The smart transformation of customer service

Is your company among the 85% of organisations that, according to Gartner, plan to explore or test Generative AI features in customer service during 2025?

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Automation through virtual assistants

The growing interest in exploring AI is a clear reflection of an unstoppable trend: AI is driving a profound transformation in customer service. It’s no longer just a technological evolution—it has become a true competitive advantage. Its ability to automate processes, analyse large volumes of data, and deliver instant responses is redefining how businesses interact with customers, significantly improving both operational efficiency and the user experience.

Automation tools such as virtual assistants can resolve queries 24/7 without human intervention. This reduces wait times and allows agents to focus on more complex cases that require a personalised approach.

AI that predicts, personalises and builds loyalty

Thanks to predictive analytics and natural language processing (NLP), AI can anticipate customer needs, identify behavioural patterns, and offer tailored recommendations. This proactive capability improves first contact resolution, reduces average handling time (AHT), and increases customer satisfaction (CSAT)—ultimately driving stronger customer loyalty.

Implementing AI-powered solutions also has a direct impact on operational efficiency. By reducing human error, optimising resources and streamlining workflows, companies can deliver a more agile and consistent service. This efficiency leads to lower costs and continuous improvement of key performance indicators.

Five real-world examples that show the impact of AI

The benefits of AI are clearly reflected in real-world use cases featured in the 2024 report Five trendsetters in AI innovation, published by Genesys:

• Kiwibank (banking, New Zealand): cut operational costs by 50% and AHT by 49% through virtual assistant adoption.
• Virgin Atlantic (transport, UK): improved CSAT by 25 points and resolved 29% of enquiries without human intervention, thanks to new self-service capabilities.
• King Price Insurance (insurance, South Africa): halved average handling time and tripled the use of WhatsApp as a self-service channel.
• Modivcare (healthcare, USA): automated 63% of interactions and improved employee retention by 86%.
• Western Sydney University (education, Australia): achieved a 65% improvement in AHT and 90% user satisfaction.

What do we really expect as service users?

A global survey by Genesys in 16 countries (The State of Customer Experience, 2025), involving over 5,000 participants, reveals key insights into what we, as users, expect from service interactions:

• 72% of respondents value companies that understand their needs.
• 56% expect businesses to remember their interaction history. More than half prefer not to repeat information during the service process.
• 30% stopped trusting a company after a negative experience.
• Nearly 80% would buy more and recommend a brand if they received ongoing personalised service.

AI’s role in a people-centred transformation

The opinions gathered in the survey highlight the need to rethink how customer service is delivered. In this context, AI not only enables faster, more responsive services aligned with customer expectations—it also empowers organisations to adapt and continually optimise the experience they offer, keeping pace with users’ evolving demands.

AI is revolutionising customer service, paving the way for a new era of service excellence, where customer experience becomes a strategic asset. This smart transformation helps businesses face the future with effective, people-centric solutions.

Ultimately, AI doesn’t replace human interaction—it enhances it, making each touchpoint more meaningful and empathetic.

■ Want to transform your customer service with AI-powered solutions? At Telefónica Tech, we work with you to design agile, effective strategies aligned with your business goals. Learn more →