive many calls.
• Curious thing is probably the best option for larger companies who value compliance and are ready to invest a significant budget in their AI assistant.