Despite widespread adoption of automation and AI, 40 per cent of Australian customers are uncomfortable with AI-driven support from the brands they engage with, new research reveals.
A study of more than 1,200 consumers by InMoment, the leading provider of Experience Improvement (XI), has uncovered significant shortfalls in issue resolution, response speed, and trust-building amongst customers, who increasingly demand fast, transparent, and human-centric assistance.
With a growing disconnect between automated solutions and customer expectations, four in ten say the move by brands to use AI to resolve their issues and concerns is making them feel uneasy, with one respondent saying: “It would be great if we can speak with an actual human and not a chatbot.”
David Blakers, InMoment’s managing director, APAC, said: “With AI playing a bigger role in customer interactions, the real challenge isn’t just automation – it’s ensuring that brands listen, understand, and act on what customers are telling them.
“Although AI is commonly used in chatbots, agent assist, and knowledge management, there is an emerging opportunity for contact centre leaders to leverage advanced natural language processing (NLP) and natural language understanding (NLU) engines for conversational intelligence across all customer interactions. This approach not only identifies friction points and automates quality assurance at scale but also uncovers key areas for business improvement. Only by integrating these insights can brands maintain control of the customer experience, achieving both operational efficiencies and enhanced customer satisfaction.”
Poor service isn’t just frustrating, it can be a brand loyalty killer, with almost six in ten respondents (57 per cent) saying they expect a resolution on the first contact or they would consider switching brands. In addition nine percent of customers reported that their issue was never resolved. Many brands are also eroding trust and satisfaction by falling short when it comes to getting a response to their inquiries, with 40 per cent of customers expecting a response within an hour.
Blakers added: “It’s clear that building trust relies on more than quick responses, it requires transparency, accountability, and proactive communication. Customers expect brands to admit mistakes, provide clear updates, and offer solutions that leave them feeling genuinely heard. As the role of AI in customer interactions continues to expand, brands must find the delicate balance between utilising technology and preserving the human touch that remains at the heart of effective customer support.”
InMoment’s comprehensive survey was conducted by market research company, Glimpse, with 1,215 census-representative consumers, gathering insights on their customer service expectations, preferred support channels, and attitudes toward AI-driven interactions. The research focused on identifying key friction points in customer interactions, the role of AI in service delivery, and the evolving expectations of modern consumers.
