International Journal of Computer Trends and Technology Volume 71 Issue 3, 1-6, March 2023

ISSN: 2231 – 2803 / https://doi.org/10.14445/22312803/IJCTT-V71I3P101 © 2023 Seventh Sense Research Group®

Original Article

Artificial Intelligence for Customer Complaint

Management
Dishant Banga1, Kiran Peddireddy2
1
Bridgetree LLC, Charlotte, NC, USA
2
Coxauto Inc, Atlanta, GA, USA

Received: 18 January 2023 Revised: 20 February 2023 Accepted: 01 March 2023 Published: 16 March 2023

Abstract - The primary goal of the proposed system in this paper is to improve the efficiency of customer complaint handling
by automating the process, which analyzes complaints to identify patterns and provides quick and accurate responses by
utilizing artificial intelligence techniques for improving products or services. The proposed system utilizes the natural
language processing model, trained on a dataset of customer complaints, to understand and classify the complaints. Also,
based on the classification, the system will provide appropriate responses to the complaints. The system will also analyze the
complaints to identify common issues and patterns and make suggestions for improving products or services to improve
customer experience. The proposed system is also evaluated on a dataset of customer complaints, and the results will be
compared to traditional complaint-handling methods. The evaluation metrics include measuring the accuracy in classifying
complaints, the time taken to respond, and the satisfaction level of the customers with the responses provided. In conclusion,
the proposed AI-powered customer complaint handling system aims to improve the efficiency and effectiveness of complaint
handling by automating the process and providing quick and accurate responses by analyzing complaints to identify patterns
and make suggestions for improving products or services, which will lead to increased customer satisfaction.

Keywords - Artificial intelligence(AI), Natural Language Processing(NLP), Machine Learning(ML).

1. Introduction provide appropriate responses or assign the complaint to the

Customer complaints are an inevitable part of any
business, and effectively handling them is crucial for
customer satisfaction and retention. Traditional complaint-
handling methods can be time-consuming, such as manual
processing by customer service teams over phone calls,
emails or ticket-handling systems. They may not provide
accurate or efficient responses, which further leads to
customer dissatisfaction or may result in losing customers.
With the developments in AI and NLP, it is possible to
develop an AI-powered customer complaint-handling system
that can automate the process and provide accurate responses
in a very short amount of time [8]. The primary goal of the
proposed AI-powered complaint-handling system is to
improve the efficiency and effectiveness of complaint
handling-by automating the process and providing immediate
responses.
Additionally, the system will analyze complaints to
identify any patterns and make suggestions for improving
products or services, leading to increased customer
satisfaction and lower operating costs for the business. This
paper presents a similar AI-powered customer complaint-
handling system's design, evaluation, and results. The system
will be trained on a dataset of customer complaints which
will use NLP techniques to understand and classify the
complaints. Based on the classification, the system will
right department that can resolve it. The paper aims to
provide a comprehensive understanding of the problem of
customer complaints and their resolution. Moreover, it will
explore the limitations of traditional methods and how an AI-
powered complaint-handling system can overcome these
limitations.
2. System Design
The proposed system is trained on a dataset of customer
complaints collected from various sources such as social
media, email, and the company's website, as per Figure 1.
The dataset will be preprocessed to remove any irrelevant
information, outliers or anomalies and will be annotated with
the appropriate categories for the complaints.
The proposed system uses a combination of NLP
techniques to understand and classification of customer
complaints. These include:
● Language Modeling: The system uses a pre-trained
language model to understand the context and meaning
of the complaints.
● Sentiment Analysis: The system uses sentiment analysis
techniques to determine the emotional tone of the
complaints, whether positive, negative, or neutral.
● Text classification: The system uses text classification

