A recent study by Capgemini Research Institute has highlighted the strategic role of customer service in the age of artificial intelligence, specifically focusing on the potential of generative AI and agentic AI to address existing challenges in the industry.
The research reveals that customer satisfaction remains low, with only 45% of consumers globally expressing satisfaction with customer service. In the United Kingdom, satisfaction varies across industries, with insurance leading at 53% satisfaction, followed by banking at 46% and consumer goods at 44%. Conversely, government agencies, telecom, and utilities rank lowest, with satisfaction rates of 27%, 33%, and 34% respectively.
Only 16% of customer experience agents report being satisfied with their roles globally. In the UK, business leaders cite insufficient employee training and development, outdated IT systems, and poor departmental coordination as primary challenges affecting customer service quality.
Capgemini's research indicates that generative AI presents significant opportunities to overcome these challenges. A third of UK organisations using generative AI have observed improvements, including increased rates of first contact resolution and enhanced agent productivity. Additionally, 19% of these organisations report reduced operating costs, with 63% expecting to see similar benefits.
Globally, 70% of customer experience agents have experienced a reduction in workload due to generative AI, with 73% spending less time on mundane tasks. This technology also seems to influence customer willingness to pay for service, with 61% of UK consumers indicating they would pay more for premium customer service enabled by generative AI.
Franck Greverie, Chief Portfolio & Technology Officer at Capgemini, emphasised the strategic importance of customer service, stating, "With over half of consumers prepared to leave a brand due to poor customer service, even if their purchase is good, business leaders now recognize that exceptional customer service is no longer a luxury but a strategic imperative."
He highlighted that organisations face multiple challenges including agent engagement and legacy systems, and that transforming these areas with generative AI can enhance satisfaction and operational efficiency.
According to the study, 86% of organisations are engaging with generative AI at varying levels. The technology is recognised for its potential to improve critical aspects of customer service like issue resolution speed, operational efficiency, and agent productivity. Most organisations using generative AI have seen or expect to see improved first contact resolution and faster response times.
The study also notes that chatbots, enhanced by recent advances in AI, are increasingly appreciated by consumers for their speed and convenience. However, there is still a preference for human agents, especially for tasks requiring empathy and problem-solving. This preference shifts with age, as younger consumers show a higher inclination towards automated solutions.
Despite the potential benefits of AI integration, only 49% of organisations feel fully prepared to offer AI-powered customer service. The study suggests a need for updated operating models, digital solution transformations, and stronger data foundations to fully leverage AI as a transformative tool.
The Capgemini survey included insights from 9,500 consumers, 500 customer service agents, and supervisors, alongside 1,000 executives globally. This was complemented by interviews with over 15 industry executives, providing a comprehensive overview of current trends and future possibilities in customer service innovation.
