One bad AI experience could cost brands holiday sales: Acquire BPO
MELBOURNE, AUSTRALIA — As the holiday season ramps up, businesses are increasingly turning to AI to manage the surge in customer service demands. While AI offers efficiency and round-the-clock availability, a new report from Acquire BPO highlights a significant risk: one poor AI interaction can drive customers away.
Acquire BPO’s 2024 AI in Customer Service Survey, which polled 600 U.S. consumers, found that 70% of respondents would consider switching brands after a single frustrating experience with AI-powered support. This underscores the need for companies to balance technological innovation with human-centric service.
AI works for basics but falls short of empathy
AI has proven effective for handling routine tasks, with 40% of survey respondents agreeing that it performs these just as well as human agents. Features like remembering past interactions and streamlining repeat queries were appreciated by 61% of participants.
However, the survey also revealed AI’s limitations. Half of the respondents cited a lack of personal touch, slower resolutions, and reduced accuracy as major frustrations with AI support. Additionally, consumers are 2.5 times more positive about their experiences with human agents compared to AI chatbots.
“AI can be as delightful as Santa or as frustrating as Scrooge, depending on how it’s used,” said Scott Stavretis, CEO of Acquire BPO. “While AI-powered tools can handle routine tasks at incredible scale, they can never replace the empathy and emotional intelligence of real human connection.”
Human agents are still preferred by most customers
The survey found that 72% of consumers prefer human agents for customer support. However, a notable group of AI advocates emerged—57% of chatbot enthusiasts said they chose brands specifically for their AI-powered support due to its speed and availability. Even so, nearly 30% of these AI fans admitted they’d rather perform unpleasant tasks like filing taxes than deal with a human agent.
Importantly, nearly half (49%) of all respondents said they’d feel more comfortable using AI if they had the option to escalate to a human agent when needed. This finding highlights the importance of seamless transitions between automated and human support systems.
Customer loyalty hinges on getting it right
In an increasingly competitive market, customer loyalty is fragile. The survey revealed that 72% of consumers who prefer human agents consider their availability a deciding factor in purchasing decisions. For brands relying heavily on AI this holiday season, the stakes are high—one bad experience could lead to lost trust and churn.
Stavretis emphasized: “The magic of exceptional customer service comes from blending the best of both worlds: AI handling the simple tasks, while humans provide the genuine care that no machine can replicate.”
As businesses navigate the holiday rush and plan for the future, achieving this balance will be critical to retaining customer loyalty and ensuring long-term success.
