Latest Customer Service Industry News: 2025

The Latest Customer Service Industry News, Updates, and Breakthroughs

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Are you a customer service representative and curious about the latest developments in the industry? Here’s a snapshot of the most recent news in customer support and customer experience (CX).

Maryland Regulators Highlight "Systemic" Customer Service Struggles at BGE

When: December 17, 2025

News: Maryland regulators have raised alarms regarding persistent customer service issues at Baltimore Gas and Electric (BGE), stating that the utility’s ongoing struggles may point to deep-seated, systemic problems. The findings follow a pattern of consumer complaints that suggest the utility is failing to meet basic service standards, prompting calls for more rigorous oversight of the company's internal operations.

Reference: WYPR

AWS Integrates Advanced AI Agents into Amazon Connect Platform

When: December 3, 2025

News: Amazon Web Services (AWS) has launched a suite of new AI-driven customer service agents for its Amazon Connect contact center platform. The update is designed to automate high-level tasks such as intent detection and resolution for complex technical issues. This move positions AWS as a leader in the "agentic AI" space, providing businesses with tools to reduce human intervention while maintaining high service quality.

Reference: TechTarget

CarMax Cuts 350 Customer Service Roles Following AI-Driven Reorganization

When: October 30, 2025

News: Retail giant CarMax announced the layoff of approximately 350 employees within its Customer Experience Centers (CECs) as part of a major operational shift. The company stated that the consolidation follows the implementation of technological improvements and AI-driven tools designed to streamline customer communications. These cuts specifically impact teams responsible for assisting customers with shopping and financing over the phone and online.

Reference: Automotive News

Lenovo Reports 15% Productivity Boost via Generative AI in Support Centers

When: October 20, 2025

News: Lenovo has successfully deployed one of the world's largest installations of Microsoft Copilot for its Premier Support contact centers, resulting in a 15% increase in agent productivity. The AI-driven system automates post-call summarization, reducing handle times by 20%, and provides real-time multi-lingual translation for global customers. Despite the automation, the company noted a 10% rise in customer satisfaction, suggesting that AI "digital colleagues" are effectively handling routine tasks to let human agents focus on complex technical diagnostics.

Reference: Lenovo News

Discord Reports Data Breach Impacting 70,000 Users via Third-Party Support

When: October 3, 2025

News: Discord has notified users of a security incident resulting from a compromise at its third-party customer support provider, 5CA (previously reported as Zendesk). The breach exposed sensitive support tickets, including real names, email addresses, and support chat histories. Most notably, approximately 70,000 users who had submitted government-issued IDs for age verification appeals had those images compromised.

Reference: The Record

Quant Launches "Digital Colleagues" to Resolve Broken Support Loops

When: September 26, 2025

News: AI firm Quant has unveiled a new agentic AI system designed to act as "digital colleagues" that can execute complex tasks autonomously. Unlike traditional chatbots that only provide answers, this system can rebook flights, reroute bags, and adjust payment plans in real-time. Early production data from the company claims these agents resolve roughly 77% of issues without human intervention, maintaining sub-5-second response times.

Reference: CMSWire

Nintendo of America Outsourcing Customer Support to South America

When: September 19, 2025

News: Nintendo of America is reportedly cutting ties with approximately 200 U.S.-based contractors as it shifts its customer support operations to Brazil, Argentina, and Nicaragua. Impacted workers, many of whom served the company for years through 11-month rolling contracts, were tasked with training their offshore replacements before their departure. The move comes just ahead of the high-stakes holiday season and the anticipated launch of the Switch 2, leading to internal concerns about a potential drop in support quality.

Reference: Nintendo Life

Salesforce to Cut 4,000 Customer Service Roles as AI Efficiency Increases

When: September 19, 2025 (Original Publication: September 18, 2025)

News: Salesforce CEO Marc Benioff announced that the company will eliminate approximately 4,000 customer service positions, citing the transformative power of artificial intelligence. Benioff stated that AI has reached a level of proficiency that allows it to handle complex inquiries formerly managed by human staff, leading the company to prioritize autonomous agents over traditional support roles in its latest operational shift.

