Armen Kirakosian, a 29-year-old from Athens, Greece, reflects on the challenges he faced nearly a decade ago as a call center agent. His early experiences were marked by frustrated customers, tedious navigation through complex menus for information, and the requirement to manually jot down notes for every call he managed. However, with advancements in artificial intelligence, Kirakosian's job has transformed significantly. Today, he often has comprehensive customer profiles readily available when a call comes in, enabling him to identify a customer's issues even before saying "hello." This shift allows him to devote more time to genuinely assisting customers. "A.I. has taken (the) robot out of us," he remarked, highlighting the human touch that technology has reinvigorated in customer service.
Approximately 3 million Americans are employed in call center roles, with millions more globally engaged in similar work, responding to billions of inquiries annually about a wide range of topics—from tech support for malfunctioning devices to order inquiries for retail items. Kirakosian is part of TTEC, a company that offers third-party customer service solutions across 22 countries, serving various industries such as automotive and banking, which often require additional support or have outsourced their call center functions.
Working in call centers can often feel thankless. According to a report by McKinsey, nearly half of all customer service agents leave their positions within a year, primarily due to stress and the monotony of the work. The majority of interactions in the industry revolve around resolving issues referred to as “break/fix,” where something is either broken, incorrect, or confusing, and customers expect the agent to resolve the problem. The evolving question now is whether these issues will be addressed by humans, machines, or a combination of both.
AI has already started taking over many routine tasks within call centers. While this has resulted in some job losses, forecasts regarding the future of these positions vary significantly. Some predict only modest reductions, while others suggest that up to half of all call center jobs could disappear within the next decade. However, it appears increasingly clear that the industry will still require human agents, possibly necessitating even higher levels of training as customer service challenges grow more complex.
Some companies have fully embraced AI for their customer service operations, only to discover the limitations of technology. For instance, Klarna, a Swedish buy-now-pay-later service, eliminated its entire 700-person customer service team in 2023, replacing them with chatbots and AI systems. While this transition yielded cost savings, customer satisfaction plummeted. Acknowledging the shortcomings of AI, Klarna rehired several customer service representatives to handle complex issues, such as identity theft, which AI struggled to manage effectively.
Gadi Shamia, of Replicant, an AI software firm that trains chatbots to interact more human-like, remarked, “Our vision of an AI-first contact center, where AI agents manage the majority of conversations and fewer, better-trained human agents address only the most intricate tasks, is rapidly becoming a reality.” While AI continues to enhance the customer experience, it is clear that the initial call handling process still requires refinement.
The traditional method of handling customer service calls has involved interactive voice response systems (IVR), which guide customers through options with phrases like "press one for sales" or "press two for support." Despite updates in the 2010s allowing customers to speak simple phrases instead of navigating complex menus, frustration remains high. Many customers resort to "zeroing out," or pressing zero in hopes of reaching a human. Unfortunately, they often find themselves on hold or redirected, which can add to the annoyance.
In response to widespread dissatisfaction with IVR systems, Senator Ruben Gallego of Arizona and Senator Jim Justice of West Virginia have introduced the “Keep Call Centers in America Act.” This legislation aims to ensure customers have clear pathways to reach human agents and offers incentives to companies that maintain call center jobs within the United States.
Companies are actively developing telephone systems designed to better comprehend customer requests and predict appropriate routing without requiring menu navigation. OpenAI is set to release its “ChatGPT Agent” service, which can interpret complex phrases such as “I need to find a hotel for a wedding next year, please give me options for clothing and gifts.” Bank of America has reported success in integrating similar features into its chatbot, “Erica,” which launched in 2018. When Erica encounters requests beyond its capabilities, it seamlessly transfers the customer to the appropriate department. Additionally, Erica has evolved to become predictive and analytical, aiding customers with budgeting and managing subscriptions.
James Bednar, vice president of product and innovation at TTEC, has been dedicated to enhancing the customer service experience. He envisions a future where AI technology will be capable of directing customers to the right representative without the need for cumbersome menu navigation. “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 stated, indicating a promising evolution in the world of customer service.
