232: Is the AI CX Broken?

10 snips

Dec 4, 2025

Denise and John dive into a Wall Street Journal report that reveals a staggering 93% of leaders believe their customer experience is broken. They highlight the immaturity of AI and warn against prioritizing efficiency over emotional connections. The duo argues for a human-centric approach, emphasizing the importance of emotional intelligence in customer service. Cultural barriers and declining people skills add to the CX challenges. They advocate for using AI to enhance, not replace, human interactions while exploring innovative ways to deliver personalized customer value.

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INSIGHT

AI Is Still In Its Infancy

AI is still immature and rushing to implement it can harm CX and frustrate customers.
John DiJulius recommends

INSIGHT

Efficiency Can Sacrifice Empathy

Companies chase AI for labor savings but risk eroding customer empathy and access to humans.
John warns that eliminating human touch at scale can damage relationships.

ANECDOTE

Klarna's AI-Cut Backlash

John recalls Klarna firing 700 reps for AI and rehiring many after service collapsed.
The example shows cost-cutting automation can backfire and force rehiring.

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Summary

In this episode of the Customer Service Revolution podcast, Denise Thompson and John DiJulius discuss the findings of a Wall Street Journal intelligence report on the impact of AI on customer experience. They explore the disconnect between AI's potential and its actual implementation in businesses, emphasizing the importance of emotional intelligence and human interaction in customer service. The conversation highlights cultural barriers to effective customer experience transformation and the need for a human-centric approach in the AI era. They also discuss how companies can innovate customer value by leveraging AI effectively.

Takeaways:

93% of leaders say their customer experience is broken.
AI is still in its infancy and needs careful implementation.
Companies are chasing AI for efficiency but missing emotional connection.
Cultural dysfunction is a major barrier to customer experience transformation.
AI can personalize customer interactions but should not replace human touch.
76% of executives feel behind on AI transformation.
Emotional intelligence is crucial in customer experience.
AI should supplement, not replace, human interaction.
Companies winning with AI are inventing new categories of customer value.
A human-centric approach is essential in the AI era.

Chapters:

00:00The State of Customer Experience and AI 03:43The Challenges of AI in Customer Experience 08:47Cultural Barriers in CX Transformation 14:03Emotional Intelligence in Customer Interactions 19:07The Human Element in AI Integration 24:21Innovating Customer Value with AI 29:13The Future of Customer Service and AI

Links:

The Experience Gap, AIs Imminent Impact on CX: Code and Theory, Wall Street Journal Report

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