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Fortune 500 companies won’t fully replace human customer service agents, Gartner predicts

Amelia Brand | 09/15/2025

Predictions that artificial intelligence (AI) agents will replace customer service agents are unlikely to come true, according to recent research from Gartner.

Their report forecasts that by 2028, none of the Fortune 500 companies will have fully eliminated human agents from their service operations. Instead, it is expected that organizations will adopt hybrid models where AI handles routine tasks, while people focus on complex, sensitive or growth-oriented interactions.

“AI and automation are transforming how customer service organizations serve customers, but human agents are irreplaceable when it comes to handling nuanced situations and building lasting relationships,” said Kathy Ross, senior director analyst in Gartner’s customer service and support practice, in an email.

While organizations may reduce headcount over time, complete automation is not a realistic or desirable outcome, Ross added. “We expect fewer human agents, but not completely agentless organizations. The most successful organizations are those that balance technology with the human touch, redeploying their teams to focus on growth and customer satisfaction,” she said.

Human customer service agents still wanted

Gartner also predicts that by 2027, half of the companies currently planning to reduce their service workforce significantly because of AI will abandon these plans. It’s argued that many will have discovered that the complexity of customer interactions makes a fully agentless model unworkable. In fact, Klarna has already begun rehiring humans after attempting to exclusively use AI agents for customer support. 

This is unsurprising, given that many surveys find that more than 90 percent of US customers prefer speaking to human agents for service issues. CX Network's Global State of CX 2025 report also found that 45 percent view personalization as a leading priority. Many organizations acknowledge that achieving this still requires human empathy and contextual decision-making.

However, 24 percent of respondents nonetheless view automation of CX service functions as the top priority for 2025.

Preparing for the future of CX

Gartner’s projection has significant consequences for how enterprises plan their service strategies, particularly within the Fortune 500. For years, companies viewed automation as a cost-saving silver bullet. This new forecast suggests that strategy will need to evolve.

First, the finding reinforces that customer expectations are not aligned with fully digital service models. CX Network’s research shows that even digitally native generations such as Gen Z and Millennials often escalate to human agents when issues become complex or emotionally charged.

Second, the report suggests that labor models in customer service will shift rather than shrink outright. Instead of large scale redundancies, enterprises may redeploy staff into specialized functions such as customer success, retention and loyalty management.

Companies that recognize the enduring role of human interaction while still leveraging AI to scale will be best positioned to retain customer loyalty. “Companies should blend AI and human strengths: Let technology handle the simple stuff and reserve human agents for complex, high-risk or emotionally charged situations,” Ross suggests.

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