Indian e-commerce platform Meesho, backed by Softbank, has introduced what it claims to be the first generative AI-powered voice bot in the country’s e-commerce sector. This innovation has allowed the company to significantly reduce customer support costs for certain queries by 75%.
Generative AI (GenAI) refers to artificial intelligence systems trained on large datasets to generate and interpret content, including human-like voice interactions. Meesho's AI bot, which currently supports English and Hindi, handles approximately 60,000 customer calls daily. The company plans to extend this capability to six additional Indian languages.
With over 160 million customers, 80% of whom live in smaller towns and rural areas, Meesho has prioritized customer support as a key focus. The Bengaluru-based startup, valued at $4.9 billion, processes more than $5 billion in annual sales. Efficient customer support is vital for delivering a seamless shopping experience, according to Sanjeev Barnwal, Meesho's co-founder and chief technology officer.
Rather than creating its own large language model (LLM), Meesho has combined off-the-shelf LLMs with custom-built components designed to address local language nuances and context. These components integrate specialized tools for speech recognition and natural language processing.
“The available LLMs perform well in Hindi and English, so we’ve focused on building complementary tools,” said Barnwal.
In its development, the AI bot addressed several challenges. Many users access Meesho on low-end smartphones in noisy environments, such as crowded streets. To ensure effective communication, the system was optimized to reduce latency, filter out background noise, and maintain a natural voice quality.
The AI bot has achieved a 95% query resolution rate, with only 5% of calls requiring human assistance. Meesho reports a 10% improvement in customer satisfaction and a 50% reduction in average call handling time. The bot operates 24/7, ensuring consistent support availability.
Notably, the AI system has not replaced human agents but instead redirected them to address more complex issues and assist sellers. Strict adherence to policies regarding returns and refunds has also been a critical focus during development.
Meesho’s adoption of AI highlights a growing trend among Indian tech companies to enhance efficiency through advanced technology. However, firms like Meesho are balancing the decision to use existing AI models versus developing proprietary systems.
Hemant Mohapatra, a partner at Lightspeed, noted at a recent conference, “The goal should be to focus on areas where success is achievable rather than competing to build foundational models.”
Meesho’s initiative demonstrates how AI can drive operational improvements while enhancing customer experience, reflecting broader efforts in the Indian tech industry to integrate AI strategically.
