AI vs live agents cost

susan.white • October 10, 2024

What are the cost differences between hiring live agents and using an AI phone answering service?

Hiring live agents versus implementing an AI phone answering service brings significant cost differences.


Human agents require ongoing salaries, benefits, training, and infrastructure costs, which can add up, especially for companies that operate around the clock. These costs increase further when accounting for the resources needed for shift scheduling, overtime, and management oversight.


AI, in contrast, operates on a cost-efficient model, with many providers offering per-minute or subscription-based pricing. There’s no need for continuous training since AI learns from interactions, and companies can adjust AI usage without dealing with the logistical complexities of staffing.


A business operating a call center with live agents might spend $50,000 or more annually per agent. An AI system, however, can handle a similar workload at a fraction of that cost, with monthly fees typically well below the cumulative costs of a human team. For companies managing high call volumes, AI’s cost-efficiency is especially beneficial, allowing them to scale support without a proportional increase in costs.


The cost difference between live agents and AI is even more pronounced for after-hours or seasonal support, where human staffing requires additional pay and benefits. AI’s ability to provide 24/7 coverage without added expenses makes it an attractive option for companies looking to maximize efficiency while reducing overhead.

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