News On Japan

How Virtual Avatars Are Changing Customer Service

Feb 23, 2025 (News On Japan) - As businesses seek new ways to enhance customer service, virtual avatars are emerging as a viable solution. These digital representations of human staff are gaining traction in various sectors, from hospitals to insurance consultations and even retail tourism. By improving service efficiency, addressing labor shortages, and facilitating multilingual interactions, avatars are reshaping customer experiences.

To explore this trend, a Nikkei commentator visited several locations where avatar-based customer service is being implemented and examined its potential and challenges.

At the headquarters of Advance Create, which operates the insurance consultation service Hoken Ichiba, avatars are being used to facilitate discussions about insurance policies. Traditionally, insurance consultations involve face-to-face interactions, but certain questions—such as age or health history—can be difficult for customers to answer when speaking directly to a human consultant. The introduction of avatars has helped ease these psychological barriers, leading to a significant improvement in contract completion rates.

The system remains human-driven, with staff members controlling avatars on-screen. The avatars mimic human expressions, including blinking, and can display documents alongside consultations, making interactions smoother and more accessible. The company reports that policy contract rates have nearly doubled compared to conventional in-person consultations.

Initially, avatar-based consultations were introduced to assist veteran sales representatives less familiar with digital tools. However, younger employees, being digital natives, have also found avatars to be an effective and approachable tool.

Beyond individual consultations, the use of avatars is expanding to customer service in retail. On Awaji Island, Pasona operates an avatar service center with around 40 operators managing customer interactions for over 100 contracted companies and municipalities. A single operator can handle multiple locations simultaneously, offering efficient service coverage.

A significant advantage of avatars is their ability to provide customer service remotely. Operators can view real-time camera footage from stores without being physically present, allowing them to assist customers with inquiries, recommend products, and even adjust their voices to match their assigned avatar characters. This feature has proven particularly effective in increasing sales of local souvenirs and specialty products.

The business implications of avatar customer service extend further. By combining avatars with AI-driven automation, companies are developing advanced systems that integrate artificial intelligence with human oversight. AI can gather and analyze customer information, while human staff focus on personalized product recommendations, thereby optimizing service quality amid labor shortages.

The adoption of avatars is also spreading to convenience stores. According to a report by Nikkei MJ, Lawson has begun testing avatar-assisted customer service, leveraging technology developed by a team at Osaka University. By enabling remote interactions, avatars could help address staffing shortages, particularly for late-night shifts.

Japan's familiarity with animated characters has contributed to the acceptance of avatar-based interactions, reducing resistance among consumers. Some customers even find it easier to share personal information with an avatar than with a human representative. This psychological ease is advantageous for businesses, as it can lead to higher engagement and increased sales.

As companies continue to refine the technology, the integration of AI and avatars is expected to play a key role in shaping the future of customer service. By balancing efficiency with personalization, businesses can enhance service experiences while navigating labor challenges in the digital age.

Source: Television OSAKA NEWS

News On Japan
POPULAR NEWS

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Web3 NEWS

Major pharmaceutical company Tsumura and four other companies began full-scale operations on August 26 at a joint data collection center designed to develop "physical AI," technology that enables artificial intelligence to autonomously control robots in manufacturing and other workplaces.

SoftBank Group announced on August 24 that it will issue 1 trillion yen in unsecured corporate bonds for individual investors, in what is set to be its largest such offering.

Japanese companies and venture investors are stepping up efforts to commercialize technologies that could transform shipping and recruitment, with Mitsui O.S.K. Lines pursuing fully autonomous operation of giant cargo vessels while startup Calaris develops an interactive AI interviewer designed to uncover abilities that conventional job applications may miss.

Japanese online publishing platform note is using artificial intelligence to review its management meetings and analyze company-wide activity as it prepares for a future in which AI increasingly determines what information, products and services people discover online.

Artificial intelligence is rapidly transforming cyber warfare by enabling faster, automated and continuous attacks, raising concerns that governments and companies may struggle to detect and stop intrusions before serious damage occurs.

Running a business in Japan at present involves constantly coping with evolving threats. The Japan cybersecurity market is growing rapidly, and this growth speaks for itself.

The creation of the ERC-20 standard allowed the blockchain ecosystem to scale through the deployment of fungible tokens, where every asset is completely identical and interchangeable with another.

RTP is one of the clearest mathematical indicators available when Kiwi players assess an online casino game.