With a growing number of Australian companies using AI-based chatbots to perform customer service requests, I’m often asked: “Are humans being replaced by AI when it comes to customer experience?” The simple answer is no.
While AI enhances efficiency and helps meet customer needs, it can never replicate the emotional intelligence (EI) that fuels trust, connection, and loyalty.
The truth is, AI has played a role in customer service for years and will continue to support routine tasks like answering FAQs, providing order status updates, or offering basic support. It’s available 24/7 so it makes sense to quickly and efficiently handle high-volume inquiries through tools like chatbots and automated responses. Major banks use virtual assistants to help customers with basic banking inquiries, while major Australian retailers use AI-driven chatbots to track orders and returns.
When it comes to the basics, AI has it covered. But what it can’t do is replicate emotional intelligence. Humans have empathy and compassion. They can creatively solve problems particularly when addressing sensitive or personalised customer requests.
AI can empower customer service agents by providing real-time information and insights which allows operators to resolve complex cases more efficiently, but it can’t solve them the way a human can. It can’t properly handle the emotional nuances of an upset or angry customer; in fact, its robotic nature may do the opposite and inflame the situation. AI might be able to use algorithms to solve simple requests, but it doesn’t guarantee a customer feels supported.
Emotional intelligence is particularly critical in challenging situations. Say a customer experiencing financial distress due to illness reaches out to their bank and receives an automated response about payment deferrals from a chat bot. How does that make them feel? Alternatively, they reach a human agent who can recognise their unique situation and offer a more personalised solution. They may be able to negotiate a tailored repayment plan or an extension to a payment deadline. This human interaction helps build trust amongst customers and provides a sense of care that AI cannot replicate.
Recently, South African retail giant Country Road witnessed the limitations of its chatbot when a long-term customer complained that an outfit they’d ordered for a special occasion hadn’t arrived on time. The AI chatbot’s suggestion was a refund or credit. However, when a human agent took over, they recognised the emotional weight of the situation and quickly organised for express delivery and a discount as a gesture of goodwill. It was a customer service decision based on empathy which cemented customer loyalty far beyond what AI could ever achieve.
Where AI also falls short is in building trust, long-term relationships, and loyalty. A chatbot is programmed to respond to algorithms and procedures, but a human agent knows when to step away from scripted responses and ensure a client feels heard, valued, and understood. Many of our clients, particularly in sensitive sectors like banking or finance, prefer discussing private or complex matters with a human agent. AI’s impersonal nature may leave customers feeling disconnected in these situations.
Additionally, human agents are adept at handling cultural and language nuances that AI might misinterpret. A bot may be baffled by “defo down for an arvo convo,” but an ear that recognises Aussie slang knows they need to call back in the afternoon. Humans can pivot and adapt around misunderstood meanings and ensure the conversation feels natural and fosters a stronger, more personalised connection.
Here at TP, our customer service strategies rely on a combination of AI-driven automation and human intervention to deliver exceptional customer experiences. We’re so certain that the future for customer service lies in a balance between human interaction and AI that we’ve recently launched a new hub in Bali for Australian companies. For the first time, large Australian brands have access to a nearshore option combining the efficiency of AI-driven tools with highly trained human support that understands regional and cultural nuances. Nobody outside of Australia knows Australian customer service needs better than the Balinese. The new hub ensures that when AI’s capabilities fall short, customer experts with emotional intelligence can step in to resolve complex and sensitive issues. Through our high-tech capabilities, we create an augmented environment that frees our customer experts from routine tasks, allowing them to focus on the more complex emotional aspects of customer interactions. It’s an opportunity for our clients to leverage cost-effective, offshore customer service while maintaining the emotional connection essential for building customer loyalty.
While AI can expedite routine customer service tasks, it is human agents who provide the emotional intelligence necessary to foster trust, personalise interactions, and strengthen the connection between the customer and the brand. With AI’s support, customer experts can focus on creative, empathetic problem solving, leading to exceptional outcomes for both clients and the organisation. AI helps take care of routine transactions, but when deeper empathy and personalization are needed, human intervention remains critical in delivering a truly memorable service experience.
Richard Valente is the Executive Vice President of Business Solutions at Teleperformance (TP). Richard is currently based in Sydney but has lived and worked in Tokyo, Singapore and Chicago with over 20 years of experience running direct and partner channels within Asia Pacific and North America.
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