New Delhi: With the rise of generative AI (Gen AI) and agentic AI, companies are looking to transform their customer service departments into key value drivers that enhance brand perception, improve customer loyalty, and drive operational efficiency, a new report said on Monday.
As customer service is no longer just a support function for businesses, companies in India and across the world are rapidly adopting AI-powered customer service solutions. A report by the Capgemini Research Institute showed that the 86 per cent of organisations have already implemented Gen AI, initiated pilots, or are exploring its potential.
The report indicates that AI-driven customer service solutions are proving effective in reducing issue resolution time, cutting operational costs, and boosting agent productivity. Nearly 78 per cent of surveyed Indian executives believe using Gen AI in customer service reduces issue handling time, compared to 62 per cent of their global counterparts.
Additionally, 67 per cent of Indian executives say AI helps lower operating costs, and 60 per cent believe it enhances agent productivity. These numbers highlight the growing confidence in AI as a transformative tool in customer service operations.
However, while AI-powered chatbots and virtual agents are improving in quality and efficiency, customers still value human interaction. Over 70 per cent of consumers prefer human agents for their empathy and creative problem-solving abilities, although younger customers are more open to chatbot interactions.
This suggests that the future of customer service will be a balanced mix of human and AI-driven solutions, offering both speed and personalisation. Looking ahead, Indian businesses expect key trends to shape customer service over the next three years. About 66 per cent of surveyed executives believe proactive customer service, which identifies and addresses potential issues before they arise, will be a game-changer.
Similarly, 60 per cent expect the role of customer service agents to evolve, shifting from handling routine tasks to more value-driven roles like relationship-building and sales. Indian companies also expect significant benefits from Gen AI adoption. Around 62 per cent anticipate faster response times, 58 per cent expect improved first-contact resolution rates, and 56 per cent believe AI will enhance customer satisfaction.
“With over half of consumers prepared to leave a brand due to poor customer service, even if their purchase is good, business leaders now recognise that exceptional customer service is no longer a luxury but a strategic imperative,” said Franck Greverie, chief portfolio & technology officer at Capgemini.
