USU Digital Consulting Blog

GenAI in Customer Service: Faster, Smarter Service Requests with RAG

Written by Bilal Güclü | Mar 12, 2025 1:25:33 PM

Want to answer customer inquiries faster and more accurately - without the manual effort? A company-specific AI makes it possible. Retrieval-augmented generation (RAG) enhances responses by combining a trained AI model with real-time company data, ensuring relevant, context-aware answers.

In this article, we’ll explore how we successfully integrated CustomGPT.ai into an authoring company’s service request process. Our goal? To automate request handling, boost efficiency, and enhance customer satisfaction.

What is Retrieval Augmented Generation (RAG)?

Retrieval-augmented generation (RAG) is a powerful method that enhances the performance of large language models (LLMs). Instead of relying solely on pre-trained data, RAG pulls real-time, external knowledge before generating responses. This approach allows organizations to apply AI to specialized topics or internal data without expensive retraining.

By retrieving information from reliable sources, RAG ensures more accurate and relevant answers. The result? A cost-effective way to adapt AI systems while improving response quality—without the need for ongoing, resource-intensive model updates.

Why is RAG important?

LLMs are transforming AI, but they have limitations. One major issue is hallucination, where AI generates inaccurate or completely fabricated answers. Additionally, LLMs rely on static training data, meaning they may provide outdated information and lack real-time knowledge updates.

Key challenges:

  • Generating incorrect or misleading responses when no relevant data is available
  • Relying on outdated information that doesn't reflect current developments
  • Pulling content from unreliable sources, leading to inconsistent answers

This is where RAG makes a difference. Instead of relying solely on pre-trained data, RAG retrieves and integrates real-time, relevant information before generating a response.

How RAG works:

  1. Retrieval – The AI extracts relevant information from external knowledge bases.
  2. Enrichment – The retrieved data is added to the AI’s prompt for better context.
  3. Generation – The AI generates a response using both the retrieved information and its trained knowledge.

By combining these steps, RAG enhances accuracy, ensures up-to-date responses, and delivers more reliable, context-aware answers - making AI-powered customer service smarter and more effective.

Advantages of RAG

  • More accurate answers
    RAG pulls from reliable external sources to generate precise and relevant responses. This reduces the risk of misinformation or "hallucinations" by relying on verified data instead of the model’s internal knowledge alone.
  • Up-to-date information
    With RAG, you always get the latest insights without retraining the model. Instead of constant updates, external knowledge sources can be maintained separately—keeping your information current.
  • Expanded applications
    RAG extends the capabilities of large language models (LLMs), allowing access to specialized expertise or internal knowledge bases without retraining.
  • Trusted responses
    By sourcing information from credible references, RAG increases confidence in its answers - ensuring reliability and accuracy.

What is CustomGPT.ai and how is it used?

CustomGPT.ai is a powerful solution for creating language models tailored to a company's specific needs and data. In our project, we integrated CustomGPT.ai with a Retrieval-Augmented Generation (RAG) system to streamline service request handling. This ensures responses are based on current, relevant company data, making them precise and contextual.

The key role of CustomGPT.ai in this project was to automate suggested responses for incoming customer emails. By implementing this system, Customer Service Representatives (CSRs) saw a significant reduction in workload - instead of crafting each response manually, they could rely on AI-generated suggestions.


How the service request process works

The service request process follows a structured flow to ensure efficient request handling:

  1. Categorization
    CSRs assign each request to a category - such as Complaint, Advice, or Support. Each category has subcategories for more detailed classification.

  2. Decision table for response qualification
    After categorization, a decision table determines whether the request qualifies for an automated response. Frequently recurring requests (e.g., Advice) trigger automatic response generation. More complex cases (Complaints or Support) may require manual processing. The RAG system then searches the company’s database for relevant information and generates a precise, context-aware response.

  3. Suggested responses
    The AI-generated response appears in the Pega interface, where CSRs can:

    • Send the response as is
    • Edit the response
    • Reject the response

  4. Interaction processing
    Once sent, the system provides completion control options:

    • Mark the request as complete and forward it
    • Create additional service requests if multiple issues are raised in the same email

  5. Editing flexibility
    If needed, service managers can modify AI-generated responses to better fit the request. If they reject a response, they must provide a reason and draft their own reply. This balance of automation and flexibility ensures efficient, high-quality service.


Technical implementation of the integration

To seamlessly integrate CustomGPT.ai into customer service, we connected it to Pega via a REST API. Pega automatically processes service requests and generates context-aware response suggestions based on company data.

When a request is received, relevant details such as the date of receipt, subject, and email text are transmitted to CustomGPT.ai through an interface. The AI then uses RAG to create a response and feeds it directly back into the Pega system.

The integration was implemented in stages, starting with a check to determine whether an automated response already exists. If no response is available, the system retrieves the necessary information and generates one. A decision table controls whether the request is answered automatically or forwarded to a Customer Service Representative (CSR) based on its category.

To ensure stability and error handling, a retry logic was integrated. If an API call fails, it is automatically reattempted using a queue processor. In the user interface, CSRs can see a transparent status display and choose to edit, reject, or send the AI-generated response.


Advantages of the implementation

The integration of CustomGPT.ai into the service request process has brought numerous benefits:

  • Automation and efficiency: Routine requests are now automated, so CSRs no longer need to create standard responses. This saves time and significantly speeds up processes.
  • Fewer errors, greater accuracy: With CustomGPT.ai’s bespoke model, responses are always based on the latest company data—reducing errors and ensuring accuracy.
  • Higher customer satisfaction: Faster, more accurate responses improve the customer experience by reducing wait times and streamlining communication.
  • Scalability: The solution is flexible and grows with your needs, easily adapting to new request categories in the future.

 

 

Conclusion

The successful integration of AI tailored to the company's requirements into the service request process of the authoring company shows how targeted automation can make customer service more efficient and responsive.

By combining the generative capability of LLMs with the retrieval augmented generation approach, it is possible to ensure that contextual responses are always generated using up-to-date and relevant company data. This results in accurate, contextual responses that facilitate the work of CSRs, increase efficiency and improve the quality of customer communication at the same time.

By connecting to Pega, the solution could be seamlessly integrated into existing processes. As part of the platform, it enables the flexible automation of recurring tasks - without removing the human factor from the process. This allows service employees to focus their time more efficiently on more complex and individual requests instead of dealing with standard requests. Faster response times, reduced manual effort and better scalability are just some of the benefits. Most importantly, the technology remains adaptable - it grows with the company's requirements and can be continuously optimized.

With this approach, the authoring company has not only improved its internal processes, but also increased customer satisfaction. A good example of how smart digitalization can make everyday life easier for everyone involved - and that's exactly what matters.