... THERE IS SOME INDICATION THAT AI USE WILL DECK-SHUFFLE RATHER THAN DISCARD THE HUMAN AGENTS '“ CARDS.”
WHY AI IS- AND ISN’ T- TAKING OVER ENTRY-LEVEL ROLES
When enterprises and organizations adopt technology of any kind, including AI, it ' s typically for some kind of return on investment( ROI).
Frontline roles offer the best bang for your buck for corporate AI adoption, according to research from The Josh Bersin Company, published in The People Space. "...[ F ] rontline, not back-office, work represents AI’ s highest potential return on investment and organisational value.”
It makes sense that frontline roles are ripe for AI disruption because they often involve the types of functions that are repetitive or administrative in nature.
AI is most effective when it can tackle items that benefit from greater efficiency, quality, or increased productivity. Two examples( that can also reduce customer contact volume by preventing issues) include:
• Quality control with greater precision and consistency.
• Warehouse operations and inventory management with real-time updates.
Jack Kelly, in " These Jobs Will Fall First As AI Takes Over the Workplace "( Forbes), said economic incentives, cost pressures, and shrinking timelines are accelerating AI adoption. He said this momentum is impacting the frontline disproportionately:
“ AI’ s impact will not be uniform. Jobs like data entry, scheduling, and customer service are already being overtaken by AI tools like chatbots and robotic process automation.”
The author also shared key data, like a 2024 study from the Institute of Public Policy Research that found as many as 60 % of administrative tasks are automatable, which helps organizations cut costs.
At the same time, a recent report from Gartner, cited in a CX Today article,“ AI’ s Broken Promise: Customer Service Automation Costs Set to Soar,” reported that AI adoption may not be taking over their frontline at the same rate.
18 CONTACT CENTER PIPELINE
Said the article:“ Only 20 % of customer service leaders have actually reduced agent staffing because of AI, with most reporting that their headcount has remained steady.”
... THERE IS SOME INDICATION THAT AI USE WILL DECK-SHUFFLE RATHER THAN DISCARD THE HUMAN AGENTS '“ CARDS.”
FRONTLINE AI ADOPTION IS LIMITED
There are limitations to AI, and new adoption projects are being scrutinized after recent reports that as many as 95 % of AI pilots are failing.
Similarly, AI adoption has inherent risks associated with it and in the hiring space. And recent lawsuits have made the C-suite nervous.
Beyond risk exposure, there are technical issues that are holding the widespread AI takeover back. These can include barriers related to the following:
• The high cost of AI adoption, especially at the enterprise level.
• The value that humans can deliver may, in some cases, be more cost-effective than automation.
• AI is limited by access to high-speed internet, cloud infrastructure, and computing power.
AI adoption, then, isn’ t necessarily going according to plan. While some industries can benefit from AI more than others, as we are seeing there are limitations and risks involved.
THE INCREASING COST OF REPLACING AGENTS
As automation trends rise within frontline roles, the cost of doing business with AI is increasing as well, particularly for contact centers.
According to data from Gartner, the cost-per-resolution using generative AI solutions will rise to $ 3 by 2030, which is more than it would cost for a B2C offshore human agent to resolve the same task.
Senior Director Analyst at Gartner’ s Customer Service and Support practice, Patrick Quinlan, warned:“ Customer service leaders are determined to use AI to reduce costs, but return on those investments is far from guaranteed.”
The rise in costs, Gartner explained, is predicted to stem from increased data center fees, the lack of available subsidies for AI companies that will now have to show profitability, and the need for new talent that can implement and manage complex AI use cases.
Moreover, there is some indication that AI use will deck-shuffle rather than discard the human agents '“ cards.” Gartner is now predicting that by next year,“ 50 % of companies that attributed headcount reduction to AI will rehire staff to perform similar functions, but under different job titles …”
BALANCING THE CONTACT CENTER’ S FRONTLINE
Despite rising costs, AI-powered chatbots and virtual assistants currently handle large volumes of predictable queries and simple tasks, reducing the headcount historically needed for these frontline functions in contact centers.
But while automation of customer service may have reduced the number of agents on the floor, it hasn’ t increased customer satisfaction.
A study by HubSpot and Survey- Monkey,“ In AI We Trust? How Brands Are Earning Loyalty in an Automated World,” revealed that a whopping 82 % of customers prefer human service: even if the outcome of their call was the same as if they’ d spoken to a chatbot. 52 % even said they hated the use of AI in service interactions.