Companies are hopeful that AI chatbots will streamline customer service by providing faster and more cost-effective solutions. However, many customers still prefer interacting with human agents. Recent research sheds light on why customers often resist AI in service scenarios. First, customers avoid chatbots due to ‘gatekeeper aversion,’ where uncertain, multi-step processes drive them away, and ‘algorithm aversion,’ which further reduces trust in chatbots. Transparency about chatbot capabilities and wait times can improve acceptance. Second, AI tends to be better received when delivering bad news, as people don’t attribute negative intentions to machines, but they prefer humans when receiving good news because humans are seen as more generous. Third, whether customers accept AI depends on two factors: perceived AI capability and the need for personalized service. When AI is seen as more capable and personalization isn’t necessary, customers prefer AI; otherwise, they want human interaction. Businesses should consider these points before automating customer-facing roles to balance efficiency and personalization.
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