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    Turns Out, the First Use Case for AI is Also the Worst

    Customer service was supposed to prove AI’s value. Instead, for companies like FedEx, it’s exposing its limits

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    Turns Out, the First Use Case for AI is Also the Worst

    Customer support was the first and most logical place for AI automation, and also where its failures have been most visible.

    For years, companies treated chatbots as a safe proving ground for artificial intelligence, handling refunds, order tracking, and troubleshooting. The logic was clear: high volume, repetitive questions, and measurable cost savings. As the systems scaled, their weaknesses became harder to ignore.

    Just in the last month: At FedEx, customers describe an AI wall between themselves and human help. At Verizon, users say Gemini-powered chatbots loop them endlessly between bots without solving basic issues. On Snapchat, an AI assistant trained for casual conversation was manipulated into producing unsafe content.

    Customer support has become an early test of AI’s limits. Removing humans from customer experience lowers costs but also weakens trust.

    by AIM Media HouseFree · No paywall

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    About the author

    Mukundan Sivaraj

    Mukundan covers enterprise AI and the AI startup ecosystem for AIM Media House. Reach out to him at mukundan.sivaraj@aimmediahouse.com or Signal at mukundan.42.

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