This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

 Dishant Banga & Kiran Peddireddy / IJCTT, 71(3), 1-6, 2023
techniques to assign the complaints to predefined
categories, such as credit card, mortgage or debt
collection.
● Natural Language Generation: Based on the
classification, the system uses NLP techniques to
generate personalized responses to complaints. These
responses will be able to address the customer's concerns
and provide a solution if one is available.
● Data Mining and Machine Learning: The system uses
data mining and ML techniques to analyze complaints
and identify recurring issues or patterns. This can be
implemented by using classification techniques such as
clustering, association rule mining, decision tree
Complaint
Server
Reply
Message
Aggregation
Module
Dashboard
Module
Fig. 1 System Architecture
2.1. Natural Language Processing Techniques used for
Understanding and Classifying Complaints
In the system design section, the use of several natural
language processing (NLP) techniques to understand and
classify customer complaints are described [8]. These
techniques include:
● Language Modeling: The system will use a pre-trained
language model to understand the context and meaning
of the complaints. A pre-trained language model is a
model that has been trained on a large dataset of text and
can be fine-tuned on a smaller dataset of customer
complaints. This will allow the system to understand the
context and meaning of complaints, even if they are
written in colloquial or informal language.
● Sentiment Analysis: Sentiment analysis is the technique
of identifying the emotional tone based on text. The
system uses sentiment analysis techniques to determine
whether a customer complaint is positive, negative, or
neutral.
● Text classification: Text classification is the technique of
assigning a predefined classification to text. The system
will use text classification techniques to assign customer
complaints to predefined categories, such as product
defects, service issues, or billing concerns. This will help
the system understand the complaints' main issues and
provide an appropriate response.
2
learning and anomaly detection.
● Escalation: If the system is unable to provide a
resolution to the complaint, it will escalate it to the right
department.
The system architecture is designed to handle a large
volume of complaints, classify them accurately, provide
appropriate and personalized responses, and give insights to
the company to improve its products or services. Overall, the
proposed system will be able to improve the efficiency and
effectiveness of complaint handling, as well as increase
customer satisfaction.
NLP Name of Department
Module and Complaint
Details
Ticketing
Module
These NLP techniques will be used together to analyze
customer complaints, understand the context and emotional
tone and assign them to the appropriate category. This will
allow the system to respond appropriately to customer
complaints.
2.2. Data Mining and Machine Learning Techniques used
for Identifying Patterns and Making Suggestions for
Improving Products or Services
In the system design section, I mentioned that the
proposed AI-powered complaint-handling system uses data
mining and ML techniques to analyze customer complaints
and identify common issues and patterns. These techniques
include:
● Clustering: Clustering is a technique used to group
similar data points together. The system will use
clustering techniques to group similar complaints
together based on their content. This will help the
system identify common complaints and patterns, such
as recurring product defects or service issues.
● Association rule mining: Association rule mining is a
technique used to identify relationships between
variables in a dataset. The system will use association
rule mining techniques to identify relationships between
different complaints and the products or services they
pertain to. This will help the system to identify which
 Dishant Banga & Kiran Peddireddy / IJCTT, 71(3), 1-6, 2023
products or services are causing the most complaints and
make suggestions for improving them.
● Decision Tree Learning: Decision tree learning is a
technique used to create a model of decisions and their
possible consequences. The system will use decision tree
learning techniques to create a model of how different
complaints are related to specific products or services
and how different products or services are related to
specific issues or patterns. This will help the system to
identify which products or services are causing the most
complaints and make suggestions for improving them.
● Anomaly Detection: Anomaly detection is a technique to
