AI is reshaping and in many cases shrinking entry-level employment opportunities, particularly for younger workers. And that includes, notably, in the contact center both now and in the future.
- Research by Anthropic revealed that customer service positions are the second most likely type to be exposed to potential AI replacement, trailing computer programmers and followed by data entry keyers.
- A report by the Burning Glass Institute, “No Country for Young Grads,” revealed that entry-level work was being replaced with automation.
- In Canada, the trend is similar. Last year, postings for early-career positions fell by almost 40% according to the Labour Market Information Council.
The impacts of eliminating early career experience will most certainly be felt all around, including the corporations that are investing in AI.
It makes sense that frontline roles are ripe for AI disruption...
This article examines why frontline roles are so susceptible to AI displacement and how enterprises and contact centers are finding a balance between AI enhancements and customer experience (CX).
Why AI Is - and Isn’t - Taking Over Entry-Level Roles
When enterprises and organizations adopt technology of any kind, including AI, it’s typically for some kind of return on investment (ROI).
Frontline roles offer the best bang for your buck for corporate AI adoption, according to research from The Josh Bersin Company, published in The People Space. “...[F]rontline, not back-office, work represents AI’s highest potential return on investment and organisational value.”
It makes sense that frontline roles are ripe for AI disruption because they often involve the types of functions that are repetitive or administrative in nature.
AI is most effective when it can tackle items that benefit from greater efficiency, quality, or increased productivity. Two examples (that can also reduce customer contact volume by preventing issues) include:
- Quality control with greater precision and consistency.
- Warehouse operations and inventory management with real-time updates.
Jack Kelly, in “These Jobs Will Fall First As AI Takes Over the Workplace” (Forbes), said economic incentives, cost pressures, and shrinking timelines are accelerating AI adoption. He said this momentum is impacting the frontline disproportionately:
“AI’s impact will not be uniform. Jobs like data entry, scheduling, and customer service are already being overtaken by AI tools like chatbots and robotic process automation.”
The author also shared key data, like a 2024 study from the Institute of Public Policy Research that found as many as 60% of administrative tasks are automatable, which helps organizations cut costs.
At the same time, a recent report from Gartner, cited in a CX Today article, “AI’s Broken Promise: Customer Service Automation Costs Set to Soar,” reported that AI adoption may not be taking over their frontline at the same rate.
Said the article: “Only 20% of customer service leaders have actually reduced agent staffing because of AI, with most reporting that their headcount has remained steady.”
Frontline AI Adoption is Limited
There are limitations to AI, and new adoption projects are being scrutinized after recent reports that as many as 95% of AI pilots are failing.
Similarly, AI adoption has inherent risks associated with it and in the hiring space. And recent lawsuits have made the C-suite nervous.
...there is some indication that AI use will deck-shuffle rather than discard the human agents’ “cards.”
Beyond risk exposure, there are technical issues that are holding the widespread AI takeover back. These can include barriers related to the following:
- The high cost of AI adoption, especially at the enterprise level.
- The value that humans can deliver may, in some cases, be more cost-effective than automation.
- AI is limited by access to high-speed internet, cloud infrastructure, and computing power.
AI adoption, then, isn’t necessarily going according to plan. While some industries can benefit from AI more than others, as we are seeing there are limitations and risks involved.
The Increasing Cost of Replacing Agents
As automation trends rise within frontline roles, the cost of doing business with AI is increasing as well, particularly for contact centers.
According to data from Gartner, the cost-per-resolution using generative AI solutions will rise to $3 by 2030, which is more than it would cost for a B2C offshore human agent to resolve the same task.
Senior Director Analyst at Gartner’s Customer Service and Support practice, Patrick Quinlan, warned: “Customer service leaders are determined to use AI to reduce costs, but return on those investments is far from guaranteed.”
The rise in costs, Gartner explained, is predicted to stem from increased data center fees, the lack of available subsidies for AI companies that will now have to show profitability, and the need for new talent that can implement and manage complex AI use cases.
