AI Chatbot Vs. Human Customer Support: Which Is Better?

A3Logics 05 Jul 2024

Although they are a recent addition to customer care duties, chatbots are having a good impact on society. These days, a growing number of businesses employ them in one way or another to improve customer satisfaction and service performance. 
Should humans in customer support roles become obsolete as chatbots become more and more popular and valuable to operations? Based on how you choose to interpret it, the answer can be yes or no. The size of the chatbot market is projected to be USD 7.01 billion in 2024 and is projected to increase at a compound annual growth rate (CAGR) of 24.32% to reach USD 20.81 billion by 2029. The debate on chatbot AI against humans has been on for quite some time and clearly will not end anytime soon.


However, amidst the whole controversy, this much is clear: thanks to artificial intelligence development, chatbots are developing very quickly, and sooner rather than later, they will be capable of doing many more tasks and will be involved in customer support much more than now. But since people are indispensable, their importance in guaranteeing top-notch customer service will never be surpassed. AI chatbots are incapable of performing many jobs and responsibilities that people are capable of doing. This is the main justification for why human assistance will always be required. We will compare AI chatbots versus people in this blog post to see which is more appropriate for customer support.


The Importance of Good Customer Service


Having a customer care plan in place is insufficient. To get the rewards, it must also be carried out successfully. But it’s crucial to examine poor customer service before we examine how effective AI and human agents are. Any interaction or communication that leaves a customer feeling disappointed is considered bad customer service. This includes unfavorable encounters including protracted wait or hold periods, being transferred repeatedly, not getting through to an agent, or not feeling heard. Customers may leave unfavorable evaluations and/or start doing business with a rival as a result of this.

How can this be resolved? To improve the client experience, organizations can use certain essential characteristics in their customer service. Think about the following:



Providing each customer with a customized experience is a great method to provide excellent customer service. Not everyone is the same and has the same wants, after all. Determining the course of action and the direction of the experience can be aided by listening to the demands of the consumer.



Companies should deliver their services as soon as possible. If there is an issue, it needs to be fixed right away. Consumers want their queries addressed right away and issues resolved without having to wait. AI chatbots can be helpful here. Having said that, there must be a careful balance struck between problem-solving and speed—the latter should never be abandoned in favor of cutting the consumer off without a solution. This implies that to deliver a fantastic experience, efficacy, and efficiency might have to take precedence over speed.


Self-service option:

Giving customers the choice to assist themselves is crucial, whether it be by self-service via the checkout or an automated service. Remember that this should only be implemented if customers want it. Those who prefer to engage with customer service representatives may become enraged if everyone is forced to assist themselves.


Listening and empathy:

If a customer-oriented organization will not bother to listen to and be empathetic with its customers, then there is only so much that it can take customer service toward. Listening is something that must be professionally trained for and conducted with some touch of compassion.



Being proactive is one of the most important characteristics of excellent customer service. Contacting clients beforehand is always a smart move instead of waiting for an issue to occur. It demonstrates a company’s concern. A straightforward follow-up email or phone call will accomplish this.


Chatbots for Customer Support


Because Chat AI can improve customer service in so many ways, chatbots are becoming essential. To increase engagement and encourage conversions, more businesses are incorporating them into their customer service plans.  The following are some of the main advantages of inculcating GPT models for customer service: 


Timely reactions 


Consumers are always expecting fast service and answers. They want prompt responses to their questions and don’t want to wait. Most agents are too busy serving a long line of consumers during peak hours to provide timely assistance. 

Many consumers may be left waiting since agents can only handle a certain number of clients at once, even with a centralized dashboard. It can irritate customers to be kept waiting longer.    

However, businesses can prevent this scenario by utilizing AI chatbots online, which can significantly reduce the workload of agents and assist clients in receiving prompt responses. Not only can bots like GPT models provide round-the-clock assistance, but they can also manage several clients at once. 


Support for omnichannel 


Consumers adore having the choice and liberty to interact with a business through a multitude of channels. Simultaneously, customers anticipate firms to follow them across channels and guarantee a smooth interaction on their preferred platform. 


