Centrica, the parent company of British Gas, is set to cut 1,300 call centre jobs as it shifts towards AI-driven customer service. CEO Chris O’Shea claims that over 90% of customers prefer digital interactions, leading to a 20% drop in call volumes. This transition reflects a broader trend in customer behaviour, where many now favour chatbots over human representatives.
The job reductions will occur over two years, with 800 positions being eliminated immediately, following 500 cuts announced last month. While trade unions express concern over the impact of AI on employment, O’Shea insists that the changes are primarily due to evolving customer preferences rather than solely AI implementation.
Centrica’s focus on digital channels has resulted in increased retail profits, rising to £346 million in the first half of the year, despite a decline in customer numbers. The company is prioritising profit margins over customer retention, indicating a significant shift in its operational strategy.
As British Gas adapts to these changes, it faces challenges, including a £112 million compensation payout to customers affected by controversial prepayment meter installations. This situation highlights the complexities of balancing technological advancements with customer service and employment considerations.
Source: The Guardian
