Brands are adopting AI chatbots for customer service as a strategy to mitigate escalating tariff costs. Many, especially small businesses, are laying off customer service personnel or reducing outsourced call center contracts in favor of automated solutions. For instance, Beau Ties of Vermont has cut down customer service staff while implementing AI technology to manage queries, citing that a significant portion of inquiries are repetitive. Executives indicate that these technologies are essential to control expenses in the face of rising tariffs imposed on imported goods.
"There are all these articles about what AI is going to take first, and customer service is definitely one of those things. 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."
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