Reference: ABC7 News

Commonwealth Bank Reverses AI Job Cuts After Chatbot Fails to Curb Call Volume

When: August 21, 2025

News: The Commonwealth Bank of Australia (CBA) has officially backtracked on plans to eliminate 45 customer service roles after admitting its redundancy assessment was flawed. The bank initially claimed its new AI-powered voice bot would reduce call volumes by 2,000 per week; however, call center staff reported that workloads actually increased following the AI's deployment. Under pressure from the Finance Sector Union, the bank apologized to the affected staff and offered them the choice to remain in their original positions.

Reference: ABC News

U.S. Senate Introduces "Keep Call Centers in America Act" to Regulate AI Use

When: July 29, 2025

News: Bipartisan legislation has been introduced in the U.S. Senate targeting the offshoring of customer service and the rise of automated support. The Keep Call Centers in America Act of 2025 would require businesses to provide a 120-day notice before moving support roles overseas and mandate that companies disclose at the start of a call if they are using AI. Furthermore, customers would gain a legal right to request a transfer to a human agent located domestically.

Reference: The Record

IRS Managers Step Down to Fill Critical Frontline Customer Service Gaps

When: July 21, 2025

News: In an unusual workforce strategy, the Internal Revenue Service (IRS) is allowing managers to voluntarily downgrade their roles to frontline positions as the agency faces a massive shortage of customer service representatives. This internal reshuffling is part of a broader effort to improve taxpayer wait times and address the significant backlog of inquiries that have plagued the agency's support lines over the last year.

Reference: Federal News Network

CBS Philadelphia Warns of Rising "Bogus" Customer Service Scams

When: June 9, 2025

News: Consumer advocates are sounding the alarm after a New Jersey woman lost $3,500 to a fraudulent customer service number found on a search engine. The scam, which targets individuals looking for assistance with product installations or refunds, involves bad actors impersonating major retailers like Walmart. The FTC reports that customer service impersonation is now the most commonly reported scam type in the U.S., with Amazon seeing a 33% increase in social media-based support scams this year alone.

Reference: CBS News Philadelphia

Airbnb Reports 50% of Users Now Prefer AI for Customer Service

When: May 5, 2025
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News: Airbnb revealed that half of its customers now choose to interact with its AI chatbot over human agents for customer service. The company said the bot effectively resolves issues related to bookings, refunds, and policies, improving satisfaction and reducing support load.
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Reference: PYMNTS

Otter Creek CUD Finishes Fiber Buildout, Now Prioritizes Customer Support

When: May 4, 2025
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News: Vermont’s Otter Creek Communications Union District completed its broadband expansion and is now focusing on improving customer service. The group aims to provide responsive, localized support to rural residents as part of its community broadband strategy.
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Reference: Broadband Breakfast

National Grid Customer Service Wait Times Frustrate Callers

When: May 3, 2025
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News: Customers trying to reach National Grid for help are reporting long hold times and delayed responses. The utility company has cited high call volumes and ongoing system upgrades as reasons for the delays. This has sparked public frustration, especially during billing or outage-related emergencies.
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Reference: CBS6 Albany

Vodafone and ServiceNow Enter 5-Year AI Partnership for Global CX

When: May 2, 2025
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News: Vodafone and ServiceNow have announced a five-year partnership to implement AI across global customer service operations. The alliance focuses on streamlining support workflows, resolving issues faster, and providing proactive service experiences to customers worldwide.
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Reference: CloudWars

Canon Launches New Support Platform to Improve Service Experience

When: May 1, 2025
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News: Canon introduced a new digital support platform aimed at enhancing customer experience. The system features guided self-help tools, faster ticket resolution, and AI-based diagnostics for printer and camera users.
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Reference: Industry Analysts

Xcel Energy Outages Increasing in Frequency, Hurting Customer Satisfaction

When: May 1, 2025
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News: Colorado regulators have reported that outages at Xcel Energy are lasting longer and occurring more frequently. Customers are facing extended downtimes and inconsistent support, prompting public concern and state-level review.
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Reference: Colorado Sun

Verizon Says Google AI Agents Boosted Sales and Service Quality

When: April 9, 2025
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News: Verizon has credited Google’s AI customer service agents with helping increase its sales and improve customer experience. The telco highlighted faster call resolution and better personalization, noting a measurable impact on conversions and customer retention.
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Reference: Reuters

