AI is putting support workers out of a job: Microsoft, Uber and Hyatt are already downsizing

The global corporate sector is moving towards radical automation: the Commonwealth Bank, hotel giant Hyatt, Microsoft and Uber have all started cutting customer support departments en masse. The integration of artificial intelligence technologies is becoming a priority tool for optimizing business processes.

AI is changing support services

Although the idea of ​​automating customer service has been discussed for decades, the real breakthrough came with today’s large language models (LLM). This allowed companies not just to implement template scripts, but to use generative AI for effective interaction with users.

Scale of reductions and forecasts of experts

According to Kate Leggett, an analyst at Forrester, automation will cause a serious blow to the labor market. By 2030, about 50% of all positions in the field of customer support will be under threat of reduction. The countries that have traditionally been hubs for call center outsourcing — primarily India and the Philippines — will suffer the most.

Economic indicators of industry giants

Each company demonstrates its experience in transitioning to AI platforms:

• Microsoft: The number of technical support employees, including both full-time staff and contractors, has fallen from 50,000 to 40,000 in recent years. The expected savings for the company is $750 million (US$750 million / US$750 million equivalent) annually.
• Commonwealth Bank (Australia): The largest bank in the southern hemisphere has cut hundreds of chat support staff, replacing them with AI. This made it possible to reduce expenses by tens of millions of dollars per year.
• Uber: The company cut 10% of its support staff, actively implementing a chatbot to communicate with users.
• Hyatt: The hotel chain cut 30% of its staff last year, explaining this move by introducing automated systems based on AI.

Ryan Teeples, chief tax strategy officer at 1-800Accountant, emphasizes that the focus on AI is not a temporary solution, but a strategic shift aimed at radical savings. The mass exodus of jobs from countries becomes a matter of economic expediency rather than an ethical choice for corporations.