While brands tout AI-driven efficiency gains in customer experience (CX), a gap remains between internal success metrics and the often underwhelming service customers encounter. Verizon’s CX Annual Insights Report finds that the future of CX lies not in replacing humans with AI, but in integrating AI to strengthen human connections and address core customer frustrations.
Based on a survey of 5,000 consumers and 500 senior executives across seven countries, the study highlights a critical disconnect:
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Human Touch Still Wins: 88% of consumers are satisfied with interactions handled mostly or entirely by human agents, compared to just 60% for AI-led interactions—underscoring that efficiency alone can’t replace empathy and trust.
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Frustration at the Human Hand-Off: The top irritation—cited by 47% of consumers—is the inability to speak to a live agent when needed. Nearly half of executives acknowledge this as the biggest complaint about AI-enabled interactions.
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The Personalization Paradox: While brands push AI-driven personalization, more consumers say it has worsened their experience (30%) than improved it (26%). Privacy concerns play a role—65% of executives admit that data privacy rules limit personalization efforts, while 54% of consumers report declining trust in how their data is used.
“The future of CX isn’t about AI replacing humans; it’s about using AI to make human interactions better,” says Daniel Lawson, SVP, Global Solutions, Verizon Business. “Businesses that use AI to preempt needs, empower employees, and enhance personalization—while respecting privacy—will lead the market.”
Bridging the Gap: AI in Action
Some companies are proving that AI works best when augmenting, not replacing, human input:
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Proactive Support: During COVID-19 lockdowns, energy utility Exelon used AI and predictive analytics to identify middle-income households at risk of payment difficulties. They proactively offered personalized assistance program recommendations, winning customer appreciation and solving real-world problems with empathy.
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AI as a Service Assistant: Exelon is also piloting generative AI to help customer service reps by surfacing relevant data in real time and summarizing calls—reducing workload and improving efficiency. This reflects a growing trend where companies invest equally in human and AI-driven CX improvements.
AI can be a powerful enabler, but its true value lies in amplifying—not replacing—the human element.
