Have you noticed a shift in customer interactions lately, especially those received through the various digital platforms? A recent Forrester report reveals a concerning trend regarding the Customer Experience (CX) quality for US brands, falling for the third year and sitting at its lowest point since the inception of the CX index in 2016.1 The CX downfall is a significant challenge for C-suite leaders, who must prioritize customer focus and identify areas of improvement.

AI-Powered Customer Service: Friend or Foe? Why Digital CX is Failing (and How to Fix It)

Premier BPO’s analysis of Forrester’s 2024 US CX Index has garnered valuable insights that executives can leverage to transform their brand’s CX and tread the path to sustainable growth. The second blog of the series to transform the CX strategy will examine why underwhelming digital experiences contribute to the continued fall in CX quality and share some ideas for improvement.

Underwhelming Digital Experiences

Business leaders are fascinated and optimistic about the potential abilities of AI-powered tools to solve problems such as staffing and handling customer requests. CX leaders believe investing heavily in AI across virtually every stage of the customer journey should improve the CX, with 65% of CX leaders saying that traditional customer service methods are outdated compared to the efficiency of AI and bots.2

Unfortunately, results so far have failed to validate this belief. According to Forrester Research’s most recent CX Index report, consumer perception of CX quality has declined significantly, especially regarding effectiveness, ease of use, and emotional connection. The adoption of AI tools appears to focus more on increasing automation and reducing costs, assuming that CX will improve; unfortunately, many companies have misread the potential impact on the customer experience across touchpoints along the customer journey.3 The inability of brands to connect emotionally with consumers through their digital AI-powered tools has been compromising CX quality and likely harms both cost optimization and customer revenue.

Disconnect between Company and Consumer Expectations

Companies are increasingly looking at innovative AI-powered tools for cost efficiency and potential improvements in customer service. However, consumers find the experience offered highly frustrating. Max Ball, principal analyst at Forrester, says, “People just look at the cost savings, and they don’t look at the customer experience.” The disconnect can only be resolved if the companies prioritize and align the functionalities offered by these AI-powered tools with target customer needs and expectations.

Overpromising and Underdelivering

Companies have been guilty of making outlandish claims regarding AI-powered solutions; a case in point is consumer chatbots. Unfortunately, the capabilities have mostly fallen short, with brands experiencing significant declines in CX, reflecting unmet expectations of the consumers and companies. Increasing customer dissatisfaction with AI-driven solutions hinders companies from fully capitalizing on the potential cost reductions. Andrew Way, senior director of research at Corporate Insight, a market research firm, says that banks, for example, boasted about the growing number of tasks their chatbots could perform, “Saying ‘Hey, we can handle 100 tasks’ might make people think it can help with fee reversals or conduct transactions… when in fact it can’t.4 To rebuild trust, companies must set realistic expectations, understand target customer needs, align capabilities accordingly, and consistently deliver reliable performance of AI-powered solutions such as chatbots.

Premier BPO’s AI Lab: Bridging Technology and Superior CX

Premier BPO is at the forefront of CX innovation in the ever-evolving technological landscape. Its AI Lab continuously works to address the challenges offered by AI-powered solutions and leverage potential opportunities to improve CX.

A core mission of Premier BPO’s AI Lab is to ensure that its AI-powered tools can meet realistic expectations by delivering consistent and reliable performance. Our strategic partnership with Mavenoid, a leading AI-driven automation and support provider, empowers customers with self-service solutions tailored to specific client needs and available in a multitude of languages, helping to enhance the support experience and fostering global accessibility.

Premier BPO’s AI Lab pays utmost attention to the CX experience at every stage of the customer journey, ensuring it is intuitive, responsive, and targeted to meet customer expectations. A belief in transparent communication with customers helps set realistic expectations, foster trust, and reduce frustration.

Premier BPO Empowering CX Transformations

Since 2003, Premier BPO has delivered exceptional client value, consistently exceeding industry benchmarks with an 85% client CSAT and an NPS score 20% higher than average. Partner with Premier BPO and leverage AI-powered tools optimized for your needs to achieve significant revenue growth. Premier BPO solutions foster superior customer experiences that drive increased retention and brand advocacy and maximize customer lifetime value.

Premier BPO combines a broader talent pool, reduced labor costs, and the power of digital transformation through PremierTech Solutions. Managed by a dedicated team that understands your unique needs, Premier BPO helps foster long-term partnerships built on trust and shared success. Premier BPO is committed to pioneering innovative technology solutions that tackle customer pain points, elevate satisfaction, and drive operational efficiency.

Premier BPO differentiates itself through the PremierSync framework, which offers co-sourcing solutions tailored to your specific challenges. Ultimately, Premier BPO acts as an extension of your team, helping you unlock the full potential of exceptional CX and achieve sustainable business growth. Don’t settle for average—experience the difference Premier BPO can make through the AI-led transformation of your CX.


  1. 1. The US Customer Experience Index Rankings, 2024
  2. 2. Best Practices for AI & Self-Service
  3. 3. IBM Global AI Adoption Index
  4. 4. Hate Chatbots? You Aren’t the Only One
Contact Us