Customer service drives over two-thirds of customer loyalty, outperforming brand and price combined, according to a study by Gartner. Major advances in AI and personalization promise to improve customer service departments. AI may enable businesses to automate processes, alleviate pressure on agents, gain insights from data and improve interactions. However, AI can also lead to a lack of personal connection and concerns about data privacy, security and job displacement.
Moreover, the expectations around customer experience differ across generations: what wise elders and spirited youths want are not always the same. AI may bring fast-paced, impersonal interactions that are preferred by some but not by others. It can transform a company’s customer services but how it is implemented requires careful thought—and can harm customer satisfaction if not harnessed well.