AI Chatbots Are Taking Over Support—But Are Consumers Satisfied?

India’s customer service landscape is undergoing a transformation with AI at its core. According to a recent ServiceNow report, 80% of Indian consumers now rely on AI chatbots for resolving issues, product recommendations, and self-help guides. Despite AI’s increasing presence, customers still spend a staggering 15 billion hours on hold annually.

AI: The Go-To Solution for Modern Consumers

• 84% use AI for shopping recommendations
• 82% rely on AI for food & dining suggestions
• 78% leverage AI for investment advice

This signals a strong shift toward AI-powered financial and lifestyle decision-making, yet customer service response times remain a pain point.

The Efficiency Paradox: Where AI Falls Short

While AI has made interactions more seamless, businesses spend less than a day per week resolving customer issues. The remaining time is wasted on administrative tasks, team coordination, and non-customer-focused activities. ServiceNow’s research indicates that AI-driven automation could reclaim lost hours and improve response times.

Customer Expectations Are Sky-High

82% of consumers say AI has increased their expectations from customer service. However, slow resolutions and poor service continue to erode brand loyalty:

• 89% of customers are willing to switch brands due to inefficiency
• 84% would leave negative reviews over poor service
• The Rule of ‘3’: What Consumers Want Most
• 49% demand faster issue resolution
• 48% seek well-trained customer service agents
• 46% want reduced hold times

Despite a 5% improvement in waiting times, frustration persists. 39% of customers are stuck on hold, 36% experience multiple transfers, and 34% believe businesses make complaints intentionally difficult.

Are Customer Service Agents Ready for AI?

Surveying over 200 customer service agents, the research found that AI integration could revolutionize workflows. Agents recognize AI’s potential:

• 52% believe AI will free up time for meaningful problem-solving
• 48% see AI reducing workload
• 42% expect AI to expand their roles and offer career growth
• AI as a Competitive Advantage

AI-human collaboration is reshaping business efficiency. ServiceNow’s AI Agent Orchestrator enables smooth inter-agent communication, ensuring faster resolutions and improved customer satisfaction. As AI continues to evolve, businesses that fail to integrate AI solutions risk losing customers to more agile competitors.

Research Methodology

The report surveyed 5,000 Indian consumers and 204 customer service agents across various regions, adhering to ISO 20252 standards. The data was weighted to reflect the latest population estimates from the Ministry of Statistics and Programme Implementation.