Contact centres in 2025: Balancing AI with human empathy

The contact centre industry is set for major shifts in 2025 as consumer preferences evolve and companies adapt.

Richard Forrest, Founder and Managing Director of Forrest Contact, forecasts increased demand for genuine human interaction within contact centres, as consumers grow weary of AI-driven interactions.

"Consumers are becoming increasingly frustrated with AI systems that fail to understand the nuances of human emotion and context," Forrest said. "While AI is capable of handling repetitive tasks, the truth is that customers value meaningful, empathetic interactions that only a real person can provide. In 2025, businesses that continue to rely solely on AI agents will find themselves at risk of losing customer loyalty. The backlash will be palpable, with many customers willing to switch brands in favour of businesses that offer a personal touch."

Forrest stresses the need for businesses to balance the use of AI and human agents, combining automation with human empathy to satisfy consumer demands.

In Australia, a resurgence of onshore contact centres is predicted, a move seen in the United States previously. This shift aims to optimise local understanding and meet consumer expectations, partly driven by data security and regulatory compliance concerns.

"There is a growing recognition of the importance of keeping customer service local," Forrest noted. "Not only does this ensure a better understanding of the local market and customer needs, but it also supports the Australian workforce. Onshore contact centres are set to rise as companies recognise the value of employing local talent and reducing the potential risks associated with offshoring."

This trend towards local operations is anticipated to create more jobs and boost service quality while strengthening customer relations.

The continuation of work-from-home models within contact centres is another significant forecast for the coming year. Despite efforts to bring employees back to the office, remote work remains a popular and effective approach in this sector.

"For contact centres, remote work has proven to be both effective and scalable," Forrest said. "The ability to tap into a national talent pool, combined with flexible working arrangements, means businesses can maintain high levels of service while offering agents the flexibility they crave. This model is not just about reducing overheads - it's about creating a more agile, employee-centric work environment."

Remote strategies can enhance service coverage and delivery, supported by advancements in technology, enabling contact centres to offer consistent and high-quality customer support.

AI's presence within contact centres will remain strong but is expected to shift from consumer interactions to back-office roles, effectively enabling more efficient operations.

"In 2025, AI will play a larger role in automating repetitive tasks, handling initial queries, and optimising workforce management," Forrest said. "For example, AI will help with call routing, scheduling, and predictive analytics to ensure agents are working efficiently. But when it comes to the actual customer interaction, businesses will prioritise human agents to provide the empathy and context that AI still struggles with."

This adjustment in AI's application aims to streamline operations while allowing human agents to manage complex queries, ensuring customer needs are met with both efficiency and a personal touch.

Outsourcing will continue to garner interest among brands as they focus on core business functions, a trend underscored by efficiency and scalability.

"As companies continue to streamline their operations, outsourcing their contact centre functions allows them to concentrate on what they do best - whether that's product innovation, marketing, or other key areas of their business," Forrest explained. "Outsourcing to specialists like Forrest Contact means businesses can offer high-quality customer service without the burden of managing a large in-house team. This trend is set to grow as businesses look for more flexible, scalable solutions."

Companies can leverage onshore outsourcing for quality service delivery while maintaining a localised customer presence.

Forrest concludes that businesses in the contact centre industry will need to adapt to these emerging trends in order to succeed in 2025.

"2025 will be a year where customer service evolves into something much more personalised and human," Forrest said. "By leveraging AI for operational efficiency while ensuring customers always have the option to speak with a real person, businesses will be able to provide exceptional service that fosters loyalty, drives sales, and builds stronger relationships with their customers."