Artificial intelligence may be revolutionizing customer experience (CX) from the inside out, but from the customer’s seat, it’s often a case of “all tech, no touch.”
That’s the key takeaway from Verizon’s latest CX Annual Insights report, which surveyed 5,000 consumers and 500 senior executives across seven countries. The message is clear: AI can speed things up, but it can’t replace the empathy and trust of a human interaction.

The AI–Human Satisfaction Gap

• 88% of consumers are satisfied when interactions are handled mostly or fully by human agents.

• Satisfaction drops to 60% for AI-led interactions.

It’s not that customers reject AI outright—they just want it used in ways that enhance, not replace, the human touch. The most glaring pain point? The human hand-off problem. Nearly half of consumers (47%) said their top frustration is being unable to reach a live agent when automated systems fail to resolve their issue. Executives admitted it’s also the number-one complaint they receive about AI-enabled service.

Personalization: From Promise to Problem

Brands tout personalization as a top AI selling point, yet consumers aren’t convinced:

• 30% said personalization made their experience worse.

• 26% said it improved it.

The culprit is partly regulatory. 65% of executives say privacy rules limit their ability to use AI for personalization, and 54% of consumers report declining trust in brands to handle personal data responsibly. That creates a paradox—brands have the tools to tailor experiences, but not the trust or legal leeway to fully deliver.

AI That Works: Blending Tech and Humanity

Verizon’s report makes the case for AI as a support tool for human agents rather than a replacement.

Case in point: Exelon

• Proactive Outreach: During COVID-19 lockdowns, the energy utility used AI and predictive analytics to identify middle-income households likely to struggle with bills, then offered personalized assistance programs.

• AI-Assisted Agents: Today, Exelon is piloting generative AI to help service reps retrieve relevant data, summarize calls, and handle inquiries faster—reducing workload without removing the human connection.

These examples show AI’s potential when it’s deployed to anticipate needs, empower employees, and respect customer privacy.

The Market Signal

For enterprises, the implication is straightforward:
The winning CX model pairs AI’s speed with humanity’s warmth.
As Daniel Lawson, SVP at Verizon Business, puts it:

“The future of CX isn't about AI replacing humans; it's about using AI to make human interactions better.”

That means equal investment in both automation and human training, ensuring customers never feel trapped in an algorithmic loop.

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