The Future of Service, is Now

coworkers discussing in communal space
  • Publication
  • 6 minute read
  • May 01, 2026

The customer service model that worked for the past decade is breaking down. AI is both the cause and the solution.

Consider what’s changed in just 24 months. GenAI adoption has grown twenty-fold globally1. Your customers are using AI to search, compare, and make decisions. Your competitors are deploying AI agents that operate 24/7, respond in seconds, and never forget a customer’s history. 

And yet, many organisations are still forcing customers to repeat themselves across channels, navigate disconnected systems, and tolerate experiences that feel anything but seamless.

Customer tolerance is evaporating. In an environment where every customer touchpoint either builds or erodes trust, and 70% of customers switching providers after one poor experience2fragmentation is a competitive liability you can’t afford.

Most organisations understand this. They’ve invested in mobile apps, upgraded their platforms, and expanded their contact centre capabilities. But these investments often create more sophisticated silos rather than integrated experiences. In a world where customer acquisition costs have sharply increased up to 40% from 20233, you’re essentially burning money every time your channels don’t communicate. Even more so critical in Australia, where the cost can be 20-35% higher than the US average4.

Your customers don’t think in channels - so why does your business operate that way?

This isn’t a future trend - it’s happening now. AI hasn’t just automated tasks; it’s made true channel integration technically and economically viable for the first time. The equation for success has fundamentally changed.

Organisations that move decisively in the next 12 months will establish advantages that become increasingly difficult for competitors to overcome.

Enter the era of ‘Connected Channels’.

Connected Channels represent the maturation of a long-discussed vision into operational reality. What’s fundamentally shifted isn’t the concept. It’s that AI has eliminated the technical and economic barriers that previously made true channel unification impractical for most organisations, transforming it from aspiration to competitive necessity.

The result? Every interaction, whether online, in-store, or over the phone, feels connected and consistent. The customer is known, their context is preserved, and their journey is seamless regardless of how they choose to engage.

Connected Channels in action:

Imagine this: A customer researches a product on your mobile app and adds it to their wishlist. The next day, they walk into your store, and instantly receive a push notification, aligned to their opt-in consent and privacy controls. This helps them locate the product in-store, along with a time-sensitive discount for purchasing it that day. This connected experience transforms their browsing into action, creating satisfaction and driving conversion simultaneously. 

Core to connected channel experiences are convenience, personalisation, and accessibility - vital for building customer loyalty. By using connected channel strategies, businesses can better anticipate and meet customer needs through adhering to accessibility standards, providing multilingual support and instilling an inclusive design ethos, thereby, strengthening their relationships with customers. 

Central to this approach is streamlined technology, with 88% of retailers acknowledging the significant impact unified commerce platforms have on achieving business goals5. However, true connectivity encompasses your entire technology ecosystem - including service, marketing, and operations systems.

The business impact is clear: 83% of connected shoppers demonstrate greater loyalty to companies that provide smooth interactions across all touchpoints5.

AI serves as the connective tissue that traditional integration approaches can’t provide

01 Intelligent Data OrchestrationAI agents access and synthesise information across disparate systems in real-time, eliminating the ‘I don’t have access problem that frustrates customers and employees alike. Hyper-personalised Conversational ContextMulti-agent platforms maintain customer context in real-time as they move between channels, so customers never have to repeat themselves or start over. This extends to complete customer history across all touchpoints, allowing the AI agents to dynamically adapt tone, pace and approach based on current and historical sentiment. Proactive EngagementAI can anticipate customer needs based on behavioural patterns and trigger relevant actions across channels, such as churn prediction and automated retention campaigns. Outbound AI agents contact customers before they experience emerging issues, proactively resolving problems before the customer has even become aware of them. Intelligent Sentiment EscalationAcross all channels, whether it be human or digital, AI will live track sentiment and escalate it accordingly. Real-time Translation for Global ConsistencyLanguage is no longer a blocker, as AI can seamlessly identify and switch between dialects to bring a whole new way of communicating with non-English speaking customers whilst simultaneously maintaining a consistent global experience. 02 03 04 05 06

The execution reality: balancing human expertise with AI capabilities

AI as augmentation, not replacement

GenAI has supercharged productivity growth in industries such as financial services and software, nearly quadrupling from 7% (2018-2022) to 27% (2018-2024). These businesses are seeing three times higher average growth in revenue per employee, compared to less exposed industries7.

Yet, the most successful contact centre implementations treat AI as amplification of human capability rather than wholesale replacement. While AI agents can handle routine inquiries, escalate complex issues, and provide decision support, the human element remains your competitive differentiator.

“AI amplifies expertise. It doesn’t replace your ability to think, it makes you a better thinker. It doesn’t replace your ability to solve problems, it makes you a better problem-solver.”
Matt Wood, Global and US Commercial Technology & Innovation Officer (CTIO), PwC

Why is augmentation important?

