AI & Automation
Make customer interactions feel intelligent, not artificial
Technology deep dive
AI is redefining what’s possible with customer service
From always-on support to back end systems that can triage tickets faster than any human team, this versatile technology has quickly raised customer expectations on what it means to offer best-in-class service.

But without a smart strategy for AI implementation, many businesses are falling short. As with each new technology that rewrites the customer service rulebook – the internet, live chat, mobile phones and AI – businesses must commit to rethinking their mindset and their approach. Anything less and they risk frustrating customers, or worse, undermining their ability to deliver the quality experiences that keep them coming back.
Business leaders already recognise the critical role that AI will play in building the types of customer experiences that drive bottom-line growth. That’s why 57% plan to increase their AI budgets by at least 25% next year. But many have yet to tackle the more difficult task of building out an operation that plays to the strengths of every member of the support team – be it human or robot. Now is not the time to settle for “good enough” service. Customers want the best – and they increasingly see AI as the key to reaching their lofty experience goals.

61% of customers are now willing to walk away after just one bad customer service experience
With 61% of customers now willing to walk away after just one bad experience, companies must move quickly to develop an AI strategy that delivers. We’ve gathered insights from customers, agents, business leaders and our own team to show you how the right AI approach can help you earn happier (repeat) customers, better business results and a competitive advantage in treating customers well.
What customers expect with AI
Customers need AI to make their lives easier—not harder
Customers primarily see AI as a force for good – one that can improve their interactions and experiences with businesses.
Done right and 65% of customers expect AI to save them time. Another 64% say it will prevent them from having to repeat themselves. Looking ahead, 61% expect that the majority of their future service interactions with companies will be automated.
Optimism aside, most customers have noticed a significant gap between AI’s service potential and its current reality. Instead of making things easier, it often creates unintentional obstacles and, in some cases, has actually made it harder for customers to get the answers they need. Some 60% of customers report frequent disappointment with their chatbot experiences.
Customers are frustrated with chatbots
Despite the frustration, customers remain open and hopeful that businesses will turn it around.
The number of customers willing to turn to chatbots for simple issues jumped 13 points compared to the previous year. And businesses are working hard to improve their performance:
50% of companies say they use AI to make recommendations based on purchase or search history
40% use AI to engage with customers via their preferred contact methods
39% use AI to prioritise customers based on their status or account type
AI and automation in action
Companies that use Zendesk to power their support operations are reducing wait times and answering more tickets with AI and automation:
Businesses have low adoption of AI capabilities
Smart strategies beat big budgets
Companies may be upping their AI investments, but challenges with planning and implementation paint a less rosy picture.
Companies are split – with 57% saying they’ve had an ad hoc approach to their AI strategy. What’s more, only half can say that their teams are well-versed in emerging AI capabilities, which means they’re largely shooting in the dark.
Without considering the strengths – and weaknesses – of AI, businesses are only going skin deep with their approach. The likely result is a less-than-ideal service experience for all involved. Chatbots can be incredibly effective partners – if they’re part of a well-laid plan that plays to their strengths.
“Leaders think they can have a bot instead of a human, but that’s not how it works well,” says Jon Aniano, Senior Vice President of Product and CRM Applications at Zendesk. “Companies that are doing AI right are thinking about the best experience they can possibly provide. They start by asking themselves what AI is good at that humans are not.”

During the pandemic, the Tile support team launched a new chatbot to help the team manage higher-than-normal ticket volumes.
Here’s where your chatbots should play a starring role, according to customers:

Providing links and information that can help resolve their problems

Offering quicker, more convenient replies for simple issues

Delivering answers and responses outside of normal business hours
Businesses leader's believe chatbots are:

Data in this report comes from three sources: One global survey of 3,500 consumers, one global survey of 4,600 business respondents and Zendesk Benchmark product usage data from more than 97,500 companies.
Take an intelligent approach to AI
With so much riding on treating customers well, businesses must put together a smart AI strategy that lets everyone put their best foot forward.
Chatbots shouldn’t be trying to solve problems that require human involvement. “If you’re doing that, you’ve created a far worse customer experience”, says Aniano. Similarly, agents shouldn’t be bogged down trying to triage tickets or responding to customers who need to reset their password, look up their username or check on the status of their order.
Here are some tips for building out an AI-powered customer service strategy that’s top of the class:
Start by identifying your top customer service issues by volume.
These should include self-service queries and tickets handled by customer service agents. If you’re a smaller business, concentrate on your top 10; larger firms should initially try to narrow their focus to a more manageable geography or business unit.
Review the issues and group them based on whether they:
- Need a human
- Can be fully automated
- Require some combination of the two
For those that can be fully automated, determine if AI or automation could create a better experience than the one currently provided by a human.
This includes agent workflows or processes that could be streamlined or enhanced.
Prioritise issues that can be fully automated and also provide a tangible business benefit (such as cost savings or an opportunity to upsell).
Once done, shift to the remaining issues that, if fully automated, could improve the overall customer experience even if there’s no direct business benefit.