Why Private LLMs Are Better for AI Customer Service

    There’s been a massive shift in how we do business, thanks to AI customer service. The addition of easily accessible AI technology has opened up many new opportunities for call centers to improve their operations and elevate to an entirely new level. And it’s still growing, with 45% of support teams already using AI.

    The addition of large language models (LLMs) like ChatGPT opened the door to tons of new opportunities and use cases. But they’ve also opened Pandora’s Box—what we took for granted only a couple years ago has brought plenty of security, privacy, and even copyright issues.

    In this blog post, we’ll explore what LLMs are, the difference between public and private AI options, and show you why private LLMs are the future for customer service—and your business.

    What is an LLM?

    Before we jump into the technicals, what exactly is an LLM? Panos Karagiannis, co-founder and CEO of Moveo.ai, spoke about LLMs in our AI in Customer Experience webinar:

    “LLMs are essentially a type of neural network that is very good at understanding and generating language.”

    LLMs are sophisticated (and complex) AI systems designed to understand and generate human language with incredible accuracy, almost as if you were speaking to a real person. They’re built atop intricate neural networks and process massive amounts of text data to deliver those humanlike responses.

    Within that text data, these LLMs learn to understand and reproduce text that reads as if a human has written it. They learn from the patterns and relationships between words and phrases—kinda like your smartphone’s built-in word prediction, but far more powerful.

    At the heart of these LLMs is the transformer architecture, which handles long-range text dependencies. It involves multiple layers of these neural networks that interpret and generate language. These networks comb over large-scale text data and combine it with machine learning to teach the model how to predict and generate text based on the patterns it finds.

    We’ve already seen plenty of these AI tools in action—Google’s Gemini (formerly known as Bard), Anthropic’s Claude, and the most famous, OpenAI’s ChatGPT. They’ve made huge impacts in various industries thanks to their lightning-fast ability to generate coherent, readable text that can be used in many different ways, even within call centers.

    What’s the difference between private LLMs and public AI models?

    We already know the big names for public AI models, and you’ve most likely seen or used them yourself by this point. However, despite the popularity of these tools, there are a few glaring issues under the surface that the average user probably doesn’t even consider. This has led to the release of private LLMs, which offer nearly identical functionality at the cost of a little more hard work.

    A private LLM is a model that you train and control entirely in-house. They’re specifically tuned to your business requirements, meaning you have full control over the data it’s used to train on, giving it domain-specific knowledge about your business operations and information to perform tasks. They offer a couple of key features, such as:

    • Security: You own and control the data a private LLM is trained on, giving you a better level of confidentiality and compliance with data regulations.
    • Customization: You get to fine-tune your private LLM to understand the specific jargon of your business and industry, giving it highly accurate and context-aware responses.
    • Cost: While the initial setup costs can be high due to custom development and maintenance (especially if you opt to create your own model instead of starting with a pre-trained one like Moveo’s virtual agents), the long-term gains in efficiency and customer satisfaction can be immense.

    On the other hand, public LLMs such as ChatGPT are pre-trained by the companies that develop them, which are then made public via APIs and web interfaces. These models typically have a more general purpose and often use the data and prompts fed to them to continue learning, making sharing private information a risk. However, they do offer great features like:

    • Accessibility: They’re easier to implement as most of the development work is already done, leaving your teams to simply integrate APIs instead of building custom infrastructure.
    • Versatility: Public LLMs can perform a wide variety of tasks due to their broad training datasets.
    • Cost: Typically, access to these LLMs is offered through a subscription service, making them much more cost-effective for businesses that can’t afford to train their own AI.

    But what are the key differences between public and private LLMs? Let’s take a look:

    • Data privacy. As stated before, public LLMs may collect information from their users and prompts to train themselves over time, possibly exposing sensitive information (which happened just last year at Samsung).
    • Customization. A private LLM can be trained on whatever data set you need it to learn from, giving it deep knowledge and relevant business context. However, public LLMs can't be trained on specific information outside of a current session, leading to more general knowledge.
    • Accuracy. Because public LLMs are trained on broad data sets, they can often miss a lot of the nuance and complexity that some businesses may need (and possibly cause hallucinations if it doesn’t know). Private LLMs can be trained on that specific information from the ground up, making them more accurate within those areas.
    • Response times. Since private LLMs are trained for specific use cases, they often can output responses much faster than public LLMs, which rely on massively distributed servers to handle thousands of concurrent users.
    • Bonus: Better for the environment. Training and supporting public LLMs can be a massive strain on resources, thanks to the hardware and energy used to power these machines compared to private LLMs. One study suggests that ChatGPT uses the equivalent of a 16.9oz bottle of water for every 20-50 questions it answers.