  • 73% of customers would avoid brands that don’t empathise with their situation8

  • 71% believe AI cannot recreate authentic human connection8

  • 92% still value direct human interaction over 24/7 AI availability alone8

  • 61% are willing to pay more for brands that demonstrate genuine empathy8

Authentic connection is more critical than ever in today’s cost-conscious climate, where 74% of consumers cite cost of living as their biggest concern¹ and will quickly take their money elsewhere when faced with a poor experience. Customers may forgive occasional operational issues; they won’t forgive feeling like they don’t matter.

As multiple players apply the same AI technology to their operations, any comparative advantage from technology alone will shrink. In service, the human element remains irreplaceable as a key differentiator.

The new operating model: orchestration

As AI capabilities mature, your workforce model will fundamentally shift. Rather than handling repetitive queries, your people will orchestrate teams of specialised AI agents through:

  • Assigning work to appropriate AI agents based on complexity and customer context

  • Monitoring outputs to ensure quality and accuracy

  • Intervening at critical decision points where empathy and judgment matter most

  • Refining and stitching together AI-generated solutions into cohesive customer experiences
Human+AIService OperationsManager AI Agent Technical Specialist Customers ContactCenter Agent ContactCenter Manager Human Escalation AI Agent + Escalation Human Engagement AI Agent Direct Engagement AI agent communication New Human Role TraditionalHuman Role Customers

Illustrative example of how human-AI hybrid teams can organise and interact.

This human-led, tech-powered approach delivers faster self-service for routine needs while reserving your best human talent for high-touch, high-value interactions.

The productivity impact is significant: support agents using AI-powered assistance tools have shown productivity increases of 14%, while maintaining, or improving, quality and customer satisfaction9For those who don’t act now, businesses will cease to exist, as 72% of data experts say businesses will fail without AI adoption10

The contact centre transformation reality: AI pilots are failing, how do you succeed?

Despite AI’s proven potential, 95% of generative AI pilots fail to deliver positive P&L impact11. Understanding why is critical to avoiding the same fate.

How to succeed in a service landscape

 

01 02 03 04 05 06 07 Project governance Enforce tight scope control,regular business–tech communication,benefits management oversight, andaccurate end‑to‑end cost tracking. Realistic timelines Set achievable go‑live dates withstage gates, ample testing and defectresolution time, and a phased rollout. Vendor/tech alignment Complexity considered Plan integration and data migration early,ensure workflows map cleanly, andsurface legacy dependencies up front. High quality requirements Engage the business to capture realistic,well‑documented workflows and edgecases so delivery matches expectations. Clear change management Provide leadership sponsorship,clear communications, and practicaltraining/support to drive rapid adoption. AI nuances factored in Design for human handoff and regulatorycompliance, mitigate hallucination/liabilityrisks, and drive early employee adoption.

The window for competitive advantage is open, but it’s narrowing. What’s your next move?

How PwC can help

Transform your AI ambitions into measurable business results. We partner with leading organisations to identify and prioritise high value AI opportunities, assess organisational readiness and build compelling business cases that secure stakeholder buy in. 

From strategic discovery workshops that align AI initiatives with your business priorities, through capability reimagination for AI driven efficiency, to validated Proof of Concepts that de-risk implementation. We deliver the right guidance to help you move from foundational to transforming. 

Our proven approach will ensure you are able to unlock revenue growth, drive operational efficiency and build sustainable AI capabilities. And it’s proven. 

Our success is in the numbers

AI is redefining how service happens. We’re helping clients build Agentic solutions that aren’t just more efficient, they’re built for speed, personalisation, and growth.​

 

NPS improvement 5-10% CSAT improvement 5-15% 15-25% 40-60% Cost efficiencysavings 20-40% Revenue improvement 1-3%

No matter where you are on your journey, we can help you achieve measurable ROI while ensuring responsible, ethical AI adoption across your enterprise. 

PwC’s AI-powered service model integrates our best-in-class Contact Center capabilities, fundamentally transforming your contact centre operations. The AI-first solution includes:​

 

Resolve cases beforehuman intervention Generate post-call tasksand summaries Use context to surfacerelevant articles

By integrating AI into customer interactions and internal operations, your company will reduce service costs, improve response times, and enhance customer satisfaction while driving long-term business value.​

Contact us

Tracey Henderson
Tracey Henderson

Partner, Advisory, PwC Australia

Laurence Dell
Laurence Dell

Partner, Customer Transformation, PwC Australia

Holly Sullivan
Holly Sullivan

Director, Advisory, PwC Australia

Elliot Shaw
Elliot Shaw

Manager, Advisory, PwC Australia

Additional Contributors

Allegra Pepi, Associate, Advisory , PwC Australia
James Oen, Associate, Advisory , PwC Australia
Zac LoRusso, Associate, Advisory , PwC Australia
Follow PwC Australia