Moreover, there is some indication that AI use will deck-shuffle rather than discard the human agents’ “cards.” Gartner is now predicting that by next year, “50% of companies that attributed headcount reduction to AI will rehire staff to perform similar functions, but under different job titles…”
Balancing The Contact Center’s Frontline
Despite rising costs, AI-powered chatbots and virtual assistants currently handle large volumes of predictable queries and simple tasks, reducing the headcount historically needed for these frontline functions in contact centers.
But while automation of customer service may have reduced the number of agents on the floor, it hasn’t increased customer satisfaction.
A study by HubSpot and SurveyMonkey, “In AI We Trust? How Brands Are Earning Loyalty in an Automated World,” revealed that a whopping 82% of customers prefer human service: even if the outcome of their call was the same as if they’d spoken to a chatbot. 52% even said they hated the use of AI in service interactions.
This is supported by a UJET study, “Critical State of Automation in Customer Experience,” which found that 80% of customers had increased levels of frustration after an interaction with a chatbot.
As I’ve stated before:
“Customers still crave human interaction, particularly when dealing with emotionally charged issues or situations that fall outside predictable parameters. (...) Human agents also serve as the moral compass of customer service.”
“They can make judgment calls, navigate gray areas, and build trust in ways that machines cannot. In industries like healthcare, finance, and legal services, this human touch is indispensable.”
Even beyond CX, contact centers benefit from entry-level roles that build a talent pipeline and support ongoing workforce mobility. To remain competitive, contact centers will have to reimagine their frontline positions so they add even more value.
A hybrid approach is recommended. Entry-level positions can be enhanced by AI without replacing humans altogether, a Forbes article explained. Tedious admin tasks can be automated by technology, for example, freeing up humans to do what they do best: be human.
Reimagine Entry-Level Roles from Recruitment
In a recent interview, I said: “As automation and self-service systems handle simpler interactions, organizations need agents with stronger interpersonal and problem-solving skills to handle complex or emotionally charged situations.”
Agents that have the right skills are able to solve multifaceted problems and apply critical reasoning or empathy when needed. These are the types of interactions that can help a brand build loyalty.
Contact centers need to reimagine what the role of their frontline agents looks like and consider hiring based on the right skills.
Hiring agents based on the strong presence of proven CX soft skills, like acknowledgement and empathy, will help contact centers select the right agents and set them up for success before day one.
To remain competitive, contact centers will have to reimagine their frontline positions so they add even more value.
Aside from soft skills, agents and other entry-level positions will be required to have AI skills. A recent report from the World Economic Forum predicts that in just five years’ time, AI will have created 170 million new jobs.
And so even though it will have replaced about 78 million jobs, there will actually be a 7% increase in employment compared to the workforce today.
In a hybrid frontline role, where humans work with AI, the technology has the potential to enhance the employee experience. Imagine the following scenario:
“Imagine an AI HR assistant in the pocket of every frontline manager or supervisor, guiding them in the flow of work. It provides instant policy guidance, supports staffing decisions, offers coaching prompts, auto-generates recognition messages, and answers HR questions in seconds. Weekly pulse checks feed insights on morale, recognition gaps, fairness, and burnout, with the AI suggesting the next best actions.”
When AI is put to good use, organizations can get the efficiency gains they crave, while keeping humans in the loop. But whether every organization and contact center will be able to afford to do so in the near future is another story.
The Future of the Frontline
AI is undeniably reshaping entry-level employment for the time being by taking over routine tasks. But this shouldn’t be a reason to eliminate human roles, at least for customer service.
Human agents are essential for building trust, handling nuanced situations, and serving as the empathetic face of the brand.
In contact centers, fully replacing humans at the frontline risks harming customer satisfaction, long-term retention, and increasing operational costs in the long run.
Organizations and contact centers must rethink and elevate their frontline jobs, revamp how they recruit and screen talent, and reorient roles toward complex problem solving and CX excellence.
The customer service frontline can still become more efficient with AI and keep their jobs. Done right, this evolution not only preserves human involvement but strengthens it, ensuring that humans and AI complement each other to deliver superior service.