AI & Automation

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.

61percentstat

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

47% 51% 73% 80% 48% 65% 43% 44% 42% 73% 65% 80% 64% 42%
believe it should make life easier
48% 52% 71% 76% 49% 62% 48% 50% 39% 67% 60% 77% 60% 46%
believe it should keep people from having to repeat things
48% 50% 76% 77% 48% 58% 43% 47% 41% 74% 70% 78% 60% 41%
believe it should save time when contacting a company
42% 45% 71% 75% 47% 46% 39% 45% 33% 72% 60% 75% 56% 42%
believe it should improve customer service quality

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

47% 55% 66% 45% 47% 60% 49% 53% 55% 64% 55% 46% 56% 52%
report not getting accurate answers
44% 46% 53% 47% 44% 46% 48% 44% 46% 50% 46% 45% 47% 51%
say it is most frustrating when they have to start all over with a human agent
55% 50% 58% 54% 56% 51% 46% 47% 49% 62% 56% 54% 55% 54%
say it takes too many questions for the bot to recognize it can’t answer their issue
46% 44% 49% 37% 47% 48% 43% 43% 44% 51% 43% 42% 40% 45%
get frustrated that they don’t have a choice in human vs. bot at the start of service

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:
40%
of companies that turned on automation and AI between September 2019 to September 2021 saw a 15% or higher improvement in first reply time
53%
Increase in the number of tickets handled by automations and AI-powered chatbots grew 53% year on year from 2020 to 2021
61%
expect the majority of customer service interactions to be automated in the future

Businesses have low adoption of AI capabilities

39%
Use bots that make suggestions based on user history
37%
Engage over a preferred contact method
23%
Use both bots and human agents for chat
21%
Use bots to help with agent workflow
21%
Use bots to recommend self-service resources
19%
Use bots to enable cross-department workflows
16%
Use automated chatbots that don’t require human agents
52%
Use bots that make suggestions based on user history
39%
Engage over a preferred contact method
34%
Use both bots and human agents for chat
32%
Use bots to help with agent workflow
27%
Use bots to recommend self-service resources
25%
Use bots to enable cross-department workflows
26%
Use automated chatbots that don’t require human agents
56%
Use bots that make suggestions based on user history
43%
Engage over a preferred contact method
37%
Use both bots and human agents for chat
36%
Use bots to help with agent workflow
31%
Use bots to recommend self-service resources
29%
Use bots to enable cross-department workflows
29%
Use automated chatbots that don’t require human agents
52%
Use bots that make suggestions based on user history
41%
Engage over a preferred contact method
38%
Use both bots and human agents for chat
37%
Use bots to help with agent workflow
32%
Use bots to recommend self-service resources
28%
Use bots to enable cross-department workflows
26%
Use automated chatbots that don’t require human agents
45%
Use bots that make suggestions based on user history
42%
Engage over a preferred contact method
29%
Use both bots and human agents for chat
27%
Use bots to help with agent workflow
23%
Use bots to recommend self-service resources
24%
Use bots to enable cross-department workflows
26%
Use automated chatbots that don’t require human agents
46%
Use bots that make suggestions based on user history
46%
Engage over a preferred contact method
28%
Use both bots and human agents for chat
28%
Use bots to help with agent workflow
24%
Use bots to recommend self-service resources
26%
Use bots to enable cross-department workflows
26%
Use automated chatbots that don’t require human agents
40%
Use bots that make suggestions based on user history
35%
Engage over a preferred contact method
29%
Use both bots and human agents for chat
25%
Use bots to help with agent workflow
20%
Use bots to recommend self-service resources
20%
Use bots to enable cross-department workflows
21%
Use automated chatbots that don’t require human agents
42%
Use bots that make suggestions based on user history
34%
Engage over a preferred contact method
28%
Use both bots and human agents for chat
28%
Use bots to help with agent workflow
24%
Use bots to recommend self-service resources
22%
Use bots to enable cross-department workflows
22%
Use automated chatbots that don’t require human agents
70%
Use bots that make suggestions based on user history
54%
Engage over a preferred contact method
43%
Use both bots and human agents for chat
34%
Use bots to help with agent workflow
34%
Use bots to recommend self-service resources
26%
Use bots to enable cross-department workflows
33%
Use automated chatbots that don’t require human agents
52%
Use bots that make suggestions based on user history
42%
Engage over a preferred contact method
37%
Use both bots and human agents for chat
30%
Use bots to help with agent workflow
28%
Use bots to recommend self-service resources
19%
Use bots to enable cross-department workflows
24%
Use automated chatbots that don’t require human agents
58%
Use bots that make suggestions based on user history
40%
Engage over a preferred contact method
29%
Use both bots and human agents for chat
35%
Use bots to help with agent workflow
30%
Use bots to recommend self-service resources
34%
Use bots to enable cross-department workflows
26%
Use automated chatbots that don’t require human agents
50%
Use bots that make suggestions based on user history
44%
Engage over a preferred contact method
39%
Use both bots and human agents for chat
32%
Use bots to help with agent workflow
24%
Use bots to recommend self-service resources
28%
Use bots to enable cross-department workflows
22%
Use automated chatbots that don’t require human agents

