Is Artificial Intelligence Enhancing Call Center Agents' Performance or Supplanting Them?

Working in a call center is no easy feat. Agents encounter a continuous stream of calls, frequently from displeased or distressed customers, while they strive to resolve problems swiftly and compassionately. The emotional labor involved makes call center jobs among the most demanding in customer service.

As per HubSpot's 2024 Annual State of Customer Service Report, 82% of customers anticipate prompt resolution of issues from customer service agents, and 78% want more personalization than ever before. These escalating expectations, coupled with stringent performance requirements, contribute to high burnout rates among call center agents.

But now, AI is stepping in to change the game. AI is revamping call center operations, promising to simplify life for both agents and customers. HubSpot's report revealed that 92% of CRM leaders claim AI has enhanced their customer service response times, and 71% plan to boost their AI investment.

So, how is AI revolutionizing call centers, and what does this imply for call center agent positions and the industry as a whole?

How AI Is Utilized in Call Centers Currently

"Customers may have similar requests, but each client is unique with diverse backgrounds, personalities, and unspoken or unarticulated needs," accentuated Amir Liberman, founder and CEO of Emotion Logic — a company dedicated to exploring the intricate complexities of human emotions.

Considering that call center agents handle 50 to 100 calls a day, according to a report by LiveAgent, it might be challenging to acknowledge and cater to these differences in service delivery each time. However, with AI-driven chatbots and virtual assistants, this might become a possibility.

"With AI systems equipped with authentic emotion sensing capabilities, customer service can ascend to new heights — where each client feels acknowledged, the service becomes personalized, and their needs are addressed in a manner that resonates with them," Liberman Expounded.

AI's capability to understand and respond to emotions is another remarkable application. Solutions such as Emotion Logic, for instance, deliver insights into the genuine feelings behind words by employing AI and voice analysis. Given that 86% of customers are likely to return if they establish a positive emotional bond with the contact center agent, there's no denying the importance of this feature.

"It can discern quickly whether a caller prefers logical, reason-based explanations or is more emotionally driven, enabling call center agents and AI agents to adjust their approach accordingly. Understanding a client's true pain points, stressors, and moments of joy helps AI design a more individualized response script, thereby serving clients better," Liberman said.

Then there's intelligent call routing. Have you ever felt tortured while your call was routed to yet another agent, prolonging the wait time inexplicably? Despite the reasonable explanations for the delay, frustration ensued.

Long wait times not only test a customer's patience but can also erode their trust in the service, impacting sales negatively. With AI, call routing becomes more intelligent and efficient. These algorithms analyze the caller's query, history, and tone to route them to the most suitable agent promptly.

AI's prowess in predictive analytics is another area of interest. By analyzing historical and real-time data to forecast customer needs and behavior, call centers can predict issues before they arise or tailor solutions to individual preferences.

What This Means for Call Center Agents

"Call centers often serve as the battleground for exceptional customer experiences. They're where customers seek solutions, and businesses must deliver rapid, empathetic service," concluded Erix Xiao, founder and CEO of sales automation company Laxis. Yet, as Xiao acknowledged, the high volume of calls and monotonous tasks can make it a challenging environment to excel.

Despite the labor-intensive nature of call center work, it remains one of the most essential business functions. Historically, roles in a company's contact center or mailroom were considered a stepping stone to learning about the business from the ground up and gaining an opportunity to rise through the corporate ranks.

However, the advent of AI and automation poses a significant threat to this career path. Risk levels on platforms like Will Robots Take My Job indicate call center agent or customer service representative roles within a high-risk category of 61 - 80%, signaling their vulnerability to replacement by automation.

But what of the human connection deemed essential for the work? Business leaders like Liberman believe this could also be managed by AI.

"If implemented correctly, and with the incorporation of genuine emotion sensing capabilities like those offered by Emotion Logic, AI could handle around 70 - 80% of customer service interactions within the next 2 - 3 years. AI will be more patient, empathetic, and responsive to customers' needs and special requests, all at a fraction of the cost of human agents," Liberman explained.

He further added that the remaining 20 - 30% will be managed by highly trained human agents, primarily for high-value clients. "These agents will be assisted by AI-based systems to ensure requests are addressed effectively, and customer satisfaction is genuinely achieved."

Xiao also highlighted the power of AI in "bringing efficiency, personalization, and intelligence to every customer interaction," emphasizing how "a national telecommunications provider that implemented Laxis AI in their call center — with real-time transcription, smart call routing, and sentiment analysis — reduced call resolution times by 30% and boosted customer satisfaction scores by 25%."

So, do these claims suggest an imminent demise of the traditional contact center job? Not likely. Instead, I think of it more as a transformation rather than an extinction.

As McKinsey noted in a report, live phone channels and a personal touch remain customer favorites, and as long as this continues to be the case, call center agent jobs remain secure. Companies only need to focus on upskilling their workforce to enable agents to effectively collaborate with AI systems and maximize their potential.

Morals Dilemmas in AI-Powered Customer Service Centers

Moral issues with integrating AI are typically similar across sectors – data protection, AI bias, AI delusions, and so forth. But in customer service centers, there's an additional challenge of emotional control. These systems frequently rely on gathering sensitive information, such as voice profiles or emotional indicators, to enhance service quality. However, the gathered data may be exploited, breaching privacy regulations like the Biometric Information Privacy Act and others.

Bias in AI customer service centers can manifest in several ways, particularly in language and accent recognition where AI systems might struggle with recognizing and accurately processing various accents, dialects, or speech patterns.

Recent researches from the Stanford Computational Policy Lab, for instance, indicate that numerous prominent speech recognition tools mistakenly interpret Black speakers twice as often as white speakers. Despite acknowledging these issues, Liberman also advocates for an approach that maintains a harmony between innovation and morality.

"Why should I confide in a stranger who isn't my friend about my most intimate concerns? Why should I trust another person's kindness for help when AI agents, unlike humans, are never exhausted, never impolite, and possess no hidden purposes – only the goal to assist. In the near future, we might find it peculiar that humans formerly managed such sensitive interactions. Naturally, we should introduce AI gradually and cautiously, monitoring the efficiency of these systems. But halting advancement at this point would be simply nonsensical."

These moral dilemmas aren't decreasing in the near future and will likely fuel further regulatory adjustments in the field. However, it's unclear if AI will completely replace human customer service agents, as several experts forecast. But the future could entail AI-driven agents and human customer service agents working together to serve clients more effectively.

In light of the AI's ability to understand and respond to emotions, there's a potential for AI call centers to handle up to 70-80% of customer service interactions, allowing highly trained human agents to focus on high-value clients, as suggested by Amir Liberman from Emotion Logic.
Ethical considerations arise when integrating AI into customer service centers, particularly regarding data protection and preventing AI bias, like in language and accent recognition. Stanford Computational Policy Lab research indicates that prominent speech recognition tools misinterpret Black speakers twice as often as white speakers, highlighting the need for careful monitoring and regulation.
AI is transforming call centers by utilizing AI-driven chatbots, virtual assistants, intelligent call routing, and predictive analytics. These technologies aim to enhance customer service response times, reduce wait times, and tailor solutions to individual preferences, revolutionizing call center operations and making them more efficient.