By 2028, 30% of Fortune 500 companies could use AI-only service channels

As businesses race toward digital transformation, Gartner has forecasted a game-changing shift in customer service strategies for Fortune 500 companies. By 2028, 30% of these enterprises are expected to streamline their service operations through single, AI-enabled channels capable of handling text, image, and sound interactions.

This shift will redefine how enterprises handle customer service, moving from multichannel approaches to a streamlined, AI-enabled system.

The research emphasized the transformative potential of conversational AI, driven by advancements in generative AI (GenAI).

“As generative AI continues to mature, it will facilitate seamless voice interactions that meet customers’ demands for simplicity and efficiency,” Patrick Quinlan, Senior Director Analyst at Gartner said in a research report explaining that voice-based customer service, often deemed outdated, is poised to evolve significantly.

Rethinking multichannel strategies

With the growing complexity of customer service and rising costs, businesses are turning to AI as a solution to simplify their service operations while improving the customer experience.

Gartner’s report highlights that multichannel service journeys often result in fragmented experiences and diminished customer loyalty. By consolidating these into a single AI-powered platform, companies can enable fluid transitions between modes such as voice, chat, and video within a single interaction.

“Instead of offering multiple, distinct channels, a single, AI-powered channel with uninterrupted transitions between different modes of interacting — for example, voice, chat, and video — will exist even within the same interaction,” the report said.

However, this approach is not without its challenges, the report noted.

While intended to reduce customer effort, poorly implemented systems risk alienating users, particularly if security or functionality gaps emerge.

“Seamless customer experience includes multiple aspects – personalization, omnichannel strategy, customer journey mapping, and relationship building,” said Bhanushee Malhotra, practice director at Everest Group. “While utilizing AI for task automation and predictive insight generation is helpful to achieve seamless CX, there is a huge risk of AI being used to create highly convincing and personalized scams.”

The role of conversational AI in the future of customer service

The proliferation of GenAI in daily life is shifting customer behavior. Gartner’s research revealed that 45% of customers already use generative AI either personally or professionally. This growing reliance is expected to lead to 70% of customer service interactions being initiated — and resolved — through third-party AI assistants like Apple AI or Google Gemini by 2028, the report added.

These assistants offer customers a more intuitive and low-effort experience compared to traditional service portals. Quinlan cautioned that companies must reevaluate their investments in self-service portals.

“If customers can simply ask their phone for solutions, organizations need to reconsider whether their current customer-facing technologies remain relevant,” Quinlan said.

The escalating security risks

As AI adoption accelerates, so too do risks associated with fraud. Gartner predicts a 300% rise in fraud attempts by 2027, with malicious actors leveraging conversational AI to exploit vulnerabilities in automated systems and deceive live agents.

“It’s important to note that though the intention was to reduce customer effort, a single, AI-enabled channel may actually increase efforts and lead to customer churn,” Gartner’s Quinlan pointed out. “Leaders will need to balance strategies to reduce effort with those to protect customers from fraud.”

“Most companies are still unprepared to address the accompanying risks and regulations that come with widespread adoption of AI and are undertaking initiatives to adopt safe contracting measures with specialist AI providers to avoid risks of brand reputation damage,” Malhotra added. “They are also revamping their security and privacy policies, to ensure there is proper governance in adoption of AI.”

To counter this threat, CIOs and business leaders will need to implement sophisticated identity verification systems and layered security protocols. Balancing these measures with the need for frictionless customer interactions will require strategic planning and innovation.

Strategic takeaways for CIOs

The shift to AI-only service channels represents both an opportunity and a challenge for CIOs. While it enables operational efficiency and enhanced customer satisfaction, it also demands a rethinking of legacy systems, a focus on cybersecurity, and careful orchestration of user experiences.

“Companies and business leaders need to redesign customer and internal operations and processes based on a continuous assessment of actual challenges along key customer journeys,” Malhotra suggested. Organizations that successfully navigate these complexities will not only gain a competitive edge but also redefine customer engagement for the AI era. This emerging paradigm highlights a critical truth: as technology evolves, so must the strategies of those who lead it.