The data is in, and regardless of recent advancements in Generative AI (Gen AI) aimed at improving the customer experience (CX), human-to-human interactions still reign supreme.
According to a survey conducted by Cogito, which was acquired by Verint in October 2024, when on a customer service call, 53% of respondents wouldn’t mind receiving sales or deal offers from an agent if they were tailored to their specific needs and purchase history.
Furthermore, 77% of respondents would prefer interacting with a human agent who uses artificial intelligence (AI) tools in the background instead of utilizing self-service options like chatbots: even as technology continues to improve.
This preference underscores the irreplaceable value of human empathy and understanding in CX.
Technological Advancements in CX
AI-driven tools in customer service have undoubtedly enhanced efficiency and responsiveness. Chatbots and virtual assistants can handle routine inquiries, thereby providing quick resolutions and freeing up human agents for more complex tasks.
However, these tools have their limitations: 39% of respondents consider AI-driven customer service (e.g., chatbots) much or slightly worse than human customer service.
While AI can process vast amounts of data and offer scripted responses, it often lacks the nuanced understanding required for complex or emotionally charged interactions.
To deliver excellent CX, businesses must strike a balance between leveraging AI tools and maintaining the human touch.
AI’s ability to analyze data and provide recommendations is powerful. Yet it falls short in delivering the empathetic and personalized touch that human agents can provide.
For instance, AI can efficiently manage simple inquiries like tracking orders or providing basic information. Yet it struggles with more complex issues that require understanding context, emotions, and the subtleties of human communication.
This is where the human element becomes indispensable.
The Human Element in CX
The survey findings reveal a clear consumer preference for human interaction in customer service. They highlight the critical role that human agents play in delivering personalized and empathetic service, particularly in scenarios involving intricate problems or emotional distress.
Consumers’ preference for human interaction is driven by the need for empathy and understanding, especially during challenging or emotionally charged situations.
Interestingly, 38% of Gen Z respondents consider lack of empathy to be the most negative impact of AI on customer service, compared to only 23% of Boomers. This generational divide highlights how younger consumers place a higher premium on empathy, suggesting that human interactions will remain critical even as AI evolves.
For example, resolving a billing dispute or handling a complaint about a defective product often requires more than just a factual resolution. It demands a compassionate response that acknowledges the customer’s frustration and provides reassurance. Human agents are uniquely equipped to offer this level of empathy: which is crucial for building trust and loyalty with customers.
Balancing AI and Human Interactions
To deliver excellent CX, businesses must strike a balance between leveraging AI tools and maintaining the human touch.
AI-enabled coaching and training can significantly enhance the performance of human agents by providing real-time guidance and feedback. This integration ensures that agents are better equipped to handle complex interactions, ultimately leading to higher customer satisfaction.
For example, AI can analyze voice signals, words, and phrases to provide real-time emotion AI cues, identifying emotional signals to guide agents in fostering deeper connections with customers. Conversation AI cues, which evaluate dialog for actionable insights, can streamline processes, helping agents maintain focus and improve overall efficiency.
These intelligent recommendations allow agents to pull in relevant customer information, product knowledge, or strategies for upselling and cross-selling, all while maintaining a human touch.
AI tools can be used to monitor and analyze customer interactions, providing agents with feedback and suggestions to improve their performance in the moment.
For instance, if an AI system detects that a customer is becoming frustrated, it can prompt the agent with specific phrases or actions to de-escalate the situation. This type of real-time coaching can help agents respond more effectively to customer needs and improve the overall CX.
Additionally, AI can assist in personalizing interactions by analyzing customer data and offering insights that agents can use to tailor their responses.
By understanding customers’ histories and preferences, agents can provide more relevant and personalized solutions, which can significantly enhance customer satisfaction.
Addressing Challenges
The CX landscape is continually evolving, with higher customer expectations and the emergence of new communication channels. Businesses face the challenge of handling these demands while managing agent attrition and shortages.
Implementing real-time AI coaching can help mitigate these issues by improving agent performance and job satisfaction, thereby reducing turnover rates.
Additionally, as remote and hybrid working models become more prevalent, AI tools can support agents by providing consistent training and support, regardless of their location.
Quick, streamlined interactions are also crucial, as 50% of consumers polled in a previously conducted survey indicated that additional ways to contact customer service, such as live chat, would improve their experience.
At the same time, AI can help address the challenges of managing a remote or hybrid workforce by providing tools that facilitate communication and collaboration among team members.
For example, AI-powered platforms can offer virtual training sessions, real-time performance feedback, and automated scheduling, making it easier for remote agents to stay connected and engaged with their teams.
Moreover, AI can help identify patterns and trends in customer interactions, allowing businesses to proactively address common issues and improve their overall service.
By analyzing customer feedback and interaction data, companies can gain insights into areas where they need to improve and implement targeted training and development programs for their agents.
For instance, during high-demand periods like the holiday shopping season, AI can analyze the types of inquiries coming in and predict which issues are likely to arise, enabling businesses to prepare their agents with the necessary information and strategies to handle these queries efficiently.
This proactive approach can help mitigate the stress on both agents and customers. Thereby leading to smoother and more satisfactory interactions.
Fostering Employee Wellbeing
Employee wellbeing is critical to creating a healthier, happier, and more productive workplace.
AI-powered applications can track and analyze indicators of employee wellbeing in real time. These include stress levels, workload management, and productivity.
This data is instrumental in identifying areas requiring intervention and crafting measures to bolster employee happiness and engagement. When employees are content and actively engaged, they are more likely to deliver exceptional customer service, positively impacting customer satisfaction and loyalty.
AI systems should be designed and deployed responsibly to avoid bias and uphold customer trust.
AI can also play a role in supporting employee mental health by providing tools that help agents manage stress and maintain a healthy work-life balance.
For example, AI-powered wellness programs can offer personalized recommendations for relaxation techniques, exercise routines, and other activities that promote mental and physical wellbeing.
By prioritizing employee wellbeing, companies can create a more positive and supportive work environment, which can lead to higher levels of employee engagement and retention.
Furthermore, AI can assist in performance management by providing real-time feedback and coaching to agents.
Instead of waiting for annual performance reviews, agents can receive immediate guidance on how to improve their skills and address any issues that arise during customer interactions. This continuous feedback loop not only helps agents grow and develop in their roles but also ensures that they are consistently delivering high-quality service to customers.
Ethical Considerations and Transparency
As AI becomes more integrated into customer service, it is crucial to address ethical considerations such as data privacy, fairness, and accountability.
AI systems should be designed and deployed responsibly to avoid bias and uphold customer trust.
Human agents can play a meaningful role in filling gaps, providing sociocultural insights that AI might miss, and ensuring a balanced approach.
Transparency with customers about how AI uses their data and the role of human agents in the process will help establish trust and elevate the overall CX.
The Path Forward
The stakes to get the CX right are high, with 76% of consumers stating in the survey that a negative customer service experience would impact them choosing a brand’s products or services in the future.
As AI continues to revolutionize contact center operations, it’s important to balance the human and AI approach to better meet these high customer expectations.
While technological advancements have brought significant improvements to the customer service experience, the importance of human interactions cannot be overstated.
By effectively integrating AI tools with human agents, businesses can enhance their CX, meet rising customer expectations, and navigate the challenges of a dynamic work environment.
And as we look to the future, the collaboration between AI and humans will be key to delivering exceptional and empathetic customer service.