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AI Customer Service Chatbots Continue to Frustrate Customers

UNITED STATES — According to a CNBC report, customers’ attitudes towards AI-powered chatbots remain rocky, with a majority perceiving them as deflective rather than helpful.

A user, Carmen Smith, from Campo, California, was interviewed and expressed her dislike of AI customer service chatbots, describing her interactions as an endless loop. She stated, “It seems that no matter what, they all will either point you to some type of FAQs list or repeat information you’ve already tried and found lacking.”

Smith represents nearly one in five consumers who, like her, saw no benefit from AI chatbots. The Qualtrics 2026 Customer Experience Trends Report revealed that consumers rank AI customer service lowest in terms of time savings, convenience, and usefulness—a sign that companies are merely deploying the tool to cut costs rather than solve problems.

 

AI Agents’ Performance Reflects What Companies Measure

“If leadership prioritizes minimizing refunds, reducing escalation to humans, or shortening call times, you can expect AI agents to reflect that in the experience—in the same way a human agent would,” said Ben Wiener, Cognizant Moment’s global head.

Companies shape their customer service depending on what they measure and reward. These metrics play a critical role in their workflows and operations and are also believed to be the way to end this futile loop between AI and consumers.

Wiener added that businesses should be explicit about the outcomes they want to achieve, as these will determine what their AIs are trained and measured on.

A perfect AI use case exists at NotifyMD, where AI chatbots and human agents are appropriately utilized—AI for simpler issues and humans for complex emotional concerns.

The company’s senior vice president of sales, Jodi Miller, explained the reasoning behind this approach, stating that AI can’t be expected “to bring the kind of understanding and empathy that a human being can bring to the table.” Miller also added that mindful AI use ensures the system is “helping, not hindering” the people who need it the most.

 

For AI Chatbots to Stay, a Shift Needs to Happen

Zendesk’s CEO, Tom Eggemeier, estimated that AI will handle 80% of digital customer interactions within five years. And while he believes AI is here to stay, companies need to redefine what constitutes “resolved” interactions.

In Zendesk, for instance, resolution occurs only when the customer, the employee, and the business all agree that the problem was actually solved—and AI remains a means to that end.

On the other hand, Jesse Zhang, CEO of chatbot creator Decagon, said that a “resolution” can be subjective, such that one’s resolution is another’s deflection. A company’s role in ensuring this is addressed by having an AI smart enough to make the judgment call.

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