Indian consumers spent a staggering 15 billion hours in the past year trying to resolve customer service issues, according to ServiceNow’s report. Despite rising investments in technology, the report reveals a widening chasm between customer expectations and actual service delivery — one that businesses are increasingly looking to artificial intelligence (AI) to bridge.
The survey of 5,000 Indian consumers and 204 customer service agents paints a stark picture: while agents believe they resolve most issues in 30 minutes, customers report it takes an average of 3.8 days. Indian consumers are not hesitant to act when faced with poor service: 89% said they would switch to another brand, and 84% are likely to post negative feedback online. In fact, 39% identified waiting on hold as the single most frustrating part of dealing with customer service, while multiple handovers between departments add to customer dissatisfaction. Transparency and speed have emerged as the two most important factors for good customer service, with over 40% of consumers highlighting these aspects. Additionally, around 37% place a premium on quickly connecting with service agents and receiving real-time updates on complaint resolution progress.
Furthermore, the telecommunications, retail, and financial services sectors are facing the highest volume of consumer complaints in India, with nearly 9 out of 10 Indians having spent time resolving issues with companies in these categories. On average, customers spent more than four hours attempting to resolve complaints — 4.3 hours in telecom, 4.1 hours in retail, and 4.2 hours in financial services.
Slow responses, being transferred between multiple agents, and intentionally complicated support processes emerged as top pain points. But it’s not just consumer frustration — frontline agents themselves are spending only 16% of their work week solving issues, with the rest of their time consumed by chasing information, waiting on internal responses, or handling administrative tasks.
To tackle this, companies are now racing to integrate AI into customer support operations. From predictive recommendations and virtual agents to real-time case tracking, AI promises faster resolutions and fewer bottlenecks. Yet, trust remains a hurdle. While half of Indian consumers believe AI will improve efficiency and 24/7 service availability, concerns around transparency and escalation to human agents persist.
“Disconnected systems are the biggest barrier,” the report highlights, with only 62% of organisations using integrated platforms. Some companies are already making progress: telecom giant BT Group slashed issue resolution time from 4.7 hours to under a minute by deploying AI through the ServiceNow platform.
Interestingly, confidence in generative AI could be boosted through external oversight, with 36% of Indians favouring tighter government regulation and 32% supporting independent reviews or ombudsman interventions.