In this latest episode of CX Today, Francesca Roche joins Nathan Strum, CEO of Abby Connect, to discuss the growing role of generative AI in customer service and the potential cost implications for small and medium sized businesses.
The conversation followed a Gartner report that suggests generative AI could cost more per customer interaction than a live human agent by 2030. While many organizations are adopting AI to lower operational costs, the report indicates that spending on customer service may increase rather than decline. Smaller companies could face greater pressure if automation tools become more expensive while customer expectations continue to rise.
Strum explained that businesses should view AI adoption as a rebalancing exercise rather than a strict cost reduction strategy. Automation can reduce costs in some operational areas, while additional investment may be needed in customer service roles where human interaction provides greater value.
He emphasized that companies should begin by analyzing their customer journey and identifying the points where empathy and judgement are required. According to Strum, applying automation to the wrong touchpoints can lead to poor customer experiences and inefficient investments.
The discussion also highlighted the potential competitive advantage of a human first approach to customer service. While AI can manage routine queries and improve efficiency, Strum argued that personal interactions often shape long term customer relationships.
Businesses that invest in well supported and engaged service teams may see improved customer satisfaction and retention. In this model, the financial benefits of AI come less from cutting costs and more from strengthening customer loyalty and driving long term revenue growth.
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