Business
Will AI mean the end of call centres?
Jane WakefieldTechnology reporter
Getty ImagesAsk ChatGPT whether AI will replace humans in the customer service industry, and it will offer a diplomatic answer, the summary of which is “they will work side by side”.
Humans though, are not so optimistic.
Last year, the chief executive of Indian technology firm Tata Consultancy Services, K Krithivasan, told the Financial Times that AI may soon mean that there is “minimal need” for call centres in Asia.
Meanwhile, AI will autonomously resolve 80% of common customer service issues by 2029, predicts business and technology research firm Gartner.
There is currently a lot of hype around “AI agents”. That is the term given to AI systems that can operate more autonomously and make decisions.
They could turbo-charge current non-AI chatbots, known as “rule-based chatbots”, which can only answer a set list of questions.
My own recent experience with parcel delivery firm Evri’s chatbot illustrates the existing, non-AI state of play.
My parcel had not arrived, and Ezra (the name of the chatbot), offered to “get this resolved straight away”.
It asked for a tracking reference, and after I had typed that in, it told me that my parcel had been delivered.
I could request proof of delivery, and when I did so it showed me a photo of the package… at the wrong front door. And there was no option to advance the conversation after this “evidence” was shown.
In response, Evri tells the BBC it is investing £57m to further improve the service.
“Our intelligent chat facility uses tracking data to suggest the most helpful responses and ensure the customer’s parcel is delivered as soon as possible, if this has not happened as scheduled,” it says.
“Our data confirms the vast majority of people get the answers they need from our chat facility, first time, within seconds. We’re always reviewing feedback to ensure our services are as helpful as possible, and we continue to make enhancements on a rolling basis.”
On the flipside, rival parcel delivery firm DPD had to disable its less rule-bound AI chatbot after it criticised the company and swore at users.
Getty ImagesGetting the balance right between being on brand and genuinely helping customers is a tricky one for businesses to grapple with as they migrate to AI.
Some 85% of customer service leaders are exploring, piloting or deploying AI chatbots, according to Gartner. But it also found that only 20% of such projects are fully meeting expectations.
“You can have a much more natural conversation with AI,” says Garner analyst Emily Potosky.
“But the downside is the chatbot could hallucinate, it could give you out-of-date information, or tell you completely the wrong thing. For parcel delivery I would say rules-based agents are great because there are only so many permutations of questions about someone’s package.”
Resources and money are among the key reasons businesses may be considering the move from human to AI customer service. But Ms Potosky points out that it isn’t a given that AI will be cheaper than human agents.
“This is a very expensive technology,” she says.
The first thing that any business wanting to replace humans with AI will have to do is ensure that they have extensive training data.
“There’s this idea that knowledge management becomes less important because generative AI can solve the fact that their knowledge is not particularly well organised, but actually the opposite is the case,” adds Ms Potosky.
“Knowledge management is more important when deploying generative AI.”
Joe Inzerillo, chief digital officer at software giant Salesforce, tells the BBC that call centres provide fertile training grounds for AIs, particularly ones that have been moved to low-cost areas such as the Philippines and India.
This is because a lot of staff training will have been done, which the AI can also learn from.
“You have a huge amount of documentation, and that’s all really great stuff for the AI to have when it is going to take over that first line of defence,” he says.
Salesforce’s AI-powered customer service platform, AgentForce, is currently being used by a range of customers from Formula 1, to insurance firm Prudential, restaurant-booking website Open Table, and social media site Reddit.
Mr Inzerillo says that when Salesforce first put the platform through its paces it learned some valuable lessons about how to make the AI seem more human-like.
“While a human might say ‘sorry to hear that’, the agent just opened a ticket,” says Mr Inzerillo.
So the AI was trained to show more sympathy, especially when a customer has a problem.
Salesforce also found that not allowing the agent to talk about competitors proved problematic.
“This backfired when customers asked legitimate questions about integrating Microsoft Teams with Salesforce,” says Mr Inzerillo. “The agent refused to help because Microsoft appeared on our competitor list.”