    5 reasons why private LLMs are better for customer service

    When you’re looking to improve your existing customer service, integrating a private LLM into your workflows can offer significant advantages over public models. Want to know why? Let’s break it down:

    Stronger data security and privacy

    Nothing is more important than keeping your customer data safe, as even one data leak can end up doing massive damage to your brand and your business. According to IBM, the global average cost of a data breach in 2023 was $4.45 million, an increase of 15% over the last three years.

    Unlike public models, which process data over the internet and may expose it to external threats (or regurgitate it to those outside your organization), private LLMs operate on your infrastructure or in a secure cloud environment.

    This more secure approach minimizes the risk of data breaches and ensures you stay compliant with privacy regulations like GDPR and CCPA. Additionally, having more control over your data can give you and your customers better peace of mind knowing that their information is safe.

    Better accuracy, fewer hallucinations

    It’s no secret that AI tools can hallucinate (i.e. giving plausible sounding but incorrect, or completely nonsensical, responses). And while we can laugh when Google suggests that you eat at least one rock a day, this is simply too big a risk for companies that want to rely on AI in customer service.

    Private LLMs can be trained and fine-tuned on your specific datasets, making them exceptionally accurate and relevant to your business needs instead of creating nonsense answers when it doesn’t know. Moveo.ai has even run experiments that show private LLMs outperforming GPT-4 models when dealing with hallucinations.

    Unmatched control and customization

    Every business is unique and has its own requirements and needs. Private LLMs give you the option to customize and control how they learn and respond, unlike public ones. You can tailor your models to reflect your brand’s voice, incorporate specific knowledge bases, and adapt them to the growing needs of your call center as time goes on.

    This level of customization is simply not possible with public LLMs because they’re trained for general use and are unable to retain knowledge in most cases. By having a model that understands your specific needs, products, services, and customer service protocols, you can deliver a more personalized and effective customer experience.

    Faster response times

    With 81% of customers expecting faster service as technology advances, agents need to be capable of responding quickly. Using private LLMs, you can optimize for performance within your infrastructure and ensure faster response times compared to public LLMs.

    This reduced latency can be a sizable difference too. Moveo’s LLM, for example, operates up to 4.5 times faster than GPT on average. That makes a massive impact on your customers, as quick and accurate responses are key to delivering seamless, efficient customer experiences.

    Long-term cost efficiency

    While the initial investment in private LLMs is going to be higher than simply using public models, they end up saving costs in the long run. With private models, you avoid ongoing subscription fees that are associated with public ones.

    Plus, the improved accuracy and efficiency of these private LLMs cut down on operational costs and help streamline workflows, leading to better ROI through improved efficiency and customer experience.

    5 reasons why private LLMs are better for customer service

    4 use cases of private LLMs for customer service

    As you can tell, using a private LLM can make a pretty big impact on your business overall. But what are some specific areas where you might benefit from AI customer service? Here are four key use cases that highlight how you can transform your customer service operations:

    Handling repetitive queries

    One of the most time-consuming aspects of customer service is dealing with repetitive queries. Instead of taking up agents’ time to handle routine questions, private LLMs can be trained to respond to these questions and offer solutions based on the context of your business.

    By training your LLM on the specific facets of your business and common customer concerns it can provide instant, accurate responses, which improves efficiency and customer satisfaction—and frees up your agents to work on more challenging issues.

    This automation both speeds up your response time and ensures that AI answers remain consistent with the information it’s trained on.

    Providing personalized responses

    Personalization is key to customer satisfaction, with over 81% of customers saying they wanted a personalized experience. Using a private LLM lets you analyze customer data and interaction history to deliver tailored responses for individual customers.

    Unlike generic, canned responses from public models, private LLMs trained on your customer data and knowledge base can recognize patterns within customer queries and handle more complex issues that are relevant to your business, such as troubleshooting tech issues. General-purpose models lack the training or context to solve these issues, which can lead to incorrect information being given to your customers.

