How Gig Workers & AI Can Transform Utility Customer Experience

A 2018 McKinsey essay argued that utilities must address the customer experience head-on in light of competitive pressures from alternative energy sources and to stem the rising costs associated with updating aging infrastructure. Multiple newer studies have argued improving customer experience will continue to be a key lever for utility providers to retain customers.

The move to modernized, competitive customer experience delivery has been elusive for utilities due to the costs and the disruption, yet newly empowered customers – with more choices – will not wait. While upgrading legacy customer support systems is a must, pairing those upgrades with professional gig workers can rapidly ensure a consistent, high-quality customer experience that improves retention and scales according to demand.

AI and the human touch

As utilities move their system upgrade plans forward, they will inevitably start incorporating AI chatbots and AI-driven analytic tools into their planning. In fact, a 2024 study shows that utilities over-indexed in saying they planned to use AI to support customer service demands.

However, most will find that integrating outside gig workers will help them realize meaningful customer experience improvements more quickly than relying on AI alone.

AI chatbots can field basic customer queries, but that capability is becoming table stakes. It won’t take long for customers to find the limits of those language models, particularly during surges in demand from extreme weather and more complex or sensitive interactions like billing issues or site-specific installation questions.

AI excels at efficiency, but customer trust is built on human interaction. A hybrid approach will deliver better results. During crises, customers need more than scripted responses – they need reassurance and problem-solving.

A supplemental, trained workforce with access to customer profile data and AI-supported response guidance can elevate a utility's customer experience beyond the limits of a chatbot. Utilities must also empower their workforce with systems that enable real-time quality management, customized simulators, emulators, and automated early warning systems. These tools help agents provide faster, more personalized responses, particularly during high-demand periods. This is one piece of the puzzle that gives your customers the personalized experience they expect.

Focus on getting to know your customers

The other puzzle piece is knowing enough about your customers to satisfy their needs and preferences.

Whether they incorporate AI or not, a challenge for utilities is that they haven’t typically delivered on the concept of a consistent customer journey. Instead of a unified experience, customers often have to navigate different pathways for sign-up, billing, service interruptions, and general customer service.

The interface for each interaction might be different, and disconnected backend systems often can’t provide a throughline of customer data that translates to a feeling of personalization that customers have come to demand.

While unifying those touchpoints is necessary for customer retention, it’s not an easy or an inexpensive lift. Also, upgraded tech alone is never enough.

Bringing on gig workers for additional support can be the answer, but utilities must take care to get the most value out of those partnerships. Who they hire is part of that equation. For example, it’s important to bring in a team of providers sourced from your service region. This way, they are familiar with weather patterns and can ensure relatability and effectiveness in handling inquiries during storms and more. Also, don’t overlook the need for training.

My company, Arise, implemented these strategies with a Texas utility. Throughout five years of supplementing their team, we drew from a pool of service partners familiar with the region's weather. We then provided them with advanced customer service training, including educating them about relevant policies and regulations, and soft skills training like empathy.

We were faced with highly variable weather during this time, which meant substantial swings in demand for our providers. Our dynamic scheduling system helped us make the staffing adjustments to meet that demand as it fluctuated. As a result of both that flexibility and the quality of our support providers, the utility’s CSAT rating climbed to 90 percent or higher. What’s more, the utility saw a 25% reduction in their total cost of ownership.

A recent JD Power report asked: Does it matter if electrical utility customers like you? The answer is yes. Utilities with weak brand appeal and customer satisfaction scores had much lower support for rate increases than those with strong scores. Modernizing your technology and picking the right service partner can accelerate customer retention and drive home that ROI. You’ll also be more resilient in the face of climate events, no matter how variable they are.