The Upsides and Downsides of Agentic AI—and How to Overcome the Challenges

Artificial intelligence (AI) is transforming industries at an unprecedented rate, and one of the areas most vulnerable to this transformation is customer service. As AI continues to evolve, its ability to replace human roles is becoming more evident. According to Glimsdahl (2024), AI could potentially handle over 51% of customer service and help desk roles by 2034. However, given the speed of technological advancement, this shift might happen much sooner.

In this post, we’ll explore both the upsides and downsides of agentic AI in customer service and discuss actionable strategies to mitigate its negative impacts on society.

The Upsides of AI in Customer Service

AI offers significant advantages, particularly for businesses looking to enhance efficiency, reduce costs, and improve customer experiences. Some of the most notable benefits include:

• Cost Efficiency: According to McKinsey, AI technologies could add up to $1 trillion in additional value annually to the global banking industry alone. This is a testament to the potential cost savings AI can provide across various industries.
• Productivity Boost: AI-powered customer service tools can increase productivity by 30–50%, as estimated by Accenture. By automating routine tasks, employees can focus on higher-value work.
• 24/7 Availability: Unlike human employees, AI systems can provide uninterrupted service around the clock, catering to customers in different time zones without additional labor costs.
• Reduced Error Rates: Properly trained AI systems can minimize human errors, enhancing service quality and reducing costly mistakes.

These benefits contribute to improved organizational performance and global economic growth. If managed responsibly, the resulting economic boost could be channeled toward societal improvements, such as healthcare, education, and infrastructure.

The Downsides of AI in Customer Service

Despite its advantages, AI’s widespread adoption comes with significant challenges—primarily for workers and small businesses.

1. Job Displacement:
   AI’s efficiency comes at a cost. If 50% of customer service roles in the U.S. are eliminated, this could result in over 3 million people losing their jobs. These workers, who earn an average of $40,000 per year, represent approximately $120 billion in lost income and $14 billion in lost tax revenue. Such widespread job losses would disproportionately affect less-educated and vulnerable populations, potentially exacerbating societal inequalities.
2. Challenges for Small Businesses:
   Small and midsized businesses often struggle to adopt AI due to high implementation costs and a lack of technological expertise. As these organizations are the primary drivers of job growth in the U.S., their inability to compete with larger, AI-enabled corporations could slow economic progress and reduce opportunities for workers.
3. Economic Ripple Effects:
   Reduced consumer spending power caused by job losses can harm businesses in the long run. If fewer people can afford goods and services, even companies benefiting from AI may find themselves struggling to maintain profitability. An economic system without a robust middle class risks reaching a tipping point that could be difficult—or even impossible—to reverse.

How to Overcome the Downsides of AI

To ensure AI serves as a tool for societal benefit rather than harm, a proactive approach is essential. Here are some key strategies:

1. Government and Corporate Responsibility:
   Governments and businesses must recognize their broader roles in supporting society. Policymakers should implement measures like workforce retraining programs, unemployment benefits, and tax incentives for companies investing in reskilling their employees. Businesses should consider ethical AI adoption, ensuring their practices contribute to long-term economic stability rather than short-term gains.
2. Education and Workforce Development:
   Individuals must take steps to future-proof their careers. Education in AI technologies and digital skills is crucial, as is the development of uniquely human qualities like creativity, emotional intelligence, and strategic thinking. These “human edge” skills will enable workers to complement AI rather than compete with it.
3. Support for Small Businesses:
   Governments and financial institutions should provide accessible funding, grants, and resources to help small and midsized businesses adopt AI. Simplifying the process of integrating AI tools can level the playing field and enable smaller organizations to thrive in the AI-driven economy.

The Road Ahead

AI has the potential to revolutionize industries, boost productivity, and improve lives. However, without intentional planning and collaboration between governments, businesses, and individuals, the downsides of this transformation could outweigh its benefits.

The key to leveraging AI for societal good lies in balancing efficiency with equity. By addressing the challenges head-on and prioritizing the well-being of workers and small businesses, we can build a future where AI doesn’t just replace human roles but enhances human potential.

References:

• Glimsdahl, N. (2024). Will AI replace most customer service teams by 2034?
• McGill, J. (2024). AI Replacing Jobs Statistics – Content Detector AI.

What are your thoughts on the role of AI in shaping the future of work? Share your perspectives in the comments below!