AI in Customer Service: Gartner Predicts GenAI Costs Will Surpass Human Agents by 2030

Gartner's Shocking Prediction on AI Costs

By 2030, the Cost Per Resolution for generative AI (GenAI) is projected to exceed $3, surpassing the costs of many B2C offshore human agents, according to Gartner, Inc., a leading business and technology insights company. This forecast highlights a significant shift in the economics of AI-driven customer service.

Why AI Costs Are Soaring

Rising data center expenses, a strategic move by AI vendors from subsidized growth to profitability, and increasingly complex use cases that consume more tokens and require expensive talent are driving up AI costs for customer service organizations.

Patrick Quinlan, Senior Director Analyst in the Gartner Customer Service and Support practice, warns: 'Customer service leaders are determined to use AI to reduce costs, but return on those investments is far from guaranteed.' He emphasizes that full automation will be prohibitively expensive for most, urging a focus on using AI to enhance customer engagement rather than merely cutting expenses.

Regulatory Impact on Service Volume

By 2028, regulatory changes related to AI are expected to increase assisted service volume by 30%. As regulations mandate easy access to human agents, customers may increasingly opt out of AI interactions, leading to a surge in demand for human support.

Quinlan explains: 'Regulations mandating easy access to human agents will encourage customers to request a human by default, bypassing AI agents.' This could force organizations to maintain or even rehire human agents, potentially at higher numbers or salaries, to avoid deteriorating customer experiences with long wait times.

Strategic Shift: From Cost-Cutting to Value Creation

With GenAI costs rising, most organizations will abandon efforts to cut costs through automation. Instead, by 2030, 10% of Fortune 500 firms are predicted to double customer service spending to leverage AI for hyperpersonalized, proactive experiences and gain a competitive edge.

Quinlan notes: 'Customer service leaders will turn to AI to improve the customer experience. They'll look beyond cost optimization to other benefits, such as increasing customer lifetime value, repurchase rate, and brand loyalty.' Success will require investments in data, technology, and talent, with early adopters poised to lead in proactive and personalized service.

Gartner's Role and Insights

Gartner positions itself as the World Authority on AI, providing independent insights to help C-Level executives and technology providers implement effective AI strategies. Their resources include reports like Predicts 2026: Generative AI Will Cost a Lot More Than You Think and ebooks such as The Future of Customer Service Agents and AI.

For more updates, follow the Gartner Customer Service & Support Practice on social media using #GartnerCSS.