AI in customer service is everywhere these days. It’s efficient, saves money, and can respond to customers at any hour. But, while companies are embracing AI to solve support issues, customers are getting fed up when things go wrong with these digital agents. According to a new study by Acquire BPO, 70% of consumers say they’d consider a different brand after just one bad experience with AI customer support. In other words, if a chatbot fumbles even once, there’s a strong chance that loyalty could go right out the window.
The study highlights the love-hate relationship consumers have with AI in customer service. Sure, AI can be fast and convenient, but it can also feel robotic, unhelpful, and—worst of all—impersonal. And when the stakes are high for companies trying to retain loyal customers, even one negative experience with a bot can cause customers to seek alternatives.
Here’s a deeper look at the study’s findings and what they mean for brands—and how companies can use AI wisely without losing the human touch.
Key Findings from the Study
To get a sense of how AI is affecting customer loyalty, Acquire BPO surveyed 600 U.S. consumers who had contacted a company for support in the past year. Here’s what they found:
• One Strike, You’re Out: 70% of consumers would consider switching to a different brand after just one frustrating experience with AI-powered customer service.
• Humans Are Still Preferred: Consumers feel 2.5 times more positive about interacting with human agents compared to AI bots.
• Negative Perceptions of AI: Half of consumers have negative feelings toward companies that rely more on AI for customer support, citing issues like:
• Lack of personal touch
• Reduced accuracy
• Longer resolution times for complex issues
• Consumers Put Their Money Where Their Preference Is:
• 57% of those who prefer chatbots say they’ve chosen a service because it offered AI support.
• 72% of those who prefer human support say it influenced their buying decision.
• Task Preferences: Some people really love AI for simple tasks. Among these “AI fans,” 29% said they’d rather file their taxes, help a friend move out of a sixth-floor apartment with no elevator, or even clean the toilet than speak to a human agent. They see AI as quicker and less awkward for straightforward questions.
• Confidence in AI’s Capabilities: 40% of consumers believe that AI can handle simple issues as well as a human.
• Preference for Hybrid Solutions: 49% of respondents said they’d feel more comfortable with AI if they could easily switch to a human agent when needed.
Why Consumers Have a Love-Hate Relationship with AI
For many customers, the appeal of AI comes from its speed and availability. In situations where they just need a quick answer or want to avoid a long wait, AI can be a great option. But when something goes wrong, or a problem doesn’t fit a predictable script, AI falls short. Here are the main reasons why consumers feel mixed about AI in customer service:
1. Speed vs. Personalization: AI can answer questions fast but often misses the mark on personalization. A human agent can adapt to a customer’s mood, provide empathy, and offer unique solutions—something that AI often struggles with.
2. Limited Problem-Solving Ability: AI bots are great at answering FAQs or handling simple requests. But when customers have complex or nuanced issues, bots can’t think creatively or “outside the box.” This is where frustration with AI often starts.
3. Impersonal Interactions: A chatbot response can feel scripted, generic, and robotic. Without the ability to adapt to individual needs, AI often leaves customers feeling like they’re talking to a wall.
4. Misreading or Missing Cues: A human can recognize frustration in a customer’s tone and shift the approach accordingly. AI, even with sentiment analysis, isn’t always good at picking up on emotional cues, which can make customers feel unheard or misunderstood.
Why Some People Still Prefer AI Over Humans
Interestingly, there’s a segment of consumers who are all about AI. These “AI enthusiasts” don’t just tolerate AI—they actively choose it over human interactions for certain tasks. Here’s why:
• Convenience and Availability: AI chatbots are always on, ready to help 24/7. For people with busy schedules, this round-the-clock support is invaluable.
• Avoiding Social Interaction: Some consumers would rather skip the small talk and get straight to the solution, making AI a more appealing option. In fact, 29% of people who prefer AI say they’d rather clean a toilet or help someone move than talk to a human agent!
• Quick Resolutions for Simple Issues: AI bots excel at simple tasks, and for consumers who just need a quick update or answer, the no-frills approach of AI is a big plus.
However, even these AI fans have a limit—many would still want the option to switch to a human if the chatbot isn’t able to resolve their issue.
How Brands Can Use AI Wisely: Tips for Avoiding Customer Frustration
With AI here to stay, brands need a game plan for how to deploy it without annoying customers. After all, just one frustrating chatbot experience could cost them a loyal customer. Here are some strategies to make AI work for customers, not against them:
• Use AI for Routine Tasks: Let bots handle the simple stuff—like order updates, basic troubleshooting, or frequently asked questions. Customers are generally fine with AI for straightforward issues, and it frees up human agents to tackle the more complex ones.
• Escalate to Human Agents When Needed: AI can be equipped to detect frustration or confusion and automatically escalate the issue to a human agent. If a customer feels like they’re not getting the help they need, a smooth transition to a human agent can prevent that frustration from turning into brand abandonment.
• Make Switching to a Human Easy: Almost half of the survey respondents said they’d feel more comfortable with AI if they could switch to a human whenever they wanted. This small adjustment can go a long way in keeping customers satisfied.
• Don’t Get Too Predictive: AI that remembers past issues can make things more convenient for returning customers. However, avoid trying to predict problems before they happen, as 50% of consumers find that approach creepy. Instead, focus on improving the current issue.
• Combine AI with Sentiment Analysis: By using AI to gauge customer sentiment in real time, companies can create a seamless experience that blends AI’s efficiency with human understanding. When AI detects frustration, it can route the customer to a human or adjust its responses to be more empathetic.
Real-World Examples: How Some Brands Get It Right
Some companies have found ways to use AI effectively while still prioritizing a human touch. Here are a few examples of brands that are doing it right:
• Amazon: Amazon uses AI for basic questions like tracking orders or processing returns. But for more complex issues, they make it easy to connect with a human. This balance allows them to offer fast, efficient support while still catering to unique customer needs.
• Zappos: Known for its customer-first approach, Zappos uses human agents as the primary point of contact. Their customer service is so central to their brand that they’ve avoided AI-driven support for most tasks. While this may come at a higher cost, it’s a choice that has paid off in customer loyalty.
• Banks and Financial Services: Many banks use AI chatbots for simple inquiries—like checking balances or transferring funds—but quickly connect customers with human agents for financial advice or more complex transactions. This model works well in balancing convenience with personalized support.
Wrapping It Up: Striking the Right Balance Between AI and Humans
The lesson here is clear: AI has its place in customer service, but it shouldn’t replace human agents altogether. If brands want to keep customer loyalty intact, they need to find the right balance. AI is best suited for repetitive tasks that don’t require much nuance, while human agents should be there for issues that need empathy, creativity, or personal attention.
By using AI thoughtfully, companies can provide the speed and efficiency that today’s consumers expect without sacrificing the human touch that makes customers feel valued. Brands that offer an easy way to escalate from AI to a human, and that use AI for the right tasks, can give customers the best of both worlds.
In the end, it’s about giving customers control and flexibility. If people feel like they’re trapped in a loop with a chatbot, they’re far more likely to bail on a brand after a single bad experience. But if they know they can switch to a human when needed, they’re more likely to stick around. Because when it comes down to it, even in a world increasingly powered by AI, the personal touch still matters.
