The year ahead promises to be a turning point for customer contact. AI and automation are advancing at an unprecedented pace, yet businesses are facing economic uncertainty, rising costs, and rapidly shifting customer expectations. The pressure to adopt new technology and improve service levels means leaders must make bold, strategic choices.
At the end of 2024, we held our annual ‘Big Conversation’ to uncover key challenges for the year ahead and hear directly from cross-sector contact centre leaders about how they’re addressing them. These insights have shaped our latest whitepaper, 2025: A Year of Difficult Conversations?. In this paper, we explore those challenges in detail and outline priorities and solutions. One theme dominates: success in 2025 will depend on how well businesses navigate ‘difficult conversations’—both within their organisations and with their customer and suppliers.
How can you make the right tech decisions in the age of AI?
AI can be a powerful tool for improving operational efficiency. However, the reality is stark: according to Gartner, 80% of AI projects fail, which is twice the failure rate of non-AI projects. Despite this, the pressure in the boardroom to “do something with AI” is stronger than ever. The key question isn’t whether to implement AI, but how to do so strategically and safely.
When AI is implemented well it can deliver valuable results. But the risks of adopting this still fledgling technology can be significant—wasted investment, damage to reputation, and disruption to operations. The businesses that succeed with AI will be those that clearly define its use cases, align them with business goals, invest in high-quality, integrated data, and ensure that AI complements human expertise rather than replacing it. AI has the potential to be a game-changer—but only with careful consideration.
How do we meet economic, regulatory and resource challenges?
While grappling technology decisions, contact centres also face ongoing economic headwinds, regulatory challenges and a 15% decrease in headcount since 2019.
As businesses introduce new contact channels and explore innovative solutions, the fundamental customer need remains unchanged—a fast and effective response
But despite the rise in self-serve and co-pilot automation, customer satisfaction in the UK has declined. While automation is handling simple queries, agents are left to tackle only the most complex cases with fewer resources overall. Agents have little respite from more intense interactions and operations have fewer agents available. Even with future AI implementations, research predicts relatively modest headcount reductions of a maximum of 15%.
What’s more, in 2025, UK contact centres will need to absorb and manage an 8-10% increase in agent costs. Meanwhile the ongoing cost of living crisis means customers remain stressed and regulatory requirements add to operational demands —all against the backdrop of a muted growth forecast and ongoing economic challenges. No wonder things feel pressured.
Consequently, leaders are exploring various ways to optimise their service models, including offshoring, automation, or refining their approach.
Getting It Right: From Good to Great
One thing is clear. Transformation isn’t optional—it’s essential. The businesses that thrive in 2025 will be the ones that take a proactive approach. The most successful organisations will define clear, achievable AI use cases, align data, technology, and human expertise, prioritise governance, security, and compliance, and engage employees in AI adoption from the start.
The path ahead will present both opportunities and challenges, but with the right strategy, tackling today’s difficult conversations can pave the way for a stronger competitive edge tomorrow.
Read our paper for more detailed analysis of the challenges, but more importantly, how to tackle those challenges and put in place a positive programme of change.
The Whitepaper is free to download and immediately accessible below. We would love to hear your experiences too. Follow us on LinkedIn to share your thoughts.
