AI customer service adoption expected to reach 88% by year-end

A survey by Sinch involving 2,527 senior decision-makers across 10 countries indicates that 88% of companies expect to utilize AI agents for customer conversations by the end of the year.

While automation is increasing, human representatives remain necessary for high-stakes interactions. Gartner reports that approximately 80% of customer service organizations plan to reshape human agent roles as routine tasks are automated.

A critical challenge for these systems is the ability to recognize when a customer is frustrated or when a query exceeds the AI's capabilities, necessitating a seamless hand-off to a human. Failures in this area can lead to significant issues, such as DPD's AI assistant failing to track a parcel or Air Canada being ordered by a tribunal to pay damages after its AI provided inaccurate information regarding bereavement discounts.