Artificial intelligence is set to replace large sections of the global customer service workforce within the next few years, as companies increasingly turn to automated โAI agentsโ to handle customer queries.
According to forecasts by business and technology research firm Gartner, AI systems will autonomously resolve up to 80 percent of common customer service issues by 2029.
The rise of the technology has sparked fears millions of call centre jobs โ many based in countries such as India and the Philippines โ are at risk.
Last year, K Krithivasan, chief executive of Indian technology giant Tata Consultancy Services, told the Financial Times AI may soon mean there is โminimal needโ for call centres across Asia.
The prediction has added to growing concerns that the rapid rollout of generative AI will lead to significant job losses in customer-facing industries.
Gartner analyst Emily Potosky said: โYou can have a much more natural conversation with AI. But the downside is the chatbot could hallucinate, it could give you out-of-date information, or tell you completely the wrong thing.โ
She added that while AI agents may eventually handle complex requests, โfor parcel delivery I would say rules-based agents are great because there are only so many permutations of questions about someoneโs packageโ.
Parcel delivery companies have already begun testing the limits of AI systems.
Evri told the BBC it is investing ยฃ57 million in its automated chat facility, which it said โuses tracking data to suggest the most helpful responses and ensure the customerโs parcel is delivered as soon as possibleโ.
Rival firm DPD, however, was forced to disable its AI chatbot after it swore at customers and criticised the company.
Despite such issues, adoption of AI in customer service continues to rise.
Gartner reports 85 percent of customer service leaders are experimenting with or deploying AI chatbots, although only 20 percent of projects are fully meeting expectations.
Joe Inzerillo, chief digital officer at Salesforce, told the BBC call centres are โfertile training groundsโ for AI systems because of the large volumes of data and documentation they generate.
Salesforceโs AI-powered customer service platform, AgentForce, is already being used by clients including Formula 1, Prudential, OpenTable and Reddit.
Joe said: โWhile a human might say โsorry to hear thatโ, the agent just opened a ticket.โ
The company later trained its AI system to show empathy when interacting with customers.
He added Salesforce had also adjusted its system to allow AI agents to answer questions about competitors after early restrictions backfired.
Salesforce claims 94 percent of customers interacting with its AI systems now choose to use them voluntarily, with satisfaction scores exceeding those achieved by human agents.
The company says the technology has helped it cut customer service costs by $100 million, although Joe said many displaced staff had been โredeployed in other areas around customer serviceโ.
Fiona Coleman, chief executive of AI workforce software firm QStory, which works with clients such as eBay and NatWest, said she remains unconvinced that machines can fully replace human workers.
She added: โThere are times where I donโt want to have a digital engagement, and I want to speak to a human. โLetโs see what it looks like in five yearsโ time โ whether an AI can do a mortgage application, or talk about a debt problem. Letโs see whether the AI has got empathetic enough.โ
Legislation in the US now proposes requiring companies to disclose when AI is being used in customer interactions and to transfer callers to a human if requested.
Gartner also predicts by 2028 the EU could mandate what it calls โthe right to talk to a humanโ under new consumer protection laws.