The firm subsequently replaced that rigid rule.
Salesforce has ambitious plans for the continuing rollout of its AI agents, and so far it claims that they are a hit with its customers. It also says that the vast majority of customers, 94%, are choosing to interact with AI agents when given the option.
“We’ve seen customer satisfaction rates that are in excess of what people get with humans – then AI can unlock the next level of customer service,” says Mr Inzerillo.
It has also meant that the firm has cut customer service costs by $100m, but he was keen to play down recent headlines that suggest this has led to 4,000 jobs being slashed.
“A very large percentage of those people got redeployed in other areas around customer service.”
Fiona ColemanFiona Coleman runs QStory, a firm which is using AI to offer human call centre workers more flexibility in their shift patterns. Its customers include eBay and NatWest.
While she sees the value in AI improving working conditions, she is not sure the technology can ever replace humans entirely.
“There are times where I don’t want to have a digital engagement, and I want to speak to a human,” she says.
“Let’s see what it looks like in five years’ time – whether an AI can do a mortgage application, or talk about a debt problem. Let’s see whether the AI has got empathetic enough.”
The use of AI in customer service could, in fact, already be facing a backlash.
Legislation currently proposed in the US to move off-shore call centres back to America also requires businesses to disclose the use of AI, and transfer a caller to a human if asked to do so.
Meanwhile, Gartner predicted that by 2028 the EU may mandate what is called ‘the right to talk to a human” as part of its consumer protection rules.
Business
India, New Zealand Hold 4th FTA Talks In Auckland On Trade Rules
New Delhi: The fourth round (November 3-7, 2025) of negotiations for the India-New Zealand Free Trade Agreement (FTA) commenced on Monday in Auckland, New Zealand, marking another step forward in advancing a balanced, comprehensive, and mutually beneficial partnership between the two nations.
According to India’s commerce ministry, this development builds on the shared commitment to deepen economic ties and guidance given by Prime Minister Narendra Modi during the visit of the New Zealand counterpart Christopher Luxon, Prime Minister in March 2025.
The FTA was launched during the meeting between Piyush Goyal, Minister of Commerce and Industry, Todd McClay, Minister for Trade and Investment, New Zealand on March 16, 2025.
Negotiations in this round are focusing on key areas, including Trade in Goods, Trade in Services, and Rules of Origin, the commerce ministry said in a statement today.
“Both sides are working constructively to build on the progress achieved in earlier rounds, to reach convergence on outstanding issues and move towards the early conclusion of the FTA,” the statement added
India and New Zealand reiterated their commitment to developing a forward-looking and inclusive trade framework that supports sustainable growth and shared prosperity for both economies.
India is actively negotiating trade agreements with nearly a dozen countries, including the United States, the European Union, Australia, Sri Lanka, Qatar, and several others, in a bid to expand trade and secure long-term growth opportunities.
The coming months are expected to be critical, when the outcomes of these negotiations could redefine India’s role in the global trade architecture and shape its economic trajectory for the next decade.
India has, over the past 5 years, inked several trade deals, including the India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) implemented in 2021, the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and the India-Australia Economic Cooperation and Trade Agreement (ECTA) in 2022, the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) in 2024, and the India-UK Comprehensive Economic and Trade Agreement (CETA) signed in 2025, which is understandably yet to come into force.
Negotiations for a comprehensive trade deal between India and Oman, which commenced in 2023, were recently concluded.
