Jason Barro

The premise for chatbots and voicebots powered by generative artificial intelligence is straightforward: faster service at lower cost. If a bot can solve issues quickly, it should create happier customers and reduce the load on expensive human agents. Reality, however, is proving different than this promise, and it’s not because the bots aren’t capable.

While it may feel as though every aspect of daily life is becoming digital, consumers are enthusiastic about adapting habits in some areas more than others. Digital adoption typically depends on the complexity of the “episode” (an interaction that fulfills a need). Consumers tend to pick up simple, routine digital episodes quickly and with ease. More complicated or emotional episodes, less so. Insurance, an industry that has lagged others in digital disruption, is a prime example.

Will Baby Boomers be the next wave of binge-watchers? Following the path of younger consumers, older Americans are increasingly abandoning traditional paid TV services for streaming subscriptions. From 2022 to 2023, there was a 60% increase in US consumers over the age of 55 who subscribe to livestreaming, multichannel video programming distributors like YouTube TV and Hulu + Live TV. And those who subscribe to over-the-top (OTT) services grew by 11%.