With rapid digital transformation, it’s tempting for organisations to turn to artificial intelligence (AI) as the solution to all operational inefficiencies, particularly in customer service. Chatbots, voice assistants and AI-driven workflows promise cost savings, scalability and 24/7 support. But according to a June 2025 prediction by Gartner, this full-scale shift to automation may be more of a risk than a reward.

In fact, Gartner anticipates that by 2027, 50% of organisations will abandon their plans to reduce customer service staff due to AI implementation challenges. The reason? AI alone often fails to meet customer expectations and that failure can erode trust, damage brand reputation and ultimately hurt the bottom line.

It’s worth exploring why over-automating your contact centre can be a costly mistake and why the future of customer service lies in humans enhanced by AI, not replaced by it.

The Promise (and Pitfalls) of AI in Customer Service

Let’s be clear: AI is not the enemy. When used well, it can streamline repetitive tasks, improve response times and free up human agents to handle more complex issues. From intelligent call routing to summarising customer interactions, AI has clear use cases in a modern contact centre.

However, the danger arises when AI is implemented as a wholesale replacement for human agents. Businesses eager to cut costs often fall into the trap of over-automating, only to realise too late that:

• Chatbots lack nuance.

• Voice assistants misinterpret context.

• Scripted responses frustrate rather than reassure.

Customers notice and they don’t forget.

The Human Element Is Still the Gold Standard

Gartner’s prediction reinforces what many in the industry already suspect: human-led support still matters. When customers contact a brand, especially during moments of frustration, urgency or confusion, they want more than just answers. They want empathy, understanding and resolution.

A chatbot can’t de-escalate an angry caller. An AI assistant can’t navigate the emotional layers of a complex billing issue. And no automation can replicate the trust that comes from a calm, competent human voice.

In fact, numerous studies have shown that emotional intelligence, tone and human judgment are among the most important factors in customer satisfaction. Strip that away, and you risk replacing loyal customers with one-time transactions.

When AI Backfires: Real Risks of Over-Automation

Here are just a few of the most common pitfalls companies encounter when they try to automate too much, too soon:

• Customer Abandonment

Customers who can’t get past a chatbot or access a real person often give up. This isn’t just lost revenue, it’s lost trust.

• Reputational Damage

Poor customer service is one of the fastest ways to damage a brand. And in the digital age, negative reviews spread quickly.

• Data Misuse and Compliance Risks

AI systems rely on data. If improperly managed, this opens up businesses to privacy violations and legal exposure—especially in industries like healthcare, finance, and insurance.

• Reduced Loyalty

AI may solve a problem, but it rarely creates a positive emotional experience. And loyalty is built on emotion, not just efficiency.

AI Should Enhance, Not Replace

The key takeaway from Gartner’s findings isn’t that AI has no place in the contact centre. It’s that AI is most powerful when it complements human support not when it replaces it.

Think of AI as your frontline assistant, not your frontline defender.

• Let AI handle FAQs, triage and routing.

• Let humans handle empathy, resolution and relationship-building.

• Let data inform decisions but let people drive the experience.

The most successful contact centres will be those that strike the right balance between automation and human connection.

What Customers Actually Want

At the heart of the AI vs. human debate is a simple truth: customers want to feel heard and valued.

In a 2024 survey by PwC, 59% of consumers said they feel companies have lost touch with the human element of customer experience. Meanwhile, 75% said they would be more likely to remain loyal to a brand that offers human interaction when needed.

Gartner’s prediction aligns with this sentiment. As companies begin to see customer satisfaction scores drop in AI-heavy environments, many are reversing course, reinvesting in human talent and retraining teams for hybrid support models.

Real Conversations That Drive Results 

We’re not anti-AI. In fact, we use smart tools and systems to support our work. But we never lose sight of the fact that a great customer or sales experience starts with a real person. That’s why leading Australian brands continue to trust Forrest Contact. We’re an extension of your sales and service team—not a replacement, but a reinforcement.

Why Now Is the Time to Reassess

If your business is considering reducing customer service headcount or moving entirely to automated systems, now’s the time to pause.

Before making major changes, ask yourself:

• Can your AI truly understand nuance and emotion?

• Are your customers happy with the current experience?

• Is your brand experience becoming better or simply cheaper?

If those questions raise concerns, it might be time to reinvest in the human touch.

AI absolutely has a place in the contact centre but not at the expense of the very thing customers value most: authentic, meaningful interactions.

Want to know more? Talk to our team.