August 13, 2025
AI Can Answer Faster. But Can It Care?
Artificial intelligence is making customer service faster, cheaper, and more efficient, at least from the company’s perspective. However, according to Verizon’s latest CX Annual Insights report, speed isn’t the same as satisfaction. The study reveals a clear gap between the operational wins brands see from AI and the experiences customers value.
Surveying 5,000 consumers and 500 senior executives across seven countries, the report finds that AI still struggles with something machines can’t fake: empathy.
Humans Still Win on Satisfaction
Despite the hype around automation, most customers still prefer dealing with people. The report shows that 88% of consumers are satisfied with interactions handled mostly or fully by human agents, compared with just 60% for AI-powered ones. The biggest frustration — and one executives acknowledge as a frequent complaint — is not being able to reach a real person when needed. This is cited by 47% of consumers as their top annoyance.
While personalisation is touted as a prime AI benefit, more customers say it has worsened their experience (30%) than improved it (26%). Data privacy rules are a major hurdle for companies, with 65% of executives saying these restrictions limit their ability to use AI effectively for personalisation. At the same time, more than half of consumers (54%) say their trust in companies to handle personal data has declined.
Where AI Gets It Right
The report points to cases where AI seamlessly supports human service, rather than replacing it altogether. One U.S. energy utility company used predictive analytics during the COVID-19 lockdowns to identify middle-income households at risk of missing payments. This allowed the company to reach out proactively with relevant assistance programs, earning customer goodwill.
