As the year winds down, one thing is clear: 2024 has been a game-changer for customer service. Groundbreaking advancements in generative AI have redefined what's possible, ushering in a wave of widespread adoption and transforming the way businesses connect with customers.

Curious to see the impact? Here’s what our latest research reveals:

• 86% of customer service professionals are actively testing or implementing AI systems — up from about 55% at the beginning of the year
• 75% of customer service leaders expect to automate at least 50% of their operations in the next three years
• 26% of executives have achieved operational use of AI customer service on some channels

The takeaway: Generative AI has transitioned from a luxury to a necessity in customer service. But what’s next for this transformative technology in 2025? To find out, I spoke with Microsoft Canada’s National Technology Officer, John Weigelt, and our Chief Product and Technology Officer, Mike Gozzo.

Ready to explore what the future holds? Here are their key predictions.

1. customer service will lead the charge in AI adoption

Many organizations initially turned to AI for behind-the-scenes tasks like data science and analytics. But as AI becomes more accessible, it’s rapidly gaining traction in customer service.

Forward-thinking businesses are recognizing the significant value AI brings to both agents and customers. For example, generative AI can swiftly locate and distill key information from existing documentation, enabling agents to work faster and more effectively.

As customer service teams grow more confident in leveraging these advanced tools, they can continue expanding AI’s applications in support—augmenting workflows and even fully managing customer interactions. Right now, adopting this technology presents a pivotal opportunity to enhance productivity while elevating the customer experience.

In 2025, we’ll see this trend accelerate, with customer service continuing to serve as a proving ground for generative AI innovation. With 56% of customer service executives reporting increasing pressure from the boardroom to adopt AI, this shift is no longer optional—it’s becoming a strategic imperative.

2. successful AI adoption will hinge on iteration

The second prediction emphasizes the need to build trust in AI systems . Based on his daily conversations with customer service leaders, Mike shared that there’s still considerable fear, uncertainty, and doubt around generative AI systems. Only 29% of executives have confidence in AI’s ability to handle complex or emotionally sensitive interactions.

Executives are acutely aware of the risks associated with deploying under-optimized AI systems, particularly the potential for negative customer experiences. Security concerns also rank high, demanding r obust compliance frameworks and complete transparency in how AI decisions are made, including clear auditing capabilities and accessible reporting on data use and outcome. Additionally, managing organizational change remains a significant hurdle for many teams.

Our research highlights the top barriers to AI adoption are:=

• Concerns about negative customer experiences (53%)
• Concerns over security and privacy (49%)
• The need for strong leadership and clear communication (58%)

To overcome these challenges, Mike predicts the most successful AI initiatives will prioritize iterative development. While AI continues to evolve, gaining the capacity to handle nuanced and sensitive scenarios, customer service teams can foster trust by laying out clear, forward-looking AI strategies . Plans that focus on small, manageable steps with built-in milestones will pave the way for gradual expansion and increased buy-in.

Mike advises starting small but planning for the long term. Define milestones that unlock new opportunities to scale your AI efforts, and be prepared to adapt and move quickly as the technology and your confidence in it grow.

3. governance will be essential

The productivity gains promised by generative AI are extraordinary—projected to reach $180 billion in value by 2030 . Naturally, leaders are eager to harness this potential.

But with such opportunities come significant risks, making governance a critical priority.

As AI adoption accelerates, so does the pace of new regulations surrounding data privacy and security. Over the past year, the EU, UK, and US have introduced sweeping guidance. To stay compliant while maximizing AI’s potential, organizations are establishing robust governance frameworks to provide oversight, guardrails, and mechanisms for continuous iteration.

John predicts that as businesses grow more comfortable with AI, governance will evolve toward a “light-touch” approach for preconfigured solutions while maintaining rigorous oversight for custom-built, in-house tools. This maturity will empower organizations to balance innovation with accountability.

In customer service, clearly defining how and where AI tools are applied is essential. Governance must span multiple teams—IT, information security, human resources, and beyond—because these technologies are reshaping workflows across the organization.

A multidisciplinary approach ensures these tools are used effectively and that organizations avoid pitfalls such as misinformation or misuse, keeping AI applications aligned with business goals and customer needs.

4. the future of work lies in AI-human collaboration

As businesses move from ideating to implementing their AI strategies, the way organizations operate is undergoing a profound transformation. At Ada, we’re firm believers that the future of work is powered by AI-human collaboration—and we see this dynamic in action every day.

As AI capabilities continue to advance, the nature of work is evolving. Tasks are shifting, and the skills needed for success are changing.

Our recent research reveals that AI will increasingly handle repetitive, day-to-day tasks, allowing human agents to focus on complex, relationship-driven interactions. In this new era of work, AI management and optimization skills will become essential for success.

• 70% of executives believe AI can boost customer satisfaction and loyalty.
• 64% support AI managing routine tasks, enabling humans to focus on high-empathy needs.
• 66% of customer service professionals see AI management skills as key to the future.

As Mike explains, agents equipped with generative AI are evolving from traditional knowledge workers to managers of AI “teammates.” These AI tools amplify productivity, enabling teams to deliver more, faster, and with greater precision. 

For customer service professionals, developing expertise in managing AI systems will not only drive immediate results but also provide valuable and transferable skills for future career growth.

John anticipates this shift will bring a renewed emphasis on what he calls “power skills”—communication, collaboration, and initiative. Humans will remain integral to guiding AI, offering detailed examples for specific tasks and exercising judgment in complex situations.

By offloading routine tasks to AI, businesses can refocus their agents on areas where empathy, nuance, and strategic thinking are essential, allowing them to excel in roles that require a human touch. This creates opportunities for agents to thrive and make a meaningful impact.

the future of work is AI

As generative AI continues to evolve, customer service leaders must pair an ambitious vision for their AI strategy with a clear roadmap for engaging stakeholders and delivering results. By adopting an iterative approach and building strong governance frameworks, organizations can unlock unprecedented gains in productivity, efficiency, and customer experience.

As the nature of work transforms, agility and adaptability will be critical. The choice is clear: embrace the shift or risk falling behind.

For deeper insights into these predictions, hear directly from our expert panel and explore how generative AI is reshaping the status quo for customer service. Watch the webinar replay and download our latest report for more.