Comparative Analysis of AI-Powered Customer Service vs. Human Service Performance

Abstract

This study evaluates AI-powered chatbots versus human customer service in retail and banking across North America and Europe. Using 100 firms and 2,000 customer surveys, AI demonstrates advantages in response speed, availability, and operational efficiency, while humans provide empathy, problem-solving, and complex decision-making. Hybrid approaches combining AI automation with human oversight deliver optimal outcomes, balancing cost-efficiency and customer satisfaction. The research highlights sector-specific adoption patterns, challenges in training and integration, and best practices for maximizing customer service performance in digital transformations.