Contacting a utility company’s customer service is no one’s idea of a fun way to spend an afternoon. Yet, some aspects of the customer experience are particularly frustrating for utility customers—long wait times, confusing payment processes, and poor communication are among the most common complaints.
Dissatisfied customers can cost your business more than just goodwill. A study from the Kelley School of Business found that for every one-point increase in customer satisfaction on the American Customer Satisfaction Index (ACSI), utilities reduced their operating costs by $29 million. On top of the financial gains, improving the customer experience can enhance your brand image and foster loyalty.
One of the most effective ways to reduce customer complaints and improve satisfaction is to implement conversational AI—a modern solution that goes far beyond the capabilities of legacy IVRs or basic chatbots. The most advanced platforms combine human-like understanding with automation to deliver fast, personalized, and intuitive interactions. Here’s how conversational AI helps resolve five of the most common pain points in utility customer service.
Pain point #1: Long wait times
Utility companies frequently experience surges in customer contacts—for example, when hot weather overloads electrical systems or high winds dictate pre-emptive power outages. Even when you enlist extra seasonal agents to temporarily ramp up service, high call volume can mean long wait times for customers. Interactive voice response (IVR) solutions are often limited in their ability to understand customers’ accents, phrasing or intent, and frequently route callers to live agents for even simple tasks.
Conversational AI helps alleviate this by automating routine inquiries through voice or digital channels. Customers can check balances, get outage updates, or explore payment options instantly—without waiting for a live agent.
A truly modern solution offers omnichannel support, so customers can start a conversation via voice and continue it through SMS or web chat without repeating themselves. Seniors may prefer a voice call, while Gen Z may want to text. Look for a solution that provides persistent context so customers can start a conversation in one channel, then switch to another and pick up where they left off without re-inputting or repeating information.
Pain point #2: Difficulty accessing account information
Few things are more frustrating for your utility customers than struggling to access their account information. Since most customers don’t call utility companies often, they can easily forget passwords, usernames or “secret questions” used to verify identity. Being asked to reset passwords and input multiple codes for two-factor authentication can be exasperating. Fail too many times and customers get locked out of their accounts, increasing their annoyance.
Conversational AI can help simplify identity verification with natural language prompts, contextual understanding, and step-by-step guidance. Whether it’s resetting a password, updating contact information, or verifying account details, AI-powered conversations make the process faster and less stressful—without needing human intervention for most cases.
Pain point #3: Limited service outside business hours
Customers don’t only need help from 9 to 5. While traditional chatbots or IVRs can handle limited after-hours requests, they often fall short when customers have more specific or urgent needs.
Conversational AI offers 24/7 support that feels intuitive and helpful. It can facilitate paying bills, scheduling, confirming or canceling appointments, reporting outages and more—all in a friendly voice using language tailored to support your brand image. Sophisticated IVAs incorporating automated speech recognition can interpret customer requests despite unusual phrasing, mumbling, accents or poor connections, saving the day (or night) for the customer.
Pain point #4: Complex billing and payment processes
Paying a utility bill shouldn’t be complicated—but it often is. When billing systems and customer support tools aren’t integrated, customers face hurdles that can lead to missed payments or frustration.
An automated attendant that understands natural language and can respond with a high degree of accuracy regarding intent can guide customers through making payments, checking their billing history and more. You’ll also want to choose an IVA that offers multiple language options to fit your customers’ needs.
Of course, there are times when human help is needed, especially when untangling complex billing concerns. An IVA designed with human-in-the-loop technology can bring in agents when it doesn’t understand an issue. The best solutions blend human and machine intelligence, instantly summarizing the call for the agent, asking the agent what to do next, and responding to the customer without missing a beat.
Pain point #5: Poor communication during service outages
Outages are stressful, and customers need fast, accurate updates. Unfortunately, traditional support systems often fall short—forcing customers to navigate endless menus or receive irrelevant responses from basic bots.
Conversational AI enables proactive, intelligent communication. It can recognize a customer’s phone number, location, and history to deliver real-time updates about service status, restoration timelines, or safety alerts. Even during peak volume, conversational AI platforms can handle thousands of simultaneous interactions—many of which customers won’t even realize are AI-powered thanks to the natural flow and tone of the conversation.
The right partner makes all the difference
Not all conversational AI platforms are created equal. The wrong solution can introduce more problems than it solves. For best results, choose a partner with deep experience in your industry, proven implementation success, and a commitment to collaboration and innovation.
Your contact center is critical to maintaining customer trust and loyalty. With the right conversational AI strategy, you can transform your service experience—making it faster, more human, and more effective at scale. Discover how Interactions’ Conversational AI for Utilities can resolve customer complaints with empathy, efficiency, and technology designed for real-world complexity.
Dive deeper into transforming utility customer service–download our free ebook, Modernizing the Contact Center: A Guide for the Utilities Industry, to explore how conversational AI can improve efficiency, reduce costs, and deliver better experiences, no matter the channel.
