GenAI customer service costs to top offshore agents by 2030: Gartner

CONNECTICUT, UNITED STATES — Generative artificial intelligence (GenAI) in customer service is on track to become more expensive than offshore human agents by 2030, according to a new forecast from Gartner, Inc., signaling a shift in how businesses approach AI adoption.
Rising operational costs and regulatory pressures will create high expenses for companies that want to implement complete automation, yet businesses still pursue AI technology to enhance their customer engagement efforts.
GenAI cost per resolution outpacing offshore labor
By 2030, Gartner predicts that the cost per resolution (CPR) for GenAI will exceed $3 — higher than many B2C offshore human agents, the research firm said.
The rising costs are driven by several factors, including expensive data center operations, a shift from subsidized growth to profitability for AI vendors, and increasingly complex customer service use cases that demand more computing power and skilled talent.
“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.
Regulatory pressure shaping human-AI balance
Gartner also warns that regulatory changes will influence AI adoption. By 2028, assisted service volume is expected to rise 30% as rules guarantee customers the right to interact with human agents.
“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,” Quinlan added.
By 2030, Gartner expects 10% of Fortune 500 firms to double customer service spending to leverage AI for hyperpersonalized, proactive experiences that create competitive advantage.
“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 added.
As organizations rethink their automation methods, the outsourcing sector will experience increased demand for offshore workers. AI delivers operational efficiency, yet human specialists are essential for meeting compliance standards, solving complex problems, and ensuring customer satisfaction.
For businesses aiming to blend cost savings with quality service, Gartner’s forecast underscores the importance of hybrid models, where AI augments rather than replaces skilled human talent.

Independent




