Congress Targets Offshore Contact Centers and AI: What New Legislation Means for US Customer Service

New U.S. bills propose keeping contact center jobs domestic by regulating offshoring and AI use. Noncompliance risks fines and loss of federal contracts.

Categorized in: AI News Customer Support
Published on: Aug 22, 2025
Congress Targets Offshore Contact Centers and AI: What New Legislation Means for US Customer Service

Proposed U.S. Law Targets Contact Center AI and Offshoring

New bills introduced in both the U.S. Senate and House propose major changes to how contact centers use AI and manage offshoring. These bills aim to keep customer support jobs within the U.S. by regulating companies that offshore a significant portion of their contact center operations.

Customer support leaders should watch these developments closely. If passed, the legislation could disrupt current contact center strategies and operations, especially for companies relying heavily on offshore teams.

Key Provisions of the Keep Call Centers In America Act of 2025

  • Applies to U.S. companies with more than 50 employees planning to offshore at least 30% of their customer support or relocate entire contact centers offshore.
  • The U.S. Department of Labor Secretary will maintain a public list of these companies.
  • Companies on the list risk losing federal grants and become ineligible for federal contracts.
  • Consumers have the right to request a U.S.-based human agent when interacting with customer support, regardless of whether the initial contact was with an offshore agent or AI.
  • Noncompliance could mean penalties of up to $10,000 per day or monthly penalties of 8.3% of federal awards for existing grant or loan recipients.
  • A one-year grace period is proposed for companies to comply after the law passes.

Impact on Contact Centers and Customer Service

The cost of compliance is expected to be significant. Mark Rohan, COO of a company specializing in AI and voice response testing, describes the expenses as “astronomical.” He also points out enforcement challenges, suggesting that monitoring and regulating these operations will be difficult for the government.

While the bills encourage better customer service practices—such as identifying AI workflows that frustrate customers and escalating issues to human agents faster—they could also introduce costly administrative burdens.

Will This Help or Hinder AI in Customer Support?

Ian Jacobs, a research analyst, warns the law could accelerate AI adoption but potentially degrade service quality. Some companies might cut 24/7 support hours because offshore teams often cover overnight calls. This could limit availability for customers.

The legislation might shift AI investments toward tools that assist human agents rather than fully autonomous AI agents. Alternatively, it could push companies to deploy AI agents before they are fully ready, leading to poorer customer experiences.

Also, the requirement for U.S.-based human agents may be tough to meet. There aren't enough domestic contact center agents to handle current demand, and the increased costs could strain company budgets. Jacobs compares the law to a tax on customer care, increasing costs without providing enough resources to meet demand.

How Offshoring Practices Are Changing

Some U.S. business process outsourcers are growing as companies value domestic customer service despite higher costs. Certain industries, like airlines, already standardize on U.S.-based contact centers for faster service.

Still, a large portion of industries including telecommunications, financial services, healthcare, retail, and technology continue to outsource at least part of their customer support. The proposed bills could multiply these companies’ customer service costs significantly.

Legal and Strategic Implications for Financial Services

Financial services firms face especially tight regulation around customer service. Compliance with the new law will require them to adjust contact center setups and rethink AI usage carefully.

Josh Lewis, an attorney working with banks, says AI can be valuable if properly managed. But improper use without countermeasures could create problems, emphasizing the need for strong systems to ensure quality support.

Two Playbooks for Global Companies

Large companies with international operations may end up managing separate strategies for the U.S. and other countries. This could mean less efficient service for American customers, who might also face higher costs as a result.

For customer support professionals, staying informed about these potential changes is critical. Adjustments to AI use, staffing, and customer experience policies will likely follow if the legislation advances.

For those interested in expanding skills in AI and customer support, exploring specialized courses on AI technology and automation can provide a competitive edge. Check out resources like Complete AI Training's latest AI courses to stay ahead in this evolving field.


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