Narayan AmmachchiMicrosoft has revealed that it saved more than $500 million in its customer service division last year by deploying AI-powered agents across its service centers.
The announcement underscores how the tech giant is leveraging artificial intelligence to drive efficiencies across sales, customer support and software engineering, Bloomberg reported, citing Judson Althoff, Microsoft’s chief commercial officer.
While the company confirmed last year’s savings, it has not yet disclosed how much AI-driven efficiencies have contributed to cost reductions this year.
Industry analysts suggest Microsoft may soon publicly identify the AI agents that have replaced human workers in its contact centers. The company has already begun using AI to handle interactions with smaller clients — an approach that signals a phased rollout strategy, likely aimed at refining the system before expanding it to a broader customer base.
The development further signals the growing impact of AI on employment in the contact center industry, with more jobs expected to be displaced in the near future.
Microsoft’s push toward AI integration extends beyond customer service. CEO Satya Nadella recently stated that AI is now capable of generating up to 30% of the code required in software development projects. This remark has heightened anxiety across the IT sector, especially as Microsoft has laid off more than 15,000 employees in recent months, citing a strategic shift toward AI-focused initiatives.
The company’s ongoing embrace of AI not only illustrates the technology’s transformative potential but also raises critical questions about its implications for the future workforce.
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