India’s customer service landscape is undergoing a transformation, driven by artificial intelligence (AI). According to new research by ServiceNow, 80% of Indian consumers now rely on AI chatbots for resolving complaints, product recommendations, and self-help guides. Five out of six consumers actively use AI tools for making informed decisions.
AI growth yet wait times persist
Despite AI’s rapid adoption, customer wait times remain a challenge. The ServiceNow Customer Experience Report reveals that Indian consumers spent a staggering 15 billion hours on hold in the past year. This paradox suggests that while AI is streamlining some processes, inefficient service structures still delay resolutions.
AI becomes a daily essential
The report highlights the growing influence of AI in everyday life:
- 84% use AI for shopping suggestions.
- 82% depend on AI for food and dining choices.
- 78% trust AI chatbots for investment recommendations.
This shift signals a crucial opportunity for businesses to integrate AI-driven service models to enhance speed, transparency, and efficiency.
Businesses falling behind
Surprisingly, businesses spend less than one day per week actively resolving customer issues. The remaining time is consumed by administrative tasks, waiting on team responses, training, and promotional efforts. Many of these activities could be streamlined with AI, but organisations have yet to capitalise fully on its potential.
Rising expectations & the cost of slow service
With AI making services faster elsewhere, expectations for customer support have risen. A staggering 82% of customers say AI advancements have set new benchmarks for service quality.
However, delays still dominate consumer experiences:
- 89% of consumers are willing to switch brands due to slow or poor service.
- 84% would leave negative online reviews after a bad experience.
- Consumers believe it takes 3.8 days to resolve an issue, despite agents estimating just 30 minutes.
This disconnect highlights the inefficiencies in service workflows, frustrating both customers and service representatives.
The ‘Rule of Three’ in customer demands
The top three improvements consumers seek are:
- 49% want faster resolutions.
- 48% expect better-trained service agents.
- 46% demand shorter hold times.
Although wait times have improved by 5% compared to last year, 39% of customers still wait in queues, 36% get transferred multiple times, and 34% feel companies deliberately complicate complaint registration.
Are customer service agents ready for AI?
A survey of 200+ Indian customer service agents underscores the need for AI integration:
- 52% believe AI will enhance their role by freeing up time for problem-solving.
- 48% see AI as a way to reduce workload.
- 42% think AI will expand their responsibilities and create new growth opportunities.
AI as a competitive advantage
Businesses that embrace AI can boost productivity, cut costs, and retain customers. AI-powered solutions, like ServiceNow’s AI Agent Orchestrator, enable seamless communication between AI agents, reducing inefficiencies and delays.
“AI is revolutionising customer service by empowering agents like never before,” says Sumeet Mathur, Senior Vice President & Managing Director of ServiceNow India. “52% of agents already see AI as a tool for efficiency, and 42% believe it will shape future growth.”
As AI continues to reshape business operations, companies that fail to adapt risk losing customer trust and loyalty in an increasingly competitive market.
