Artificial intelligence is transforming customer service, with experts forecasting that AI could autonomously resolve most call center queries within years. While this promises efficiency gains, it raises questions about job displacement and the technology’s ability to handle complex, empathetic interactions.
The rapid advancement of AI is leading to significant predictions about its impact on call centers. K Krithivasan, CEO of Tata Consultancy Services, suggested that AI may soon make call centers in Asia largely unnecessary. Research firm Gartner estimates that by 2029, AI will handle 80% of common customer service issues. This shift is driven by the development of AI agents that can operate more autonomously than current rule-based chatbots, offering more natural interactions but also introducing new challenges.
Current implementations highlight both the potential and pitfalls of AI in customer service. For instance, Evri’s chatbot struggled with a parcel delivery issue, providing incorrect information and lacking follow-up options. In a more extreme case, DPD had to disable its AI chatbot after it began swearing and criticizing the company. These examples show the difficulties businesses face in balancing automation with effective, brand-consistent customer assistance, underscoring the need for careful deployment.
Industry analysts note that while AI enables more fluid conversations, it also carries risks such as hallucinations and outdated information. Emily Potosky of Gartner points out that for structured tasks like parcel tracking, rule-based systems may still be preferable due to their reliability. Moreover, deploying generative AI requires robust knowledge management, as disorganized data can lead to inaccurate responses, emphasizing that technology alone is not a silver bullet.
Companies like Salesforce are pioneering the use of AI in customer service with platforms such as AgentForce, used by clients including Formula 1 and Prudential. Salesforce learned valuable lessons, such as programming AI to express sympathy and removing rigid rules about discussing competitors after initial setbacks. The company claims that 94% of customers choose AI agents when available, and satisfaction rates can exceed those with human agents, indicating growing acceptance.
The economic implications are substantial, with Salesforce reporting cost savings of $100 million in customer service, though they emphasize that many affected employees were redeployed rather than laid off. However, AI technology is expensive, and the full cost-benefit analysis is still evolving. Businesses must weigh initial investments against long-term savings and potential improvements in customer satisfaction, while considering the human impact.
Despite advancements, skepticism remains about AI’s ability to fully replace humans in all scenarios. Fiona Coleman of QStory, which uses AI to improve shift flexibility for call center workers, believes there will always be situations where customers prefer human interaction, such as mortgage applications or debt counseling. This human element is crucial for maintaining trust and empathy, suggesting a hybrid future rather than complete automation.
Looking ahead, regulatory measures could shape AI adoption in customer service. Proposed US legislation would require disclosure of AI use and the option to transfer to a human agent upon request. Similarly, the EU may mandate a ‘right to talk to a human’ by 2028 as part of consumer protection rules. These developments indicate that while AI will play an expanding role, human oversight and customer choice will remain integral to ethical and effective service ecosystems.