AI & Human Touch: Report reveals future of customer service

While customer service plays a pivotal role in shaping consumer perceptions of a brand, only 45% of consumers report overall satisfaction with the service they receive. This gap presents a major opportunity for brands to enhance customer experience and drive loyalty. According to the latest report from the Capgemini Research Institute, ‘Unleashing the Value of Customer Service: The Transformative Impact of Gen AI and Agentic AI’, generative AI (Gen AI) and agentic AI are poised to revolutionize customer service, making it a strategic value driver for businesses. However, despite the efficiency of AI-powered virtual agents, consumers overwhelmingly prefer human agents for their empathy and creative problem-solving capabilities. This indicates that the future of customer service will require a seamless blend of human and AI agents, leveraging Gen AI and agentic AI to maximize efficiency and satisfaction.

Customer Service: A Key Driver of Brand Perception and Loyalty

Customer service remains a critical factor in driving purchases, customer loyalty, and brand reputation. The report highlights that nearly 60% of consumers consider customer service extremely important in shaping their perception of a brand. However, the sector faces major challenges, with only 16% of customer service agents expressing job satisfaction and 65% of executives acknowledging low operational efficiency.
“With over half of consumers willing to abandon a brand due to poor customer service, even if the product itself is satisfactory, businesses must recognize that exceptional service is no longer a luxury but a strategic necessity,” said Franck Greverie, Chief Portfolio & Technology Officer and Group Executive Board Member at Capgemini. “Organizations are grappling with multiple hurdles, including disengaged call center agents, inefficient interdepartmental coordination, and outdated legacy systems. Successfully integrating Gen AI into customer service requires businesses to reimagine their digital solutions, operating models, and data frameworks. Those who embrace this transformation will not only boost customer satisfaction and operational efficiency but also unlock new commercial opportunities and gain a competitive edge.”
Widespread Adoption of Generative AI: A Gamechanger in Customer Service

The research reveals that 86% of organizations have already implemented, piloted, or explored the potential of Gen AI in customer service. This technology is set to address key pain points, improve agent experiences, and enhance operational efficiencies.

Consumers prioritize effective and timely issue resolution, yet many feel their expectations are not consistently met. Among companies utilizing Gen AI, nearly 90% report improvements in first-contact resolution rates or anticipate such benefits. Similarly, 89% of organizations see or expect faster response times, 85% anticipate increased agent productivity, and a significant number foresee reduced operational costs.
Balancing AI and Human Agents for Optimal Customer Experience

The report highlights that 71% of consumers acknowledge improvements in chatbot quality over the past 1–2 years, with Gen AI driving advancements in contextual understanding, emotional intelligence, and empathetic responses.
While AI-powered chatbots excel in speed and efficiency, over 70% of consumers still prefer human agents for their empathy and complex problem-solving abilities. Preferences also vary by age, with younger consumers more inclined toward chatbots, whereas older demographics favor human interaction. Consequently, the traditional customer service model is evolving into a hybrid Customer Experience (CX) center, integrating AI and human expertise to provide seamless, efficient, and personalized service.

Only Half of Organizations Are Fully Prepared for AI-Powered Customer Service

Despite the clear advantages of AI-driven customer service, only 49% of organizations consider themselves fully prepared to implement AI/Gen AI-powered solutions. This underscores the urgent need for businesses to rethink their operating models, modernize digital solutions, and strengthen data infrastructures. Without these foundational changes, companies risk falling behind in leveraging AI as a transformative force in customer service.

The report concludes that businesses must take decisive action to bridge the gap between consumer expectations and current service capabilities. By embracing AI-powered innovation while preserving the human element, organizations can redefine customer service as a powerful driver of brand loyalty, operational excellence, and commercial success.