GenAI Cost for Customer Service Will Exceed Offshore Human Agent Costs by 2030
As generative AI (GenAI) is becoming active in more aspects of business. Gartner reported that by 2030, cost per resolution for generative AI (GenAI) will exceed $3, higher than many B2C offshore human agents.
Rising data center costs, a pivot from subsidized growth to profitability for AI vendors, and increasingly complex use cases that consume more tokens and require expensive talent will lead to soaring AI costs for customer service organizations.
“Customer service leaders are determined to use AI to reduce costs, but return on those investments is far from guaranteed,” said Patrick Quinlan, senior director analyst in the Gartner customer service and support practice, in a statement. “Full automation will be prohibitively expensive for most organizations; instead, leading organizations will use AI to drive customer engagement rather than to cut costs.”
Gartner made some further predictions.
By 2028, regulatory changes related to AI will increase assisted service volume by 30%.
Regulatory pressure to ensure the right to talk to a human will result in a surge of assisted-volume interactions as customers exercise their right to opt out of AI.
“Regulations mandating easy access to human agents will encourage customers to request a human by default, bypassing AI agents,” said Quinlan. “As a result, organizations will have to maintain or even rehire human agents, possibly at higher numbers or at a higher salary than they previously paid. Failure to maintain appropriate staffing levels could lead to deterioration of the customer experience, with customers waiting for long periods to speak to a human.”
By 2030, 10% of Fortune 500 firms will double customer service spending in order to use AI for hyperpersonalized, proactive experiences and competitive advantage.
With the cost of GenAI rising, most organizations will abandon efforts to cut costs through automation, instead pursuing other goals. There will emerge a clear differentiation opportunity for those who leverage AI not just for issue resolution, but to create value throughout the customer journey.
“Customer service leaders will turn to AI to improve the customer experience. They’ll look beyond cost optimization to other benefits, such as increasing customer lifetime value, repurchase rate and brand loyalty,” said Quinlan. “To be successful, organizations must invest in data, technology and talent. As proactive and personalized service becomes a customer expectation, early adopters will gain a competitive advantage.