By 2028, over 50% of customer service organisations will double their technology spend, without an equivalent reduction in talent, according to Gartner, Inc., a business and technology insights company.

Despite mounting pressure to use AI to cut labor costs, organizations cannot rely on automation alone to replace the customer service workforce. Those that attempt rapid headcount reduction risk operational disruption, degraded customer experience and expensive rollbacks.

“Leaders are hoping that AI will deliver immediate cost savings, but most organisations are understating the talent required to make AI successful,” said Kathy Ross, Vice President Analyst in the Gartner Customer Service & Support practice. “Technology spend is rising rapidly, yet talent needs are evolving – not disappearing.”

Frontline Roles Are Changing – Not Disappearing

Although many service and support leaders anticipate smaller frontline workforces over time, few organisations are successfully reducing headcount today.

According to a Gartner survey of 321 customer service and support leaders conducted in October 2025, just 20% of organisations reported reduced agent headcount due to AI, indicating that AI’s current impact remains modest.

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Nearly 80% of organisations plan to shift at least some agents into new roles, and 84% plan to add new skills to frontline positions, underscoring the expanding scope of human work in AI‑enabled service environments.

“Organisations aren’t cutting agents because AI is fully ready to take over,” said Emily Potosky, Senior Director, Analyst in the Gartner Customer Service and Support practice.

“They’re cutting agents to fund AI. Instead of replacing the workforce, leaders should prioritise reshaping it – shifting resources toward higher‑value activities that support growth.”