Multichannel experience


Only a small portion of organizations offer this kind of service, and even fewer are multichannel. This results in a large discrepancy between what clients expect and receive from services.  Chatbot AI is a great AI tool for building a system that links all of the support channels. AI chatbots can be linked with other marketing systems and technologies to provide clients with a unified and connected experience.  


Reliable assistance


When customers have to repeatedly explain their concerns and inquiries to new agents each time they contact customer service, it makes them feel bad. Inconsistencies and disparities in responses are also produced by this, which is never ideal from the perspective of customer service. 


The customer experience may be diluted even when the agents are educated to deliver excellent service if they choose to respond to them in different ways. A business can prevent it by incorporating conversational AI in customer service, training them, and guaranteeing consistent responses.   


Generation of Leads and Sales 


Chatbot AI may perform a variety of manual lead generation and sales jobs for businesses. They can interact with website users, respond to their questions, and gather data and quality leads. Robotic process automation is capable of scheduling product demonstrations, bots are essential in helping buyers navigate the purchasing process.  


Enhanced interaction with customers


By making talks more interactive, chatbots can be utilized as virtual assistants to increase consumer engagement. They can interact with guests, provide individualized assistance, and spare them the trouble of aimlessly pursuing.     

AI chatbots are sophisticated, intelligent, and able to offer data in response to user interaction. This is how increasingly individualized consumer encounters happen. Personalized conversations increase consumer engagement, which in turn encourages people to spend more and stick with the business longer.  


Economy of scale 


Employing chatbots to handle customer service helps companies save a lot of money. While maintaining the same standard of service. Routine tasks can be automated by AI chatbots, which reduces the need for hiring and training staff. 


Furthermore, a lot of jobs that were formerly completed by human agents can now be automated. By doing this, human representatives can be relieved of the monotony of managing repetitive activities and instead concentrate more on pressing and difficult problems. 


Humans for Customer Service 


Indeed, chatbot AIs are highly developed and intelligent, capable of managing the majority of customer support-related activities. However, this does not imply that people are no longer needed as service providers. That they can be replaced overnight. Conversely, many consumers still favor face-to-face communication over automated systems for a variety of reasons. These are a few of the numerous arguments supporting the importance of people in customer service:   


Managing intricate circumstances


Customer support frequently deals with intricate and varied technical problems, for which chatbots may not be useful because of their restricted database of training. Such circumstances could call for some creativity and “beyond the box” thinking, which a chatbot AI can never provide. When a customer requests significant assistance for a problem and the bot keeps giving them the same response, they may become annoyed. 


More significantly, a lot of clients still like one-on-one conversations with human representatives who can guide them through challenging issues and add a personal touch. Only a human agent can respond intelligibly or with a thorough explanation that takes into account the particular circumstances. Depending on how complicated the scenario is, bots may irritate clients and possibly decrease their entire experience.  


Handling irate clients 


A recurring theme in all sectors is irate customers. No matter how excellent your customer service is, there will always be individuals who are always dissatisfied. Whether it is with the product, the procedure, the service, or even how their inquiry was handled. These clients must be treated very carefully and cautiously, or they may permanently sever ties with you. 


Chatbot AI is not the best tool for handling irate clients. Not only do they lack empathy, but they are also ill-equipped to offer the compassion that irate clients require. A human, on the other hand, can identify irritated clients, comprehend their emotions, and extend sympathy. Above all, people can propose or provide a workable solution that could at least somewhat temper the rage. 




When clients come to a business, they anticipate that the employees will be sympathetic and compassionate toward them and their issues. Empathy is recognizing the customer’s anguish from the inside out and placing oneself in their position. Chat AIs aren’t emotional intelligence or feeling machines, thus they can’t do that.  

However, people can show empathy for the problems that customers face. They have an innate ability to sense the wants and emotions of their clients, something that a machine can never achieve. Due to this, humans are indispensable in customer service roles where empathy is a key component.  




