By Timothy O’Neil-Dunne, Principal at T2Impact Ltd, a global Consulting, Analyst, and Venture firm.
There is something personal about how we think (duh). When we are confronted by new technology we typically have range of feelings. Remember when the Internet was going to be the endless library? On the plus side, look at how it has completely revolutionized our lives. So, it is with this new-fangled AI-thingie – right?. Remember when it (AI) was going to revolutionize everything? How we were promised efficiency, and in Travel that was going to include seamless customer service, and a world where machines would think like us (or better, for us)? Well, chatbots frequently cited at the forefront of that supposed revolution—and let’s just say the results thus far are far from what we were promised.
But there is some hope – read on.
At this point I should issue a context disclaimer. I am fascinated and probably obsessed about the true and total customer experience (CX). I am also a Baby Boomer. But I have run call centers and yes – even answered phones and customers face to face. At Microsoft there is the expression about eating your own dog food. I think ANYONE with a service component in their products should actually walk the walk on both sides; on the phone and as a consumer. At World Travel Mart this November I shall be running a track on the first day devoted to CX.
We should note that Chatbots appeared before we had real AI in place. So many of the early Chatbots were pretty awful, and many of them still are – well – diabolical. Also disconnected from the rest of the CX.
Let’s face it. In fact, most chatbots today are little more than glorified FAQ machines, designed to save companies money while frustrating the living daylights out of consumers. So, let’s break it down. Is AI customer service really assisting us, or is it just another artificial layer of complexity masking inefficiency? And remember that the regulators are watching us!
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1. The Illusion of Intelligence
Let’s start with the obvious: chatbots intrinsically aren’t intelligent. I know, I know—shocking. They really don’t understand context, they can’t actually solve complex problems, and they certainly don’t make your customer service experience better. Instead, they’re like that one annoying colleague who keeps repeating what they’ve been told and never really grasps the issue. Way back in history – in 2008, AskJenn (Alaska Airlines 2008 Chatbot) actually took bookings – not well but it could. How many Travel Companies are taking bookings via Chatbot today? I would suggest that number is pretty small – especially outside of China. (If you can refute that please ping me directly).
• Limited Responses: Chatbots tend to work on pre-programmed scripts. They’re great at answering some structured simple, surface-level questions but pretty useless when it comes to anything requiring actual thought.
• No Learning: Unlike what we were promised, most chatbots don’t “learn” from interactions. They can’t seem to build on previous conversations, and they certainly don’t evolve to understand us better. They are, quite literally, stuck on repeat. This may seem harsh because the early generations had no learning. I used to delight in forcing loops into early Chatbots. Or worse confronting them with such weird requests that they just stopped. I asked AskJenn this question. “Please describe every physical attribute warts and all of yourself?” I got the same answer when I asked if Alaska flew to Mars. Happily, we are getting better; but that is not good enough.
2. Assistance? Hardly. More Like Hindrance
What happened to the dream of “assisted” AI? You know, the kind that’s supposed to enhance our lives? We’re stuck with AI that creates more problems than it solves. It would be not a million miles from the truth to say that what passes for AI has probably made it all worse.
• Ever Get Stuck in a Chatbot Loop? If you’ve ever tried to explain a slightly nuanced issue to a chatbot, you know what I mean. You’re asked the same irrelevant questions again and again, only to be passed on to a human who will likely ask you to repeat the entire conversation, I used to think that was because the chatbot conveniently forgot to forward your details. But latterly after prodding I have found it was because the human (frequently in Philippines or India just didn’t have the time or wanted to – read the previous history of my conversation. Mind you that is no worse than human contact centers who did exactly the same.
• Time Waster: These bots are supposed to save time, but they often lead you down a black hole of redundant responses, forcing you to turn to a human anyway – if you are lucky and that option exists. So much for efficiency. Yes – the hand off is clumsy and frequently messed up. So, whose fault is that?
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3. Customer Disservice
We were told chatbots would revolutionize customer service. How? In reality by distancing us from actual humans. Because that’s what’s happening. Instead of speaking to someone who understands our problems, we’re talking to an algorithm designed to pretend it does. That front end effort is designed for no good reason other than to “sort humans”. The extra hoop hardly costs the provider, but it significantly costs time for the consumer. We can all identify with these efforts. I remember before TWA went out of business it said it was removing the audiotext prompts. Sadly, in many cases what TWA was fighting against then is still with us big time. Many consumers (bar stool research) I have spoken to make the same comment. “It’s like you have to put on armor and hold your nose before you start the travel search and booking process”.
