As artificial intelligence continues to become more prevalent, some are beginning to wonder if it could replace humans in customer service altogether.
Talking to AI to get a burger, deal with an online return, or set up an appointment might seem like something out of a sci-fi movie, the reality is companies are looking to introduce the technology now.
According to the research firm Metrigy’s “AI for Business Success 2024-25” global study, more companies are looking to reduce headcount and implement AI instead.
The firm asked contact centers whether or not AI and automation were causing layoffs, and it wasn’t until this year that results started to increase.
When asked about the impact AI had on their contact centers, 36.8% of respondents said they reduced headcount through layoffs, and 55.7% said they reduced hiring new agents.
The study highlighted that some companies are replacing existing agents with AI to reduce their costs, improve customer satisfaction, and potentially increase revenue.
The study comes as the World Economic Forum estimated last year that AI would replace nearly 85 million jobs by 2025. Freethink added that it could include up to 65% of retail jobs.
Despite the job loss consequences of AI, Robin Gareiss, Metrigy’s CEO and principal analyst, shared in a report on the study’s findings that AI vendors don’t like to talk about their tool’s ability to cut positions.
“Still, contact center leaders should note that vendors don’t like to emphasize that their products and services might result in layoffs, however desirable the business effect might be to select C-suite members,” Gareiss wrote on TechTarget.
Still, Gareiss did note that AI can also create jobs, which equates to more spending.
For example, the study found that respondents were hiring data analysts, programmers, security analysts, and data scientists to ensure their AI tools were operating at peak function.
Around 40% of companies reported plans to invest in more content managers to keep the knowledge base fresh.
“AI plays a significant role in staffing, but that role varies based on the organization's situation. Some businesses experience a quick and significant effect, resulting in layoffs or fewer new hires,” Gareiss wrote. “Others need to hire more agents and use AI to fill the gap between what they have and what they need. For most companies, AI is creating new jobs.”