identify outliers in the dataset which deviate
significantly from the expected behavior. The system
will use anomaly detection techniques to identify
complaints which deviate from the normal patterns and
provide suggestions for improving the products or
services.
These data mining and machine learning techniques will
be used to analyze customer complaints, identify common
issues and patterns, and make suggestions for improving
products or services. This will help the company to prevent
similar complaints from occurring in the future and improve
customer satisfaction.
3. Literature Review
Artificial intelligence (AI) has recently been
increasingly used in customer service and complaint
handling. A literature review of AI-powered customer
complaint-handling systems shows that these systems can
potentially improve efficiency and customer satisfaction. The
conventional state of customer complaint handling systems
consists of methods used to handle customer complaints,
such as call centers, email, and social media. It faces some
challenges and limitations of these systems, such as high
costs, long wait times, and poor customer satisfaction
[10][11].
One study proposed an AI-powered customer complaint
handling system which uses a combination of NLP and ML
techniques to classify customer complaints and provide
appropriate responses was validated on another dataset of
customer complaints and achieved an accuracy of 89.4% [5].
Another study proposed an AI-powered customer
complaint-handling system that uses NLP and deep learning
techniques to understand and classify customer complaints.
The system was also able to provide appropriate responses to
the complaints. The authors of the study reported that the
system was able to handle complaints more efficiently and
effectively than traditional methods [3]. A third study
proposed an AI-powered customer complaint-handling
system that uses NLP and sentiment analysis techniques to
understand and classify customer complaints. The system
3
was also able to provide appropriate responses to complaints
and make suggestions for improving products or services.
The authors of the study reported that the system was able to
handle complaints more efficiently and effectively than
traditional methods [4]. Other papers also proposed similar
AI-powered customer complaint-handling systems. They
used different techniques, such as: proposing a customer
complaint-handling system that combines NLP, deep
learning, and sentiment analysis to classify complaints and
provide appropriate responses [1]. Another study proposed
an AI-powered customer complaint-handling system that
uses NLP and sentiment analysis to classify complaints and
provide appropriate responses [7]. Another study proposed
an AI-powered customer complaint-handling system that
uses NLP, machine learning and deep learning to classify
complaints and provide appropriate responses [2].
Overall, the literature suggests that AI-powered
customer complaint-handling systems can potentially
improve efficiency and customer satisfaction. These systems
use NLP and machine learning techniques to understand and
classify customer complaints and provide appropriate
responses. Additionally, the systems can analyze complaints
to identify patterns and make suggestions for improving
products or services. The potential future developments in
AI-powered customer complaint handling systems, such as
the use of virtual agents and chatbots. It would also consider
the potential implications of these systems on the overall
customer experience and the businesses and organizations
that implement them [12][13]. This would include both
successes and failures and would provide insight into the
challenges and considerations involved in implementing such
systems [14][15].
4. Evaluation
4.1. Methodology
To evaluate the proposed AI-powered complaint-
handling system, a dataset of customer complaints will be
used. The system will be trained and tested on this dataset.
The system's performance will be measured using metrics
such as accuracy of classification, response time, and
customer satisfaction level Figure 2. The system will also be
compared to traditional methods of complaint handling using
the same dataset [16].
4.1.1. Metrics
● Accuracy of classification: The system's ability to
correctly classify complaints into predefined categories
will be measured as the percentage of complaints
correctly classified by the system.
● Response time: The time taken by the system to analyze
and provide a response to the complaint will be
measured as the time elapsed between the complaint
being submitted and the response being provided.
 Dishant Banga & Kiran Peddireddy / IJCTT, 71(3), 1-6, 2023

