Despite customer service being a critical factor in shaping brand perception, only 45% of consumers express satisfaction with the service they receive. This gap presents a significant opportunity for brands to improve customer interactions and foster loyalty.
A recent report by Capgemini emphasises how artificial intelligence—particularly Gen AI and agentic AI—is poised to revolutionise customer service, making it a strategic asset rather than just a support function.
While AI-powered virtual agents help with speed and efficiency, human agents remain indispensable for their empathy and problem-solving abilities. The future of customer service lies in a well-balanced blend of AI-driven automation and human expertise, ensuring both efficiency and emotional intelligence in customer interactions.
“Organisations are navigating multiple headwinds, including a lack of call centre agent engagement, poor coordination between departments, and outdated legacy systems. Reimagining customer service with gen AI requires businesses to transform their digital solutions, operating model and data foundations; leaders who embrace this change will not only enhance customer satisfaction and operational efficiency but also unlock commercial opportunities for a competitive edge in the market,” said Franck Greverie, chief portfolio & technology officer and group executive board member at Capgemini.
Customer service: a key brand differentiator
Customer service has a major influence on consumer behaviour, with nearly 60% of customers stating it directly impacts their perception of a brand. However, dissatisfaction is prevalent—not only among customers but also among service agents, with only 16% reporting job satisfaction.
In addition, 65% of business leaders acknowledge operational inefficiencies, highlighting the need for transformation.
AI adoption is accelerating—but are companies ready?
The research shows that 86% of organisations have either implemented GenAI, launched pilot programs, or actively explored its potential. AI is a game-changer, helping businesses resolve customer pain points, boost agent productivity, and improve response times. Among companies leveraging AI, nearly 90% report better first-contact resolution rates, while 85% experience increased efficiency and reduced costs.
Consumers have also noticed a shift, with 71 % saying chatbot interactions have improved in the past two years, owing to advancements in AI’s ability to understand context and emotions. However, over 70% of customers still opt for human agents for complex issues requiring empathy and creativity.
A hybrid future
The evolution of customer service is leading to hybrid CX centres, where AI boosts efficiency while human agents provide a personal touch. However, despite AI’s potential, only 49% of organisations feel fully prepared to integrate AI into their service strategy. Companies that invest in upgrading their technology, optimising data management, and rethinking their operational models will be the ones to gain a competitive edge in this new era of customer service.