AI Revolutionizes Customer Service: How Businesses are Shifting Towards Digital Agents

4 min read

(qlmbusinessnews.com . Tue 4th Nov, 2025) London, UK —

Navigating the Future of Work: The Impact of AI on Human Jobs in Customer Support

In a move reflecting the rapidly evolving landscape of customer service, businesses are increasingly turning their attention towards Artificial Intelligence (AI) to handle their customer engagements. Despite a generally diplomatic stance from AI developers, suggesting humans and AI will coexist in harmony, there's a palpable sense of unease among human workers about their future in the industry.

Tata Consultancy Services' CEO, K Krithivasan, stirred the pot last year with his remark to the Financial Times about an impending “minimal need” for call centres in Asia, signalling a potential pivot to AI-driven customer service solutions. Additionally, Gartner, a preeminent business and technology research firm, forecasts that by 2029, AI could independently resolve 80% of routine customer service queries.

Navigating the Future of Work: The Impact of AI on Human Jobs in Customer Support

The buzz around “AI agents” – AI systems that operate with greater autonomy and decision-making capabilities – is growing. They promise to significantly enhance the capabilities of existing “rule-based chatbots,” which are limited to responding to a predetermined set of inquiries.

An illustrative case of the current state of AI in customer service is my recent interaction with the non-AI chatbot of parcel delivery firm Evri. Named Ezra, the chatbot failed to address my issue of a misdelivered parcel beyond showing evidence of delivery at the incorrect address, leaving the issue unresolved. In response, Evri informed the Reporters of a £57 million investment to enhance its customer service.

Conversely, the AI chatbot of DPD, another parcel delivery firm, was withdrawn after it began disparaging its own services and using inappropriate language with customers. This highlights the challenges businesses face in maintaining brand integrity while striving to offer genuinely helpful customer support through AI.

Gartner reveals that while 85% of customer service leaders are experimenting with AI chatbots, only a fifth of these initiatives fully meet their expectations. “AI allows for more natural interaction,” Gartner analyst Emily Potosky comments, “but it's not without downsides such as potential inaccuracies or outdated information.”

The shift from human to AI customer service, driven by potential cost savings and efficiency gains, requires substantial investment in technology and data training, as pointed out by Potosky. Knowledge management remains crucial, especially when deploying generative AI, she adds.

Joe Inzerillo, Salesforce's Chief Digital Officer, shares insights into the training advantages of call centres for AI, especially those located in low-cost regions like the Philippines and India. Salesforce's AI platform, AgentForce, has seen significant adoption across various sectors, having been tweaked to exhibit more human-like empathy and flexibility, including discussing competitors where relevant.

Despite Salesforce's success in enhancing customer satisfaction through AI, with reported savings of $100 million in customer service costs, Inzerillo stresses the reassignment of human workers to other roles within the company, countering narratives of widespread job cuts.

Fiona Coleman of QStory highlights AI's potential to offer human call centre workers more flexible shift patterns, but remains sceptical about AI's ability to fully replace human agents, especially in more complex or sensitive interactions.

The advent of AI in customer service is not without its detractors, with proposed legislation in the US and potential mandates in the EU aimed at safeguarding human jobs and ensuring the option for human interaction remains available to consumers.

As businesses and legislators grapple with the balance between innovation and human employment, the future of AI in customer service hangs in a balance; one that tilts towards technological advancements but leaves room for human touch.


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