It seems like everyone, everywhere is talking about artificial intelligence (AI). It’s about what it will change, how quickly it is evolving and how it could solve some of the biggest challenges facing businesses. It is positioned as the answer to everything from inefficiency to innovation. However, what is talked about much less often is the other side of the coin: what AI will not solve for us. But that is just as important.
AI works best when the fundamentals are already solid. It depends on clear processes and high-quality information. We also still need people who know how to ask the right questions and use the results sensibly. I always tell my clients that the right way to solve an operational problem is: “People, processes, systems – in that order”. AI is no exception.
Written for FashionUnited by Becky Lombardo, international retail logistics expert and founder of London Consulting.
There is a growing tendency to view it as a shortcut. However, if it is not carefully thought out with a clear goal, measurable results and an accountable person, it will not deliver the desired performance. It is far more useful to think of AI as an additional team member. This needs to be communicated with, it needs clear goals and it needs to be managed.
You should also be aware of what AI cannot do. It cannot replace strategic thinking. Without the guidance of experience and insight, she cannot develop truly convincing solutions. Technology can support decision-making, but it cannot take responsibility for it.
The key is to remember the limitations of AI. She has no capacity for true empathy and little awareness of when she might be wrong. She also rarely admits to insecurity. Basically, she doesn’t say “I don’t know” often enough!
Why customer trust cannot be automated
Customer service is not just about serving customers as efficiently as possible and solving their individual problems. It’s about building a connection between customers and your brand. This creates a differentiator in an often homogeneous market.
The effects are clear. 86 percent of buyers are willing to pay more for an excellent customer experience. Yet 32 percent will leave a brand they like after just a single bad experience. (Source: 117 Customer Service Statistics You Need to Know in 2026, Desk365.io)
Expectations are even higher, especially for luxury and premium brands. Customers don’t just want a problem solved, they want to be excited.
The challenge is that the benefits of good service are not always evident in a single place. It appears in various items on the income statement throughout the company. This ranges from customer loyalty to purchase frequency to organic acquisition through recommendations.
What is needed is a real commitment at the C-level to invest in service as a growth driver. Without this commitment, the service easily becomes something optimized for efficiency rather than experience. This is especially true as companies grow and are faced with an increasing volume of customer inquiries. This is where I see many brands struggling. As they grow, the focus shifts to efficiency and speed. Without a clear view of the big picture, this can come at the expense of the very thing that originally set them apart.
Which further requires emotional intelligence, personal responsibility and judgment in real time
Before I start working with new customers, I read their customer reviews. The most common problem is not that something goes wrong, but how those problems are handled.
Can they be solved? Often it is due to limitations in the operational processes that need to be addressed. But even more important is the question of whether the problem has actually been solved. In negative reviews, customers often do not have the feeling that this was the case, but in positive reviews it does.
The difference usually lies in the level of authority of the person they spoke to and whether they had the necessary tools and information available. Making a connection, showing genuine empathy and finding the right solution will always be the foundation of a great service experience. AI can only support the last part.
A recent HubSpot survey found that 91 percent of dissatisfied customers leave the company without complaining.
Why winning back customers still starts with a phone call
What all customers want is a quick resolution and a sincere apology. 60 percent of consumers say quick resolution times are critical to their experience with a company. AI can help make this process faster, smoother and more consistent. But when it doesn’t work, it takes a real human connection to win customers back. In practice, this is often a sincere apology combined with a solution that the customer agrees to.
Too much time spent by both parties on back and forth emails or text messages often only leads to frustration. It can destroy a moment of connection. In a world where customers are increasingly used to automation and AI responses, this is a real opportunity to stand out.
It’s also worth noting that it doesn’t have to be the phone; the individualized approach is crucial. This includes using the channel that works best for customers, be it WhatsApp, telephone, email or social media. Different channels work for different customers at different times. Studies show that 89 percent of consumers want to engage with brands across multiple channels and expect a seamless transition between them.
When it is the only solution to get customers out of the AI loop
Customer frustration, an inadequate solution and a lengthy communication process are all signs that something is not working. Recognizing these signals and getting customers out of the loop is crucial for their loyalty.
59 percent of customers will leave a brand after a single bad experience. Particularly for e-commerce brands where the cost of acquiring new customers is high, retaining existing customers is crucial to profitability. It can take up to twelve positive experiences to compensate for one unresolved negative experience.
The risks of hiding behind automation instead of solving problems directly
At a scale-up client I worked with, issues were responded to quickly and queries seemed to be resolved. However, when we looked deeper into the data, we found that these customers were not returning and the Trustpilot reviews were poor. The AI processes used were very black and white. They worked well to complete requests, but failed when faced with a real problem.
The company also had to answer a large number of technical questions, which made it difficult to train employees quickly. The AI worked well here. She was able to efficiently access the right data, answer questions directly, and even anticipate issues like late or lost orders. Where it didn’t work was in situations that required a more personal approach and a sincere apology.
This is where the combination of human agents and AI became crucial. Employees were far more able to rebuild relationships with disappointed customers while cross-selling or up-selling to retain them. Powered by AI, they had better data at their fingertips. This allowed them to offer a tailored service that felt personal. At the same time, customers were served with simpler, yet technical requests in near real time, which met their expectations.
How to get the most out of AI
AI is a powerful tool, but it is not a shortcut. The companies that benefit most will be the ones that get the basics right first. You need to be clear about what continues to require a human touch. It still boils down to people, processes and systems, in that order.
This article was created using digital tools translated.
FashionUnited uses artificial intelligence to speed up the translation of articles and improve the end result. They help us to make FashionUnited’s international reporting quickly and comprehensively accessible to a German-speaking readership. Articles translated using AI-based tools are proofread and carefully edited by our editors before they are published. If you have any questions or comments, please email [email protected]