E-commerce CRO

Nearly half find AI helpful for customer service: study

Recent research conducted by Forethought reveals that nearly half of consumers consider AI chatbots beneficial for customer service. This study shines a light on how artificial intelligence is transforming customer interactions and presents opportunities for brands to improve user satisfaction.

According to the findings, 48% of consumers reported that AI chatbots have made their customer service experiences more helpful. Deon Nicholas, President and Executive Chairman of Forethought, emphasized, “Using AI for CX is a lot harder than most assume it will be, and companies are finally starting to get it right. However, there’s still a lot of work to be done.” This statement points to the ongoing challenges companies face in effectively integrating AI into their customer service strategies.

A critical takeaway from the study is that customer service wait times significantly impact consumer behavior. It found that half of respondents are only willing to wait up to nine minutes for a response. Failures in meeting this expectation could have serious consequences, with 23% of consumers indicating they would cancel or return orders after extended delays. Additionally, 21% stated they would choose not to conduct business with the brand again, while 18% might leave negative reviews online. Thus, prompt responses are essential in retaining customers and maintaining brand reputation.

The study also assessed consumer perceptions of AI agents, revealing that 82% found it at least somewhat easy to determine whether they were interacting with an AI or a human. Interestingly, 90% of Gen Z respondents agreed with this sentiment. Furthermore, an overwhelming 89% suggested that companies should disclose when AI is being used for customer interaction. This transparency is crucial, considering that many consumers still have reservations about AI handling their concerns.

Nicholas added that many individuals distrust bots and doubt their ability to solve problems. He noted, “As more companies evolve to more advanced agentic AI, we’ll see more customers willing to give AI a chance to swing before they look to escalate to a human agent.” This shift suggests that as AI improves in sophistication, customers may become more comfortable with it, allowing human agents to focus on complex issues that require a personal touch.

The importance of empathy in customer interactions cannot be overlooked. While efficiency is a significant advantage of AI, Nicholas highlighted that 95% of consumers believe having empathetic customer service agents leads to better outcomes. Thus, a balance between the efficiency of AI and the emotional intelligence displayed by human agents is critical in providing holistic customer support.

Consumer frustrations with AI systems also surfaced in the study. Many expressed annoyance at having to repeat information already provided to previous agents or automated systems. This redundancy is particularly frustrating for younger demographics, such as Gen Z and Millennials, who prefer quick resolutions without phone calls. Addressing these pain points is vital for organizations intending to strengthen their customer service.

Looking ahead, Nicholas envisions a future where AI can seamlessly manage customer service interactions. He remarked, “As AI gets better, it’s going to solve many of these issues.” Future developments could mean seamless transitions between different AI agents and from AI to human agents, ensuring that consumer issues are resolved expediently and effectively. These advancements could occur behind the scenes, allowing customers to enjoy prompt service without unnecessary waiting.

The research involved a survey of over 1,000 US adults, offering significant insights into contemporary consumer attitudes towards AI in customer service. As businesses strive to integrate AI technologies, understanding these customer preferences and pain points will be essential in crafting effective service strategies.

In conclusion, while nearly half of consumers find AI chatbots helpful, businesses must not overlook the nuances of consumer expectations. The balance between AI efficiency and human empathy will be crucial in enhancing customer satisfaction. As companies continue to refine their AI capabilities, transparency, responsiveness, and empathy will play a pivotal role in shaping the customer service landscape.