GenAI customer service costs to surpass human agents by 2030: Gartner

CONNECTICUT, UNITED STATES — Businesses may spend more on generative artificial intelligence (GenAI) for customer service than on human agents by 2030, according to a new report from Gartner, Inc. 

Rising technology costs and complex AI use cases could make fully automated support prohibitively expensive, forcing companies to rethink how they integrate AI into customer engagement.

GenAI costs set to outpace offshore human agents

Gartner predicts that by 2030, the cost per resolution for GenAI will exceed US$3, surpassing the expense of many offshore human agents in business-to-consumer operations. 

Factors driving this increase include rising data center costs, a shift from subsidized growth to profitability for AI vendors, and more complex AI use cases requiring expensive talent, the report said.

“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 Gartner’s Customer Service and Support practice. 

“Full automation will be prohibitively expensive for most [organizations]; instead, leading [organizations] will use AI to drive customer engagement rather than to cut costs,” Quinlan added.

New regulations fuel demand for human support

Global regulatory changes—such as the EU AI Act—are expected to reshape customer service operations. By 2028, Gartner forecasts that regulatory changes will boost assisted service volume by 30%, as customers exercise their right to speak to a human rather than an AI agent.

“Regulations mandating easy access to human agents will encourage customers to request a human by default, bypassing AI agents,” Quinlan said. 

“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,” he added.

Despite these challenges, Gartner notes that some companies see AI as a way to create a competitive advantage. By 2030, 10% of Fortune 500 firms are expected to double customer service spending to leverage AI for hyperpersonalized, proactive experiences. 

“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,” Quinlan said.

With increasing GenAI costs, the outsourcing sector will undergo a strategic transformation. 

Companies that previously depended on automation to reduce expenses now face the choice between returning to human support teams or implementing AI together with human operators to deliver exceptional personalized service.

Outsourcing firms can enhance their operations by providing experienced personnel who can manage difficult customer interactions, which current AI systems are unable to handle. This development creates a new chance for high-tech industries to employ skilled workers.