Although multinational corporations rarely cite automation or AI as the cause, the scale of savings strongly implies a connection.
According to a person cited in a Bloomberg report (carried by Yahoo News), Microsoft has in recent years reduced its customer service workforce by roughly 10,000 positions, trimming the headcount from about 50,000 to 40,000 as it increasingly relies on AI to handle routine support requests.
The move is part of a wider pattern across industries. For instance, Commonwealth Bank of Australia has cut hundreds of chat support roles after integrating AI into its systems, generating tens of millions of dollars in annual savings, according to people familiar with the matter.
Similarly, Uber recently eliminated 10% of its customer service jobs as part of an effort to “embrace artificial intelligence,” now directing users to submit support requests through its app, where they encounter an AI chatbot. Also, Hyatt Hotels has reduced spending on customer service by automating simple requests such as reservation modifications, firing 30% of its in-house Americas support staff last year, although a spokesperson had said the cuts were unrelated to AI deployment.
Retrenchments seldom attributed to AI
Judson Althoff, who oversees Microsoft’s sales and service operations, had said in an interview that AI tools now allow the firm to resolve many customer issues without human intervention, such as fixing problems with a child’s Xbox console in the middle of the night. According to him, these AI-driven efficiencies are saving Microsoft approximately US$750m annually in customer service costs, though he acknowledged that more complex problems still require human support. Nevertheless, the firm continues to expand the range of issues that can be resolved automatically, gradually reducing the need for tier-one support staff who typically handle straightforward inquiries such as account balances, flight changes, or business hours.
The Bloomberg report mentions how, while corporations frame AI as a productivity tool, salespeople interviewed at multiple tech firms have told the publication that they routinely pitch call center automation as a way to lower labor costs, undercutting the industry narrative that AI primarily augments rather than replaces workers.
Outsourcing firms that provide much of the world’s tier-one support, particularly in countries such as India and the Philippines, are beginning to feel the pressure, with some seeing their shares drop as clients automate more functions. According to one analyst estimate earlier this year, nearly half of customer service roles globally could be impacted by 2030, with the steepest job losses expected in nations where Western corporations have outsourced easily automated work.
