What is a Virtual Agent? Benefits & Case Study Included

What is a Virtual Agent? Benefits & Case Study Included

A virtual agent for customer service handles routine tasks 24/7. See how they free up human agents’ time and talents for more complex issues.

From playing music to managing calendars, virtual assistants like Alexa have shown the world the convenience of conversational AI at home. Now, virtual agents for customer service are transforming industries and their business needs. 

These AI-powered assistants work alongside human agents, handling routine functions and freeing up your team for other tasks. Virtual agents work around the clock, never taking breaks or vacations, making them invaluable partners for customer support teams looking for an extra edge.

What Is a Virtual Agent, Really?

A virtual agent is an AI-powered software program designed to interact with customers or handle backend processes through natural language understanding (NLU) and machine learning. Unlike simple bots that follow rigid, often unhelpful scripts, virtual assistants can understand customer intent and respond perfectly to a wide range of customer questions and concerns. They excel at answering questions like checking order status, resetting passwords, or addressing FAQs without human intervention.

While virtual agents aren’t replacements for live agents, they provide customers with self-service options that ultimately lighten the load of physical employees. Organizations that use both human agents and conversational AI can create a system where routine tasks are automated, and complex issues receive the personal touch they require.

The Cost of Using Live Agents

When customer service agents spend time on after-call work, the expenses add up quickly. Every minute spent updating CRM records, writing notes, or sending follow-up emails is time not spent helping other end users.

This means that manual after-call work not only reduces agent productivity but also increases staffing requirements. Implementing AI agents to handle these tasks can increase revenue by 13% by improving customer satisfaction and increasing retention rates. 

What Problems Do Virtual Agents Solve?

The old-fashioned approach to after-call work (ACW) creates bottlenecks in the customer service process. When agents have to manually update systems, schedule follow-ups, or document interactions after each call, both efficiency and accuracy suffer. This manual approach leads to several debilitating issues for you and your company:

  • Customer Delays: More after-call work means longer wait times before agents can help the next person. This creates a poor first impression and can significantly hurt the customer experience.
  • Data Errors: Even small data entry errors can have big consequences. From wrong orders to incorrect payment info, these errors only get worse with time and can be incredibly frustrating to customers and difficult to resolve.
  • Service Bottlenecks: With more customer-facing responsibilities mixed with endless administrative tasks, your agents’ customer service speed can slow to a crawl.
  • Agent Burnout: Even if tasks are manageable or handled quickly, performing the same repetitive tasks hundreds of times per day can quickly lead to burnout. This mental drain reduces job satisfaction and increases turnover rates.
  • System Fragmentation: When too many systems have to be updated manually, inconsistent information becomes the norm. This creates a confusing customer journey, miscommunications, and gaps at important touchpoints.

These problems ultimately impact everything from future customer engagement, brand loyalty,  employee retention, and your bottom line.

How Virtual Agents Help

Virtual agents are an incredible solution to the challenges of manual after-call work. No matter the workflow or process at hand, virtual assistants improve efficiency by automating repetitive tasks while improving accuracy and consistency across all customer interaction outlets.

They Take Care of Simple Work Automatically

Virtual agents can transform your contact center by automating routine tasks that were previously handled by your agents. They can send personalized follow-up emails, update customer records in the CRM, create support tickets, and even schedule appointments without requiring any human oversight at all.

They Save Agents Time

By handling the tedious aspects of customer support work, virtual assistants allow human agents to focus their attention on customer queries that require empathy and critical thinking. Not only is this greatly beneficial to the user experience on the customer’s end, but the redistribution of work can improve your agents’ job satisfaction and reduce burnout.

They Help Customers Get Answers Fast

Since virtual agents operate 24/7 and can be set up across all your digital channels, they make sure customer inquiries receive immediate attention, day or night. This nonstop availability cuts response times and provides consistent, quality service around the clock, giving customers the care and concern they look for.

How Observe.AI Works With Virtual Agents To Boost Your Team

Observe.AI’s platform takes intelligent virtual agents to the next level by integrating advanced AI summarization and analysis tools. The platform connects seamlessly with your existing knowledge base to streamline end-to-end optimization of both automated and human-based tasks.

Track How Virtual Agents Are Performing

Observe.AI applies natural language processing (NLP) and sentiment analysis to evaluate virtual agent conversations in real time. You can identify where virtual agents excel, such as confirming appointments or collecting insurance information, and where they may need a helping hand, such as handling unexpected questions or showing appropriate empathy.

AI-powered dashboards provide insights into key performance metrics like resolution rates, drop-offs, confusion indicators, and patient sentiment. These insights help you fine-tune bot scripts, prioritize improvements, and ensure your virtual agents are aligned with the needs of your healthcare audience.

Jump in When a Human Touch Is Needed

Artificial intelligence has its limits, and our platform knows exactly when to pass the baton. Observe.AI not only detects when a conversation requires human intervention but also facilitates a smooth transition from generative AI to live agents. 

When customer emotions run high or questions become too complex or nuanced for the virtual assistant, we provide intelligent routing to the most appropriate human agent.

Train Teams Using VA Data

At Observe.AI, every interaction with a virtual agent is an opportunity. By analyzing thousands of automated conversations, our system identifies patterns in customer inquiries. From highlighting interactions with the highest satisfaction score to pinpointing conversations with the lowest handling time, Observe.AI helps human agents learn the best strategies for excellent customer care.

Combine Automation With Real Humans for Happier Customers

The most effective customer service strategy today blends the efficiency of virtual agents with the emotional nuance and clever problem-solving only humans can provide. This hybrid approach allows contact centers to optimize routine tasks through AI technology while maintaining high-quality human connections.

From one-off inquiries like a change of address or order verification to complicated troubleshooting, Observe.AI’s platform provides the tools to enhance both automated processes and support your agents’ abilities. Our omnichannel solutions ensure consistent service, regardless of whether customers reach out through interactive voice response (IVR) systems, chatbots, or direct calls to your call center.

When it comes to customer service, the best approach combines the strengths of both artificial and human intelligence. By connecting your agents to Observe.AI’s powerful analytics and automation tools, you can transform your contact center into the best in the business. Create a more responsive, accurate, and satisfying experience for both your customers and your agents by scheduling a demo today!

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Matt Caskey
Content Writer
LinkedIn profile
June 1, 2025