While AI-powered customer service is a hit with Generation Z, many still prefer real human interactions — especially for more complicated issues, according to a new survey by Five9.
Researchers at the firm, which is a provider of the Intelligent CX Platform, said this sentiment “highlights the need for businesses to strike a balance between AI-powered solutions and the human touch to meet the evolving expectations of this tech-savvy generation.”
The study was done online and included about 1,000 Gen Z consumers (including 50 percent aged 18 to 22 and 50 percent aged 23 to 27). Five9’s survey also included quotes from Gen-Zers.
Five9’s survey found that 46 percent of respondents considered AI-powered customer service for simple fixes and 47 percent for generic inquiries. “While nearly 60 percent of Gen Z appreciate AI’s faster response times over human interactions (40 percent) and its unmatched convenience (19 percent), 15 percent said they enjoy the personalized experience it can offer,” the report’s authors said, adding that when interacting with brands, “less than 40 percent of Gen Z respondents could not distinguish between AI and human interactions in chatbots, text, or email. This data underscores AI’s growing role in streamlining customer service for a generation that expects quick, efficient solutions.”
Despite a desire for AI-driven customer experiences, the report revealed that “nearly 65 percent of Gen Z consumers still prioritize human customer service for complex issues, finding AI-powered solutions not as trustworthy (47 percent) and reliable (36 percent).” Researchers said the Gen Z desire “for efficiency and ease extends beyond just the technology itself. For Gen Z consumers, a seamless and positive customer service experience is essential to building brand loyalty. Poor customer service is a dealbreaker.”
Mimi Allen, 21, said, “The worse my customer service experience is, the less likely I am to use the brand again. I shop online because it makes my life easier. I don’t have the time to go into a store to purchase, but if buying stuff online is going to take hours or be difficult, then I won’t use them anymore.”
Niki Hall, chief marketing officer at Five9, described Gen Z as natural “prompt engineers” and said they know “how to interact with AI to get the information they need, but they’re also keenly aware of its limitations. When it comes to complex issues or sensitive information, they still crave the empathy and problem-solving abilities of a human customer service representative.” Hall said AI presents a powerful opportunity for brands to enhance customer service, “but strategic implementation is key to achieving maximum impact and ROI.”
Strategically implementing AI is paying off for many companies. The report’s authors said Sephora, Target, Nordstrom and Apple “are all winning over Gen Z with their top-notch customer service. But it’s not just the retail world that’s getting it right, as airlines like United, Singapore Airlines, and Delta are also flying high in the eyes of Gen Z travelers.” The key to success is building the relationship between the brand and the customer.
Sash Shaban, 23, said, “Loyalty is a two-way street. I can’t expect a brand to drop everything to try and solve my $12.99 order issue. However, if I am a regular and we start to build a relationship, that is when I expect an incredible CX experience compared to my purchasing history.”
Clay Lute, also 23, and a member of The Z Suite, which is a network of diverse Gen Z thinkers that advise retailers, brands and industry leaders, told WWD that he trusts chatbots with “the same level of personal information as I would a human customer service representative because the base usage hasn’t changed.”
“Anytime I give information to a company, I have the knowledge that they are using it to personalize my experience and enter it into a databank,” he said. “Because I’ve been online since I was a child, my data being in the hands of others is something I’ve come to expect and doesn’t worry me honestly.”
Regarding AI’s implementation at retail, Lute said it is improving customer service interactions based on efficiency. “Simple tasks that would have previously consumed workload and increased waiting times such as stock questions, product information questions, and accessibility questions can be handled through AI in a way that still adds to a brand ethos. Personalization of AI chatbots and tools are creating shopping experiences that are quick, easy, and enjoyable, and that is an improvement.”
Lute noted that there “will always be a need for a human customer service workforce and a human retail workforce,” but said there will also be times retailers can’t program for, “and there are connection-based experiences between consumer and retailer that cannot be replicated with AI. The combination of both human and programmed services is the path forward retailers should be pursuing.”
