AI Customer Experience Stats 2025: Market Growth, Adoption, and More

Companies are already seeing significant benefits from using machine learning tools such as ChatGPT in their businesses.

In the customer service industry, will customers appreciate chatbots, or is there a human touch that gets lost in such interactions?

Let’s find out how AI can lead to a better customer experience.

The Conversational AI Market Is Expected to Grow to $29.8 Billion by 2028

This market is expected to grow at a CAGR of 22.6% from 2023 to 2028. (Globe News Wire, 2023)

The expansion of the chatbot market across Asian countries will help the profitability of this industry as well.

The Chatbot Market Size is Expected to Hold Around USD 4.9 Billion By 2032

Here are some other interesting insights according to Precedence Research, in 2022:

• North America generated the highest market share of around 41%
• When it comes to application, the bot-for-service segment generated more than 36% revenue share
• Concerning products, the marketing segment generated the biggest market share of 56%
• By vertical, the eCommerce segment had the largest market share of 21%

How Many Companies Use AI in Their Customer Service?

Around 73% of businesses use or plan to use AI tools in customer service, according to Forbes.

Let’s check out some more valuable insights about how AI can enhance customer experience.

AI Customer Service Adoption Statistics

According to Forbes Advisor:

• 73% of businesses use or plan to use AI-powered chatbots for instant messaging
• 61% of companies use AI to optimize emails
• 55% deploy AI for personalized services

AI Customer Service Statistics by Industry

According to Dialpad, industries such as Computer Science, Entertainment, and Pharmaceuticals are much more successful in adopting AI than sectors like Education, Food, and Manufacturing.

Industries With Highest vs. Lowest AI Customer Satisfaction Score

CSAT score is a score that tries to quantify customer satisfaction across service channels.

However, it is not always accurate and can be quite skewed.

Hence, Dialpad developed a feature called AI CSAT, which infers customer satisfaction from calls with them.

The industries with the top AI CSAT scores are Home Services, Construction, and Utilities.

Those with the poor customer service scores are Automotive, Legal and Insurance industries

70% of Sales/Customer Service Agents Aren’t Worried About AI Replacing Them

70% of customer service agents/sales employees surveyed weren’t apprehensive about their job security being threatened by AI.

79% of Sales/Customer Service Agents Using AI Tools Experienced Positive Results

There seems to be a clear benefit to using AI tools by those working in sales.

78% of Professionals Expect AI to Transform Customer Service Job Profiles

In the next 5 years, professionals expect AI to create new opportunities and different job roles. (Intercom, 2023)

How Consumers Feel About AI in Customer Service

How do consumers themselves feel about interacting with an AI agent instead of a human, when it comes to customer service?

According to The Survey Monkey AI and CX report, people significantly prefer human interaction and dislike using Chatbots to solve their issues.

90% of People Prefer to Get Customer Service from a Human

Here are some more areas where humans outperform AI:

• 61% of respondents believe humans better understand their needs

• 53% say humans provide more thorough explanations than a chatbot

• 52% feel humans are less likely to frustrate them

• 51% appreciate that humans give them more options to soothe their grievances

Net Promoter Score for AI Customer Service Is Very Negative

There is a 72-point difference in the average Net Promoter Score between AI and humans, with humans having a slightly positive score of +6, and AI having a very negative score of -66, in customer service.

Customers list reasons such as:

• The AI doesn’t account for their specific needs
• It didn’t understand the user’s query
• It didn’t display empathy or understanding towards the user
• AI is unable to perform complex queries

There Is a Significant Difference in Negative Feelings Towards AI Depending on Age Group

Only 41% of those under 34 have negative feelings towards AI, while 72% of those over 65 do.

Still, some people genuinely prefer chatting with an AI over a human, and here is why:

Better Availability and Quick Access Were The Top Reasons Why People Prefer AI Customer Service

AI chatbots are readily available and quick to reply, which makes them very convenient for solving a problem quickly.

