Companies That Cut Customer Service Staff Due to AI Will Rehire by 2027

It seems that labor cuts that were attributed to AI will be altered. Gartner recently predicted that by 2027, 50% of companies that made cuts that were necessitated by AI will, in fact, rehire staff to perform similar functions.

However, these jobs will return under different job titles. 

“While AI-driven layoffs have captured attention, the reality is more complex,” said Kathy Ross, senior director analyst in the Gartner Customer Service & Support practice. 

“Most recent workforce reductions were influenced by broader economic conditions rather than automation alone. As organizations encounter the limits of AI and rising customer expectations, they will need to reinvest in human talent to sustain service quality and growth.”

The reason for this is the limitations of AI. “AI simply isn’t mature enough to fully replace the expertise, empathy, and judgment that human agents provide," said Emily Potosky, senior director, research in the Gartner Customer Service & Support practice. "Relying solely on AI right now is premature and could lead to unintended consequences.”

Despite widespread speculation that AI will drastically reduce customer service headcount, a Gartner survey of 321 customer service and support leaders conducted in October 2025 revealed that only 20% of customer service leaders have actually reduced agent staffing due to AI. The majority report that headcount remains steady, even as they support more customers.