AI customer service has the potential to transform industries by optimizing pivotal moments of interaction with customers to create market-differentiating experiences. AI-enabled customer service can increase customer engagement, resulting in increased cross-sell and upsell opportunities while reducing cost-to-serve. Generative AI has been shown to boost customer service productivity, and companies must decide how and where to deploy it to derive the greatest value. AI is expanding into new areas of customer service, and its adoption is driven by several factors, including the increased use of chatbots. AI in customer service can help businesses respond to customer queries more efficiently, improve customer engagement, and enhance the customer experience. Companies across various industries, such as fashion, insurance, and tax preparation, are already implementing AI to improve customer service. The future of AI in customer service is promising, and businesses that embrace AI transformation are likely to gain a competitive advantage.