Turning customer service happiness into a competitive advantage

In a world shaken by political instability, economic headwinds, and societal anxiety, one encouraging trend emerges from NiCE’s 2025 Global Happiness Index: customer service happiness is on the rise.

According to the Index, satisfaction with customer service has climbed from 36% to 41% year over year. While modest, this growth is striking at a time when overall global happiness has declined from 66% to 58%.

What’s fuelling this unexpected optimism? Consumers are reaping tangible benefits from AI and automation in their service experiences.

But as this technological progress accelerates, a major challenge persists: a disconnect between what customers expect and what executives prioritize. If not addressed, this perception gap may stall momentum and prevent organizations from realizing the full potential of AI-powered services.

Putting the ‘wow’ in customer service happiness

Despite global instability, customers are feeling more positive about service experiences than they did a year ago. What’s changed? The long-anticipated “AI wow effect” is finally materializing.

The 2025 Index reveals:

• 72% of consumers say they’ve experienced benefits from AI and automation
• 55% report that AI support saves them time — an increasingly precious resource
• 74% of frequent AI users say customer service has improved as a result

This uptick isn’t just about quicker answers or better interfaces. It’s about emotional value. As Omer Minkara, Vice President and Principal Analyst at Aberdeen, explains:

"The fact that we are seeing customer service going up is, in my opinion, a reflection of consumers saying, 'Look, I don't want to just buy a product or service, and that's the only satisfaction or value I get. I also want the providers to be there when I need them''.

Still, challenges remain, as bad bots continue to frustrate:

• 37% of consumers say they’re still forced to repeat themselves to chatbots
• 41% report long resolution times
• 38% cite a lack of access to a human agent when needed

Deeper relationships and better outcomes depend on AI that goes beyond surface-level fixes. AI systems that understand context, guide intelligent workflows and empower agents in real-time.

What consumers want from AI in customer service: A guiding light

Today’s consumers are surrounded by AI, from recommendation engines to wearable health devices, and their expectations are rising fast. What amazed them three months ago can already feel outdated today.

As such, they’re no longer impressed by generic AI built on one-size-fits-all prompts. Instead, they want an AI-powered service that is:

• Stress-free (41%)
• Effortless (31%)
• Personalized (28%)

Interestingly, automation is also welcomed in emotionally difficult moments. When cancelling subscriptions after a bereavement, for example, many prefer AI-powered interactions to avoid reliving grief with a human agent. In contrast, older consumers and those with complex needs still value the human touch in these moments.

Understanding what consumers want from customer service is our true north—and that’s exactly where CXone Mpower leads. The future of service lies in blended experiences: intelligent automation for routine tasks, and empowered agents for more complex, high-value conversations.

CXone Mpower is purpose-built to make this future a reality. Unlike siloed point solutions, it’s a unified AI platform trained on customer service-specific data. It captures every interaction across channels, understands historical context, and delivers personalized, real-time responses at scale. The result? Seamless, intelligent service that meets rising customer expectations—every time.

The real value for the C-suite

The consumer data is compelling. But so is the business case:

• Consumers are willing to pay 53% more for customer service that leaves them feeling happier
• On average, consumers would pay $35/month for an AI assistant that could handle all their customer service needs
• People under 35 are willing to pay nearly $50/month for that same assistant

That’s a clear revenue opportunity. But many executives aren’t fully aligned with consumer expectations, or confident in how to meet them.

Misaligned priorities, overblown fears

Here’s where things get complicated. Despite the clear consumer benefits and rising satisfaction, many in the C-suite remain misinformed about what customers want from AI.

C-suite leaders think 24/7 availability is the top customer priority (74%), while customers place speed first (57%) – a 17-point gap. Even more telling, executives believe customers are willing to pay 76% more for premium service, while consumers say they’ll pay only 53% more – a 23-point overestimation. And despite growing trust: 37% of executives fear customers won’t trust AI. Yet 69% of consumers say they trust companies that use AI. These perception mismatches can lead to misplaced investment and missed chances to differentiate.

Executives also report internal hesitation. While 68% of executives rank customer service as their top AI investment area, ahead of cybersecurity or efficiency. Just 44% feel very equipped to transition to AI and automation in customer service.

This hesitance may stem from years of limited returns from early AI attempts. For the C-suite, the key is leveraging AI confidently with the right guardrails in place, and that’s exactly what an AI platform like CXone Mpower delivers.

From hesitation to activation: 3 key takeaways for the C-suite

To break through, executives must transition from caution to confidence. Here’s how:

1. Use a platform approach for trust and scale
   Disconnected point solutions create fragmentation and risk. CX-specific AI platforms like CXone Mpower offer unified governance, full data visibility, and enterprise-grade security and compliance.
2. Focus on augmentation and automation
   AI should give human agents superpowers. With intelligent summaries, smart routing, and contextual recommendations, AI can reduce handle times, improve accuracy, and let agents focus on high-emotion moments when consumers want human comfort.
3. Embrace the “now or never” moment
   Today’s customers compare every experience to the best one they’ve had anywhere. If your brand doesn’t measure up, they’ll move on. AI-powered transformation isn’t optional. It’s existential.

The bottom line: Create a NiCE world, together

The data is clear: AI is starting to deliver. It’s making service faster, more accessible, and a happier experience. As such, consumers are trusting it more every day.

But for organizations to truly harness its potential, the C-suite must move from reactive to proactive. That means investing in platforms that connect intelligence across the customer journey, listening deeply to evolving expectations, and fusing automation with humanity at every touchpoint.

The brands that act now will define the next era of loyalty, growth, and trust - turning customer service happiness into a true competitive advantage.

That’s how you create a NiCE world.