As the holiday season ramps up, companies are relying more heavily than ever on AI to tackle customer service demands. But new data from Acquire BPO’s 2024 AI in Customer Service Survey report reveals a cautionary tale: while AI can bring efficiency and 24/7 availability, it only takes one bad experience to sour a customer’s relationship with a brand.
The survey from the global business process outsourcing provider polled 600 U.S. consumers, finding that 70% of respondents would consider switching brands after a single frustrating encounter with AI-powered customer support.
This underscores a growing tension between technological innovation and the enduring need for human empathy. As Acquire BPO’s CEO Scott Stavretis explained, “AI can be as delightful as Santa or as frustrating as Scrooge, depending on how it’s used. While AI-powered tools can handle routine tasks at incredible scale, they can never replace the empathy and emotional intelligence of real human connection.”
The Rise of AI—and Its Limits
AI has become a cornerstone for businesses looking to streamline operations, reduce costs, and deliver faster support. For simple queries, AI can perform admirably. In fact, 40% of survey respondents said AI handles basic tasks just as effectively as humans, with features like remembering past issues (a plus for 61% of respondents) streamlining repeat interactions.
But AI’s limitations are just as clear. According to Acquire BPO’s report, consumers are 2.5 times more positive about their interactions with human agents compared to AI chatbots. For half of the respondents, AI support is synonymous with a loss of personal touch, slower resolutions, and diminished accuracy—key frustrations that can erode loyalty.
It’s not just about preference; it’s about stakes. When a customer reaches out for support—whether it’s to resolve an issue with a delayed gift or a billing concern—they’re often already frustrated. For many, a smooth resolution is critical to their long-term trust in a brand.
AI Fans vs. Human Advocates
The survey revealed a fascinating divide in customer sentiment. While most consumers (72%) prefer human agents, a notable subset of AI advocates emerged. Among chatbot fans, 57% reported choosing brands specifically because they offered AI-powered support, citing benefits like speed and round-the-clock availability. However, even the most ardent AI enthusiasts have limits: nearly 30% said they’d rather tackle tasks like filing taxes or cleaning a toilet than speak with a human support agent.
This contrast highlights a critical challenge for companies—how to cater to both camps without alienating either. AI can handle the simple stuff, but as the Acquire BPO data shows, customers want an off-ramp: nearly half (49%) of respondents said they’d feel better about AI support if they could escalate to a human agent at any time.
Why Brands Can’t Afford to Get It Wrong
In an era where competition is fierce and customer loyalty is fleeting, the stakes are high. Acquire BPO’s report found that consumers are increasingly willing to put their wallets behind their preferences. A whopping 72% of human-preferring customers said the availability of real people influenced their purchasing decisions. For chatbot fans, the number was lower—57% chose AI-equipped brands.
What’s at risk for brands who get it wrong? Trust. The survey shows that one frustrating AI encounter can lead to churn, with 70% of respondents indicating they’d consider switching to a competitor. For companies looking to scale customer support with AI, this statistic serves as a stark reminder: convenience can’t come at the cost of quality.
Striking the Right Balance
Acquire BPO’s study is a timely warning as businesses navigate the busiest retail season of the year. For companies deploying AI across their call centers and backoffice, the message is clear: strike the right balance, or risk losing customers to frustration. AI can help brands deliver efficiency, but the warmth and nuance of human connection remain irreplaceable.
The key to success lies in training your employees to leverage AI’s strengths while preserving and protecting the human touchpoints where it matters most. Smart deployment strategies include:
- AI for the Basics: Consumers are open to AI for simple tasks, with 40% saying it’s just as effective as a human for routine issues.
- Frustration Escalation: 55% of respondents appreciated AI’s ability to detect frustration and escalate complex problems to a human.
- Human Backup: Giving customers a clear path to switch to a human agent is critical, with 49% of respondents saying this would ease their concerns about AI support.
For companies, this means AI shouldn’t replace human support—it should enhance it.
Stavretis explains: “Humanity must always remain at the heart of customer centric AI. The magic of exceptional customer service comes from blending the best of both worlds: AI handling the simple tasks, while humans provide the genuine care that no machine can replicate. This holiday season, it’s a reminder that the heart of service is, and always will be, human.”
As businesses fine-tune their strategies for 2025 and beyond, customer experience leaders will need to focus on blending AI’s speed with human empathy. Because when it comes to customer service, one bad interaction can turn a brand from Santa into Scrooge—and no one wants that under their tree.
