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How AI is changing customer service (and what it still can’t do)

Elen Veenpere
08.15.2025

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Elen Veenpere
08.15.2025

You’ve probably seen a thousand hot takes on how AI is “revolutionizing” customer service. Some of them are true. Some are… let’s just say more aspirational.

AI is already changing how customer service teams operate. It’s saving time, scaling operations, and even driving revenue.

But it also has very real limitations, and pretending AI can (or should) do everything is the fastest way to frustrate your customers
and your team.

Let’s talk about what AI is actually great at in customer service, and where humans still need to lead the way.

What AI is changing

Here are some of the ways AI is actually changing customer service.

1. Faster, more consistent answers

AI shines when customers ask the same questions over and over. “Where’s my order?” “What’s your return policy?” “Do you ship internationally?”

Instead of bogging down your agents, AI can handle these instantly and consistently. Customers aren’t at the mercy of a tired rep having a bad day. They get the same clear, brand-aligned response every time.

And when answers change—a new promo, updated shipping timelines—AI can be retrained instantly. No more relying on everyone remembering to update their macros.

2. End-to-end task automation

Answering is good. Solving is better.

This is where platforms like KODIF are different from generic chatbots. We don’t just hand over information, our AI can take action:

  • Skip or pause a subscription
  • Process a refund
  • Change a shipping address
  • Handle a return
  • Generate product recommendations

That’s real resolution containment, not just deflection. Instead of “I’ll transfer you to an agent,” customers leave the interaction with the problem actually solved.

3. Pre-purchase support (and conversions)

AI isn’t only for customer complaints. Pre-purchase conversations are just as important.

Think about a customer shopping for supplements or pet food online. They might ask:

  • “Which product is right for me/my pet?”
  • “What size should I order?”
  • “What’s the difference between these two?”

AI can answer product questions, compare ingredients, and even recommend bundles — in real time, while intent to buy is highest. In many cases, this is the difference between an abandoned cart and a completed order.

In other words: AI isn’t just a cost-saver, it’s a revenue-driver.

4. Smarter routing and insights

AI is great at understanding intent. It can quickly tell if a customer is asking about shipping, complaining about quality, or considering cancellation.

That means tickets get routed to the right place faster and teams can prioritize the conversations that matter most.

It also means leaders get better data. Instead of just counting “tickets,” you can see exactly what issues are driving volume, sentiment, and churn risk.

Over time, this becomes a feedback loop: AI captures patterns → leaders spot trends → workflows get smarter → customers get better service.

What AI can’t do (yet)

And here are some of the things AI isn’t so good at so far.

1. True empathy

AI can mimic empathy (“I understand how frustrating this must be”), but it doesn’t actually feel it, and customers can tell.

When someone’s order went missing before their wedding, or when a delayed shipment means a ruined birthday, scripted empathy only goes so far.

A human being who listens, relates, and responds with genuine care still matters.

2. Handle the messy edge cases

AI is getting better, but gray areas are tough. What if the customer’s request is vague, contradictory, or flat-out unusual?

Example: a shopper wants to return an item past policy, but also has a history of being a loyal VIP. That’s not just a “yes” or “no” answer, it’s a judgment call. And right now, humans are still better at navigating those tradeoffs.

3. Think strategically

AI doesn’t know your business goals unless you tell it. It won’t automatically understand that saving a subscription is worth more than issuing a one-time discount, or that pushing customers toward a bundle is better for retention.

That’s where humans come in: designing strategies, setting goals, and then training AI to execute within those boundaries.

4. Replace your brand’s personality

Customer service isn’t just transactional, it’s the place where your brand’s voice and culture come alive.

AI can be trained to match tone—casual, professional, witty—but it can’t create that personality. It reflects the culture you already have. If your brand is flat, your AI will be too.

The bottom line

AI has already reshaped customer service by making it faster, more consistent, and more scalable.

The best platforms go further, turning AI into an operations layer that actually drives revenue and retention, not just cost savings.

But AI can’t replace empathy, judgment, or culture. The best results come from combining automation where it makes sense with humans where it matters most.

At KODIF, we think of AI as a teammate. It handles the repetitive stuff with precision and consistency, while humans focus on creativity, empathy, and the high-value moments that make customers feel connected to your brand.

Because the real future of customer service isn’t AI versus humans. It’s AI + humans, each doing what they do best.

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