The recent announcements from Sky, which is closing its in-house contact centres, and Foundever, which is shifting towards more decentralised, hybrid models, point to a growing trend: the traditional contact centre model is no longer fit for purpose in a digitally driven world. As call volumes decline and operational costs rise, businesses are being forced to reassess how they deliver customer service.
However, modernisation shouldn’t come at the expense of people. The future of customer service lies in hybrid models that combine the efficiency of automation and AI with the empathy and contextual understanding of human advisors. This approach not only meets rising customer expectations across digital channels, but also creates more meaningful and resilient roles for service professionals.
Organisations that embrace this shift have an opportunity to build service operations that are not only more agile and scalable, but also more human – even as they become more digital. In moments like these, the challenge isn’t just technological; it’s strategic and cultural. The businesses that get it right will be those that use this transition to empower their people, not replace them.
Beyond automation: AI as an enabler, not a replacement
AI-powered automation has a crucial role to play in streamlining customer service. From chatbots resolving routine queries to self-service portals that reduce call volumes, these tools help businesses operate more efficiently and meet growing expectations for always-on, fast support.
But automation alone isn’t enough. The real opportunity lies in AI augmentation—using AI not to replace humans, but to make them better at what they do. This includes things like AI-assisted call routing, real-time sentiment analysis, surfacing relevant knowledge articles during live interactions, and simplifying post-call wrap-up. Done right, AI becomes a virtual teammate, enhancing the agent’s ability to deliver fast, contextual, and empathetic support.
Creating value for both customers and agents
Customers today expect seamless, personalised experiences across channels—and they’re quick to notice when those experiences fall short. While bots can handle the basics, complex or emotionally sensitive issues still require the empathy and judgment of a human being.
At the same time, agents are often held back by disconnected systems, manual processes, and limited visibility. AI augmentation flips this script, giving agents the tools and insights they need to resolve issues more effectively. It reduces cognitive load, minimises frustration, and turns frontline service into a more strategic and satisfying role. Verizon saw a nearly 40% increase in sales after deploying an AI assistant to support its 28,000-strong service team, proof that empowering agents pays off.
Essentially, the most effective contact centres are those that optimise for both customer satisfaction and agent performance simultaneously.
Legacy systems are the real barrier
Despite the availability of modern, cloud-native solutions, many organisations are still operating with outdated infrastructure, cobbled-together systems that weren’t built for today’s omnichannel, AI-driven environment. These legacy platforms make it harder to deliver consistent service and limit the organisation’s ability to adapt quickly.
To truly transform, businesses must invest in flexible, scalable platforms that enable continuous innovation, while keeping people at the centre of the service experience.
Looking ahead: a more human future
What the Sky and Foundever closures reveal isn’t just a shift in volume or channel, it’s a wake-up call for the entire industry. The contact centre of the future won’t be defined by rows of desks or the number of calls handled per hour. It will be defined by agility, intelligence, and humanity.
By embracing AI augmentation alongside automation, organisations have the opportunity to build service models that are not only more cost-effective, but also more resilient, more empathetic, and ultimately more aligned with what both customers and employees truly need.
Conversational AI is expected to save businesses $80 billion in labour costs by 2026, yet those savings are only meaningful if reinvested in the people and platforms that power great service.
This isn’t just a technology challenge, it’s a mindset shift. The future of customer service isn’t less human. It’s more.
