Human-First AI: Why SMBs Should Rebalance, Not Replace

A recent Gartner report suggests that by 2030, generative AI could cost more per customer interaction than a live human agent. What does that mean for small and midsize businesses?

In this episode of CX Today, Francesca Roche speaks with Nathan Strum, CEO of Abbey Connect, about how SMBs should rethink automation budgets, customer journeys, and long term growth strategies. Instead of focusing only on cost reduction, Nathan outlines a rebalancing approach that starts with human systems and works backward to apply AI where it adds value.

For more Customer Experience tech news visit https://www.cxtoday.com

Transcript

SPEAKER_00 0:08

Hello everyone and welcome back to CX Today. My name is Francesca Roche. I'm a technology journalist today covering the impact of generative AI on customer service, particularly for small businesses navigating rising costs and automation trends. Now a recent Gartner survey report has revealed that by 2030, generative AI will cost more per customer interaction than a live human agent. And while CX leaders are implementing AI to reduce overall costs, the reality of these rising prices are far from reasonable. If these results prove to be true, SBs are likely to be hit the hardest, as even 10% of Fortune 500 firms are expected to double their customer service spending by the end of the decade. Nathan Strum is the CEO at Abbey Connect, a customer service company that supports SMBs with human receptionists and is now tackling the automation at all cost trend head on. But before we get into the discussion today, Nathan, how are you doing?

SPEAKER_01 1:07

Hi Francisco, I'm well. Thank you for having me.

SPEAKER_00 1:10

That's great to hear. And just to start us off, if generative AI might eventually cost more per customer interaction than human agents in the next four years, how should SMBs be rethinking their automation budgets in preparation for that eventuality?

SPEAKER_01 1:27

Sure. Yeah, great question. So the way that we think about it is a rebalance. We're using AI to drive down costs and use automation in certain parts of the business, but we're also using it in other parts of the business that's increasing to the budget, which is for the purposes of increasing customer service. So we don't look at it as a cutting costs at all measures. We look at it as a rebalance.

SPEAKER_00 1:59

Okay. And many small businesses are eager to implement AI solution to save time and reduce costs. There's obviously a benefit with that. But rapid adoption without strategy can create problems, ranging from frustrated customers to wasted investment. So what mistakes or possible dangers can SBs make when they adopt automation too quickly?

SPEAKER_01 2:22

Well, I think the biggest danger is to not understand your customer journey. And when you look at your customer journey and every touch point, think about where humans make more sense and where you can leverage automation. And if you use AI where humans make more sense, that's where the risk comes. So again, this is for us a more about increasing customer service and not necessarily overall decreasing cost.

SPEAKER_00 2:54

Okay. And this report highlights something important. You can't automate trust. Small businesses need strategies that balance technology with human interaction to maintain those strong customer relationships. Nathan, can you explain what a human-first approach looks like in practice for SMBs adopting AI tools?

SPEAKER_01 3:15

Yeah, absolutely. So the way that we tackle it is we look at every uh human system in the company. We re-evaluate it with the new lens of generative AI. And so we're starting with the humans, and then we work our way backwards. How can we help the humans? How can we reduce friction? How can we automate where necessary? How can we increase where that helps as well? Um, so if you start with your human systems and work your way backwards, I think that's where you can leverage AI the most for your business.

SPEAKER_00 3:50

Yeah, I agree. I think definitely starting with the humans, that's the primary topic here. So that's really great. Um, while AI can handle routine inquiries, many companies are discovering that personal touch is where different differentiation comes in. You know, SMBs might find that staying human first could actually set them apart in a crowded market. Do you think it's better that SMBs stay human first instead of fully automating customer interactions? You know, could this become a competitive advantage?

SPEAKER_01 4:21

In customer service, absolutely. And uh that's where that uh rebalance comes because if you look at other parts of the business that you can automate and you can cut costs, and that allows you to increase uh in the customer service department, which is increasing your human talent, um, raising uh your wages to make your employees happier, and uh that will come across in your customer service. So we we you know have been in business for 20 years uh answering phones, and our core um secret sauce, if you will, is our culture. Uh and that that comes across over the phones, and culture means spending money, and spending money is um a direct correlation to your customer service.

SPEAKER_00 5:11

Of course, and as you know, cost pressures are a real issue, but customers are still expecting that care and attention. The challenge here is finding ways to remain responsive and empathetic whilst keeping operations lean. So, how can SBs balance that efficiency with empathy without creasing their overall overhead?

SPEAKER_01 5:31

Yeah, good question. Uh I think it goes back to the customer journey and looking at every single touch point uh that your customer has with your company and evaluating where empathy and judgment uh is needed and where speed and automation is is more important than empathy and judgment. And what we found is that there are uh several touch points uh that are obvious that help us make those decisions. And so uh it all comes down to the customer, uh, and that's uh that's what it's all about.

SPEAKER_00 6:08

And for my final question for a sort of near future perspective, if automation no longer delivers that clear financial advantage for SBs, how might customer expectations shift if automation becomes less cost effective?

SPEAKER_01 6:24

So yes, I believe it will uh add to the financial benefit of the company, but not in cost cutting. I believe it will in uh generating more revenue uh by having happier customers and keeping your customers uh long term. So, you know, as a B2B services company, we focus heavily on nutrition. We want to keep our customers as long as possible. And we know that our biggest lever in keeping our customers is uh their happiness, how happy they are with our service, uh, and whether we can deliver our service in a way that they truly benefit. And so if we focus on those measures, we will increase revenue, we will generate growth in the company, and that will have a great impact on the financial impact of the company.

SPEAKER_00 7:13

Of course, happy customers are the key to retention. Now, unfortunately, that is all we have time for today, and I would like to thank Nathan for being here today. It's been great to get a new perspective on the Gartner Report and how SB should handle this new era of customer service costs. So, thank you so much for joining me, Nathan.

SPEAKER_01 7:32

Thank you.

SPEAKER_00 7:33

And from all of us at CX Today, thank you so much for watching. Goodbye.