Dive Brief:
- The vast majority of consumers claim they know "immediately" when they're dealing with an AI agent instead of a human, but they often don't, according to a report by customer engagement platform Twilio released last month.
- Three-quarters of consumers said they could identify AI-generated text-based interactions, while 72% said they could identify voice interactions with AI. However, when tested, 90% of consumers failed to identify AI-generated voice clips correctly.
- Despite frequently not being able to identify AI, consumers crave human connection; 69% of consumers still prefer speaking with a human.
Dive Insight:
Businesses are using AI agents to improve efficiency, scale their operations and lower support costs. But it often comes at the expense of human connection, with negative downstream consequences.
“AI fails because it still feels artificial,” the report says. “Until conversations feel natural, personal, and adaptive and deliver real understanding and resolutions, most will continue seeing AI as a tool, not a trusted channel.”
Notably, Gen X and Boomers are twice as good as Gen Z and millennials at correctly identifying voice interactions with AI, even though they're still abysmal at it — Gen X performed the best, correctly identifying AI voice interactions 14% of the time, according to Twilio. That might be because Gen X and Boomers talk on the phone more frequently than younger generations.
Effectiveness and speed also play prominent roles in consumers’ willingness to adopt AI in customer service. Twilio found that nearly three-quarters would choose an AI agent if it were guaranteed to resolve their issue faster.
However, when it comes to providing an excellent customer experience, an overwhelming majority of consumers say empathy and human connection are more important than a quick response, a Five9 study from March found. At the same time, just one-quarter of consumers like or love AI in customer service, while more than half actively dislike or hate it.
So, while AI agents may provide short-term value and fast responses, they could create long-lasting harm, including reduced customer satisfaction and declining brand loyalty.
More than 4 in 5 consumers say they are more likely to stay loyal to companies that prioritize human customer service over automated or self-service options alone, according to a survey by digital services company Ricoh. In contrast, nearly all consumers say that companies that actively invest in building real human connections will have a long-term competitive advantage, Ricoh found.
