AI is often seen as a miracle maker in companies — saving both time and money. While this is partly true, the assumption that savings come primarily from cutting personnel costs can put customer experience at risk.
Many large international companies have already begun mass layoffs, replacing human workers with AI. The effects are especially evident in customer service. For example, Swedish fintech company Klarna has announced plans to cut around 3,000 jobs, with a significant share from customer service roles.
Why AI in customer service isn't a plug-and-play solution
Handing over customer service to AI isn’t just a plug-and-play solution — it requires a thorough "job interview" and proper onboarding. Without thoughtful implementation, AI in customer service can quickly become a risk rather than an advantage. We’ve already seen this with chatbot-based customer service: customers spend time explaining their issues to AI, only to receive no real solution. Frustration builds, and the experience suffers. My colleague Taina Arjanmaa previously explored this issue in her blog on how GenAI software impacts AI in customer service.
The risks of poorly implemented AI in customer service
In the worst-case scenario, AI-powered customer service can cause serious damage. Imagine a customer asking a chatbot at a car dealership for a model that costs one euro. If the AI interprets the request too literally, it might generate an unrealistic response. Such mistakes don’t just frustrate customers — they can harm the company’s reputation.
A strong customer experience is one of the key drivers of business success, emphasizing the critical role of customer service in shaping brand perception. Replacing people entirely with AI isn’t a realistic goal, as AI rarely provides reliable service without continuous human oversight. The first and most important question to ask is: What is the role of AI in customer service, and what kind of customer experience do we want to build? The second question is: How can AI be integrated into customer service in a way that aligns with company goals, values, and brand?
The best AI in customer service strategy: Human-AI collaboration
Answering these questions often leads to one conclusion: the best customer experience comes from a well-planned collaboration between human customer service professionals and AI. AI can efficiently handle repetitive inquiries and automate routine tasks, while humans focus on their core strengths — solving complex challenges, engaging in meaningful interactions, and strengthening customer relationships. This combination creates the foundation for better customer experiences, stronger loyalty, and business growth.
For instance, if a customer needs a quick solution, AI can identify the issue and provide an answer from a predefined knowledge base. Most inquiries can be resolved quickly and efficiently this way. In more complex cases, AI can pass structured information to a human agent, allowing them to respond promptly and empathetically — enhancing the customer’s experience.
The future of AI in customer service: enhancing efficiency and personalization
The teamwork between AI and humans combines data-driven efficiency with a genuine human connection. Customer service professionals can focus on delivering high-quality interactions while AI in customer service supports them by identifying opportunities for proactive follow-up — creating real value for customers. This results in more efficient customer service, happier customers, and ultimately, business growth.
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This text was originally published in Finnish in Talouselämä.
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Kimmo Nahkamäki,
Business Development Director, AI Solutions
