Why AI Makes Customer Service Worse, And What Companies Can Do To Fix It

The automated customer service systems often frustrate customers with their repetitive and irrelevant responses, leading to long hold times. The systems are designed to handle common problems, leaving customers who have specific issues without access to human assistance. For example, a credit card company referred a user to a monitoring service after a data breach, only to send them a sexual-predator alert about their file.

The monitoring service's password reset process is complicated, requiring the user to be online before they can change their password. Similarly, a user trying to fix a password issue with their credit card account was told to say the word "fraud," leading them to a human who could help them change their password. This process highlights the issue of automated systems that don't address individual needs, creating a frustrating experience for customers.

In contrast, some companies offer a more personalized experience, even at scale. For instance, Fidelity and USAA insurance companies have knowledgeable human representatives available to help customers with their queries. Apple's customer service also includes a "Genius Bar" staffed by actual humans who can assist customers with their Apple products.

These companies prioritize providing a sense of respect for their customers and understanding that satisfied customers are essential for their survival. While it's challenging and costly to provide a personalized customer experience, companies can still maintain a sense of respect and empathy for their customers. Digital technologies should enhance customer service rather than make it worse.

Combining algorithmic efficiency with human empathy and judgment can create a cyberspace that ultimately benefits both customers and businesses.