A recent study from Forethought revealed that 48% of consumers find AI chatbots helpful in customer service—a shift highlighting the growing acceptance of AI-powered support. Yet, while 70% of CX leaders report utilising AI tools in their workflows, only 17% of consumers have noticed shorter wait times in the past two years. This gap points to the limitations of traditional AI models, such as Retrieval Augmented Generation (RAG), which are often limited to handling simple FAQs and lack the sophistication to solve more nuanced customer issues.

“Using AI for CX is a lot harder than most assume it will be, and companies are finally starting to get it right. However, there’s still a lot of work to be done. Most companies that say they have ‘AI agents’ today use simple bots. There’s a significant opportunity to differentiate and improve customer satisfaction by transitioning to truly agentic AI that can take action, make nuanced decisions, and troubleshoot,” said Deon Nicholas, President and Executive Chairman of Forethought.

Agentic AI could close the gap between customer expectations and actual service quality, allowing brands to differentiate and meet the demand for quick, effective support. In particular, speed of response remains a crucial metric: 50% of consumers would only wait up to nine minutes for a reply before dissatisfaction sets in. Moreover, failing to meet this threshold could result in significant losses, with 23% of consumers likely to cancel orders, 21% vowing not to return, and 18% leaving critical reviews if wait times are too long.

Despite AI’s advantages, consumers value human interaction, primarily for complex or emotionally sensitive issues. As many as 82% of consumers say they can usually tell when they’re engaging with a bot, and nearly nine out of ten agree that companies should disclose when an agent is AI-powered. This is crucial for consumer trust, as a leading frustration remains the lack of an option to connect with a human agent when needed.

Furthermore, generational differences further highlight AI’s potential in customer service. Younger consumers, particularly Millennials and Gen Z, are more comfortable with AI interactions, with 56% of Millennials reporting that AI has made customer service more helpful, compared to only 32% of Baby Boomers. These preferences align with a broader trend toward digital-first channels, where chat, email, and text interactions are preferred over phone calls. As consumer comfort with digital solutions grows, companies increasingly rely on AI to address routine queries, enabling human agents to focus on more complex cases.

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