Social Security Customer Service Called a ‘Crisis’ by AARP

When: April 8, 2025
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News: AARP has called Social Security’s customer service a "crisis," highlighting long phone waits, inadequate staffing, and millions of unprocessed claims. The advocacy group urged lawmakers to prioritize service improvements for vulnerable populations.
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Reference: AARP

American Airlines Faces Growing Complaints Over Customer Support Quality

When: April 7, 2025
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News: American Airlines has come under scrutiny for deteriorating customer service, with passengers reporting long hold times, limited agent availability, and unresolved issues. The airline has yet to announce any major CX improvements.
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Reference: Chron

Saia Moves Customer Service Teams to Terminals for Faster Support

When: April 6, 2025
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News: Freight carrier Saia is relocating its customer support agents from centralized call centers to local terminals. This strategy aims to speed up problem resolution and allow reps to work directly with terminal staff and drivers.
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Reference: Yahoo Finance

Meta Unveils AI Customer Agent for Small Business Support on Instagram

When: April 3, 2025
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News: Meta has launched an AI customer support assistant for small businesses on Instagram and Facebook. It handles common queries, automates replies, and integrates with Messenger to help brands manage communication more efficiently.
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Reference: Fast Company

Sky Cuts Thousands of Contact Center Jobs to Improve Service

When: March 28, 2025
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News: Sky is reducing thousands of contact center roles in a strategic move to modernize its customer service operations. The company says the restructuring aims to shift focus toward digital and AI-driven support channels to deliver faster and more consistent customer experiences. While job losses are significant, Sky is investing in new technology and training programs for remaining staff.

Reference: cxtoday.com

Cisco Integrates AI Agents into Webex for Enhanced Customer Support

When: March 17, 2025
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News: Cisco introduced AI-powered customer support agents into its Webex platform. These virtual agents assist users in real time, providing help with meetings, troubleshooting, and administrative tasks to improve overall customer experience.
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Reference: Computerworld

Telecom Egypt Partners With Truecaller to Improve CX

When: March 27, 2025
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News: Telecom Egypt has entered a partnership with Truecaller to boost customer experience and communication security. The collaboration will help customers identify official calls from Telecom Egypt, reducing fraud and improving trust. The initiative supports the telco’s broader strategy to enhance digital services and customer engagement across its network.

Reference: businesswire.com

Sky Puts 2,000 Customer Service Jobs at Risk

When: March 6, 2025
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News: Sky has announced that up to 2,000 jobs are at risk across its customer service centres in the UK, citing changing consumer habits and increasing use of digital channels. The roles affected are mainly at sites in Leeds, Livingston, and Cardiff. The company says it is entering a consultation period with employees and trade unions to explore options and provide support.

Reference: news.sky.com

Jackson’s Service Center Wins Top Customer Service Award for 13th Year

When: March 6, 2025
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News: Jacksons Service Center has been recognized with the highest customer service award in the financial industry for the 13th consecutive year. The award acknowledges outstanding performance in client satisfaction, problem resolution, and service delivery. Jacksons attributes its continued success to a strong focus on staff training and customer-first culture.

Reference: businesswire.com

Dutch Regulator Warns Online Casino Over Customer Service Failures

When: March 2025
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News: The Netherlands' gambling regulator, Kansspelautoriteit (KSA), has issued a formal warning to an unnamed online casino operator for failing to provide accessible customer service. The regulator noted that the casino did not offer adequate support channels, which violates licensing requirements. KSA emphasized that accessible customer support is essential for responsible gambling and consumer protection.

Reference: gamblingnews.com

Syniverse and Adobe Elevate Engagement with Targeted SMS Messaging

When: March 2025
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News: Syniverse has teamed up with Adobe to deliver enhanced customer engagement through personalized SMS messaging. The partnership integrates Syniverse’s mobile messaging platform with Adobe Experience Cloud, allowing brands to send context-aware messages at scale. This solution is aimed at improving customer retention, satisfaction, and conversion rates through real-time communication.

Reference: cxtoday.com

British Gas Rated Worst for Customer Service in UK Energy Sector

When: February 24, 2025
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News: British Gas has been ranked the worst UK energy supplier for customer service in a survey by consumer group Which?. The report criticized the company for poor complaint handling, long wait times, and unsatisfactory resolutions. The ranking reflects feedback from more than 10,000 energy customers and puts pressure on British Gas to improve its customer experience.

