A growing disconnect between customer preferences and corporate strategy is emerging in global customer service, as new research shows consumers still favor phone support even as businesses double down on AI demand and digital channels.
According to a 2026 customer experience survey by ServiceNow, 80% of customers in Singapore prefer calling a service representative, yet only 9% of businesses plan to prioritise phone support long term. This mismatch is already having tangible consequences, with 52% of customers willing to switch brands after poor service and many organisations reporting lost revenue and increased churn.
The findings highlight a broader issue: while companies are investing heavily in automation, chatbots, and self-service tools, customer expectations remain rooted in speed, clarity, and human empathy. Nearly half of Singaporean customers cited a lack of empathy as a major frustration, significantly higher than executives perceive.
AI Gains Ground but Friction Persists
Meanwhile, markets like New Zealand are showing stronger adoption of AI-driven service models, but not without challenges. ServiceNow data reveals that consumers in the country collectively spent 22 million hours on hold in 2025, equivalent to 8.7 hours per person annually, despite improvements from previous years.
While wait times are gradually decreasing, expectations are rising even faster. Around 52% of New Zealanders expect AI to deliver faster, more convenient service, and 55% see 24/7 availability as its biggest benefit. At the same time, nearly half of consumers say they would switch providers after a poor experience, reinforcing how critical service speed and efficiency have become.
Notably, behavior is shifting: 72% of New Zealand customers now prefer self-service options before calling, signaling a gradual move away from traditional call centres. Yet even in AI-forward markets, human support remains essential for complex or sensitive issues.
The Global Context: Phones Are Still Everywhere
These trends are unfolding against a backdrop of near-universal phone access. Data from Statista shows that global telecommunications have evolved dramatically, from just 9.8 landline subscriptions per 100 people in 1990 to widespread mobile adoption today, with subscriptions often exceeding the total population.
This ubiquity helps explain why voice communication remains deeply embedded in customer behavior. Even as digital channels expand, the phone continues to be perceived as the fastest and most reliable way to resolve issues, especially when stakes are high.
Bridging the Gap Between AI and Human Support
The core challenge for businesses is no longer whether to adopt AI, but how to align it with real customer expectations. Fragmented systems and disconnected data remain major barriers, with service agents often juggling multiple platforms and spending limited time directly addressing customer needs.
Experts suggest the future of customer experience lies in hybrid models where AI handles routine queries and administrative tasks, while human agents focus on empathy-driven interactions. Encouragingly, 60% of customers report that AI has already improved their experience, indicating that the technology is delivering value when implemented effectively. However, many brands and businesses rely on AI automation just too heavily, preventing people from seamlessly accessing human support specialists, causing extra frustration among customers.
A Narrow Window for Businesses
The message from the data is clear: companies that prioritise efficiency at the expense of customer preference risk losing both loyalty and revenue. As AI adoption accelerates, the winners will be those who balance automation with human connection, delivering not just faster service, but better service. In an era of instant expectations, businesses face a critical question: not whether customers will embrace AI, but whether AI can meet them where they already are.
