AI in CX isn’t optional anymore—it’s survival

With costs rising, expectations shifting, and margins of error shrinking, B2C brands are under pressure like never before.

So how are CX leaders adapting? What’s working—and what’s not?

More and more, the answer lies in AI—specifically, AI built to serve people, not replace them. It’s this combination of intelligent automation and human connection that sets leading brands apart.

A tougher market, full of tougher customers

The phrase “uncertain times” might be cliché at this point, but it still holds true for our economy. Prices are higher across the board, so shoppers are noticeably more cautious and selective. They’re also far less loyal.

According to McKinsey, 75% of U.S. consumers adopted new shopping behaviors during the pandemic, including switching brands. Many plan to keep doing that as prices fluctuate beyond what they’re used to spending.

And that shift shows no signs of slowing. Today, loyalty has to be earned—and re-earned—with every customer conversation.

On top of that, the cost to acquire new customers is off the charts. McKinsey reports acquisition costs are up 60% over the past five years, making the loss of a customer extra expensive.

Why most AI approaches miss the mark

Faced with these mounting pressures, many brands find themselves trapped in two dangerous positions when it comes to AI:

AI skepticism: This group waits too long to adopt AI, often out of fear of customer backlash.

AI over-optimism: This group applies AI primarily as a cost-cutting measure, often at the expense of customer experience.

The hesitation from AI skeptics is understandable. Nearly two-thirds of consumers say they'd prefer companies not use AI for service. However, the frustration they experience is usually due to poorly implemented AI—clunky, impersonal, and lacking the context needed to be truly effective.

On the other hand, AI over-optimists who use AI to replace human agents rather than empower them face a different problem. Slashing service teams with poorly executed AI backfires when the AI lacks context and customer insight. This ultimately harms customer relationships, making it harder to retain loyalty.

So, what’s the better path?

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The power of And — the future of CX

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The winning approach—radically efficient and radically personal

The most resilient B2C brands have discovered that you don’t have to choose between cost and exceptional experiences. By putting AI at the core of a people-first customer experience, they’re achieving both.

Here’s how it works: AI handles high-volume, low-complexity tasks, like package tracking and order cancellations, while agents focus on moments that matter—like offering personalized advice or resolving complex issues. Both AI and humans are empowered by the same unified customer data, allowing for operational precision and emotional intelligence.

For example, apparel brand KÜHL adopted this approach and saw remarkable results: a 120% increase in revenue per call, and weekend email inquiries dropped from over 100 to just 40. By moving away from ticket-based workflows to a platform that provides agents with rich customer context—preferences, purchase history, and past interactions in one unified view—they transformed service and achieved meaningful efficiency gains.

Similarly, digital-first retailer Rothy’s used AI to handle repetitive tasks, freeing agents to engage in consultative conversations about fit, style, and sizing. This approach allowed them to reduce service costs while boosting revenue through more meaningful connections with customers.

The formula: AI handles the routine. Humans own the relationship. Both collaborate seamlessly with complete customer context.

Making it work—your action plan

Here's how leading brands are cutting costs without cutting corners:

• Use AI to amplify, not replace — Let AI handle routine tasks, while empowering agents with customer context for personalized interactions.

• Invest in customer-centered platforms — Choose solutions that unify customer data around relationships, not tickets or cases.

• Focus humans on relationship-building moments — Empower agents to handle complex issues and consultative conversations.

• Measure what matters — Track resolution quality, customer sentiment, and lifetime value, alongside traditional efficiency metrics.

Beyond survival — think "and," not "or"

This moment isn’t business as usual. It’s business as survival. Survival means making smart, sustainable investments in the two most critical levers you have: your people and your platform.

And it means thinking "and," not "or."

The brands that win will be those who refuse to make it a binary choice—lower costs or deliver great service. They’ll find the intersection where cost-efficiency meets connection, and where AI enables the very thing that keeps customers coming back: human care.

It’s time to stop seeing CX as a cost to contain. It’s your growth strategy. And in a world of shrinking margins and rising expectations, it might just be your last, best advantage.

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