Customer Service in the Age of Gen Z and AI - What to do?

Customer care has entered a new chapter, shaped by the expectations of Gen Z and the integration of artificial intelligence (AI). With younger generations becoming a dominant force both as consumers and in the workforce, businesses are adapting their strategies to meet evolving demands. Meanwhile, tools like generative AI are revolutionising how organisations deliver support.

This blog explores how these trends are modernising contact centres and offers practical insights for businesses to align with the needs of today’s customers.

Gen Z’s Impact on Customer Service

Gen Z is rewriting the rulebook when it comes to customer expectations. While they’re known for favouring digital communication in personal settings—messaging apps, social media, or texts—their behaviour shifts when it comes to resolving complex issues. Research shows that, like older generations, they often turn to phone support for critical problems. However, they demand more from these interactions: faster resolutions, personalised experiences, and seamless service across all platforms.

Interestingly, Gen Z’s preferences highlight a broader truth: great customer care isn’t about choosing between human or digital channels. It’s about combining the two effectively to deliver tailored support when it matters most.

AI in Customer Care: Transforming Support

Generative AI is emerging as a powerful tool in customer care, promising to enhance efficiency and improve the quality of service. Virtual assistants, chatbots, and other AI-powered tools can handle routine queries quickly and accurately, freeing human agents to focus on complex or emotionally sensitive issues.

That said, businesses are only beginning to realise AI’s full potential. Challenges such as data quality, system integration, and effective implementation have slowed adoption. Leaders must ensure these foundations are in place before reaping the benefits of AI.

One of AI’s most valuable contributions is its ability to assist agents in real time. From providing quick access to customer history to offering suggestions for resolving issues, AI helps improve both the speed and quality of support.

Key Trends Shaping the Future of Customer Service

As customer expectations rise and technology evolves, several trends are reshaping the landscape:

Self-Service Solutions: Many customers prefer to solve simple problems on their own. Enhanced self-service tools, such as AI-driven chatbots, are making this easier than ever. Experts predict that a significant portion of call volumes will shift to self-service options in the coming years.

Omnichannel Integration: Customers expect a seamless experience across channels, whether they’re reaching out via email, phone, live chat, or social media. Businesses that can deliver a consistent and cohesive journey will gain a competitive edge.

Empowered Agents: As AI takes on simpler tasks, human agents will focus on more complex cases. Equipped with advanced tools and deeper insights, these “superagents” will provide highly personalised support that builds long-term loyalty.

Tailored Channel Recommendations: Customers often struggle to choose the best way to get help, leading to frustration. By adopting an “optimal channel” approach, businesses can guide customers to the most effective platform for their specific needs.

Meeting the Workforce Challenges

The evolving customer care landscape also demands a fresh approach to talent. Recruiting skilled employees has become harder, particularly as simpler tasks are automated and the need for specialised roles—like data analysts and engineers—grows. Organisations must rethink traditional career paths and invest in attracting and developing talent with these new skills.

Moreover, creating a positive work environment that balances technology with human connection will be key to retaining top talent. By equipping teams with the right tools and providing opportunities for growth, businesses can ensure their workforce is prepared for the future of customer care.

Gen Z and AI are reshaping the world of customer care. To thrive, businesses need to balance innovative technology with human understanding, ensuring they meet the rising expectations of today’s consumers. By adopting self-service tools, empowering agents, and investing in seamless experiences across channels, companies can deliver support that fosters trust and loyalty.

If you want to learn more about implementing no-code and low-code AI solutions for your business, check out our Masterclass on AI Fundamentals. It’s designed to equip you with the tools and knowledge to navigate this evolving space effectively.