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Customer Experience Leaders: Better AI Won’t Fix Bad Service

Newsweek panelists said disconnected automation and human handoffs can turn capable AI into a frustrating experience.

Despite advances in artificial intelligence, many customer service leaders recognize that better AI alone cannot resolve fundamental service issues. Nick Mehta, a former CEO of Gainsight, recounted a frustrating experience when an automated airline agent struggled to transfer him to a human representative due to the need for additional information.

The representative ultimately informed Mehta that the requested change could be made within the airline's app. Mehta described the scenario as a Frankenstein-like amalgamation of disparate systems.

During a webinar hosted by Cognizant, technology leaders from NiCE, Braze, Zendesk, and Zendesk discussed the challenges of integrating AI into customer service. Each company presented examples where AI performed well on straightforward tasks, but faltered when handling complex or nuanced requests. The problem lies in the handoffs between channels: automated agents cannot bridge the gaps between human representatives.

According to Adrian McDermott, chief technology officer at Zendesk, companies often optimize AI agents for common requests without considering how they perform under less predictable conditions. He likened the improved efficiency of AI to the Jevons paradox, suggesting that while AI may make service faster and more enjoyable, it can lead to increased demand as customers expect more from each interaction.

Jon Hyman, co-founder and CTO at Braze, emphasized the importance of personalization in creating meaningful customer interactions. He noted that even basic contextual information, such as recent purchases or order numbers, can help AI agents provide more relevant responses. However, Hyman cautioned that AI-generated messages can sometimes appear robotic or impersonal if not carefully crafted.

Arun Chandra, chief operating officer at NiCE, highlighted the need for employees to have control over when and how they engage with customers. He warned against intrusive personalization that occurs without consent, stressing the importance of integrating data across sales and service channels to ensure a consistent experience. Chandra, drawing from his experience at Disney, argued that every interaction should be viewed as a long-term value-creating opportunity, rather than just a metric to be optimized.

To successfully implement AI in customer service, Chandra recommended a phased approach, starting with high-value use cases and redesigning workflows in isolated environments. Success should be measured by business outcomes rather than purely transactional metrics. While routine ticket triage may become more automated, human roles focused on relationship-building and empathy will likely remain essential.

Ultimately, the effectiveness of AI in customer service hinges on change management and ensuring that employees are prepared to adopt new tools and workflows.

Written by urgent.news from Newsweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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