AI chatbots are advancing every day. These advancements enable them to perform a wide range of customer service jobs. Their main drawback is that, unlike what customers would ideally desire, they are typically restricted to pre-programmed responses. 


Because of their adaptability, humans can provide individualized experiences when and where they are needed. They can think and act outside the box, react to circumstances in a different way, and find solutions to problems that machines could never come up with. The primary reason why people are still so prevalent in customer service roles is their capacity for situational adaptation.  


Examining and inspecting physically 


Tasks that require automation are best suited for chatbot AI. However, not every customer support task can be mechanized. In actuality, some operations and duties require the physical presence of an agent, such as assessing the caliber of the goods or service, examining product damage, etc. When a physical assessment is required, humans—not robots—are the only practical answer.  


Additionally, to finish tasks and guarantee high-quality service delivery, there will be instances in which the wisdom and intelligence of agents—that is, in-person agents—will be required. Because chatbots are only meant for automated tasks, they can never be productive.  


Measuring AI Chatbot Vs Human Efficiency


Using metrics to compare the help provided by AI and human agents. For any customer service solution, return on investment (ROI) measurement is essential. But keep in mind that your AI and human agents are probably addressing distinct kinds of inquiries.


The success of FAQ responses won’t be monitored in the same manner as more intricate exchanges. For AI vs. human help, make sure your ROI measures consider this.


AI Metrics


You’ll likely use chatbots to improve operational effectiveness. In this instance, the three measures listed below can be used to gauge success:


  • Resolution of first contact (FCR). FCR calculates how frequently a problem is resolved by your chatbots in the initial exchange. It’s important to remember that chatbots often have a higher FCR rate than human contacts who handle more sophisticated queries since they frequently answer simple questions like “What are your hours?”
  • Average Handle Time (AHT). Your AHT should go down if you delegate basic interactions to chatbots, but don’t compromise quality to answer questions quickly.
  • Pace of Escalation. The frequency with which your chatbots need to escalate encounters with human agents can be used to gauge their effectiveness. This should occur less frequently as they improve.


Monitoring these numbers will help you make sure you’re offering the greatest, most effective service possible.


Human Metrics


Human workers can concentrate on more intricate or subtle consumer demands, while AI concentrates on simpler tasks.

Although monitoring service quality is somewhat more difficult, the following four indicators can be used to determine success:

  • Score for customer effort (CES). Low-effort consumer encounters may be a reliable sign of how well your team solves problems.
  • Client contentment (CSAT). Excellent CSAT results are indicative of superior human-agent interactions.
  • NPS, or net promoter score. If your human operators are sympathetic and your digital touchpoints respond promptly to client requests, your score will be better. Interestingly, respondents who initiated contact with a human after using digital channels ended up giving greater loyalty rankings than those who utilized digital channels only.
  • Resolution rate of issues. Even though you won’t be able to resolve every problem, you should aim for a high-resolution rate and always conclude with a clear next action (such as “We’ll be in touch when we release that new feature”).

Customer service is still valued, thus monitoring these figures is essential.


Comparing the limitations of AI and human agents:


Limitations of Chatbots Limitations of Human Agents
Lack of Emotional Intelligence: Unable to understand and respond to complex human emotions. Availability: Cannot be available 24/7, leading to potential delays in response times.
Lack of Empathy: Cannot offer personalized responses that customers expect. Inconsistent Performance: Subject to fatigue and stress, which can impact the quality of customer service.
Inefficiency with Complex Issues: Trained for specific queries, inefficient with issues needing human intervention. Limited Scalability: Cannot manage large volumes of queries simultaneously.
Inability to Understand Context: May misinterpret customer queries or offer irrelevant responses. Variable Responses: Responses can vary depending on the situation, causing inconsistency and potential frustration.
Difficulty with Regional Dialects: Best at understanding standard language, not regional dialects. Vulnerable to Mistakes: Mistakes may occur in the solutions provided to customers.
Lack of Customization: Reliant on predefined scripts, unable to offer customized solutions. Customizable: They can give customized solutions.


