I’ve been saying this for years, and I’ll say it again: Customer service is not a cost center—it’s a revenue driver. Unfortunately, many organizations still don’t see it this way. They place customer experience departments under operations rather than sales and marketing, viewing service as an expense to minimize rather than an investment to maximize.
This mindset creates what I call the “CX death spiral.” Companies operate in silos with misaligned objectives between customers, business units, and suppliers. The result? Waste, inefficiency, and poor customer experiences.
The Hidden Waste in Customer Service Operations
One of the biggest problems I see is companies investing in complex technology stacks that create more problems than they solve. Organizations often pay for robust systems but only use a fraction of the features. When you multiply this across multiple platforms that don’t integrate well, the waste becomes exponential.
This complexity creates two major issues:
- An inconsistent experience for customers who feel the disconnect
- A frustrating experience for employees trying to navigate clunky systems
When employees are frustrated, that frustration inevitably transfers to the customer experience. As someone wiser than me once said, “The problem is in the joins.” The more joints you have, the more complexity—and the more room for failure and waste.
The AI Balancing Act
With artificial intelligence now at the forefront of customer service transformation, companies face a critical decision: How do we balance AI automation with human interaction?
Many organizations are rushing to implement AI with the primary goal of “deflecting” customers away from human agents. They see this as a cost-cutting measure. But here’s the danger: when AI doesn’t work properly, it actually costs more money. You lose upset customers and force people to spend additional time fixing what the AI got wrong.
The better approach is thinking about “engagement” rather than “deflection.” The question shouldn’t be “How can we prevent customers from talking to humans?” but rather “How can we create the best possible experience using both AI and human expertise?”
This requires drawing a thoughtful line between:
- Questions that are simple enough for AI to handle without mistakes
- Situations that require human empathy, understanding, and judgment
And since both AI capabilities and your business are constantly evolving, this line must be continuously monitored and adjusted.
AI Won’t Replace Customer Service Jobs—It Will Transform Them
Despite fears about job displacement, I’ve interviewed numerous CX leaders from major global companies, and not one has said AI will eliminate customer service positions. What’s happening instead is an evolution of roles:
- Team leaders are now managing both AI systems and human agents
- Quality assurance managers are becoming insights managers who mine data for improvements
- Front-line representatives are handling more complex issues while providing feedback to improve AI systems
This represents an upleveling of skills and knowledge. The core professionals who dedicate their careers to customer service will find their jobs improving with more growth opportunities as AI handles routine tasks.
From Cost Center to Revenue Driver
When implemented correctly, AI-enhanced customer service can transform from a break-fix operation to a proactive aid. Companies that get this right are seeing remarkable results:
Think big. How can you increase customer interactions by 10x or 20x? To do that, you must abandon old mindsets about managing all your tech and people in-house. Become a service designer and find partners who can implement your vision.
The most forward-thinking organizations are using AI not just to answer questions but to create proactive touchpoints that drive customer success. When customers succeed with your product, they tell everyone about it—generating referrals and repeat business.
I’m encouraged to see customer experience finally getting recognition in the C-suite and boardroom. Smart executives understand that excellent service drives retention, referrals, and increased spending over time. That’s not a cost center—that’s a revenue engine.
