The paradoxes of generative AI-enabled customer service: A guide for managers

Abstract

Generative artificial intelligence (generative AI) presents a disruptive innovation for brands and society, and the power of which is still yet to be realized. In the context of customer service, gen AI affords companies new possibilities to communicate, connect, and engage customers. This article draws on scholarly research and consultation with customer service leaders to present and discuss the possibilities for generative AI in the context of customer service, specifically generative AI chatbots. Importantly, this article presents potential paradoxes of generative-AI-enabled customer service, adding to the debate about the role and impact of generative AI for brands. Specifically, we present six paradoxes of generative AI customer service: (1) connected yet isolated, (2) lower cost yet higher price, (3) higher quality yet less empathy, (4) satisfied yet frustrated, (5) personalized yet intrusive, and (6) powerful yet vulnerable. For each paradox, we suggest brand response strategies to mitigate downside and manage potential upside.