During a recent week-long customer care training workshop in Nairobi, one question dominated our discussions: What is the future of customer service in an era dominated by Generative AI, robots, and automated systems?
With the mass staff layoffs reported worldwide in recent years, workers have every reason to be concerned about the future of their jobs.
To start with, Facebook parent firm Meta has begun mass layoff as part of its cost-cutting initiative, moving towards a leaner workforce that will see some 4,000 employees lose their jobs. Meta joins a growing list of tech giants like Microsoft, Amazon, and Salesforce that have also trimmed staff recently, citing economic challenges and shifts in business models.
According to BestBrokers, as many as 260,423 employees were laid off across more than 380 tech companies worldwide in 2024, with firms such as Dell, Intel, and Amazon leading the cuts.
In Kenya alone, some 1,119 layoffs were reported, with numbers expected to rise as businesses continue to struggle financially.
The AI Disruption in the Service Industry
A survey by the World Economic Forum shows that 41% of companies worldwide expect to reduce their workforces over the next five years because of the rise of artificial intelligence.
Think about it – when was the last time you physically visited a bank branch? Personally, I only go when renewing my ATM card. It is no doubt that technology has significantly reduced the need for in-person visits, as customers can now take care of most banking needs via mobile apps.
In fact, mobile banking is now considered a must-have feature for financial institutions looking to remain competitive, especially among digitally-savvy Gen Zers and millennials. Surveys indicate that 87% of consumers now use mobile banking apps.
With such advancements, companies are taking drastic measures like restructuring and downsizing to reduce operational costs. Factors like economic slowdowns, rising inflation, and declining stock prices further compound the situation, forcing businesses to rethink their workforce strategies.
AI and Job Cuts: The Hard Reality
According to Bloomberg Intelligence, global banks will cut as many as 200,000 jobs in the next three to five years as AI takes over functions traditionally performed by humans.
Tomasz Noetzel, a senior analyst at Bloomberg Intelligence, highlights that back-office, middle-office, and operations roles are most at risk. He states: “Customer services could see changes as bots manage client functions, while know-your-customer duties would also be vulnerable. Any jobs involving routine, repetitive tasks are at risk.”
However, he offers some optimism, adding that AI will not fully eliminate these roles but rather transform them.
How Workers Can Survive the AI Onslaught
While AI is eliminating some jobs, it is also creating new opportunities. The key for workers in the service industry is adapting to AI and using it as an ally rather than a threat. Here are some strategies to remain relevant:
1. Embrace AI to Enhance Your Skills
Instead of resisting AI, service industry professionals should learn how to work alongside it. AI-powered tools can automate routine tasks, allowing employees to focus on higher-value responsibilities like customer engagement, strategy, and creativity.
2. Develop Soft Skills AI Can’t Replace
While AI can process data and handle basic inquiries, it lacks human attributes like empathy, emotional intelligence, and problem-solving abilities. Workers who focus on these skills will remain invaluable in customer interactions and decision-making roles.
3. Upskill and Reskill for the Digital Age
Investing in continuous learning is critical. Certifications in AI, data analysis, and digital marketing can provide a competitive edge. Many free and paid platforms, like Coursera and LinkedIn Learning, offer courses that can help employees stay ahead of the curve.
4. Specialize in Complex Problem-Solving Roles
AI thrives in repetitive tasks, but humans are still superior in complex problem-solving. Roles in fraud detection, ethical AI oversight, and AI-human collaboration will be in demand.
5. Explore AI-Augmented Careers
Instead of replacing jobs, AI is also creating new ones. Careers in AI ethics, AI-assisted healthcare, and digital customer experience design are on the rise. Service industry workers can pivot into roles that involve training AI systems, improving automation processes, and ensuring AI-driven solutions align with human needs.
Final Thoughts
AI is disrupting industries, and the service sector is no exception. However, instead of fearing job loss, workers should focus on adapting, learning, and leveraging AI to their advantage. As Tomasz Noetzel pointed out, AI is not here to eliminate jobs, entirely, but to transform them.
The sooner workers embrace this shift, the better positioned they will be to thrive in the evolving job market. Those who develop irreplaceable skills, specialize in complex tasks and use AI as an enhancement tool will survive and excel in this new era of work.