How to Avoid the Customer Experience Cliff

In the race to modernize customer service, many companies are sprinting toward automation and AI with great urgency. But companies that go too far in that direction at the expense of the human side of customer service risk tumbling off what I call the Customer Experience Cliff—the point where automation displaces so many human roles that the quality of the customer experience takes a nosedive.

It’s easy to see why customer service providers are eager to advance with automation technology. It streamlines operations, automates repetitive tasks, and helps organizations lower costs while scaling services across multiple channels. A recent survey highlights just how quickly this trend is accelerating: 85 percent of customer service and support leaders say they will explore or pilot customer-facing generative AI in 2025. 

This surge in adoption signals a tipping point—one that makes it even more urgent for organizations to define clear, human-centric strategies for implementing AI. The survey notes that service leaders are most excited about AI’s ability to reduce contact volume, improve operational efficiency, and offer 24/7 customer support across digital channels. However, it also cautions that only 11 percent of leaders report having a clear strategy for generative AI implementation today. That gap between aspiration and execution is where the danger lies.

Automation has already transformed the delivery of customer service. Self-service options, intelligent routing, virtual agents, and predictive analytics enable organizations to assist more customers in less time. Efficiency has improved, and operational costs have decreased. For companies aiming to accomplish more with fewer resources, this is progress. However, when efficiency becomes the sole metric that counts, something essential is lost.

Customers Notice the Absence of the Human Touch

I’ll never forget the day my daughter needed emergency surgery. I was panicked, scared, and on the phone with my healthcare provider, expecting to be bounced around by automated menus and impersonal scripts. Instead, I reached a real person. A mother, like me. She understood my fear without me having to explain it and guided me through everything with calm, empathetic clarity. That experience stayed with me—not because it was fast, but because it was human.

This is the problem with over-automation: We risk stripping away the emotional intelligence that only human agents can provide. And when customers hit moments of vulnerability, complexity, or urgency, they want more than efficient service. They want understanding. They want flexibility. They want someone who cares. When companies rely too heavily on AI and lose that connection, they go over the Customer Experience Cliff. Customers notice.

It’s tempting to believe that faster is always better. But in customer service, faster without context or compassion can be worse than slow. According to recent research, 75 percent of consumers prefer speaking to a human over AI, and nearly half openly distrust AI-generated responses. And it's not just a matter of preference. When service fails, the cost is significant: 86 percent of consumers say bad experiences are enough to make them cut ties with a brand.

So what’s the path forward?

Build Human-Centric Automation Strategies

The solution isn’t to reject automation—it’s to deploy it thoughtfully. That means building strategies that are both tech-savvy and people-first. Start by automating the right tasks—not all tasks. Let AI handle routine requests like checking account balances, tracking shipments, or rescheduling appointments. But for high-stakes interactions such as billing issues, cancellations, or life-impacting decisions—make sure your customers can still talk to a person. Then, use AI to empower your human agents.

Real-time sentiment analysis, for example, can help agents recognize customer frustration and adjust their tone or approach in the moment. Automated call summaries can reduce after-call work and give agents more time to focus on the human part of their role. AI should also work behind the scenes to support supervisors, alerting them when agents show signs of burnout and enabling proactive interventions. These small actions add up—and they make a big difference when it comes to preserving the quality of your customer experience.

The Human Element Still Wins

In a recent mortgage refinancing process, my husband and I did nearly everything online. But when it came time to sign, we paused. We wanted confirmation—from a real person—that we hadn’t missed anything. That human moment sealed the deal.

This “last mile” of customer service is becoming even more critical as we automate more of the front end. And it’s also more challenging, because agents are being asked to handle increasingly complex and emotionally charged interactions. That’s why it’s so important to support them with training, real-time assistance, and systems designed to make their jobs more sustainable.

Because these moments of truth—where empathy, judgment, and emotional intelligence matter most—can’t be handled by bots. They require people. And people require support. Companies that strike the right balance between automation and human connection aren’t just avoiding the Customer Experience Cliff—they’re building competitive advantage.

More and more, job seekers are gravitating toward companies that value empathy, flexibility, and well-being, not just for their customers, but for their employees too. This trend is forming a new kind of community: one where people-first values aren’t just moral; they’re strategic.

AI and automation have already changed the game for service delivery, and they’ll continue to drive progress in powerful ways. But in our climb toward technological innovation, we shouldn’t lose sight of what customers and employees value most: human connection. When we neglect the people who power our customer experiences, we risk falling off the edge.

The future of customer service isn’t ‘AI versus humans.’ It’s ‘AI with humans.’ It’s about climbing smarter rather than faster. And the companies that understand this will avoid the Customer Experience Cliff and build lasting bridges of loyalty, trust, and long-term success.

Jennifer Lee is president and co-CEO of Intradiem. Lee has 20 years of experience in the contact center industry, with more than 15 years as a people leader. Throughout her career, Lee has served in a variety of roles in the contact center space, including operations, quality, workforce management, and client services. As president and co-CEO, Lee leads the operations and people management of the organization. Lee has served as chief operating officer and chief strategy officer, and has led the customer success organization.