● Customer satisfaction level: The level of customer
satisfaction with the responses provided by the system
will be measured through a survey, where customers will
rate their satisfaction with the system's responses on a
scale.
● Comparison: The performance of the proposed system
will be compared to traditional methods of complaint
handling using the same dataset. Traditional methods
include manual processing by customer service teams
and rule-based systems. The comparison will be based
on the same metrics used to evaluate the proposed
system.
The evaluation will provide an understanding of the
proposed system's performance, limitations, and ability to
overcome traditional methods' limitations. This will help to
identify areas where the system can be improved.

Receive Text
Send Text Message from Extract Properties of the
Start Message from text (Client number, zip
Server code, text)
Client Phone

Identify Type of Text,

Feedback, compliant,
Status Feedback
Status

Compliant Generate
Extract the Default
Ticket Message
number
Identify category of
complaint
Fetch Send the
Complaint Default
Message to
Status from Create Ticket Customer
Database

Send Status of Notify the Department

the Ticket Representative
Number to the
Customer

Send Ticket Number to

Customer for Reference

Stored the Data in

Database

Dashboard Based on
the Realtime Data Stop
Received

Fig. 2 Process Flowchart

4
 Dishant Banga & Kiran Peddireddy / IJCTT, 71(3), 1-6, 2023
5. Results and Discussion
There are several benefits to integrating AI into
Customer service, including:
● Improved efficiency and scalability: AI-powered
customer service can handle a large volume of inquiries
and requests in a shorter time, allowing companies to
save on labor costs and improve customer response
times. AI-powered customer service can handle an
unlimited number of interactions, allowing companies to
handle a larger customer base without the need for
additional human agents using chatbots and text bots.
Companies can invest in more complaint solvers than
complaint takes and increase their revenue. This will
also save millions of dollars for companies which they
spend on solving customer complaints via calls.
● Better accuracy: AI-powered customer service can
provide more accurate and consistent answers to
customers' questions, leading to increased customer
satisfaction. Along with that, there is more customer
retention rate which can help companies to raise their
profit.
● Personalization and better experience for customers: AI-
powered customer service can provide a more
personalized experience for customers by analyzing their
past interactions and providing tailored responses. An
average American spends more time texting than calling.
● Predictive analytics: AI-powered customer service can
use data from customer interactions to identify patterns
and predict future customer needs, allowing companies
to proactively address potential issues [16].
6. Conclusion
The proposed AI-powered complaint-handling system is
designed to improve the efficiency and effectiveness of
complaint handling-by automating the process and providing
quick and accurate responses. The system utilizes a
combination of NLP, data mining, and ML techniques to
analyze customer complaints, understand the context and
emotional tone and classify them into the appropriate
category. Based on the classification, the system generates
personalized responses to the complaints, which addresses
the customer's concerns and provides a solution.
Additionally, the system also analyzes complaints to
identify common issues and patterns and make suggestions
for improving products or services to the company. This will
help the company to prevent similar complaints from
occurring in the future and improve customer satisfaction.
The system is trained on a dataset of customer complaints
collected from various sources such as social media, email
and the company's website. If the system is unable to provide
a resolution to the complaint, it will escalate the complaint to
the right department.
5
Overall, there are many opportunities for future research
in the field of AI and customer service, which can help
businesses to improve their sales and lead generation efforts
and gain a deeper understanding of their customers.
The proposed AI-powered complaint-handling system
can potentially benefit companies and customers
significantly. For companies, the system can help to improve
the efficiency and effectiveness of complaint handling,
leading to cost savings and increased productivity. The
system's ability to analyze complaints and identify patterns
and common issues can also provide valuable insights for
companies to improve their products or services, leading to
increased customer satisfaction and retention. For customers,
the proposed system can provide quick and accurate
responses to their complaints, leading to increased
satisfaction and a sense of being heard and understood. The
system's ability to personalize responses can also help to
build customer trust and loyalty.
Additionally, the system's ability to identify and address
common issues can lead to improved products and services,
which benefits all customers. Overall, the proposed system
has the potential to enhance the customer experience,
increase customer satisfaction, and improve the efficiency
and effectiveness of complaint handling for companies.
Additionally, the insights and suggestions provided by the
system can help companies to improve their products or
services and prevent similar complaints from occurring in the
future.
Overall, the proposed AI-powered complaint-handling
system has the potential to revolutionize the way companies
handle customer complaints. By automating the process and
providing quick and accurate responses, the system can
improve the efficiency and effectiveness of complaint
handling, leading to cost savings and increased productivity
for companies. Additionally, the system's ability to analyze
complaints and identify patterns and common issues can
provide valuable insights for companies to improve their
products or services, leading to increased customer
satisfaction and retention. The proposed system also has the
potential to enhance the customer experience by providing
quick and accurate responses to their complaints, leading to
increased satisfaction and a sense of being heard and
understood. The system's ability to personalize responses and
identify and address common issues can also help build
customer trust and loyalty. However, there are also some
limitations to the proposed system, and further research
could be conducted to improve its performance. For instance,
the system could be further fine-tuned to improve its
accuracy in classifying complaints and generating
personalized responses. Additionally, the research could be
conducted to evaluate the system's performance in different
industries and with different types of complaints.
 Dishant Banga & Kiran Peddireddy / IJCTT, 71(3), 1-6, 2023

In conclusion, the proposed AI-powered complaint- Acknowledgments

handling system has the potential to revolutionize the way
companies handle customer complaints and improve
customer satisfaction. Further research and development
could be conducted to improve the system's performance and
adapt it to different industries and types of complaints.
We thank our colleagues Eshan Bhatt, Dhwani
Contractor & Ved Paranjape, who provided insight and
expertise that greatly assisted the research, although they
may not agree with all of the interpretations/conclusions of
this paper.

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