Contact centers aren’t cheap. Between staffing, training, and managing surging call volumes, costs stack up fast.
That’s exactly why more smart companies are turning to virtual agents in contact centers to flip the script. Companies using AI customer support tools are seeing:
- Real ROI: $3.50 back for every $1 spent, with some clocking in at 8x returns
- Save $80 billion in labor costs by 2026
- Cut service costs by 25–30% while handling more calls with fewer agents
This blog unpacks five high-impact ways to **reduce contact center costs** without sacrificing the customer experience.
1. Lower Staffing Needs Through AI Efficiency
With AI virtual agents, you can automate up to 80% of your inbound inquiries—yes, the repetitive “Where’s my order?” stuff that eats up agent time.
Given that staffing eats up 95% of a contact center’s budget, this kind of automation is a no-brainer. Offload a third of that workload, and your bottom line starts breathing easier.
And the bottom line: automate the routine, keep humans for the heavy lifting, and reduce your staffing bill in the process.
Use Case: Take Capital One virtual agent Eno, which handles millions of customer inquiries each year, reducing the need for additional staff while keeping service levels high
- Reduce Average Handling Time with Smart Automation
Generative AI-based real-time agents are shaving three minutes off the average call time. Agents backed by LLMs spend 10% less time hunting for info, which adds up fast across thousands of calls. Plus, overall productivity goes up 15% when AI tools are in the mix.
Use Case: Vodafone rolled out AI-driven chatbots to improve customer experience, especially among younger users aged 16–29.
These bots use LLM to tailor responses in a tone that resonates with their target demographic, which is young people.
As a result, Vodafone not only rebuilt brand perception but also reduced average call handling times, driving both engagement and efficiency.
3. 24/7 Virtual Support Cuts Overtime and Improves Availability
24/7 virtual support means your customer service doesn’t clock out at 5 PM. Virtual agents can field inquiries day and night, absorbing peak traffic and late-night questions without overtime payouts. This always-on presence means better service and fewer labor costs.
Use Case: H&M brought in a 24/7 AI chatbot to handle the usual stuff: order tracking, return requests, you name it…
During off-hours, most people are online shopping anyway. No more piling on night shift agents or scrambling on weekends.
And they’re not stopping there: plans include AI-powered fitting rooms, voice chat support, and features that help shoppers make more sustainable choices
4. Improve First‑Contact Resolution with Intelligent Virtual Assistant Routing
An intelligent virtual assistant doesn’t just answer questions; it routes them smartly. By solving Tier‑1 and even Tier‑2 issues up front, it boosts first-contact resolution by up to 30%. That means less bouncing between agents, faster resolutions, and fewer follow-ups.
Net result: solving more problems on the first try means lower volume, happier customers, and less cost.
Use Case: Bank of America’s Erica is a prime example; this intelligent virtual assistant helps resolve customer issues on the first try by understanding intent and guiding users through self-service workflows.
5. Lower Training Expenses and Enable Call Deflection with AI
Hiring surges? No problem. With AI bots, there’s less need to ramp up new hires for every seasonal spike.
Customer service automation reduces the training load significantly because bots don’t need onboarding. Even better, call deflection with AI pushes queries to bots and self-service, shrinking the live call queue.
Use Case: AT&T trains 50,000 employees! with AI to cut back on training headaches. No more rushing to train up new agents every time volume spikes.
Their AI tools now save them the equivalent of 17 million minutes of manual work each year, freeing up staff and seriously reducing training costs
Look what Andy Markus, Chief Data and AI Officer at AT&T, is saying:
When we apply generative AI technology to a curated data product, the accuracy skyrockets. Generative AI technology enables us to do things that are at a human level or exceed what can be done at a human level.
Recap: fewer agents to train, fewer calls to handle live, and more dollars saved.
3 Steps to Maximize Virtual Agent Benefits
If you want to try and get benefits from virtual agents you do not need a complex plan. A smart rollout can do a job as a first step.
- First of all identify your top 20–30 FAQs that alone handle most of your volume.
- Then plug your bots into your CRM and knowledge base so they have the right info.
- After that you are ready to track KPIs like first-contact resolution, average handle time, and cost per contact.
Quick tip: Always start small and test
How CSS Boosts ROI With AI‑Powered Call Center Solutions
Call Center Studio AI-powered solutions carry your contact center to the next level.
✔️Our Chatbot service provides 24/7 virtual support without blowing your budget.
✔️With self-service tools you can serve more customers, faster
✔️Solve issues faster with intelligent virtual assistant routing.
✔️Lower onboarding costs through customer service automation.
Net gain: better service, fewer costs, and a much-improved contact center ROI.
During the demo, we will:
- Get to know you and your operations a little better.
- Discuss the challenges you’re looking to overcome.
- Plan the successes you’re looking to achieve.
- Tailor a walkthrough of the features that will help you the most.
- Define the next steps and plan out our journey together.
