How AI-powered customer service preserves the human touch

AI’s expanding capabilities beyond automation

AI-powered customer service has progressed beyond simple automation to sophisticated systems capable of handling complex interactions. Modern AI solutions can process refunds, update orders and seamlessly transition inquiries to human agents when needed. When implemented effectively, AI resolves complex customer issues and allows customer service representatives to focus on high-value engagements like personalized product recommendations, supporting major purchases and nurturing long-term customer relationships.

To further expand on the next phase of AI in customer service, industry leaders gathered at the Gladly Connect Live 2025 event in Nashville, Tennessee to discuss best practices for integrating AI — emphasizing that successful implementation requires strategic planning, continuous optimization and a clear understanding of customer needs.

Key event takeaways: Using AI to enhance customer service while maintaining the human element

Several forward-thinking customer experience leaders shared AI-related insights and real-world success stories throughout the event. 

Kate Showalter, vp of customer care and CBH services at Crate & Barrel, shared how she uses AI to position customer service as a strategic advantage rather than a cost center. Showalter highlighted how data-driven strategies are helping her team transform customer interactions into long-term advocacy and upsell opportunities. She emphasized that a fundamental shift in customer service requires breaking down organizational silos and fostering collaboration across departments.

Another speaker, Lauren Inman-Semerau, head of customer experience at Rothy’s, outlined a step-by-step approach to AI adoption, emphasizing that implementations should be more like onboarding a new team member rather than installing a new tool. She highlighted the need for clear goal-setting, thorough training and continuous evaluation to ensure AI enhances the human element of customer service. Rothy’s successfully used AI to scale its support operations while preserving a personalized approach, demonstrating how technology can improve efficiency without sacrificing customer engagement.

In industries where customer service is vital to crisis management, AI can be essential for maintaining service quality under pressure. Danny Cox, vp of guest experience at Breeze Airways, explained how his business uses AI to handle sensitive customer interactions, particularly in the airline industry where disruptions are common. Breeze Airways provides more responsive and effective customer support by implementing AI strategies and tools that facilitate empathetic communication and ensure smooth transitions between automated systems and human agents.

AI-powered customer service can also be designed to meet the unique preferences of specific demographic groups. Younger consumers favor chat-based communication over traditional email and expect immediate and seamless interactions. AI-driven chat solutions cater to these expectations by enabling instant responses and real-time conversations. 

Andy Lisk, vp, global head of customer service at StockX, highlighted how his company tailored its AI-driven customer support to align with the communication preferences of the Gen Z audience buying and selling sneakers and collectibles on its platform. By ensuring AI interactions feel authentic, StockX has successfully integrated automation while preserving the trust and verification processes critical to its marketplace.

Balancing AI and human expertise is the path forward

One of the most significant advantages of AI is its ability to scale operations without compromising personalization. AI-driven chatbots and voice assistants provide real-time responses to customer inquiries, ensuring businesses provide continuous support without overwhelming human agents. This is particularly relevant for industries with fluctuating demand, such as retail and travel, where AI can help manage peak-season inquiries more efficiently. However, scaling alone is not enough, businesses must be intentional about how AI is deployed to ensure it enhances, rather than detracts from, the customer experience.

The ongoing evolution of AI in customer service underscores the importance of thoughtful implementation. When integrated effectively, AI enhances efficiency and service quality, allowing businesses to deliver faster, more personalized support. But when AI is treated purely as a cost-cutting tool, it can lead to impersonal interactions, customer frustration and increased strain on human agents who must step in to resolve issues AI was not equipped to handle. As AI technology continues advancing, organizations striking a balance between automation and human expertise ensure efficiency and empathy work hand in hand and create exceptional customer experiences.

Sponsored by Gladly