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Human Agents vs AI Agents: How Their ROIs Differ
December 25, 2024
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As businesses increasingly seek to enhance customer service efficiency, AI voice bots have emerged as a game-changing solution. These intelligent systems can automate routine tasks, provide 24/7 support, and significantly reduce operational costs. 

AI can cut operational expenses by 30-50% and improve profitability by up to 38% when integrated effectively into customer service frameworks. However, the question remains: how do the ROI metrics of human agents compare to those of AI agents?

This blog provides a comprehensive analysis of the differences in ROI between human and AI agents, focusing on cost efficiency, scalability, and implementation strategies.

What Are Human Agents?

Human agents are customer service representatives who engage directly with customers to resolve issues, provide information, and enhance overall satisfaction. Their roles encompass various functions:

Strengths

  • Empathy and Emotional Intelligence: Human agents excel in understanding and responding to customer emotions, fostering a personal connection that is crucial for customer loyalty.
  • Complex Problem Solving: They are adept at addressing intricate queries that require critical thinking and creativity, often leading to higher customer satisfaction ratings.
  • Uses Real Phone Numbers: Call centers typically use real call center numbers that are verified and reliable. This practice helps build trust with customers, ensuring they know they are connecting with a legitimate service provider.

Limitations

  • Availability: Human agents can only work during certain hours, which means higher churn rates and customers might have to wait for help outside those times.
  • Cost: Hiring human agents can be expensive. For example, a customer service representative in the U.S. typically earns around $35,000 a year, which breaks down to about $0.60 per minute when you include other costs like training.

What Are AI Voice Agents?

AI voice agents, also known as voice bots or virtual assistants, utilize advanced technologies like generative AI and large language models to interact with customers through voice communication. These intelligent systems are designed to handle a wide range of customer service tasks, providing immediate responses and enhancing the overall customer experience.

Strengths

  • 24/7 Availability: AI voice agents can operate continuously without breaks, ensuring that customers receive support at any time of day or night. This constant availability is crucial in meeting the expectations of today's consumers, who increasingly demand immediate assistance.
  • Data Processing: These agents can quickly analyze large datasets to provide relevant responses tailored to individual customer needs. By accessing customer history and preferences, AI voice agents can deliver personalized interactions that enhance engagement.
  • Cost Efficiency: Once implemented, AI voice agents can significantly reduce operational costs. For instance, they can handle simple inquiries at a cost of approximately $0.01 per interaction, making them 80-90% more cost-effective than human agents. This substantial savings allows businesses to allocate resources more efficiently and invest in other areas of growth.
  • Scalability: AI voice agents can manage thousands of inquiries simultaneously without compromising performance. This scalability is particularly beneficial during peak times when customer demand surges, ensuring that all inquiries are addressed promptly.

Limitations

  • Limited Emotional Understanding: While they can talk to customers, AI voice agents may struggle with sensitive issues that need a human touch.
  • Handling Complex Questions: They work well for routine tasks but may not handle complicated problems as effectively as humans.

ROI Breakdown: Human Agents vs AI Voice Agents

When tracking return on investment for human agents versus AI voice agents, several factors come into play:

Human Agent

  • Investment: The average salary for a customer service representative in the U.S. is approximately $35,000 annually. Factoring in training, benefits, and overhead costs, this equates to about $0.60 per minute of interaction time. These recurring expenses make employing human agents a significant financial investment for businesses.
  • Management: Managing human agents involves recruitment, onboarding, training, supervision, and performance evaluations. Businesses must also handle shift scheduling to ensure proper coverage during peak hours, adding operational complexity and costs over time.
  • Operational Efficiency: Human agents excel at handling complex, high-touch interactions requiring empathy and problem-solving skills. However, their availability is limited to scheduled working hours, which can result in delays during off-hours or peak demand periods.
  • Customer Experience: Human agents deliver personalized interactions and can   build rapport with customers through emotional intelligence. Studies show that empathetic service leads to 20% higher customer retention rates, emphasizing the importance of the human touch in customer support.

