AI Revolutionizes Call Centers: Balancing Automation and Human Touch

Reviewed byNidhi Govil

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AI is transforming the call center industry, automating routine tasks and enhancing human agent capabilities. While some jobs may be lost, the need for skilled human agents persists for complex issues.

AI Transforms Call Center Operations

Artificial Intelligence (AI) is reshaping the call center industry, streamlining operations and enhancing customer service experiences. Armen Kirakosian, a 29-year-old call center agent from Athens, Greece, exemplifies this transformation: "A.I. has taken (the) robot out of us," he says, noting how AI has eliminated tedious tasks like note-taking and menu navigation

Source: ABC News

Source: ABC News

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The Impact on Employment

With approximately 3 million Americans working in call centers and millions more worldwide, the industry is undergoing significant changes. AI agents have already taken over routine tasks, leading to job losses and dire forecasts for the future. Predictions range from modest single-digit percentage losses to as much as half of all call center jobs disappearing in the next decade

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However, the reality may be less severe than the most pessimistic projections. The industry still requires human agents, potentially with higher levels of training, as customer service issues become increasingly complex

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Balancing AI and Human Touch

Some companies have experimented with fully AI-driven customer service, only to discover its limitations. Klarna, a Swedish financial services company, replaced its 700-person customer service department with chatbots and AI in 2023. While this move saved money, it also led to a drop in overall customer satisfaction

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Klarna's experience highlights the ongoing need for human agents in handling complex issues like identity theft. The company has since rehired some customer service employees to address these challenges

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Evolving Customer Service Technology

The call center industry is moving towards more sophisticated AI-driven systems. Companies are developing telephone systems that can understand broad customer service requests and predict where to direct customers without navigating traditional menu options

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OpenAI, for instance, is launching its "ChatGPT Agent" service, capable of comprehending complex requests like "I need to find a hotel for a wedding next year, please give me options for clothing and gifts"

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Bank of America's AI Success Story

Bank of America's AI chatbot, Erica, exemplifies successful AI integration in customer service. Introduced in 2018, Erica has handled 3 billion interactions and can now manage a higher caseload of customer service requests. The chatbot can transfer customers directly to the right department when it cannot handle a request and has predictive capabilities for issues like low account balances

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Legislative Response and Future Outlook

Recognizing the challenges posed by automated systems, U.S. Senators Ruben Gallego and Jim Justice have introduced the "Keep Call Centers in America Act." This legislation aims to ensure clear pathways to human agents and provide incentives for companies to maintain call center jobs in the United States

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As the industry evolves, the future of call centers likely lies in a hybrid model. AI will handle routine tasks and provide enhanced support to human agents, who will focus on complex issues requiring empathy, critical thinking, and personalized problem-solving

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Source: Economic Times

Source: Economic Times

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