The Impact of AI on Customer Service: Why Human Connection Still Matters

In an era where many companies are pushing customers towards AI-powered chatbots, the shift is often painted as innovative, efficient, and cutting-edge. However, these so-called advancements tend to benefit businesses far more than the customers they serve. For consumers, this trend often feels like a step backward, leaving them at a disadvantage.

The Hidden Cost of Automation in Customer Service

At its core, the evolution towards automation and AI-driven interactions is about cost-cutting and streamlining operations—not improving customer experiences. The phrase "human expertise for complex or emotional cases only" suggests a growing trend: companies, not customers, dictate when human interaction is available.

For years, businesses have been deliberately reducing access to human customer support, burying contact numbers deep within their websites—if they exist at all. You’ll notice we, at ALA Insurance, have our phone number front viewable at all times, either on our main navigation of our site, or via our About or Contact pages. 
Large corporations who, on the face of it, appear to want to serve customers well have other tactics to get customers to self-serve instead. Well-known airlines, charge their customers extra for booking tickets over the phone with an employee. This policy discourages direct human interaction and pushes users towards self-service.

Similarly, many companies discourage calls by playing messages about excessively long wait times, advising customers to "go to chat online" where it’s supposedly faster. More often than not, this leads to an interaction with a chatbot, which lacks the nuance and understanding of a human representative. While these systems may streamline processes for businesses, they often leave consumers feeling undervalued and frustrated.

While some consumers may prefer handling simple tasks online, it's often out of necessity rather than preference. Long wait times, impersonal service, and frustration with outdated systems have pushed many toward self-service. But this shift isn’t a testament to progress; it reflects how low customer service has fallen on many companies’ priority lists. 

The Importance of Human-Centric Customer Support

As a UK SME business owner for over 30 years, I’ve built my company around the principle of exceptional customer service. This commitment has been recognised with the UKCXA Gold Award for Best Customer Service in Financial Services. The foundation of our success lies in our belief that prioritising the customer leads to tangible results—not just for the business but for the people we serve.

A significant factor in this achievement is our investment in our customer support team. We focus on recruiting, training, and retaining top talent, which has also earned us the UKCXA Gold Award for Best Employee Experience. By fostering a supportive environment for our team, we empower them to deliver unparalleled service to our customers.

Putting the Customer First

Our approach is simple: during office hours, we ensure calls are answered within 7 seconds on average. No endless menus, no frustrating wait times—just immediate access to a trained professional. While many of our customers opt to buy online, we make it a priority to offer choice and transparency. Whether they choose to interact with us digitally or through a phone call, they can rely on us for accurate, helpful support.

Why Choice Matters in Customer Service

Change isn’t always synonymous with progress. While a hybrid model that incorporates both AI and human support is essential in today’s world, the consumer must retain the choice to speak with a human—and to do so quickly. By offering this flexibility, businesses can truly serve their customers rather than merely managing them.

Investing in human-centric customer service isn’t just good practice—it’s good business. Companies that prioritise meaningful interactions over automation build trust, loyalty, and long-term success. After all, customer service should be about people first, not just efficiency.

Final Thoughts

As automation continues to evolve, companies must strike the right balance between innovation and human connection. Those who succeed will be the ones who put their customers at the heart of their strategy, offering genuine support and choice in every interaction.

By staying committed to these principles, we can ensure that the future of customer service is one where technology enhances—not replaces—the human touch.