Will AI Replace Customer Service Jobs? HGS CEO Has the Answer

Hinduja Global Solutions' AI Revolution: Boosting Customer Satisfaction and Transforming Jobs

HGS Sees 20% Surge in Customer Satisfaction with AI Integration

Hinduja Global Solutions (HGS) is leveraging artificial intelligence (AI) to revolutionize its customer service operations, resulting in a remarkable 15-20% increase in customer satisfaction (CSAT) scores. The business process outsourcing (BPO) giant has adopted AI to enhance efficiency while simultaneously reshaping job roles rather than eliminating them.

AI is Enhancing Jobs, Not Replacing Them

According to Venkatesh Korla, President and CEO of HGS Americas, AI adoption is streamlining operations but not causing mass job losses. Instead, it is creating new roles such as knowledge managers and automation managers.

“AI took away two jobs, maybe, of email responders but added two jobs for knowledge and automation management. Net to net, the impact is either balanced or results in additional job creation,” Korla shared during the Nasscom Technology & Leadership Summit 2025.

Despite fears surrounding AI-induced layoffs, HGS maintains that the technology is augmenting human capabilities rather than replacing them. However, workforce dynamics have undoubtedly changed. In FY19, HGS employed over 42,000 people with revenues of Rs 4,800 crore. By FY24, revenues rose to Rs 5,100 crore, while the workforce shrank to just over 18,000.

Why AI Adoption is Still Limited

While AI has proven to be a game-changer in operational efficiency, there is still some reluctance in fully embracing its capabilities.

“We are not willing to accept that AI can perform tasks just as well as humans,” Korla said, predicting that AI adoption will likely remain at 20-25% across various business functions. However, industries like contact centers are expected to experience higher AI implementation rates.

How AI is Reshaping Customer Service

HGS has introduced AI-driven systems in quality assurance and customer interaction analysis. This technology is enabling more efficient monitoring of customer service representatives, providing real-time feedback, and improving overall customer experience.

• Voice Conversation Analysis: AI is being used to transcribe and analyze voice conversations, allowing businesses to track customer sentiment, empathy, and service quality.
• Increased Call Monitoring: Previously, human quality analysts could only assess 1% of customer calls due to resource constraints. Now, with AI, HGS can monitor up to 25% of calls, leading to more accurate performance evaluations and better coaching opportunities.
• Personalized Coaching: Instead of eliminating quality analyst (QA) roles, AI has transformed these jobs into coaching positions, focusing on improving agent performance rather than just auditing.

The Future of AI in Customer Experience

Korla envisions AI as a tool that enhances human decision-making rather than replacing it. By automating repetitive decision-making tasks, AI enables human agents to focus on more complex customer interactions.

“Automation can handle a greater volume of interactions, but human oversight is still crucial,” Korla emphasized.

AI-driven solutions are helping businesses optimize workforce productivity while improving service quality. As customer expectations continue to rise, companies that successfully blend AI with human intelligence will be the ones to thrive in the evolving digital landscape.