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.”

Customer Story Support and leadership in sync

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:

46%
Driving large cost savings
46%
Able to help customers reach the right channel
44%
Able to be used across channels
45%
Becoming more human-like
41%
Able to predict customer intent
35%
Becoming indistinguishable from agents
65%
Driving large cost savings
64%
Able to help customers reach the right channel
62%
Able to be used across channels
58%
Becoming more human-like
58%
Able to predict customer intent
50%
Becoming indistinguishable from agents
66%
Driving large cost savings
65%
Able to help customers reach the right channel
59%
Able to be used across channels
58%
Becoming more human-like
58%
Able to predict customer intent
49%
Becoming indistinguishable from agents
63%
Driving large cost savings
66%
Able to help customers reach the right channel
63%
Able to be used across channels
61%
Becoming more human-like
58%
Able to predict customer intent
49%
Becoming indistinguishable from agents
55%
Driving large cost savings
56%
Able to help customers reach the right channel
48%
Able to be used across channels
52%
Becoming more human-like
50%
Able to predict customer intent
41%
Becoming indistinguishable from agents
54%
Driving large cost savings
58%
Able to help customers reach the right channel
51%
Able to be used across channels
47%
Becoming more human-like
45%
Able to predict customer intent
45%
Becoming indistinguishable from agents
54%
Driving large cost savings
55%
Able to help customers reach the right channel
53%
Able to be used across channels
52%
Becoming more human-like
47%
Able to predict customer intent
49%
Becoming indistinguishable from agents
54%
Driving large cost savings
54%
Able to help customers reach the right channel
52%
Able to be used across channels
49%
Becoming more human-like
50%
Able to predict customer intent
41%
Becoming indistinguishable from agents
80%
Driving large cost savings
75%
Able to help customers reach the right channel
62%
Able to be used across channels
61%
Becoming more human-like
61%
Able to predict customer intent
45%
Becoming indistinguishable from agents
66%
Driving large cost savings
65%
Able to help customers reach the right channel
66%
Able to be used across channels
61%
Becoming more human-like
56%
Able to predict customer intent
51%
Becoming indistinguishable from agents
63%
Driving large cost savings
64%
Able to help customers reach the right channel
58%
Able to be used across channels
55%
Becoming more human-like
53%
Able to predict customer intent
46%
Becoming indistinguishable from agents
59%
Driving large cost savings
61%
Able to help customers reach the right channel
52%
Able to be used across channels
47%
Becoming more human-like
48%
Able to predict customer intent
40%
Becoming indistinguishable from agents
Methodology How we ran the research

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:

  1. Need a human

  2. Can be fully automated
  3. 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.

Next Chapter
Customer service just isn’t human enough
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