AI Agent

  • Investment: AI voice agents operate at a fraction of the cost, managing interactions for approximately $0.08 per minute. This provides an 80–90% cost reduction compared to human agents, making AI a scalable and cost-effective solution for businesses.
  • Management: AI systems require an initial setup and ongoing maintenance, but they function with minimal oversight once implemented. Unlike human agents, AI eliminates the need for shift scheduling or performance monitoring, reducing management complexity and improving scalability.
  • Operational Efficiency: AI agents offer 24/7 availability, ensuring immediate responses without delays—even during peak demand or off-hours. They can handle thousands of simultaneous interactions, making them ideal for high-volume workflows and repetitive tasks.
  • Customer Experience: While AI agents lack emotional understanding, they enhance experiences through speed and efficiency. By handling routine inquiries, AI allows human agents to focus on complex issues, creating a hybrid model that balances automation and personalization for optimal service delivery.

Businesses that have implemented AI voice agents have reported profitability boosts of up to 38%. This increase is primarily attributed to enhanced operational efficiency and reduced costs. 

For instance, retailers leveraging AI voice technology have experienced staggering reductions in operating costs—by as much as 72%. This significant savings allows these businesses to reinvest in other critical areas of their operations, such as marketing, product development, and customer experience initiatives.

Conversely, companies that continue to rely on human agents have seen substantial benefits in terms of customer loyalty and retention. A study indicated that organizations focusing on empathetic customer interactions reported retention rate increases often exceeding 20%. This correlation highlights the importance of personalized service in building long-term relationships with customers.

AI-Human Collaboration: The Hybrid Approach

A growing trend in customer service is the hybrid approach that combines both human and AI voice agents. This strategy allows businesses to use the speed of AI while keeping the personal touch of human interactions.

Retell AI excels in this area by handling all incoming calls seamlessly, ensuring that customer inquiries are addressed promptly. If the situation requires a more personalized touch, Retell AI can easily transfer the call to a human agent, ensuring that customers receive the assistance they need.

By integrating AI voice agents with human support, businesses can create a more responsive and effective customer service experience. This hybrid model not only enhances operational efficiency but also fosters greater customer satisfaction, as clients feel valued and understood throughout their interactions. 

Leveraging Strengths for Optimal Performance

The hybrid approach allows customer service teams to streamline operations effectively. AI voice bots can answer common questions quickly, allowing human agents to focus on more complicated issues that require empathy and understanding.

This division of labor not only enhances productivity but also ensures that customers receive timely assistance tailored to their specific needs. A practical example of this collaboration is seen in companies that utilize AI voice bots for initial contact.

Companies often use AI bots for initial contact with customers. These bots gather important information before passing the conversation to a human agent when needed. This way, customers don’t have to repeat themselves, making the experience smoother.

Enhancing Customer Experience

The collaborative model of AI and human interaction significantly enriches customer experiences by providing the best of both worlds. Customers benefit from the speed and efficiency of AI, which can process vast amounts of data in real-time to deliver instant responses. At the same time, they enjoy the personalized touch that only a human agent can provide, particularly in emotionally charged or complex situations.

For example, during peak shopping seasons or high-volume sales events, AI voice agents can manage a surge in inquiries, ensuring that customers receive immediate answers to common questions. Meanwhile, human agents can step in to handle more intricate issues, such as resolving complaints about orders or offering personalized product recommendations. This synergy between AI efficiency and human empathy creates a seamless support experience that fosters customer loyalty and satisfaction.

The Future of Customer Service

As technology improves, the relationship between AI voice agents and human representatives will become even stronger. New advancements will help AI understand customer needs better, but humans will always be needed for their creativity and emotional intelligence.

The key is not choosing between AI or human agents but finding a way to use both effectively. By doing this, businesses can meet modern customer expectations while providing fast and personalized service.

Transform Your Customer Service Strategy Today!

The ROI differences between human and AI agents highlight the importance of strategic investments in customer service technologies. While human agents excel in empathy and handling complex queries, they come with higher costs and limited availability. In contrast, AI agents offer cost efficiency, scalability, and continuous support but may lack emotional intelligence for nuanced interactions.

For businesses considering implementation strategies for customer service in 2025, adopting a hybrid approach may offer the best balance between cost savings and personalized service. By carefully assessing their needs and tracking ROI for both types of agents, organizations can make informed decisions that enhance their customer service capabilities while optimizing operational costs.

Ready to revolutionize your customer service strategy? Discover how Retell AI can help you achieve unparalleled efficiency while enhancing customer satisfaction! Contact us today for AI agents that will redefine your approach to customer support!

Bing Wu
Co-founder & CEO
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