Artificial intelligence is reshaping customer service operations, prompting debate over whether traditional call centres could soon become redundant. According to Tata Consultancy Services chief executive K Krithivasan, AI may soon mean there is “minimal need” for call centres in Asia, while research firm Gartner predicts that AI systems will autonomously handle 80% of common customer service issues by 2029.
AI systems capable of operating independently, known as AI agents, are drawing considerable attention as they surpass traditional rule-based chatbots, which can only respond to pre-defined queries. Current customer service chatbots still face limitations. For example, parcel delivery company Evri’s chatbot, Ezra, incorrectly confirmed a customer’s parcel as delivered and displayed an image of the package at the wrong door, without offering options for further resolution. Evri told the BBC it is investing £57 million to enhance its services, stating that its intelligent chat facility uses tracking data to suggest helpful responses and deliver answers “within seconds.”
In contrast, competitor DPD suspended its AI chatbot after it criticised the company and used inappropriate language with customers. Striking the right balance between brand consistency and practical support remains a challenge for businesses adopting AI-driven systems. Gartner’s data indicates that while 85% of customer service leaders are testing or deploying AI chatbots, only 20% of projects fully meet expectations. Analyst Emily Potosky noted that AI enables more natural interactions but warned of risks such as outdated or incorrect responses, particularly for straightforward sectors like parcel delivery, where rule-based agents remain effective.
Cost considerations are also influencing the shift toward AI. However, Potosky emphasised that AI is not always cheaper than human staff due to the expense of training and maintenance. She added that effective implementation requires extensive training data and strong knowledge management systems.
Salesforce chief digital officer Joe Inzerillo highlighted that existing call centres, especially in regions like India and the Philippines, provide ideal environments to train AI systems because of the large amounts of documented processes and staff training materials. Salesforce’s own AI platform, AgentForce, is used by organisations including Formula 1, Prudential, OpenTable, and Reddit. The platform initially lacked emotional nuance, simply opening tickets rather than expressing empathy, prompting the company to retrain it to mirror human-like sympathy.
Salesforce also adjusted its rules after its AI agent refused to assist customers with questions involving Microsoft Teams integration, as Microsoft was on a competitor list. The firm has since refined its restrictions. Salesforce reports that 94% of users opt to interact with AI agents when given the choice, and that customer satisfaction rates now exceed those from human-operated support. The company also claims to have reduced customer service costs by $100 million while redeploying most affected employees to other service-related areas.
Meanwhile, other companies are using AI to assist human workers rather than replace them. Fiona Coleman, who leads workforce management firm QStory, said her company’s AI system helps call centre employees manage flexible shift patterns. QStory’s clients include eBay and NatWest. While Coleman acknowledged AI’s potential to improve conditions, she expressed doubt about its ability to handle complex, emotional interactions such as mortgage applications or debt discussions, saying, “Let’s see whether the AI has got empathetic enough.”
The growing use of AI in customer service is also drawing regulatory scrutiny. In the United States, proposed legislation would require companies to disclose the use of AI in customer interactions and allow callers to request a human agent. Similarly, Gartner expects the European Union to mandate a “right to talk to a human” by 2028 as part of consumer protection efforts.
Featured image credits: Freepik
For more stories like it, click the +Follow button at the top of this page to follow us.