AI Disrupts Call Center Industry, Yet Human Expertise Still Wins

Nearly a decade ago, Armen Kirakosian started his career in a call center, spending long hours answering phones, scribbling notes, and navigating endless digital menus while trying to keep customers happy. Today, thanks to artificial intelligence, his work looks entirely different.

Instead of writing notes by hand, Kirakosian now sees full customer profiles instantly when someone calls. Often, he even knows what the problem is before saying “hello.”

“AI has taken the robot out of us,” said the 29-year-old, who works at TTEC, a global company providing customer service support in 22 countries.

The Call Center Workforce at a Crossroads

Globally, millions of people work in call centers, handling everything from phone upgrades to medical billing. In the U.S. alone, about 3 million Americans hold these jobs. Yet, turnover is high; McKinsey estimates that nearly half of all agents quit within a year, worn down by stress, repetition, and the pressure of dealing with frustrated customers.

Much of the work revolves around “break/fix” problems; something is broken, confusing, or wrong, and the customer expects it fixed quickly. Increasingly, AI is taking over many of these routine issues.

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AI in Action: Efficiency vs. Job Security

Companies worldwide are experimenting with AI-driven customer support. Some early results have been dramatic:

• Klarna, the Swedish fintech giant, replaced 700 of its 3,000 agents with AI-powered systems in 2024. While the company saved money, it soon realized AI could not handle everything. For complex issues such as identity theft, human agents were still essential. Klarna later rehired some staff to cover these gaps.

• Other firms are adopting a hybrid model, AI handles basic tasks, while better-trained, higher-paid humans focus on sensitive or difficult cases.

Industry experts believe this model will dominate the future, with AI and humans working together rather than AI fully replacing people.

The Customer Experience: Still Evolving

Customers are no strangers to frustrating call center menus, often referred to as interactive voice response systems (IVR). For years, these systems forced callers to press numbers or speak keywords like “billing” or “support.” Unsurprisingly, many callers quickly “zero out,” pressing zero in desperation to reach a human.

But AI could make IVR a thing of the past. Modern tools can now understand full sentences and even predict intent.

• Bank of America’s “Erica” chatbot, launched in 2018, has handled more than 3 billion requests and is getting smarter every year. Beyond answering questions, Erica predicts customer needs, for example, flagging recurring low balances or duplicate subscriptions.

• OpenAI’s upcoming ChatGPT Agent aims to do something similar, routing customers more accurately without endless menu trees.

Experts believe this evolution will eventually eliminate the need for traditional IVR systems, cutting down hold times and customer frustration.

The Bigger Picture: AI and Policy

The growing reliance on AI also raises policy questions. Some U.S. lawmakers have proposed legislation, like the “Keep Call Centers in America Act,” which would:

• Guarantee clearer paths to reach a human agent.

• Provide incentives for companies that keep call center jobs in the U.S.

The balance between automation, customer satisfaction, and job preservation is still being worked out, but the trend toward AI-enhanced call centers is undeniable.

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FAQs

1. Will AI completely replace human call center agents?

Not likely. While AI can handle routine tasks, complex or sensitive issues still require human empathy, judgment, and problem-solving.

2. What kinds of jobs is AI already handling in call centers?

AI covers password resets, billing questions, account updates, and other repetitive or “break/fix” issues, freeing humans to deal with complex problems.

3. Why do customers dislike IVR menus so much?

They are often confusing and time-consuming, and force customers through long paths before reaching a solution. Many callers press “0” to skip them.

4. How are companies using AI to improve customer experience?

By predicting intent, personalizing interactions, and routing callers to the right place faster. Chatbots like Erica and ChatGPT Agent are leading examples.

5. What does this mean for call center employees?

Jobs may shift rather than disappear. Workers will need stronger skills, but they may also benefit from less repetitive work, better pay, and more engaging roles.