• No Empathy: Chatbots are currently incapable of understanding the frustration in your voice, your urgency, or the nuance of your issue. But guess what? Humans can. And no amount of “artificial assistance” can replace that – despite many attempts. Perhaps in the future? I will be skeptical and say that will be a long time coming.
• Scripted, Sterile, and Annoying: Ever notice how most chatbots respond like they’re fresh out of a corporate handbook? Bland, lifeless, and ultimately unhelpful. Their responses feel robotic because — spoiler alert — they are. And this is where life is going to get interesting. AI should be pointed to understanding what the customers are asking rather than what the company wants to tell you. (HINT: if you are a provider in Travel take note and think customer first…you will be surprised).
4. Who is This Really Helping?
Let’s be real here: chatbots aren’t here to make your life easier. They’re here to cut costs for businesses. The promise of 24/7 support is little more than a façade, designed to pacify consumers while the company saves on salaries and benefits. (Spoiler alert – I have spoken to several large customer service outfits – they have yet to reduce their headcount).
• Cutting Corners: Businesses use AI to reduce their reliance on humans. Instead of investing in skilled customer service reps who understand your problem, they invest in technology that offers the illusion of help — at a fraction of the cost. I don’t see many LLMs making the effort to be able to assist here.
• Data Collection, Not Service: Chatbots are also handy little data collectors. They’re designed to get information from you — whether you realize it or not. Every interaction feeds the company’s data-driven marketing machine, making you the product, not the priority.
5. The Real Cost of AI
At what point do we admit that this “assisted” technology isn’t helping at all? Sure, AI can handle menial tasks, but when it comes to real problem-solving, empathy, or nuance, it fails. Spectacularly.
• Loss of Human Jobs: While chatbots bumble their way through conversations, real people are losing jobs. We’ve swapped qualified, experienced customer service agents for chatbots that can’t tell the difference between “help” and “helpless.”
• Frustration Over Resolution: The more we rely on these artificial systems, the more we compromise on quality. And the cost? Your time, your patience, and your confidence in getting actual help.
• Where cost can be an investment: Where I do see promising results is in the focus on using models to understand specific data sets. But that investment is going to be huge. Right now – the big players (Amazon, Google, Microsoft etc.) are running massive losses. This is going to be a scale game. We are really early in the curve. But caution this is neither free nor cheap.
Conclusion: Is AI Truly Assisting?
Spoiler alert: no. Chatbots aren’t “saving the universe” — they’re barely saving you a phone call. What we’re left with is a superficial veneer of assistance that, at its core, is artificial in every sense of the word.
In the end, AI — at least in its current form — isn’t living up to the hype. It’s certainly not assisting us, and it’s far more artificial than anyone cares to admit. So, let’s stop pretending that chatbots are the future of customer service. They’re not. They’re the irritating, unhelpful present that needs serious rethinking.
Now to end on a positive note. I am seeing some green shoots that does look a little like machine learning is impacting. I do firmly believe that AI has a place. Experimentation is an absolute necessity. I do not believe we are in the realm of true “Artificial” Intelligence yet, but I do believe we can and must use tools to give better – “assisted” intelligence-based services.
Will we? Answers on a post card please. And come to my session on Customer Experience at WTM November 5-8. I shall be running the Technology track with some fabulous speakers. Our focus will be on demonstrating how we are moving the CX needle. It won’t be the usual sales pitches.
To find out more, Timothy, the WTM Tech Advisor, has carefully curated a number of sessions related to this subjects in this blog, which can be found here
Timothy O’Neil-Dunne is a Principal at T2Impact Ltd, a global Consulting, Analyst, and Venture firm.
Timothy has had a long career in the Aviation, Travel and Tourism space. He was a founding member of the Expedia management team, where he headed a variety of portfolios. He holds 6 patents. He sits on a number of advisory and executive boards. Most recently he has been a legal subject matter expert in a number of key cases in USA and UK involving industry structure and asset valuations. Timothy is also the founder of Just One Less (sm) a Travel Industry focused pressure group for responsible travel stewardship of our precious planet. He also eats his own dogfood by travelling extensively frequently as a economy class passenger. He is also an industry commentator where he speaks and writes about travel, in particular aviation, technology, startups and innovation. His passion is to make travel simpler, easier and more accessible. And then to hold brands accountable.