AI is taking over—well, at least some parts of customer service. But how do you know when to automate and when to stick with the good old-fashioned human touch? In this episode, we dive into one of the most crucial decisions organizations are making today: When should you use AI, and when do customers actually need a human?

Spoiler alert: If you let AI handle everything, you might save money—but you could also drive your customers straight to your competitors.

Best Quote from the Episode:

"You don’t want AI handling a $300 million defense contract. ‘Hello! I see you're interested in missile systems. Would you like fries with that?’"

Key Takeaways:

• AI Should Enhance, Not Replace – AI can automate routine interactions, but when emotions are high (like fraud issues or complaints), a human is still king.

• The Wrong Cost-Cutting Strategy Can Cost You More – AI might save money upfront, but if it frustrates customers, it can drive them away.

• Know Your Audience – Some customers love chatbots; others despise them. Testing is critical.

• Context Matters – A simple question like checking an account balance? AI can handle it. A frustrated customer dealing with a major issue? Bring in the humans.

• AI + Humans = The Winning Formula – Studies show AI-generated emails can be more empathetic than human ones (yes, really!), but the best approach is using AI to support human interactions, not replace them.

Why You Should Listen:

If you’re thinking about rolling out AI across your customer experience, stop and listen to this episode first. We break down the risks, the rewards, and how to make sure you don’t end up with a frustrated customer base ready to rage-tweet about you.

Resources Mentioned

Wall Street Journal Article: Turns Out AI Is More Empathetic Than Allstate’s Insurance Reps

https://www.wsj.com/articles/turns-out-ai-is-more-empathetic-than-allstates-insurance-reps-cf5f7c98?utm_source=chatgpt.com

About the Hosts:

Colin Shaw is a LinkedIn 'Top Voice' with a massive 284,000 followers and 86,000 subscribers to his 'Why Customers Buy' newsletter. Shaw is named one of the world's 'Top 150 Business Influencers' by LinkedIn. His company, Beyond Philosophy LLC, has been selected four times by the Financial Times as a top management consultancy. Shaw is co-host of the top 1.5% podcast 'The Intuitive Customer'—with over 600,000 downloads—and author of eight best-sellers on customer experience, Shaw is a sought-after keynote speaker. Follow Colin on LinkedIn.

Ryan Hamilton is a Professor of Marketing at Emory University's Goizueta Business School and co-author of 'The Intuitive Customer' book. An award-winning teacher and researcher in consumer psychology, he has been named one of Poets & Quants' "World’s Best 40 B-School Profs Under 40." His research focuses on how brands, prices, and choice architecture influence shopper decision-making, and his findings have been published in top academic journals and covered by major media outlets like The New York Times and CNN. His work highlights how psychology can help firms better understand and serve their customers. Ryan has a new book launch in June 2025 called “The Growth Dilemma: Managing Your Brand When Different Customers Want Different Things” Harvard Business Press Follow Ryan on LinkedIn.

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