AI boosts customer service happiness as global wellbeing falls

New research indicates that global happiness is declining, yet customer service satisfaction is rising, with artificial intelligence cited as a key factor.

NiCE has published its 2025 Global Happiness Index, which found that global happiness has dropped by nearly 10 percentage points from 66 per cent in 2024 to 58 per cent in 2025. In contrast, customer service satisfaction increased by 5 percentage points in the same period, reaching 41 per cent. The report points to artificial intelligence as a central driver of this improvement in customer service experiences.

The index, which surveyed 12,000 consumers across the US, UK, Australia, Japan, Mexico and Brazil, found that 72 per cent of respondents reported experiencing benefits from AI and automation in customer service. A further survey of 270 C-suite executives from large businesses in the US and UK was also conducted alongside the consumer research.

Trust in AI within customer service is also growing according to the findings. The report states that 60 per cent of global consumers now trust companies using AI as much as, or more than, those that do not use the technology. In Australia, trust is particularly strong: among consumers who trust AI-powered companies more, 66 per cent say they are happier with the customer service they receive, and 72 per cent feel happier overall.

Regular and frequent interaction with AI seems to enhance this trust. The index reveals that among Australian consumers who use AI at least weekly and who trust AI-powered firms, confidence in these companies nearly doubles. Within this group, 57 per cent say that AI has led to improved customer service experiences.

Omer Minkara, Vice President and Principal Analyst at Aberdeen, commented: "Rising customer service happiness shows consumers want more than transactions, they want meaningful support when it matters the most. In uncertain times, exceptional service and the ability to cultivate happiness - not just satisfaction – becomes a powerful value-add that sets brands apart."

Despite growing consumer trust, the research identified a disconnect at the executive level. Over one in three C-suite leaders globally, or 37 per cent, fear that consumers do not trust AI. While business leaders believe that customers most want 24/7 service availability, the index highlights that speed of resolution is actually the top priority for consumers. Additionally, while 68 per cent of C-suite leaders listed customer service as their number one area for investments in AI and automation, only 44 per cent said they feel very equipped to navigate the ongoing transition to greater automation.

Australian consumer priorities for achieving happiness in customer service included stress-free service (43 per cent), effortless service (32 per cent), and personalised service (25 per cent). Globally, the survey reported consumers would most like to see automation applied to cancelling or changing subscriptions (38 per cent), checking in and out of hotels (29 per cent), and cancelling accounts after bereavement (28 per cent).

Willingness to pay more for improved customer service is also evident in the Australian market. The research demonstrated that 43 per cent of Australians would pay extra for happier customer experiences. On average, Australians are prepared to spend AUD $41 per month for an AI assistant to manage their customer service needs, in comparison to USD $39 in the United States and nearly USD $50 among Gen Z respondents in the US. The report noted that consumers in Brazil are the most willing to pay a premium, while those in the UK are the least. Executive estimates of consumer willingness to pay exceeded reality by 23 points, with the average executive expecting a 76 per cent premium.

David Richie, Head of Customer Experience at SSE Airtricity, said, "The truth is that our customers also use Google, Amazon, Netflix, and TikTok, so their expectations of AI-powered experiences are high. We're making great strides with new technologies that deliver richer insights and smarter feedback, shaping our strategy for what's next. Over the coming months, we will accelerate into new areas with agentic AI, virtual assistants, and smarter data insights. This is the beginning of an exciting journey."

From an operational standpoint, businesses have reported measurable impacts from adopting AI. Jeff Fawcett, Director, Call Center and Training at Wine Country Gift Baskets, said, "The last twelve months feels like a tipping point for AI and customer service – we've moved beyond theory and today, there's a lot of hard, measurable data that is showing how AI is actually working in the real world, whether it's reducing talk time, reducing staffing needs, or reducing training requirements. Looking ahead, I'm excited by the possibilities of NiCE's CXone Mpower Copilot in speeding up seasonal onboarding and improving overall experience - ensuring agents feel better prepared, while customers feel they are in safe hands."