AI agents faced real-world challenges this week in customer service settings. A new study tested AI in retail tasks like restocking shelves, assisting customers, and managing payments. Researchers found these AI models struggled with decision-making when faced with actual store complexity, performing worse than in simulations. This highlights a gap between lab training and real customer service environments where unexpected situations occur.

Despite these challenges, business adoption of AI continues to grow. A recent industry report shows 97% of companies plan to use AI in customer communications this year. The most popular investments are AI voice assistants (chosen by 63% of businesses) and AI chatbots (43%). These tools help businesses provide faster responses and handle simple queries, letting human agents focus on complex issues.

However, workforce plans are shifting. Research firm Gartner predicts that by 2027, 50% of organizations will abandon plans to significantly reduce customer service staff due to AI limitations. Their survey found 95% of customer service leaders plan to keep human workers to strategically guide AI tools. This supports a 'digital first, not digital only' approach where AI handles routine tasks but humans manage complex or emotional interactions.

Customer preferences vary by age group, creating challenges for businesses. The research shows 71% of Gen Z customers are comfortable with AI chatbots trained on support documents, compared to just 42% across all age groups. This generational gap means companies must tailor AI use based on their customer base.

Communication channel choice remains important to customers, with 58% wanting to select how they receive messages. Preferences vary by message type: promotional offers, account alerts, and verification requests each perform best in different formats. Rich Communication Services (RCS) emerged as a preferred channel for many use cases, offering verified sender identities and interactive features.

Looking ahead, balancing AI and human service appears key. While AI improves efficiency for simple tasks, this week's retail study shows real-world customer service environments present unique challenges that require human adaptability. Most businesses now recognize they need both AI tools and skilled human agents to deliver complete customer experiences. This hybrid approach helps companies provide faster service through AI while maintaining quality for complex situations through human support.