    Upselling and cross-selling

    Private LLMs can be a key part in helping drive revenue through upselling and cross-selling opportunities beyond just standard customer support. With this personalized data and a deep understanding of your business’ products, these models can suggest relevant products or services during interactions, whether it’s self-serve or assisting agents.

    For example, if a customer is inquiring about a product, your AI customer service can recommend complementary upgrades and items while answering common questions. Or, in a case where a customer might be lost to churn, your private LLM can recommend sales and discounts to help retain their business.

    Automating quality assurance

    Maintaining high quality is key for any call center, but it can often be a tedious and manual process. Integrating a private LLM can automate the monitoring and evaluation of customer interactions, providing better insights into agent performance while freeing up human evaluators to dive deeper into the data collected.

    These private models can significantly improve the workflows of your QA team, including transcribing and analyzing calls, flagging issues like non-compliance, and identifying areas where agents may be struggling. Adding this level of automation ensures consistent quality throughout your entire call center while giving you deeper insights into your customer experience.

    How to overcome the challenges of implementing a private LLM

    Adding a private LLM to your contact center can revolutionize your entire process by automating repetitive tasks, creating a personalized experience, and much more. However, implementing one of these AI customer service tools isn’t as simple as just plugging in and taking off; they come with their own set of obstacles that need to be addressed before you can take off the training wheels. Here’s how:

    • Ensure data governance and accessibility. First and foremost, you need to establish strict data governance policies. Make sure that not just the data you feed your private LLM is clean but also that it’s set up in a way that it can learn effectively and access the right data from the start. To quote Panos: “You shouldn’t expect that the AI…is going to be able to reply to questions that it doesn’t have access to in the raw information.”
    • Start small and scale up. It can be tempting to jump all-in on AI customer service, but starting small allows you to manage risk at a much safer speed. Implementing AI can be a complex process, so it’s best to start with smaller pilot projects before scaling up. That way, you can observe and learn how it works in real-world conditions and fine-tune it as it grows.
    • Establish a robust QA process. Quality assurance should never be an afterthought, especially when it’s through an AI that you can’t directly coach like an agent. Ensure you have a firm QA process in place not just to coach your agents but also to make sure your private LLM isn’t straying off the path and giving false information. A well-defined QA process helps guarantee that your LLM continues to deliver consistent, high-quality customer interactions.
    • Pick the right vendor and use case. Don’t just rush out to find the cheapest deal or coolest looking toy. Do your due diligence when researching AI customer service vendors, look for ones with proven experience not just with these tools but with the call center industry as a whole. Additionally, choose a use case that directly aligns with your business needs to ensure you get a tangible benefit and strong ROI.

    Why you need QA for AI customer service—even with private LLMs

    It’s already apparent how impactful AI has been on the world, and it’s already making massive differences in customer service. And with the option of creating and using private LLMs to manage and automate processes, companies can get even more value from this technology without the risks of public AI models.

    Data security, accuracy, customization, performance, and cost-efficiency are only some of the benefits that come with AI customer service, and get even stronger with a private LLM versus traditional generative AI models. If you plan carefully, take it slowly, and expand with care, you can get the maximum value from AI-powered customer service.

    And an essential way to ensure that your AI implementation is accurate and consistent is through a solid quality assurance foundation. With Scorebuddy’s GenAI Auto Scoring, you can get 100% coverage for all of the interactions in your call center, ensuring that your customers remain safe and that your AI stays aligned with your business.

    Try a free demo of Scorebuddy’s GenAI Auto Scoring and see how it can revolutionize your call center today.

    Share

    Table of Contents

      Subscribe to the Blog

      Be the first to get the latest insights on call center quality assurance, customer service, and agent training

      FAQ

      What are the benefits of a private LLM?

      Private LLMs offer enhanced data security and privacy by keeping sensitive information within your organization. They provide better accuracy and relevance, as they can be fine-tuned on proprietary data specific to your business.

      With unmatched control and customization, private LLMs can be tailored to meet unique business needs. Additionally, they offer faster response times and long-term cost efficiency by reducing dependency on external services and subscription fees.

      How to use LLMs for customer support?

      LLMs can automate customer support by handling routine queries, providing instant and accurate responses, and freeing up human agents for complex issues. They enable personalized customer interactions by analyzing data and tailoring responses based on past interactions. LLMs can also suggest relevant products, enhancing upselling and cross-selling opportunities. Additionally, they can streamline operations by transcribing and analyzing calls improving QA and agent performance through automated monitoring and feedback.

      Share