Brands are turning to AI chatbots to manage customer service as a strategy to mitigate the financial impact of tariffs. Small businesses are laying off customer service agents and reducing call center contracts in favor of automation. For instance, Beau Ties of Vermont, facing significant tariffs on Chinese silk, has raised product prices, cut expenses, and reduced its customer service team. More companies are adopting AI solutions since a majority of customer service inquiries are repetitive and can be efficiently handled by chatbots.
"There are all these articles about what AI is going to take first, and customer service is definitely one of those things," Shugar said.
"We are all trying to lean heavier on AI to do our customer service because the truth is 80% of your customer service tickets ask the same small group of questions."
Some brands, particularly small businesses, are laying off customer service agents or scaling back outsourced call center contracts in favor of AI chatbots as part of broader efforts to offset tariffs imposed this year by the Trump administration.
Beau Ties of Vermont recently laid off one in-house customer service rep, shrinking the department to three.
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