No Fortune 500 company will fully replace customer service agents with AI by 2028, claims report

A new Gartner report predicts that no Fortune 500 company will completely replace human customer service agents with AI by 2028, challenging widespread expectations about AI’s rapid displacement of service jobs. The research also suggests that half of organizations currently planning to slash their workforce in favor of AI systems will abandon those plans by 2027, indicating that the current AI adoption surge may be experiencing bubble-like characteristics.

What you should know: Human agents remain irreplaceable for handling complex customer interactions that require nuance and relationship-building skills.
• While AI excels at routine tasks like collecting customer information and looking up order numbers, it struggles with exceptions and high-risk scenarios that require human judgment.
• Kathy Ross, a senior director analyst at Gartner, notes that “human agents are irreplaceable when it comes to handling nuanced situations and building lasting relationships.”
• Companies that strategically focus their workforce on complex, high-value customer interactions will differentiate themselves and drive long-term growth.

The customer preference reality: Consumer sentiment strongly favors human interaction over AI-powered customer service.
• A HubSpot and SurveyMonkey survey found that approximately 80% of customers prefer speaking to a real person rather than an AI, even when wait times are identical.
• An August report revealed that AI-driven customer service can actually infuriate customers further, potentially causing reputational damage to brands.
• This preference extends beyond customer service—AI-driven livestreaming promotions show little to no effect on sales, while human streamers positively impact purchase numbers.

Why companies will abandon AI replacement plans: Gartner predicts that organizations will fail to achieve their goals of replacing employees with AI tools due to technological limitations.
• The report suggests that current AI adoption efforts are going through a bubble-like surge that will settle down over time, following patterns seen with other dramatically new technologies.
• Ross explains that “while AI and automation are transforming how customer service organizations serve customers,” the human element remains crucial for complex problem-solving.

Strategic implications for businesses: Companies can differentiate themselves by emphasizing human-centered service rather than rushing to automate.
• Organizations should run simulations to verify actual return on investment before implementing AI-driven automation in sales and customer support chains.
• Businesses can market their commitment to connecting “real people with real people” as a competitive advantage over rivals pursuing aggressive AI automation.
• The evidence suggests that not every business needs to be first to adopt AI technology, particularly in customer-facing roles where human connection drives satisfaction.