Businesses Hit Pause on Replacing Customer Service Agents With AI as Challenges Mount

Half of businesses are pausing plans to replace human agents with AI in customer service due to integration challenges. Customers still prefer human support for complex issues.

Categorized in: AI News Customer Support
Published on: Jun 12, 2025
Businesses Hit Pause on Replacing Customer Service Agents With AI as Challenges Mount

Half of Businesses Rethink Replacing Humans with Customer Service Bots

Good news for customer support professionals and consumers alike: many businesses are pausing or reversing plans to cut human agents in favor of AI-powered customer service. A recent Gartner report reveals that half of the surveyed organizations will abandon significant workforce reductions in customer service by 2027 due to challenges integrating AI effectively.

The study surveyed 163 leaders in customer service and support, showing that 95% plan to keep human agents alongside AI tools. This cautious approach prevents the pitfalls seen in rushed transitions to fully automated, agentless models.

Why the Shift Back to Humans?

Many customers have experienced frustrating interactions when forced to deal solely with AI systems. These systems often provide limited options or fail to understand complex queries, leaving customers stuck in loops or dead ends. AI is still not capable of replacing the empathy and nuanced problem-solving that human agents offer.

Kathy Ross, a senior analyst at Gartner, explained: "While AI offers significant potential to transform customer service, it is not a panacea. The human touch remains irreplaceable in many interactions."

Despite this, some companies, like BT, plan to reduce thousands of customer service roles by 2030, showing that the debate is ongoing.

Cost and Customer Trust Challenges

Brian Weber, VP analyst at Gartner, pointed out that projects expecting generative AI to handle all customer queries haven't gone as planned. Unexpected costs and unsatisfactory results have slowed progress.

Key insights from Gartner's research include:

  • Cost savings from AI are often overestimated due to underestimated total ownership costs.
  • Customers rank the ability to reach a human agent as their second-highest priority in service interactions.
  • 51% of customers trust human agents most for resolving issues, while only 7% trust AI the most.
  • 62% of customers worry that AI will make it harder to reach a human agent.

Weber also shared that about a third of businesses expect live agents to handle most customer service volume. Those aiming for more automation plan to reinvest any savings into new technology rather than cutting frontline staff.

The takeaway: Fully agentless contact centers are neither technically ready nor operationally wise at this point.

What This Means for Customer Support Professionals

If you work in customer support, these findings highlight the ongoing value of your role. AI can assist with routine tasks, but human agents remain critical for complex, emotionally sensitive, or nuanced interactions.

Staying informed about AI tools and how to work alongside them will be key. For those interested in expanding their AI skills relevant to customer service, Complete AI Training offers courses tailored for customer support roles.

Businesses will continue balancing AI efficiency with the essential human touch that customers trust.


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