Reference: theguardian.com

Intercom Expands AI Capabilities with $100M Investment

When: January 29, 2025

‍News: Intercom, a leading customer relationship management software provider, has significantly expanded its investment in AI-driven customer service technology. Since launching its AI-powered customer service agent, Fin, in March 2023, Intercom has invested $100 million to enhance its AI capabilities. Fin has answered 13 million inquiries from over 4,000 customers, including Monzo and Anthropic. As part of its expansion strategy, the company plans to grow its AI team, aiming to establish one of the largest AI labs in Europe.

‍Reference: thetimes.co.uk

Shopify Lays Off Support Staff Amid AI Integration

When: January 24,  2025

News: Shopify has quietly laid off an unspecified number of employees from its support division as part of its ongoing efforts to improve customer service efficiency. This follows previous layoffs in 2022 and 2023, where the company reduced its workforce by 10% and 20%, respectively. The recent job cuts align with Shopify’s increasing reliance on generative AI to handle tasks previously managed by human support staff.‍

Reference: businessinsider.com

Alabama Community College System Launches Customer Service Training Program

When: January 21, 2025
News: The Alabama Community College System has launched a statewide Customer Service Professional training program aimed at improving soft skills and frontline service across various industries. The initiative, developed in collaboration with local employers, focuses on equipping job seekers with communication, problem-solving, and customer engagement skills.

Reference: alabamanewscenter.com

AT&T Introduces Service Guarantee 

When: January 8, 2025

News: AT&T launched the "AT&T Guarantee" initiative, offering bill credits to customers experiencing network outages. Customers with fiber outages lasting 20 minutes or more, or wireless outages lasting 60 minutes or more, will automatically receive a full day's service credit. This move aims to rebuild customer trust following significant service disruptions in 2024.
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Reference: reuters.com

Oracle Introduces AI Agents for Sales Professionals

When: January 21, 2025
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News: Oracle launched a suite of AI-powered agents designed to assist sales teams by automating tasks such as updating company records after customer meetings and generating comprehensive customer intelligence reports. These AI-driven tools aim to streamline sales processes and improve overall customer interactions.
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Reference: reuters.com

Talkdesk Expands AI Agent Offering for Retail Customer Support

When: January 9, 2025
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News: Talkdesk has rolled out new AI agents specifically designed for retail customer service. The agents can process returns, handle product questions, and resolve complaints quickly, enhancing operational efficiency for retailers.
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Reference: PYMNTS

Japan’s Service Industry Pushes Back Against Customer Abuse

When: November 2024
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News: In a rare show of unity, Japan’s service industry is taking a stand against customer abuse, advocating for better protections for frontline workers. Long known for its culture of politeness and tolerance, businesses and labor groups are now speaking out about the rise in unreasonable demands and verbal harassment, calling for policy changes and public awareness.

Reference: english.kyodonews.net

UK Announces Financial Services Compensation Reforms

When: November 2024
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News: The UK government introduced reforms to its financial services complaints system to mitigate costly “mass redress events” and reduce regulatory burdens on the City of London. The proposed changes include extending response times for companies and limiting appeals against ombudsman decisions. These reforms aim to address issues like the rise in car finance mis-selling complaints and improve the competitiveness of the UK's financial services sector.
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Reference: Bank Of England

NAB Faces Legal Action Over Customer Hardship Cases

When: November 2024
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News: The Australian Securities & Investments Commission (ASIC) has taken legal action against the National Australia Bank (NAB) for allegedly failing to respond appropriately to customers facing financial distress. ASIC claims NAB took years to process hardship requests from at least 345 customers, including those affected by family violence, medical emergencies, and the COVID-19 pandemic. The regulator seeks financial penalties and increased scrutiny on how financial institutions handle hardship cases.
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Reference: ASIC

Microsoft Enhances Copilot AI with Autonomous Agents

When: October 2024
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News: Microsoft announced major upgrades to its Copilot AI assistant, introducing autonomous agents capable of handling various tasks, including sending emails, onboarding employees, prioritizing sales leads, and managing customer service interactions. These advancements aim to enhance productivity and efficiency in business operations.
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Reference: Yahoo Finance