Business
Consumer healthcare mega merger: Kimberly-Clark to acquire Tylenol maker Kenvue in $48.7 billion cash and stock deal; $1.9 billion cost savings targeted post-merger – The Times of India
Kimberly-Clark is set to acquire Tylenol maker Kenvue in a cash-and-stock transaction valued at approximately $48.7 billion, creating one of the world’s largest consumer health goods companies, AP reported.Under the terms of the agreement, Kenvue shareholders will receive $3.50 per share in cash and 0.14625 Kimberly-Clark shares for each Kenvue share held at closing. Based on Kimberly-Clark’s closing share price on Friday, the deal values Kenvue stock at $21.01 per share.Following the merger, Kimberly-Clark shareholders will own around 54% of the combined entity, while Kenvue shareholders will hold about 46%. The companies said the merger is expected to generate annual net revenues of approximately $32 billion in 2025. They also identified an estimated $1.9 billion in cost savings to be realised within the first three years after the deal closes.“With a shared commitment to developing science and technology to provide extraordinary care, we will serve billions of consumers across every stage of life,” said Kimberly-Clark Chairman and CEO Mike Hsu in a statement.Hsu will lead the merged company as chairman and CEO, while three members of Kenvue’s board will join Kimberly-Clark’s board upon closing. The combined company will retain Kimberly-Clark’s headquarters in Irving, Texas, and maintain a significant presence at Kenvue’s existing locations.The acquisition is expected to close in the second half of next year, pending approval from shareholders of both companies.In early trading, Kimberly-Clark shares dropped more than 15% before the market open, while Kenvue’s stock surged over 20%.
Business
Business news live – Banks bet on interest rate cut and UK bills rise 8% in a year
Interest rates: five steady cuts after sharp correction up
It’s sometimes hard to keep pace with everything around interest rates, how much it has all changed and the wider impact it has.
This chart helps display the rate of change, at least: post-Covid we had basically a zero rate for a long period, but the cost of living crisis across 2022 and 2023 saw interest rates shoot higher in quick succession as the BoE tried to stem inflation, which hit 11%.
Since last year the base rate began to decline, we’ve had five cuts in total.
Three this year came in February, May and August.
Karl Matchett3 November 2025 09:20
Economics expert explains why BoE may wait for Budget
Thomas Pugh, chief economist at tax firm RSM UK, is one of those who thinks the MPC will remain prudent for now.
“Financial markets have gone from pricing in less than a 25% chance of another rate cut by the end of the year to a two-thirds chance now, due to a lower inflation peak and rumours of a less-inflationary budget,” he explained.
“We doubt this will be enough to tempt the Monetary Policy Committee (MPC) into a rate cut next week. We expect a 3-6 vote for a hold. But it throws the door wide open to a rate cut in December, especially if the budget is deflationary.”
Karl Matchett3 November 2025 09:00
‘Odds 50-50’ on a December rate cut
Not everyone is immediately convinced, of course.
Plenty still think it’s more likely that the BoE will persist with their cautious approach so far and at least wait for one more monthly set of data to be taken in before opting to cut.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, points to the money market still being split on December at the moment.
“London stocks have a touch higher this morning as investors brace for a pivotal week at the Bank of England. Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance.
Karl Matchett3 November 2025 08:40
Barclays join calls for interest rates cut
Last week Goldman Sachs said they think a rate cut is in the offing, and now Barclays have joined them.
Noting that “shop price data point to further disinflation in October”, Barclays analysts have suggested the Bank of England’s MPC members will provide a split vote – they predict 5-4 – but the ultimate outcome will be a cut.
“We acknowledge the decision remains finely balanced, but expect the recent downside inflation and labour market news to tip the vote to a cut,” read the analysis note, from Jack Meaning and Silvia Ardagna.
Food inflation is a key tipping point in the vote, they predict, and it appears to be on the way down (disinflation).
Karl Matchett3 November 2025 08:20
Inflation data behind change of heart on interest rate cuts
Rewind the tape a few weeks and banks, economists and analysts were unified in their belief: no interest rate cut pre-Budget, quite possibly none for the rest of 2025.
However, inflation data for September changed all that.
We didn’t hit 4% as expected, and now the worst is expected to have passed.
On the back of that, jobs data came in weaker again too as companies continued to reign in the hiring and vacancies were down to a multi-year low.
Now, more than one bank has changed its tune.
Karl Matchett3 November 2025 08:14
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