By 2027, 50% of companies that attributed headcount reduction to AI will rehire staff to perform similar functions, but under different job titles, according to Gartner, Inc.

“While AI-driven layoffs have captured attention, the reality is more complex,” said Kathy Ross, Senior Director Analyst in the Gartner Customer Service & Support practice.

“Most recent workforce reductions were influenced by broader economic conditions rather than automation alone.

“As organisations encounter the limits of AI and rising customer expectations, they will need to reinvest in human talent to sustain service quality and growth.”

Despite widespread speculation that AI will drastically reduce customer service headcount, a Gartner survey of 321 customer service and support leaders conducted in October 2025 revealed that only 20% of customer service leaders have actually reduced agent staffing due to AI.

The majority report that headcount remains steady, even as they support more customers.

“AI simply isn’t mature enough to fully replace the expertise, empathy, and judgment that human agents provide. Relying solely on AI right now is premature and could lead to unintended consequences,” Emily Potosky, Senior Director, Research in the Gartner Customer Service & Support practice, added.

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Firms are seeing shifts in the perceived and real effects of AI on the job market, with the majority of UK firms regretting redundancies driven by AI.

Despite this, one in six UK employers are planning to lay off staff this year, with AI driving dops in headcount.

While the globe is seeing a shake up in the job market because of AI, the UK is being hit harder than other comparable countries. The UK faces the highest net job losses compared to countries with similar economies, with AI yet to even out job loss with job creation.