Dive Brief:
- Consumers are predicting the erosion and premiumization of human support as more businesses deploy customer-facing AI, according to Medallia’s 2026 State of Customer Experience report.
- Nearly half of consumers believe that in 10 years, they won’t directly interact with any companies because an AI agent will do it on their behalf.
- More than two-thirds of consumers believe that AI- or machine-driven service will drive basic services, while people and human touch will be a feature of premium experiences.
Dive Insight:
Businesses are investing heavily in AI-powered customer experiences, aiming to improve resolution times, lower staffing costs and capitalize on a wealth of data.
But when it comes to service and support, the technology is best suited to simpler needs rather than complex ones, Medallia found.
And humans still want to talk with humans. That should come as no surprise since more than three-quarters of consumers say only dealing with a human “always” or “often” leads to better outcomes in customer service, according to a survey conducted by YouGov on behalf of Pegasystems Inc.
As a result, consumers are deeply worried about the loss of the human touch.
They’re so worried, in fact, that they’re willing to pay more for human-provided, empathetic service and support, according to a survey conducted by YouGov on behalf of Zurich. They show more loyalty toward brands who provide human service, too: 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.
Some companies, like Nordstrom, are leaning into human care, betting that personal connections will earn it a competitive advantage.
“The biggest thing for us is really about the human connection,” Heather Bissell, senior director of customer care at Nordstrom, told CX Dive in November. “It’s about really making people feel special and validated.”
So far, AI doesn’t make people feel that way. Customer tolerance of AI failures is limited. Just 7% of consumers are more willing to forgive AI than humans, according to Medallia.
For the consumer portion of the study, Medallia surveyed more than 1,500 consumers in the U.S., U.K., Canada, Australia and New Zealand.
