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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 “AI agents” 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 – many based in countries such as India and the Philippines – 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 “minimal need” 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: “You 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 But the downside is the chatbot could hallucinate, it could give you out-of-date information, or tell you completely the wrong thing.”
She added that while AI agents may eventually handle complex requests, “for parcel delivery I would say rules-based agents are great because there are only so many permutations of questions about someone’s package”.
Parcel delivery companies have already begun testing the limits of AI systems.
Evri told the BBC it is investing £57 million in its automated chat facility, which it said “uses tracking data to suggest the most helpful responses and ensure the customer’s parcel is delivered as soon as possible”.
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.
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Joe Inzerillo, chief digital officer at Salesforce, told the BBC call centres are “fertile training grounds” for AI systems because of the large volumes of data and documentation they generate.
Salesforce’s AI-powered customer service platform, AgentForce, is already being used by clients including Formula 1, Prudential, OpenTable and Reddit.
Joe said: “While a human might say ‘sorry to hear that’, the agent just opened a ticket.”
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 “redeployed in other areas around customer service”.
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: “There are times where I don’t want to have a digital engagement, and I want to speak to a human. “Let’s see what it looks like in five years’ time – whether an AI can do a mortgage application, or talk about a debt problem. Let’s see whether the AI has got empathetic enough.”
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 “the right to talk to a human” under new consumer protection laws.
