Gen Z Wants Brands to Level Up Their AI Customer Service Game

New Five9 Survey Finds That Nearly 60% of Gen Z Says AI Chatbots Excel at Speedy and Convenient Customer Service, While Humans Still Preferred for Complicated Problems

Sixty percent of Gen Z craves the speed and convenience of AI-powered customer service, but still prefer human interaction for complex issues, according to a new survey conducted by Five9 (NASDAQ: FIVN), provider of the Intelligent CX Platform. This paradox highlights the need for businesses to strike a balance between AI-powered solutions and the human touch to meet the evolving expectations of this tech-savvy generation.

This desire for efficiency and ease extends beyond just the technology itself. For Gen Z consumers, a seamless and positive customer service experience is essential to building brand loyalty. “The worse my customer service experience is, the less likely I am to use the brand again,” says Mimi Allen, 21. “I shop online because it makes my life easier. I don’t have the time to go into a store to purchase, but if buying stuff online is going to take hours or be difficult, then I won’t use them anymore.”

Five9 conducted a survey of 1,000 Gen Z consumers and tracked customer experience interactions for a select group of these young shoppers. The study found that Gen Z is particularly open to AI for quicker resolutions, with 46% considering it ideal for simple fixes and 47% for generic questions. While nearly 60% of Gen Z appreciate AI's faster response times over human interactions (40%) and its unmatched convenience (19%), 15% said they enjoy the personalized experience it can offer. Surprisingly, when interacting with brands, less than 40% of Gen Z respondents could not distinguish between AI and human interactions in chatbots, text, or email. This data underscores AI’s growing role in streamlining customer service for a generation that expects quick, efficient solutions.

"Gen Z are natural 'prompt engineers'," says Niki Hall, Chief Marketing Officer, Five9. "They know how to interact with AI to get the information they need, but they're also keenly aware of its limitations. When it comes to complex issues or sensitive information, they still crave the empathy and problem-solving abilities of a human customer service representative. AI presents a powerful opportunity for brands to enhance customer service, but strategic implementation is key to achieving maximum impact and ROI."

Despite their desire for AI-driven customer experiences, nearly 65% of Gen Z consumers still prioritize human customer service for complex issues, finding AI-powered solutions not as trustworthy (47%) and reliable (36%). Human support is preferred for specific scenarios, such as billing (86%), high-value purchases (88%), and returns (77%), emphasizing the importance of empathy and problem-solving in these areas.

Sephora, Target, Nordstrom, and Apple are all winning over Gen Z with their top-notch customer service. But it's not just the retail world that's getting it right, as airlines like United, Singapore Airlines, and Delta are also flying high in the eyes of Gen Z travelers.

For Gen Z shoppers, building a relationship with a brand is key to unlocking exceptional customer experiences. “Loyalty is a two-way street. I can’t expect a brand to drop everything to try and solve my $12.99 order issue,” says Sash Shaban, 23. “However, if I am a regular and we start to build a relationship, that is when I expect an incredible CX experience compared to my purchasing history.”

Five9’s research provides valuable insights for businesses navigating the evolving landscape of customer service in the digital age. By understanding the preferences and expectations of Gen Z regarding AI in customer service, brands can create more effective and trustworthy experiences that foster loyalty and satisfaction.

Methodology

This study was conducted online among a nationally representative sample of 1,000 Gen Z consumers, including 50% ages 18-22 and 50% ages 23-27, in the U.S. between October 23-25, 2024.

About Five9

The Five9 Intelligent CX Platform, powered by Five9 Genius AI, provides a comprehensive suite of solutions to power AI-elevated customer experiences that deliver better business outcomes and Bring Joy to CX™. Our unified cloud-native offering enables hyper-personalized customer experiences and more empowered employees, making every customer interaction more connected, effortless, and personal. Trusted by 2,500+ customers and 1,400+ partners globally, Five9 brings together the power of AI, our platform, and our people to drive AI-elevated CX.

For more information, visit www.five9.com.

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