What are the pros and cons of AI for customer service?

"Wait...was that a human?"

You just had a great support experience in seconds. But…was it AI or a person?

Photo by Onur Binay on Unsplash

AI is now answering questions, tracking orders, and solving issues faster than ever.

AI for customer service is changing the way businesses operate and how we get help.

But is faster always better?

AI is transforming how customer service operates, with clear benefits for businesses:

• 24/7 availability: AI never sleeps. Unlike human agents, AI-powered chatbots and virtual assistants can respond to inquiries at any time of day or night — keeping customer satisfaction high and missed opportunities low.

• Speed & consistency: AI can instantly provide accurate answers, avoiding human inconsistencies or delays. This leads to faster resolution times and a smoother experience for customers.

• Scalability without extra hiring: AI can handle thousands of customer interactions at once, which makes it ideal for handling high volumes, like during product launches or holiday seasons.

• Cost efficiency: According to a 2022 IBM report, companies that implemented AI for customer service reduced operational costs by up to 30%, while also improving response times and self-service capabilities.

Test Your Understanding

Which of the following scenarios best illustrates a strategic advantage of using AI for customer service during a major product launch?

A. A customer calls to complain about a faulty product and is immediately transferred to a human agent for emotional support.

B. A company receives thousands of inquiries in one day, and AI handles most of them quickly without needing to hire extra staff.

C. A chatbot responds to a single customer query late at night with a generic message that doesn’t solve the issue.

D. An agent uses AI to check grammar in emails before sending responses.

AI can be super helpful, but if it’s not used with the customer in mind, it can leave them feeling ignored or frustrated. Here's why:

• It struggles with complex or emotional problems. AI is great at simple, common questions. But when a customer has a unique issue or needs emotional support, AI just doesn’t “get it” the way a human can.

• Sometimes you just want to talk to a real person. Have you ever kept pressing “0” or saying “talk to someone” out of frustration? You’re not alone! Many people still prefer a real human who can understand tone, urgency, and subtle feelings.

• It creates privacy and security concerns. AI helps companies give customers a more personal experience by using their data — but this means they need to be careful. It's important for businesses to keep that data safe and be honest about how they use it.

The bottom line: AI can assist, but it can’t replace human understanding, empathy, and decision-making. That’s why thoughtful use, with the customer experience at the center, is key.

The most effective customer service doesn’t rely on AI or humans alone — it combines the strengths of both.

• AI handles simple, routine tasks quickly. AI is good for answering common questions, checking order status, or guiding customers through basic steps. This speeds up service and frees up human agents.

• Humans step in when things get personal or complex. If a customer has a problem that needs empathy, judgment, or a creative solution, a human agent can listen, understand feelings, and adapt their response.

Why this balance matters: By letting AI take care of easy tasks, humans can focus on the issues that require care and connection. This mix keeps customers happy with fast answers and with thoughtful support when they need it most.

The result: Businesses get the efficiency and cost savings of AI plus the warmth and understanding only humans can offer. It’s the best of both worlds — smart, speedy, and sensitive.

Now that you know the pros and cons of using AI for customer service, think about how this knowledge could help you as a customer, a future professional, or even just a tech-savvy student.