Customer service is challenging for small businesses. You can’t afford a dedicated support team, but customers expect responsive service. AI tools are starting to bridge this gap—and they’re more affordable than you might think.

I’ve tested several AI customer service tools and spoken with regional businesses using them. Here’s what’s actually worth considering.

What’s Available Now

Website Chatbots

These tools add a chat widget to your website that handles common questions automatically.

Tidio (Free tier available, paid from $29/month) The free tier includes basic chatbots and 50 live chat conversations monthly. Enough for many small businesses.

A homewares shop in Ararat uses Tidio to handle questions about store hours, return policies, and stock enquiries. “It answers maybe 60% of questions without me being involved.”

Intercom ($74/month minimum) More sophisticated but pricier. Better if you need advanced features or have higher volume.

Drift (Various pricing) Strong for B2B businesses wanting to qualify leads through chat.

AI-Powered Email Response

Tools that draft email responses based on your business information and past communications.

Help Scout ($20/user/month) Includes AI features that suggest responses based on your previous emails. Good for businesses with consistent support queries.

Front ($19/user/month) Similar concept—AI learns from your communication patterns and suggests responses.

These don’t replace humans but speed up response times significantly.

Phone AI (Emerging)

AI that handles phone calls is still emerging but worth watching. Services like PolyAI and others are developing systems that can handle basic phone enquiries.

For now, this remains expensive for small businesses, but prices are dropping. Check back in a year.

What These Tools Actually Do

Let’s be realistic about capabilities.

They handle FAQs well. Questions you answer repeatedly—store hours, return policies, pricing, basic product information—can be handled automatically.

They provide 24/7 availability. Customers get some response outside business hours, even if it’s just acknowledging their enquiry.

They triage enquiries. AI can categorise incoming questions and route complex ones to humans while handling simple ones automatically.

They speed up human responses. Even when humans need to respond, AI suggestions accelerate drafting.

They don’t handle complex situations. Complaints, unusual requests, nuanced problems—these still need human attention.

They don’t replace relationships. For businesses where personal connection matters, AI is a supplement, not a replacement.

Setting Up a Basic System

If you’re a small regional business wanting to try AI customer service:

Step 1: Identify Your FAQs

List the questions you answer repeatedly:

• Business hours and location
• Return/refund policies
• Shipping information
• Basic product questions
• Booking/ordering processes

These are what you’ll train the AI on.

Step 2: Start with Website Chat

Tidio’s free tier is a good starting point. Install it, set up basic automated responses for your FAQs, and see how it performs.

Step 3: Create Quality Responses

AI quality depends on what you feed it. Write clear, friendly responses for common questions. Include the information customers actually need.

Step 4: Monitor and Improve

Review chat transcripts regularly. Identify questions the AI handles poorly and improve responses. Notice new common questions and add automated answers.

Step 5: Keep Human Touch Available

Always make it easy to reach a human. Customers frustrated by useless bots will simply leave.

Real Implementation Example

A veterinary practice in Bendigo implemented Tidio six months ago. Here’s what they report:

What AI handles:

• Operating hours and contact information
• General pricing enquiries
• Directions to the clinic
• Basic aftercare instructions (linked to resources)
• Appointment request initiation

What humans handle:

• Specific health concerns
• Emergency situations
• Complex scheduling
• Billing disputes
• Anything emotional

Results:

• Reception staff spend about 30% less time on phone/email for basic enquiries
• After-hours enquiries get immediate acknowledgment
• Client satisfaction unchanged (careful monitoring showed no negative impact)
• Setup took about two days including testing

Cost: $29/month plus setup time.

That’s a practical outcome for a regional small business.

Companies Working on AI Customer Service

For those interested in more sophisticated implementations, firms offering custom AI development work with regional businesses on AI solutions including customer service applications. Their approach focuses on practical implementations that integrate with existing business processes rather than expensive overhauls.

Larger businesses might also consider Zendesk’s AI features, Freshdesk, or Salesforce’s Einstein platform, though these come with higher price tags.

Cautions

Don’t frustrate customers. Bad chatbots are worse than no chatbot. If your AI can’t help, make sure humans are easy to reach.

Protect customer data. AI tools process customer communications. Understand where that data goes and how it’s protected.

Be honest. If customers are talking to AI, be transparent about it. Most people are fine with bots for simple queries—they just don’t like being deceived.

Start small. Don’t try to automate everything immediately. Start with high-volume, simple queries and expand gradually.

The Opportunity

AI customer service tools are becoming genuinely useful for small businesses. They won’t replace human staff, but they can extend what a small team can handle.

For regional businesses competing with well-resourced city competitors, these tools help level the playing field. You can provide responsive service without the overhead of a dedicated support team.

Worth exploring if customer service is stretching your resources.