From Microsoft to Uber, AI Shrinks Customer Service Workforces

Artificial intelligence (AI) is beginning to reshape the global call centre industry, with companies increasingly using AI-powered chatbots and voice assistants to handle routine customer queries that were once managed by human agents. According to a Bloomberg report, the shift has already resulted in job cuts across several large companies and is expected to accelerate in the coming years.

Companies including Microsoft, Uber Technologies, Commonwealth Bank of Australia and Hyatt Hotels have expanded the use of AI in customer support to improve efficiency and lower operating costs. While businesses say human agents will continue to handle more complex customer issues, routine support functions are increasingly being automated.

The impact is expected to be significant for countries such as India and the Philippines, where millions of people work in outsourced customer service operations serving global clients.

Companies Turn to AI to Cut Costs

The news agency reported that Commonwealth Bank of Australia has reduced hundreds of customer support roles as AI took over a larger share of chat-based services. Microsoft has also cut its customer service workforce from around 50,000 to 40,000 over recent years while expanding AI-driven support tools.

Uber recently reduced about 10% of its customer service workforce as part of its broader AI strategy. The company now encourages users to seek help through its app, where many requests are handled by AI chatbots.

Hotel chain Hyatt is also automating tasks such as reservation changes and receipt requests to reduce customer service costs. Companies are increasingly viewing AI not only as a productivity tool but also as a way to lower labour expenses, the agency reported.

Outsourcing Industry Faces Fresh Pressure

Analysts believe the biggest impact could be on entry-level customer support roles, often referred to as tier-one support, which typically involve answering routine customer queries.

Research firm Forrester estimates that nearly half of customer service roles could be affected by AI by 2030. The agency reported that countries with large outsourcing industries, including India and the Philippines, are likely to face greater disruption as companies automate more customer interactions.

Several outsourcing firms have also warned investors that growing AI adoption could affect revenue and margins. While some companies say employees are being redeployed to other roles or reduced through natural attrition, Bloomberg reported that businesses are increasingly using AI to reduce their dependence on large customer service teams.