Nearly 90% of organisations report improvements or expect improvements in first-contact resolution rates and response times with Generative and Agentic AI.
Customer service has long been recognised as a critical driver of brand perception, loyalty, and revenue. However, traditional approaches to customer service are proving insufficient.
The latest report from the Capgemini Research Institute, Unleashing the Value of Customer Service, presents a compelling roadmap for revolutionising customer service through the transformative capabilities of Generative AI (genAI) and Agentic AI.
The research includes a survey of 9,500 consumers, 506 customer service agents and supervisors (315 agents and 191 supervisors) from in-house and outsourced contact centres, and 1,002 executives, at director level or above from large organisations with annual revenue exceeding $1 billion in annual revenue.
The Need for Transformation
While 58% of consumers consider customer service to be extremely important in shaping their perception of a brand, less than half (45%) report overall satisfaction with the service they receive. This discrepancy highlights a critical opportunity for organisations to redefine their customer service function as a strategic value driver rather than merely a support function.
Internally, the challenges are equally pressing. Only 16% of customer service agents express satisfaction with their roles, and 65% of executives acknowledge low operational efficiencies in their organisations’ customer service functions.
Factors such as poor departmental coordination, outdated legacy systems, and high agent turnover exacerbate these inefficiencies. Addressing these concerns requires a strategic and cultural shift—one that recognises customer service as a core component of business success.
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The Game-Changing Role of GenAI and Agentic AI
The report underscores how AI-driven transformation is already underway. Among the organisations surveyed, 86% have either implemented genAI, initiated pilot projects, or begun exploring its potential in customer service. The benefits are significant:
- Enhanced Agent Productivity: 73% of agents report spending less time on mundane tasks, while 70% have experienced an overall workload reduction due to genAI assistance.
- Operational Efficiency: 24% of organisations using genAI have already seen reduced operating costs, with another 65% expecting to realise this benefit in the near future.
- Faster Resolutions: Nearly 90% of organisations report improvements or expect improvements in first-contact resolution rates and response times.
“AI offers an unparalleled opportunity to transform customer service by completely rethinking how brands interact with their customers. It is more than a technological shift; it enhances the experience for human agents, reshapes end-to-end processes, and seamlessly integrates the services provided by both human and AI agents to deliver an exceptional customer experience every day,” says Arnaud Bouchard Global Augmented Service Offer Lead, Capgemini.
A Strategic Blend of AI and Human Empathy
Despite these advancements, human agents remain indispensable. While chatbots and AI-powered assistants excel in speed and efficiency, consumers still prefer human agents for empathy and creative problem-solving. Over 70% of consumers favor human interactions for more complex or emotionally nuanced service requests. This suggests that the future of customer service will not be an AI takeover but rather a seamless integration of AI-driven efficiency with human expertise.
Younger consumers demonstrate a greater inclination toward AI-driven interactions, while older demographics continue to favor human-led service. This generational divide highlights the importance of a hybrid approach—one that combines the strengths of both AI and human agents to meet diverse customer preferences.
“Customer satisfaction starts with happy agents. Companies must treat employees as partners, understanding their needs and challenges. When employees feel valued, they’re more likely to deliver exceptional service, reducing attrition and enhancing customer interactions,” says Aline Schwenk Director at Amazon.
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Building an AI-Ready Customer Service Model
Despite AI’s potential, many organisations are not fully prepared for AI-powered customer service. Only 49% consider themselves ready to implement genAI at scale. The report outlines key barriers, including:
- Technology Challenges: 79% of executives cite outdated legacy systems as a major hindrance to AI adoption.
- Organisational Silos: 74% of executives report poor departmental coordination as a significant barrier.
- Data Fragmentation: 73% struggle with siloed IT systems that limit access to crucial customer insights.
To bridge these gaps, organisations must take a phased approach:
- Redesign: Define clear roles for AI and human agents, ensuring that AI augments rather than replaces human expertise. Reimagine business processes with an end-to-end customer experience in mind.
- Deployment: Implement AI-driven solutions such as cloud-based contact center platforms, integrate AI assistants with CRM and data platforms, and establish governance frameworks to ensure data security and compliance.
- Continuous Improvement: Regularly monitor AI performance, refine AI-human collaboration, and establish new KPIs to measure AI’s impact on customer experience and operational efficiency.
A New Era of Customer Service
“Organisations can now deliver innovative services and personalised experiences, empowering both customers and agents in unprecedented ways,” says Alex Smith-Bingham Group CX Offer Lead, Capgemini.
The findings from Unleashing the Value of Customer Service make it clear that AI is not just an enhancement but a necessity for organisations seeking to remain competitive in today’s customer-centric landscape. As genAI and Agentic AI evolve from copilots to reasoning AI agents, they will unlock unprecedented opportunities for businesses to elevate their customer service function.
However, AI adoption is not just a technological shift—it is an organisational transformation. Companies that recognise customer service as a strategic function and invest in the right AI-driven solutions will not only enhance customer satisfaction and agent experience but also unlock new commercial opportunities, positioning themselves for long-term success in the digital era.
ALSO READ: How GenAI Leverages Data for Retail Success
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