AI Revolutionizes Call Centres, Yet Human Agents Remain Essential

Artificial intelligence (AI) is transforming the call centre industry, enhancing efficiency while leaving certain tasks better suited for human agents. Armen Kirakosian, a call centre agent from Athens, Greece, highlights this shift, noting that AI has significantly improved his work experience. Instead of manually taking notes and navigating complex menu systems, he often has comprehensive customer profiles available, allowing him to focus more on resolving issues.

Roughly 3 million people are employed in call centres across the United States, with millions more around the globe. These agents manage billions of inquiries annually, addressing everything from product issues to order inquiries. Kirakosian works for TTEC, a company providing outsourced customer service in 22 countries for various sectors, including automotive and banking.

Despite improvements in efficiency, turnover remains high in the industry. According to a report by McKinsey, nearly half of all customer service agents leave their positions within a year, primarily due to stress and monotonous tasks. The nature of the work often involves fixing problems—referred to as “break/fix”—which can be challenging. This raises the question of whether these issues will be resolved by humans, AI, or a combination of both.

AI has already taken over many routine tasks within call centres. Some jobs have been lost as companies explore the potential of AI, with forecasts suggesting that up to half of all call centre roles could vanish in the next decade. However, these predictions may be overstated, as the industry continues to demand human agents, especially as customer queries become increasingly complex.

In an illustrative case, Klarna, a Swedish buy-now-pay-later company, replaced its entire 700-person customer service team with AI and chatbots in 2023. While the move led to cost savings, customer satisfaction plummeted, prompting the company to rehire several employees. Klarna’s experience underscores that certain issues, such as identity theft, require human intervention for effective resolution.

Gadi Shamia, CEO of Replicant, an AI software firm, envisions a future where AI handles most customer interactions, while well-trained human agents manage the most complicated problems. “Our vision of an AI-first contact centre…is quickly becoming a reality,” he stated.

Despite advancements, the customer experience remains imperfect. Interactive voice response (IVR) systems, which guide customers through menu options, have long been a source of frustration. Although these systems have improved, many customers still opt to “zero out”—a term for pressing zero in hopes of reaching a human agent. This can lead to additional wait times and transfers, further aggravating customers.

To address these challenges, lawmakers are taking action. Democratic Senator Ruben Gallego of Arizona and Republican Senator Jim Justice of West Virginia have introduced the “Keep Call Centres in America Act.” This legislation aims to ensure clear pathways to human agents and provide incentives for companies to retain call centre jobs within the United States.

Companies are actively developing telephone systems that can accurately interpret customer requests and predict the appropriate department without the need for cumbersome menus. For example, Bank of America has successfully integrated advanced features into its chatbot, Erica, which has been used 3 billion times since its launch in 2018. Erica now possesses predictive capabilities, recognizing when a customer may need help with budgeting or has multiple subscriptions.

James Bednar, Vice President of Product and Innovation at TTEC, expresses optimism about the future of customer service. He believes that AI technology will eventually eliminate the need for IVR systems, allowing customers to reach the right person for their queries without navigating complex menus. “We’re getting to the point where AI will get you to the right person for your problem without you having to route through those menus,” Bednar remarked.

As the call centre industry continues to adapt to technological advancements, the balance between human and AI roles will be crucial in shaping the future of customer service. While AI offers significant benefits, the need for human touch in certain situations remains irreplaceable.