My report reveals that consumers prefer the personal touch of human interaction over AI in service settings.
Verizon’s Customer Experience Annual Insights Report for 2025 reveals a growing dissatisfaction among consumers with AI-led customer service interactions compared to those managed by human agents. The report, based on a survey conducted by Longitude, a Financial Times company, includes data from 5,000 consumers and 500 senior executives across seven countries, including Australia, the United States, Japan, and several European markets. It highlights a significant disconnect between the internal efficiencies companies gain from AI-driven processes and the actual experiences of customers. Notably, 88% of consumers express satisfaction with interactions primarily handled by human agents, while only 60% report satisfaction with AI-driven interactions. This gap underscores the importance of human empathy and rapport in customer service.
The report also addresses the challenges of personalisation and privacy in AI applications. While companies aim to enhance customer experiences through AI, 30% of consumers feel that personalisation has detracted from their experience, compared to 26% who believe it has improved. Concerns over data privacy play a significant role, with 65% of executives indicating that privacy regulations limit their ability to leverage AI for personalisation. Furthermore, 54% of consumers express declining trust in companies’ management of their personal data. Daniel Lawson, SVP of Global Solutions at Verizon Business, emphasises that the future of customer experience lies not in AI replacing humans but in using AI to enhance human interactions. Successful examples, such as Exelon’s use of predictive analytics during the COVID-19 lockdowns, demonstrate how AI can empower staff to provide tailored support, blending technology with human-centric service.
Categories: Customer Satisfaction, AI Limitations, Personalization and Privacy
Tags: Customer Satisfaction, Artificial Intelligence, Human Agents, Personalisation, Data Privacy, Consumer Trust, Service Interactions, Executive Insights, Pain Points, Market Leaders