Awkwardness and social anxiety may explain a preference for chatbots. But, that’s just speculation for now.

Consumers are quite negative about AI. But, businesses see the benefits of using AI for customer service.

In fact, according to Forbes Advisor:

64% of Business Owners Believe AI Will Improve Customer Relationships

A further 60% maintain that AI implementation will drive sales growth too.

46% of Business Owners Use AI for Internal Communications as Well

Company-wide emails could also be automated by AI, relieving employees of manual work and time spent.

Apart from customer interaction, there are other ways that AI can impact the customer service sector.

What Are The Benefits of AI in Customer Service?

The benefits from AI in customer services are broadly the 24/7 availability of chatbots, manual task automation and better responses to customer requests.

A lot of businesses are also seeing benefits from incorporating models like ChatGPT in their workflow.

97% of Business Owners Believe That ChatGPT Will Have a Positive Impact on Their Work

Additionally, 33% of businesses are aiming to use ChatGPT to write for them, and 44% plan to use to tool to write content in different languages. (Forbes, 2024)

According to HubSpot, here are the biggest benefits of using AI in your customer service team:

• 36% say 24/7 availability of chatbots
• 31% say that AI saves them hours on manual, repetitive, or smaller tasks
• 30% say that AI helps them respond better to customer requests

86% of CRM Leaders Believe That AI Can Personalize Customer Interactions

Personalized interactions make customers feel valued. They boost satisfaction. But, we must balance this with an efficient time-per-interaction.

By 2027, Chatbots Will Be the Primary Customer Service Channel For 25% of Organizations

Here’s what Uma Challa, currently the Senior Director Analyst at the Gartner Customer Service and Support Practice, has to say:

“Chatbots and virtual customer assistants (VCAs) have evolved over the past decade to become a critical technology component of a service organization’s strategy,”

Challenges of AI in Customer Service

One of the main challenges of adopting intelligent technology is an over-reliance on it to perform tasks well.

This could lead to the slow erosion of skills as humans depend on AI to make everything work.

40% Are Concerned About Becoming Overly Dependent on Technology Due to AI Use

28% are also worried that excessively relying on technological methods would lead to a lot of unchecked bias in the system.

37% of Customer Service Professionals Identified Lack of Budget as a Hindrance in Adopting AI

Managers and VPs are still more likely to value AI compared to individual contributors though, according to Dialpad. (Dialpad, 2024)

Here are some insights from a recent study by CX Trends,

69% of Cx Leaders Say It’s a Significant Challenge to Forecast Future Labor Requirements

The company’s efficiency depends on accurate hiring forecasts. This avoids issues like hiring delays.

63% of Consumers Are Concerned about Potential Bias and Discrimination in AI Algorithms and Decision-making

There have been many worrying incidents where AI has displayed racist, misogynistic, and group-biased tendencies.

Making algorithms more transparent and explainable is a key milestone that’s necessary for AI adoption, and CEOs are concerned about it too.

Nearly 3 in 4 CEOs are Worried About the Level of Transparency in the AI Market

Around 76% of CEOs worry that the AI market is like a black box, and would prefer more transparency in the system. (PwC, 2024)

Final Thoughts: What’s The Future of AI in Customer Service?

AI is going to be directly or indirectly involved in various aspects of the customer services industry moving forward.

Gen Z seems to be quite interested in these new developments too.

66% of Gen Zers Are Interested in AI to Get Help Through a Product or Website

63% liked the idea of personalized deals, and 56% wanted tailored product recommendations. (Survey Monkey, 2023)

75% of Cx Leaders See AI as a Force for Amplifying Human Intelligence, Not Replacing It

While employees might be worried about job security, they are also quite enthusiastic about learning more about how to use AI in their work. (CX Trends report, 2024)

AI Will Eventually Play a Role in 100% of Customer Interactions

According to the CEO of Zendesk, we are heading into a world where every customer interaction will be mediated by AI in some form. (Zendesk, 2024)