70% of Consumers Would Switch Brands After One Bad AI Experience, Study Says

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Cherry Joy Robles

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A new survey from Acquire BPO highlights that 70% of consumers consider switching brands after just one bad experience with an artificial intelligence (AI) chatbot. 

The 2024 AI in Customer Service Survey underscores the possible disadvantages of depending solely on AI. Customers become annoyed with chatbots and will likely move brands after a negative encounter. The poll aims to explore consumer sentiments, and the findings show that companies have only “one shot to get it right.”  

These findings emphasize the crucial role of a solid AI deployment plan. Businesses must proactively plan their customer experience strategies to ensure positive interactions. 

Missing the human touch

The Acquire BPO survey highlights the growing adoption of AI in customer service as companies aim to reduce costs and improve efficiency. In 2022, global AI spending reached $92 billion, with key investments in AI bots (44%), user behavior analysis (42%), and knowledge bases (29%). Additionally, 70% of C-level client care leaders intend to increase their AI budgets by 2024.

According to the survey, AI chatbots are valued for handling simple tasks, but many consumers still prefer human agents for their personal touch and problem-solving abilities. 

Consumers are 2.5 times more satisfied with their experience conversing with humans than with AI-powered bots. Meanwhile, half of them are skeptical of companies relying increasingly on AI for customer service.

In addition, the survey emphasizes the importance of a well-planned AI deployment strategy that balances automation with human interaction since 72% of consumers prefer human customer support, which affects their buying decisions. 

“Unlocking the power of AI is essential for companies to gain a competitive edge; however, the future of exceptional customer service requires striking the right balance between AI and human support,” said Scott Stavretis, CEO of Acquire BPO. He adds that brands can create a seamless experience that meets customer needs and consistently provides excellent service across all touchpoints.

Some AI recommendations

Acquire BPO proposes the following so that businesses can maximize the benefits of AI while minimizing its limitations: 

  • Use AI judiciously. Forty percent of respondents trust and employ AI for simple tasks where it can provide efficient and accurate support.
  • Leverage AI for past issue reference. Sixty-one percent of consumers use AI to recall previous interactions and streamline future support, although half of the respondents react negatively when predicting future problems using AI.
  • Use AI for issue escalation. More than half of customers agree with allowing AI to detect frustration and route customers to human agents for more complex issues.
  • Provide clear paths to human agents. Nearly half of respondents feel comfortable using AI if they can easily switch to human support when needed.

By following these guidelines, companies can harness the power of AI to improve customer service without alienating their customers.

Read more Unity Communications and industry news on our main BPO News page.

Cherniak, K. (2024, August 31). AI in Customer Service Statistics: 50+ Actionable Insights for your Technology-Driven Business Strategy. Master of Code Global. Retrieved September 12, 2024, from https://masterofcode.com/blog/ai-in-customer-service-statistics

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