Use Cases in Industry


Although customer service is important in almost every company, we’ve discovered some niches where it may be used to generate substantial profits:




Anyone who has ever dealt with customer service in a bank knows how difficult it can be. Chatbot AI can perform front-line customer service and expedite the process. Chatbots are already being used by banks all around the world, with excellent results.


SaaS Enterprises


Increasing revenue is practically always an organization’s top priority. However, many strategies can prove to be unfeasible in the long run, contingent on the customer’s long-term worth. An AI chatbot can successfully service leads and generate a high-level win for the business because SaaS enterprises typically have lower customer lifetime values (LTV) and require less customization.


Online Shopping


Companies are starting to realize that Generative AI solutions have far higher levels of engagement than email marketing. Chatbots can be an important component of the funnel by informing users when their shipment has been posted or delivered, gathering feedback on the business, or providing customer help instead of merely being used for customer care. This fits into the marketing funnel, feels more individualized than a form email, and has the potential to upsell a consumer, directly boosting revenue.


Obstacles to AI Implementation


Communication and Understanding Deficits


While human discourse is frequently everything than clear, AI thrives on it. AI models can become confused when the script is reversed and slang or emotional undertones are introduced. Customers may have the impression that AI is failing to understand them and they are playing charades as a result. However, using natural language processing capabilities that can listen intently and recognize the nuances between words is needed to iron out these wrinkles.


Developing Customer Trust


Adding AI into the mix isn’t about having the newest, flashiest technology; rather, it’s about dependability and the fundamental trust that users must have. Every precise and beneficial exchange as well as every problem that is easily solved fosters trust. Customers must understand that an AI system is more than just a robot; rather, it is a dependable extension of the team they already trust. This is a connection that must be developed over time. It’s about being that reliable person who says “good morning” cup after cup and discussion after talk.


Taking Up Bias and Ethical Concerns


The AI system is similar to parenting a child in the digital age. Its viewpoint is shaped by the information we feed it or the things we educate it. Additionally, we must be careful about the influences we expose it to, just like we do with children. Unchecked biases in training data have the potential to affect AI’s decision-making, resulting in embarrassing mistakes that could drive away clients and create a public relations nightmare.


Qualifications for Training and Supervision


Developments in AI customer service are not a plug-and-play process. It’s more akin to teaching an orchestra how to perform symphonies with perfectionism; a keen conductor and a ton of rehearsal are necessities. It takes thorough training to teach the AI tools, which are business procedures and subtleties of customer service.

The rigorous process of AI training includes both technical information and the more nuanced elements of human communication, such as tone, context, and cultural sensitivities. Furthermore, after the AI goes online, work never stops. Sustained oversight guarantees that the AI model stays aligned with the organization’s principles and client demands.


Safeguarding Client Information


Consider consumer data to be the most important party attendee; you wouldn’t cut corners when it came to security. This entails having uncrackable codes, two-meter-thick vault doors, and laser grids on a digital scale. Because even a small leak might have disastrous consequences when it comes to client data. This is the reason it’s critical to protect client information and guarantee privacy at all times.


What’s in store for AI Chatbots?


It’s common to associate AI chatbots with straightforward business tasks. Specifically, lead generation or customer support. However, it’s becoming more and more obvious that the potential of this machine learning technology to benefit humanity is untapped. 


Research, for instance, is already being done on the potential benefits of developing chatbots for Alzheimer’s and dementia patients. Chatbots using predictive analytics streamline or leverage the daily encounters you have to better your life and the lives of others around you. 


A less ostentatious example might be the usage of chatbots in branding initiatives. Marvel had fans engage with the chatbot during a campaign for Guardians of the Galaxy (and Spiderman shortly after). This kind of engaging experience is precisely what makes consumers giddy. And sales follow excitement!’


