Well, this is awkward. Turns out, AI might actually be better at customer service than humans—at least, according to Allstate.
In a plot twist that sounds like it was written by a chatbot, Allstate found that its AI-powered email system was outperforming actual human reps when it came to empathy. That’s right—AI is apparently better at sounding like it cares about your bad day than the person whose literal job it is to help you.
Wait, What? How Is AI “More Empathetic”?
Here’s what happened: Allstate started testing OpenAI’s GPT models to help write customer service emails for its 15,000 insurance reps. And after analyzing the results, they found something… unsettling (or impressive, depending on how you look at it).
- AI avoided the usual corporate jargon and legalese that makes insurance emails feel like they were written by a robot (ironically).
- AI maintained a consistent, polite, and understanding tone—which, let’s be honest, is not always a given when dealing with customer service reps who have had a long day.
- AI never got frustrated or passive-aggressive, no matter how ridiculous the request was.
And because AI doesn’t have emotions, it never accidentally lets that “ugh, this person again” energy sneak into its emails. It just keeps calmly explaining your policy coverage like a digital Mother Teresa.
So, Are Humans Getting Replaced?
Not yet. While AI is handling most of the email-writing, human reps still review and approve messages before they go out. So, for now, it’s more of a “let AI do the boring stuff while humans do the decision-making” situation.
And for anyone worried about layoffs, Allstate says it has no plans to cut jobs because of AI. Instead, they see it as a way to free up agents for higher-value customer interactions, meaning more focus on complex claims, policy decisions, and—presumably—phone calls where people yell about their premiums going up.
Where This Is Headed
Allstate isn’t stopping with emails. The company is also testing AI in claims evaluation and risk assessment, which means that in the future, your insurance rate could be determined by an algorithm that never sleeps. (Just a little unsettling, right?)
The bigger picture here? AI in customer service isn’t just coming—it’s already here. And if an insurance company—an industry not exactly known for warm and fuzzy interactions—is seeing better results with AI handling customer conversations, you can bet that other industries are going to follow fast.
What This Means for Small Businesses
If a massive company like Allstate is seeing customer experience improvements by using AI, small businesses should definitely be paying attention. AI-powered communication tools—whether for customer emails, chatbots, or even phone support—are becoming more effective and accessible every day.
And, let’s be real—if AI can out-nice an actual human, it might be worth considering for automating routine customer interactions. Just make sure it’s giving the right kind of empathy—because nobody wants to get an “I understand your frustration” email when their house just flooded.