AI is playing a growing role in customer service, with more companies integrating it into their support systems.
Customers are increasingly using AI to resolve issues, and confidence in its ability to handle complex queries is rising.
However, concerns remain about accuracy, and many still expect access to human support when needed.
To explore these trends in how attitudes towards AI in customer service are changing, we spoke to Shep Hyken, CAO at Shepard Presentations LLC, about his latest research.
Video: Changing Attitudes to the Use of AI in Customer Service
Watch the video below to hear Shep explain the changing attitudes to the use of AI in customer service:
With thanks to Shep Hyken, CAO at Shepard Presentations LLC, for contributing to this video.
The State of AI in Customer Service Today
The annual report provides a comprehensive overview of customer service trends in the United States.
This year’s study surveyed over 1,000 consumers, reflecting a cross-section of the population in terms of age, gender, ethnicity, and geography.
The findings highlight how customers perceive AI in service interactions, where they see its benefits, and where they still have concerns. As Shep explains:
“The report we do every year, and it is kind of a state of customer service and customer experience, and what’s going on in the United States.
So, what we did is we surveyed over 1,000 US consumers, basically matching the US population for age, gender, ethnicity, geography, etc., etc.
And we have this perfect picture, at least I believe it’s perfect, of what the US looks like.
And we ask these questions, everything from what’s important to you and that customer experience, to this what we’re going to talk about today, which is AI.”
Three Key Findings on AI in Customer Service
The report reveals several key takeaways for contact centres looking to leverage AI in customer service.
These insights provide a clearer picture of how AI adoption is evolving and what it means for contact centres:
1. More Customers Are Resolving Issues with AI
AI is increasingly helping customers resolve service issues without human assistance.
The report shows that 50% of customers have successfully used AI for issue resolution, up from 32% in 2024.
Shep attributes this rise to improvements in AI technology:
“If you think about what’s happening is that AI is getting better. 10 years ago, you could put together an AI solution, it number one cost not just tens of thousands, but perhaps hundreds of thousands to do what we can do today, and it didn’t even do it all that well.
Today almost any company can get into an AI solution to help support their customers. It’s relatively inexpensive, and it’s pretty darn good.”
However, AI is not without its challenges. The report also found that 51% of customers received incorrect information from AI-driven support, indicating that while the technology is improving, it is not yet foolproof.
Generational Differences in AI Usage
Adoption of AI-based customer service varies by age group. The study found that 61% of Gen Z customers have successfully used AI for issue resolution, compared to only 32% of Baby Boomers.
This suggests that while AI is becoming more common, older customers may still prefer traditional service channels.
“The other thing I want to emphasize, and through all of the questions we’re going to talk about related to AI and digital technology, there is a big difference in the ages of customers and how they perceive using this type of solution.
So, 61% of Gen Z, that’s the younger generation, have successfully received this level of support, versus are you ready for this, just about a third, 32% of the Boomers.
That’s almost like 32% / 61%, that’s like twice as many young people grab it versus the older people.”
2. Factors Driving the Rise of AI in Customer Service
AI is becoming a standard feature in customer service as contact centres continue to invest in it.
The technology has become more affordable and accessible, enabling companies of all sizes to implement AI-driven support solutions.
However, while AI is proving effective for handling simple queries, customer experience professionals believe it still struggles with more complex issues.
Defining Complexity in AI Support
The perception of AI’s capabilities is also shifting. According to the report, 42% of customers now believe AI can handle complex inquiries as effectively as humans, up from 28% in 2024.
However, Shep argues that it’s important to define what qualifies as a “complex” issue:
“We have to define what is a complex issue. If I am getting ready to take a flight, and I get an alert from my airline that says your flight is cancelled, here are four options which ones do you want?
Well, that’s kind of AI working with me – to me that looks like a fairly complicated process, but the reality is, it really isn’t all that complicated.
So, I think we have to define what complicated is, and recognize our customers once again, they’re starting to embrace the situation and starting to enjoy using a tool.
If I gave you a choice for example, if I want to call you and I know I’m going to have to be on hold for 10 minutes, or I could get the answer right now doing it myself, what do you think most people are going to choose to do? Right now.”
3. Customers Expect AI to Play a Bigger Role in the Future
More customers expect AI to become the primary mode of customer service. In 2021, only 21% of customers anticipated this shift, but that number has now risen to 63%.
“Customers are starting to see it being presented to them, they’re using it, 50% of customers say they’ve resolved the issue.
By the way, there’s some customers that are out there that say, “I always use the AI solution because I pretty much always get what I want”.”
The Need for Human Backup
Despite this growing confidence in AI, customers still value human support. The study found that 86% of customers believe AI-powered customer service should always include the option to speak with a human.
“As excited and accepting as customers might be, again take a look at your demographics, younger customers are far more excited than older generation.
Here is the general stat 86% of your customers think companies using AI for customer service should always have a backup with a human.
In other words, even though I’m going to dive into it, make sure you you’re going to give me that backup support just in case I need it.”
If you are looking for more great insights from the experts, check out these next:
- Q&A – What’s Holding Women Back in Their CX Careers?
- Tips to Tackle Agent Burnout in Contact Centres
- Top Tips for Managing Shrinkage
- Quick Wins to Get the Most Out of Your WFM System
Author: Robyn Coppell
Reviewed by: Jo Robinson
Published On: 26th Mar 2025
Read more about - Latest News, Artificial Intelligence, Customer Service, Shep Hyken