Suumit Shah, the founder and CEO of Indian startup Dukaan, recently announced on Twitter (now X) that the company laid off 90% of its support staff due to implementing an AI-powered chatbot that can handle customer interactions. Similarly, in April, Dropbox, an industry leader in cloud-based solutions, declared a reduction in workforce by around 16%, laying off 500 employees. Co-founder and CEO Drew Houston attributed this decision to the impact of AI in a statement shared on the Dropbox blog.
The new technology has prompted several businesses, from industry giants like Dropbox to startups like Dukaan, to rethink their workforce needs. But what impact will these moves have on the future of customer service talent and the adoption of AI and chatbots?
The evolving landscape of customer service
Gartner analyst Uma Challa explains the dynamics of what we are witnessing in the customer service sector: “Companies are experimenting with virtual agent applications using the evolving GenAI technology in customer service and support. This is creating an incorrect perception that GenAI technology is capable of replacing all human agents,” he says.
Challa argues that the impact on the human workforce might be slower than some fear. To MyCustomer, he says: “There are a lot of factors that will need to be considered for adopting the GenAI technology, such as what type of approach to take: public models, vendor products or custom models? Consider the cost, risk and complexity aspects of each approach.
“What applications of GenAI technology will you prioritise? How are you going to manage the risks of using this technology, such as bias that can have a potential impact on the brand? How mature is your organisation’s data management that can be used to fine-tune the adopted GenAI models and products? What roles do you need to successfully adopt GenAI?
“The organisations that have a good digital transformation strategy and can confidently answer the above questions are better suited to adopt and scale GenAI technology.”
Adapting to the AI revolution
As new technologies are integrated, there is a gradual shift in job responsibilities, and changes are introduced. “Some organisations will double down on the mantra of ‘do more with less’ where agents are augmented with GenAI technology to improve productivity,” Challa predicts. This change in strategy means that there will be fewer new agents hired while more investments will be made in technology.
“Customer service agents should continue to learn how to work with the technology, as technology-driven work reconfiguration leads to agents requiring new or changed skills,” he continues.
Young people fear AI will take their jobs
Strategic skills provider Corndel recently published research revealing the extent to which employees fear AI will take all or part of their jobs, with younger workers particularly worried.