As we venture into 2025, AI has reached a fever pitch among contact center leadership. How have consumer expectations, wants, needs, and fears shifted with the growing advent of AI? As consumers use more AI in their personal life, how do their feelings about it change in other settings — and do they recognize (or care) if contact centers use AI?

For this report, we spoke to over 500 consumers about what they want now, how that has changed in recent years, and how that will continue to change as AI evolves and becomes further normalized in the contact center. 

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Read the results of our report on your own time or share them with your team.

Here’s a snapshot of what we learned:

Consumer Expectations in the AI Era

AI is no longer a niche tool but an increasingly integrated part of consumers’ lives. As AI technologies advance and become more accessible, their influence on daily tasks and customer service expectations changes and grows. This section examines how consumers are using AI today, their familiarity with the technology, and the trends shaping its adoption.

Our survey revealed that over a third of respondents (38.3%) use AI tools daily or weekly, highlighting a growing reliance on this technology. However, familiarity with AI remains uneven, with 31.1% aware of AI tools but not using them regularly and 29% avoiding them altogether. 

Takeaway

For contact centers, the increasing prevalence of AI in consumers’ lives sets a new baseline for service expectations. Organizations must capitalize on this familiarity by deploying AI solutions that enhance efficiency for routine tasks while maintaining transparency and trustworthiness. By aligning AI-powered offerings with consumer readiness and preferences, contact centers can better meet the demands of an evolving customer base.

Customer Service Preferences

Consumers’ expectations for customer service may be evolving in an era of increased AI usage, but their preference for human interaction still remains strong.

Our survey revealed that, despite improved AI adoption, nearly half of respondents (48%) still strongly prefer engaging with a human agent, while only 5% expressed a strong preference for AI. A notable 21% indicated no preference, suggesting a growing segment of consumers who may prioritize convenience or outcomes over the method of interaction.

These preferences vary across demographics. Older respondents (55+) overwhelmingly prefer phone calls, with 64.1% selecting this method, while younger age groups (18–24) are more open to digital-first options, albeit still favoring human interactions. 

Takeaway

Respondents associated AI with basic inquiries, where speed and availability are valued, but view humans as essential for resolving more complex or emotionally charged issues. To meet these preferences, contact centers must prioritize seamless escalation paths from AI to human agents, ensuring that consumers receive the best of both worlds.

Consumer Perception and Concerns About AI

Consumers’ perceptions of AI in customer service reveal a complex blend of optimism and skepticism. While many recognize its potential to enhance efficiency, significant concerns remain regarding privacy, transparency, and its ability to handle complex tasks.

On average, respondents rated their overall sentiment toward AI as neutral to slightly positive, scoring 3.39 out of 5. However, enthusiasm for AI’s capabilities is tempered by a clear demand for trust-building measures and improved functionality.

Takeaway

Transparency about AI’s role in customer interactions and robust safeguards for personal data can help alleviate privacy fears. By directly addressing these concerns, organizations can position AI as a trusted and effective partner in customer service, paving the way for broader acceptance and satisfaction.

Opportunities for AI in Customer Service

AI holds immense potential to transform customer service, with consumers recognizing its strengths in speed, availability, and efficiency. Respondents highlighted faster response times as the most significant benefit, noted by 217 individuals (43%), followed closely by 24/7 availability, which was recognized by 227 (45%) respondents. These capabilities align AI with modern consumer demands for instant and convenient service.

Takeaway

AI can become a trusted partner in customer service, delivering speed, accuracy, and availability while supporting agents in creating meaningful consumer connections. This hybrid model represents the future of AI-driven service excellence.

Ready to Learn More?

For AI to gain broader consumer acceptance, contact centers must focus on hybrid solutions that blend the efficiency of AI with the empathy of human agents. Addressing privacy concerns and ensuring seamless escalation pathways are critical to building trust. Our findings underscore that while AI can enhance customer experiences, its success hinges on transparent and thoughtful implementation.

To see how Balto can support your team’s AI goals in 2025, schedule time here.

Read the full report

Read the results of our report on your own time or share them with your team.