Despite AI’s promise to transform customer experience, most consumers still prefer human interaction. New insights reveal where automation is falling short and what brands must do to bridge the gap.
Brands are increasingly touting AI as the ultimate solution for customer experience (CX) efficiency. From chatbots to predictive analytics, the promise of AI is tantalising: faster responses, round-the-clock availability, and smarter service.
Yet Verizon’s CX Annual Insights Report reveals a sobering reality. While companies may reap operational gains, many customers aren’t feeling the difference. In fact, human connection remains the cornerstone of satisfaction.
The Human Touch Matters
The report surveyed 5,000 consumers and 500 senior executives across seven countries, uncovering a clear preference for human-led interactions. 88% of consumers are satisfied with interactions handled mostly or fully by human agents, while only 60% feel the same about AI-driven experiences.
One of the most striking frustrations with AI is the human hand-off problem. Nearly half of consumers (47%) say their biggest annoyance is being unable to reach a live agent when needed. Executives see this as well: the same proportion acknowledges that customers often complain about automated interactions.
Despite all the AI hype, these findings underline a fundamental truth: efficiency cannot replace empathy. Customers still value human judgment, reassurance, and the trust that comes with a live interaction.
Top Findings from the CX Report
To understand the full picture, here are the report’s key insights:
- 88% of consumers are satisfied with human-handled interactions.
- 60% satisfied with AI-driven interactions.
- 47% of consumers cite inability to reach a live agent as the top frustration.
- 26% say AI personalisation improves experiences; 30% say it worsens them.
- 65% of executives report data privacy rules limit AI personalisation.
- 54% of consumers report declining trust in companies’ use of personal data.
- AI works best when combined with human empathy and proactive problem-solving.
The Personalisation Paradox
Personalisation is one of AI’s biggest promises. Yet the report shows it often falls short. While companies use AI to tailor recommendations and interactions, many consumers aren’t seeing the benefits. Some even feel experiences have worsened (30%).
Data privacy is a major contributor. 65% of executives say privacy regulations restrict their ability to personalise. Meanwhile, 54% of consumers report declining trust in how their personal information is used. This “personalisation paradox” underscores the need for careful, thoughtful AI implementation one that respects both customer expectations and regulatory boundaries.
How AI Can Empower Humans
The report emphasises that AI is most effective when it enhances human agents rather than replaces them. Companies are already using it as a force multiplier, making teams smarter, faster, and more proactive.
- Proactive Customer Support: Energy utility Exelon used AI and predictive analytics during the COVID-19 lockdowns to identify middle-income households at risk of missing payments. By reaching out proactively with personalised recommendations for assistance programs, the company strengthened loyalty while solving real-world problems.
- Agent Assistance: Exelon is piloting generative AI tools that summarise calls, surface relevant data in real-time, and suggest next steps for agents. This reduces workload while ensuring human judgment remains central to customer interactions.
“The future of CX isn’t about AI replacing humans; it’s about enhancing human interactions,” says Daniel Lawson, SVP, Global Solutions at Verizon Business. Companies that use AI to empower employees, preempt customer needs, and improve personalisation while respecting privacy are poised to lead.
Bridging the Gap Between Hype and Reality
The report offers a clear warning: adopting AI alone isn’t enough. Brands must focus on human-centred AI strategies that balance efficiency with empathy. Customers want AI that helps but not at the expense of trust, understanding, or the ability to reach a human when things go wrong.
AI should be a tool for proactive support, better decision-making, and employee enablement, rather than a replacement for human interaction. Organisations that get this balance right can unlock operational efficiency and customer loyalty simultaneously.
Conclusion
AI is transforming the CX landscape—but it’s not a silver bullet. Brands that embrace a human-first approach, using AI to enhance, not replace, human interactions, will define the next era of customer experience. Efficiency matters, but empathy drives loyalty, and the most successful companies will be the ones that marry both.
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