The promise of AI in customer service is alluring: round-the-clock availability, lightning-fast responses, and the ability to handle countless inquiries simultaneously. But for customers, the reality doesn’t always live up to the hype. A new study from Acquire BPO suggests that AI may be skating on thin ice with consumers: 70% of people said they’d consider switching brands after a single frustrating interaction with an AI-powered chatbot.
The rise of conversational AI has revolutionized customer support, yet it’s clear that trust in bots has its limits. When a chatbot fails to understand a query or resolve an issue, it can trigger a chain reaction of frustration—and lost loyalty.
Why Customers Are Skeptical
Despite advancements in AI, many consumers still prefer speaking to a human. The survey found people are 2.5 times more likely to feel positive about their experience with a human agent than with AI. Respondents cited concerns like a loss of personal touch, lower accuracy, and slower resolutions when dealing with bots.
There’s also a deeper emotional component at play. Nearly half of consumers harbor negative feelings toward brands that rely more on AI for customer service, suggesting that mishandling these interactions could damage not just loyalty but brand perception itself.
“AI has incredible potential, but it’s no substitute for the nuanced, empathetic approach of a human agent,” said Scott Stavretis, CEO of Acquire BPO. “The key is blending AI and human support strategically to meet customer expectations.”
The Flip Side: AI’s Superfans
That said, not everyone is anti-bot. Some consumers—though a minority—actively prefer AI support. Chatbot enthusiasts cited convenience and speed as their top reasons, with 45% saying they appreciate the 24/7 availability. In fact, some would go to great lengths to avoid a human interaction: 29% said they’d rather file taxes or help a friend move out of a sixth-floor walk-up than speak to a human customer service rep.
For brands catering to these tech-savvy customers, AI support can even be a selling point. Over half of chatbot fans reported choosing products or services specifically because they knew AI support was available.
Finding the Right Balance
For most businesses, however, the challenge isn’t choosing between humans and AI—it’s knowing when to use each. The study offers a roadmap for striking this balance:
- Start with simple tasks: 40% of consumers are confident that AI can handle basic issues as well as a human. Use bots for routine queries to free up human agents for more complex problems.
- Make the handoff seamless: Nearly half of respondents said they’d feel more comfortable with AI support if they could switch to a human agent anytime.
- Use AI for escalation: Tools like sentiment analysis can help AI detect frustration and escalate issues to human agents before customers reach their breaking point.
- Don’t overdo it: While 61% appreciated AI’s ability to remember past issues, half expressed discomfort with predictive AI trying to solve problems before they occur.
The Bottom Line
AI in customer service isn’t going away, but the stakes are high. One bad experience can cost a brand a loyal customer, while a well-executed blend of human and AI support can enhance satisfaction and efficiency.
As AI continues to reshape customer interactions, the question isn’t whether to use it—it’s how to use it wisely. “When done right, AI can enhance the customer experience without losing the personal touch,” Stavretis said. For brands looking to stay competitive, getting it right the first time is no longer optional—it’s essential.