Cisco Unveils AI-Powered Customer Support Tools

When: October 23, 2024
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News: Cisco introduced a suite of AI-powered tools designed to improve customer support and workplace collaboration. Key innovations include the Webex AI Agent, which provides efficient self-service options in call centers, and the AI Agent Studio, which enables businesses to create custom AI agents without technical expertise. These tools aim to enhance customer satisfaction and allow human agents to focus on complex tasks.
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Reference: PRNewswire.com

Sierra Secures $175M Funding, Valued at $4.5 Billion

When: October 2024
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News: Sierra, an AI-powered customer service chatbot startup co-founded by former Salesforce co-CEO Bret Taylor and ex-Google executive Clay Bavor, raised $175 million in a funding round led by Greenoaks Capital. This investment brings Sierra’s valuation to $4.5 billion. The company’s clients include WeightWatchers and Sirius XM.
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Reference: reuters.com

Crescendo Raises $50M at $500M Valuation

When: October 2024
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News: Crescendo, a company specializing in AI-driven customer service platforms, announced a $50 million funding round at a $500 million valuation. The funds will be used to expand its platform’s capabilities and enhance customer interactions.
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Reference: siliconangle.com

Patagonia Continues Workforce Restructuring

When: September 2024
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News: Patagonia announced a major business transformation, leading to the layoff of 41 employees. This follows an earlier round of layoffs in June 2024, where 90 customer service staff were asked to relocate or leave. The restructuring is aimed at adapting to market challenges and maintaining the company’s long-term competitiveness.
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Reference: Businessinsider.com

Rauda AI Secures €520,000 in Funding

When: September 2024
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News: Spanish startup Rauda AI, which develops AI-powered customer service automation solutions, closed a €520,000 funding round with participation from Spanish investors, including Demium Capital, JME Ventures, and Fides Capital. The company plans to use the funds to expand its offerings and client base.
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Reference: cincodias.elpais.com

Sonos Lays Off 100 Employees Amid Business Realignment

When: August 2024

News: Sonos laid off approximately 100 employees, representing about 6% of its workforce. The layoffs affected multiple divisions, including customer support, as the company sought to ensure continued investment in its product roadmap and address ongoing issues with its mobile app redesign.

Reference: theverge.com

IntouchCX to Hire 600+ Support Agents in Mesa, Arizona

When: July, 2024
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News: IntouchCX announced plans to hire over 600 customer service representatives in Mesa to meet rising demand. The move will support clients across e-commerce, finance, and telecom sectors, contributing to local job growth and service capacity.
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Reference: PR Newswire

Salesforce Launches Einstein Service Agent

When: July 2024
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News: Salesforce introduced the Einstein Service Agent, an AI-driven tool designed to automate customer service tasks, including handling complex inquiries such as product returns and refunds. Leveraging generative AI, this tool aims to improve customer relationship management by providing faster and more efficient responses.
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Reference: CX Today

Service NSW to Cut 100+ Public Sector Jobs

When: July 2024

News: Service NSW, a key government department in Australia, announced plans to cut nearly 100+ positions across various divisions, including customer contact centers. The job reductions are part of a larger effort to reduce costs within the state’s public sector.

Reference: MSN

Zendesk Ventures Launches AI Startup Investment Fund

When: June 2024
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News: Zendesk, a leading customer service software provider, launched Zendesk Ventures, a corporate venture capital initiative focused on investing in AI startups that integrate with its platform. The fund will support startups from the seed stage onwards, prioritizing those developing innovative AI technologies for customer service.
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Reference: Axios.com

Amazon Lays Off Over 100 Customer Service Employees

When: May 2024

News: Amazon laid off more than 100 customer service representatives as part of a broader restructuring of its Worldwide Customer Service organization. This move was part of a series of layoffs announced by the company throughout the year, reflecting its evolving operational strategy.

Reference: Fortune.com

Intercom Debuts AI Customer Service Agent ‘Fin’

When: March 2023

‍News: Intercom launched ‘Fin,’ an AI-powered customer service agent capable of managing complex customer inquiries. Since its debut, Fin has answered over 13 million questions for more than 4,000 customers, including major firms like Monzo and Anthropic.

‍Reference: VentureBeat