Lastly, chat AI is now available to assist anyone who has ever stayed up late attempting to match their symptoms to an online diagnosis. We anticipate in the future,  considerable improvements to this feature as telemedicine grows. Users will soon *want* to interact with chatbots during the initial moments since they will realize that doing so would improve their results. 


The AI-Human Collaboration


No matter how quickly your company expands, you can build an effective and efficient customer care system by fusing the scalability of AI chatbots with the knowledge of human supervisors. AI chatbots answer standard inquiries and give prompt answers to frequently asked questions. In the meantime, complex situations are handled by human supervisors, who guarantee individualized and superior help. Because of this human-AI collaboration, consumers may be served around the clock, which shortens wait times. Customer satisfaction rises as a result, and your support staff is free to concentrate on more important duties, enhancing the caliber of your services as a whole.


Enhanced Effectiveness


Chatbot development services can handle routine and simple questions, freeing up human agents to handle more difficult problems. As a result, total efficiency rises. They guarantee that clients obtain support promptly by responding promptly and accurately. Furthermore, chatbots are always available and can assist outside of usual business hours. Continuous availability enhances client happiness.


An improved clientele


When routine queries are handled by AI chatbots, human agents can offer more individualized and thorough service. This enhances the general clientele’s experience. Chatbots can provide precise and fast answers to commonly asked inquiries. This frees up human agents to work on more complicated problems. They can also work around the clock, so clients will always get prompt responses. Through the integration of chatbot efficiency and human agent empathy, enterprises may provide a well-rounded and all-inclusive customer care experience.


Economical Scaling


You can grow your support staff using a human-AI collaboration strategy without incurring large additional expenses. Because AI chatbots can handle a high volume of requests, a huge human support team is not always necessary. This process guarantees that common inquiries are answered quickly. More complicated problems can also be escalated to human agents at the same time. Efficiency and customer satisfaction are increased by this equilibrium.


Constant Enhancement


AI chatbots can be improved with regular input from human workers. This guarantees that over time, your support system will become increasingly efficient. AI solution providers can improve responses and better handle consumer inquiries by examining this input. Furthermore, by recognizing typical problems, the chatbot’s knowledge base may be updated and improved, increasing its accuracy. The system is also kept efficient and current through regular changes that are based on user interactions.


Which Is Better: AI Chat Bots or Humans? 


Chatbot AI is most probably here to stay. On the other hand, customer service agents are here to stay. Both have advantages and disadvantages, so it’s critical to weigh them thoroughly before selecting one to employ in your company.

Chatbots are generally an excellent technique for customer service to save money. There are numerous circumstances in which a real customer support agent is not as necessary. The business can save money by not having to hire someone to answer customer questions.

Though they may not completely replace human customer care workers and take over the world, chatbots are still making a difference in the sector. They are already in use in quite a few industries, including online retail and banking. Hiring a chatbot development company could make your company operate more efficiently and could be preprogrammed to carry out a particular activity.




Can AI take the position of customer service?


The quick response is no. Today’s AI in customer service aims to enhance human connection rather than replace it. When used properly, artificial intelligence solutions like chatbots, virtual assistants, and automated sentiment analysis can help agents maximize their workload and eliminate tedious and repetitive activities.


What distinguishes AI customer service from human customer care?


Today’s businesses must strike the right balance when deciding between AI and human customer support agents. AI should be used when customers need quick answers to routine questions, and human agents should step in when customers require empathy, critical thinking, or other abilities that a robot cannot provide.


What drawbacks do chatbots in customer service have?


Only specific queries may be understood and responded to by chatbots, particularly rule-based ones. Customers may become frustrated as a result of their struggling to answer complicated or unclear questions. Emotional Intelligence Deficit is another drawback of AI chatbots. These chatbots are unable to recognize or react to human emotions.


Will chat support jobs be replaced by AI?


Artificial intelligence tools, more specifically chatbots, and virtual assistants can automate routine tasks. They deliver fast and precise responses to customers, leaving more complex requests to be serviced by human agents. No, all customer service and call center positions will not become extinct and be completely taken over by chatbots, artificial intelligence, and machine learning.