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AI, Customer Value, Customer Service

7/28/2025

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What do you think of when you hear the term customer value? For many it is simply a good deal on price. Others may think in terms of quality. For me the most useful definition is an equation. Customer value equals Benefits of the product or service minus the Sacrifices that are required such as cost, maintenance, and such. This difference is then multiplied by the relationships. I believe at the heart of good businesses is relationships or people to which one can relate. 
 
Generative AI is transformative. I believe AI has the potential to help find cures for many diseases, find better ways for humankind to move into space, to improve operations in many aspects of business. However there are places where AI should be employed judiciously. 
 
Some automation and much AI are negatively affecting customer service. Here are a few examples from my year:
  • An automated order-taker at a fast food chain that never could understand my order that finally give up and gave me a person who understood easily.
  • An emergency car service where it took 40 minutes with automated scripts before getting a person who told me that my service was on its way from a place I knew was nearly two hours away but their AI system didn’t. 
  • A chatbot answer to a question that was positive so I placed an order, learned the chatbox was wrong. After notifying the organization, the chatbox is still wrong. 
Overall I am finding it more and more difficult to talk with people who can answer my questions related to goods and services. They have been replaced by AI that simply has difficulty answering my question and only provides a barrier between me and true customer service. 
 
I have discussed this with corporate level customer service representatives who agree. They understand these issues but management has chosen efficiency, i.e., cost savings, over effectiveness (building profitable businesses through investing in people and relationships). 
 
I try to keep most of my business local. Small businesses are the backbone of the American economy. Most small businesses get it. Great word of mouth. Repeat customers. Knowledgeable employees. The key is great customer service. Apply AI where it improves customer value and not where it takes away from customer value. 

AI generated Image by Enio-ia. Obtained from: https://pixabay.com/illustrations/artificial-intelligence-robot-8635352/

© John Ballard, PhD, 2025. All rights reserved.
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Decoding the Workplace. “Is this a must-have for managers and would-be managers? Yes.” Academy of Management Learning & Education. The best-selling audiobook and CD are narrated by Timothy Andrés Pabon.
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