In Short:
Alorica, a customer-service company, has launched an AI translation tool allowing agents to assist customers in 200 different languages. Despite fears of job loss due to automation, Alorica is still hiring. Economists suggest AI will change jobs but won’t lead to mass unemployment, as new roles and efficiency improvements are likely. Companies like IKEA show AI can complement, rather than replace, human workers.
Alorica, a customer-service center based in Irvine, California, is making strides in enhancing the efficiency and accessibility of its services. Recently, the company unveiled an advanced artificial intelligence translation tool that facilitates communication between its representatives and customers speaking 200 different languages and 75 dialects.
Innovative Communication Solutions
This innovative tool enables an Alorica representative, proficient only in Spanish, to assist a customer who speaks Cantonese, thereby eliminating the need for hiring a Cantonese-speaking representative. The introduction of this technology not only demonstrates the power of AI but also raises concerns about potential job reductions in the customer service sector due to the efficacy of chatbots.
Despite these concerns, Alorica is actively expanding its workforce instead of cutting jobs. Companies like Alorica and furniture retailer IKEA indicate that AI might not be the employment threat many anticipate. Historically, technological advancements have resulted in job transformation rather than large-scale unemployment. They create new positions while eliminating others, often leading to increased worker productivity.
Economic Implications of AI Integration
Nick Bunker, an economist at Indeed Hiring Lab, stated that while AI is likely to impact numerous jobs, he does not foresee mass unemployment as a result. Historical precedent suggests that significant technological advancements have not led to increased unemployment. Instead, technology tends to foster job creation and contribute to economic growth.
The White House Council of Economic Advisers recently reported minimal evidence indicating that AI would negatively impact overall employment. Their analysis points towards a consistent trend where technological advancements enhance corporate productivity and spawn new job categories.
Job Evolution Amidst AI Advancement
However, the potential threat of job displacement by AI remains a valid concern. For instance, Indian entrepreneur Suumit Shah sparked controversy when he announced the replacement of 90% of his customer support staff with a chatbot named Lina. This decision drastically improved response times and reduced costs at his company, Dukaan, which assists customers in establishing e-commerce platforms.
In contrast, IKEA has demonstrated an alternative approach by integrating AI without sacrificing jobs. The company introduced a customer service chatbot in 2021 and subsequently retrained 8,500 customer service workers to perform more complex tasks, such as interior design advice and managing intricate customer inquiries.
AI as a Workforce Enhancer
A study by researchers from Stanford University and the Massachusetts Institute of Technology examined the productivity of 5,200 customer service agents utilizing generative AI-based assistants. The findings revealed that those employing the AI tools were 14% more productive than their peers, handling more calls and decreasing call resolution times significantly.
At an Alorica center in Albuquerque, New Mexico, representatives trained in AI technology saw their average call resolution time drop from over eight minutes to six minutes, enabling them to manage more calls within the same timeframe.
The Future of Customer Service
Alorica’s implementation of the Real-time Voice Language Translation tool further exemplifies the company’s commitment to enhancing customer service. This tool enables seamless communication between customers and representatives in their preferred languages, broadening the scope of Alorica’s service potential without necessitating language-specific hiring.
Despite technological advancements, Alorica continues to hire actively, seeking candidates who are proficient with emerging technologies. The company’s focus remains on meeting the growing demands for customer service, reinforcing the notion that AI can complement human workers rather than displace them.
“We are still actively hiring,” says Rene Paiz, a vice president of customer service at Alorica. “We have a lot that needs to be done out there.”
