Centrica, the parent company of British Gas, has announced plans to cut 1,300 call centre jobs over the next two years, citing a fundamental shift in customer behaviour. According to CEO Chris O'Shea, more than 90% of British Gas customers now use digital channels first, while phone calls have dropped by 20%. The company says this change in preference is driving the cuts, not the technology itself. But a closer look at the data paints a more complicated picture: most consumers still want a human on the line when problems get serious.
The cuts come in two waves. About 500 roles were already cut last month, and an additional 800 will be removed as part of a “targeted deployment of AI tools.” Customer service centres in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds will bear the brunt of the reductions. Some positions will simply be left empty as employees leave, while others will be eliminated through redundancies. Trade unions have strongly criticised the move, warning that AI investment is effectively handing hundreds of jobs to chatbots.
Centrica’s decision reflects a broader industry trend. Companies across sectors are rushing to implement AI-driven customer service solutions, lured by promises of lower costs and faster response times. A 2026 industry report estimated that AI can reduce the average cost of a customer interaction from $4.60 to $1.45. The same report found that AI agents can resolve between 76% and 92% of basic ecommerce requests. For a company like British Gas, which handles millions of customer inquiries each year, the savings are substantial. But cost reduction is not the same as customer satisfaction.
Several recent surveys challenge the narrative that customers truly prefer AI. A February 2026 SurveyMonkey report found that 79% of Americans strongly preferred dealing with a human support agent, while only 8% actively preferred AI. Additionally, 81% of respondents believed companies were introducing AI mainly to save money rather than to improve service. Another survey by Pegasystems, conducted by YouGov among more than 4,700 consumers in North America and the UK, found that 66% preferred human-led support. Nearly half (46%) said AI rarely or never solved their problem, and only 2% wanted to deal exclusively with chatbots.
Neither survey focuses specifically on British Gas customers, but together they suggest a critical distinction: preferring to use a company’s website or app for simple tasks does not mean preferring a chatbot for complex issues. A customer might happily check a bill online or schedule a service appointment through an app. But when faced with a billing error, a dispute, or a service failure, the same customer often wants a human who can understand nuance and show empathy. This is where AI still falls short.
AI can excel in specific scenarios. Research from Intercom found that 61% of consumers preferred AI for fast replies to routine questions. For straightforward requests like checking account balances, resetting passwords, or tracking shipments, an AI chatbot can provide instant answers without wait times. This speed is a clear advantage, especially for customers who value efficiency over personal interaction. However, when the problem is complicated or emotionally charged, AI often fails. Customers become frustrated when chatbots cannot understand their specific issue or when they are forced to repeat themselves across multiple interactions.
The technology is improving rapidly. Natural language processing models, such as those powering the latest chatbots, can handle increasingly complex conversations. They can detect sentiment, offer relevant solutions, and even escalate to human agents when needed. Many companies implement hybrid models where AI handles initial triage and simple tasks, while human agents take over for more difficult cases. British Gas has not detailed exactly how its AI tools will be deployed, but the scale of the job cuts suggests a heavy reliance on automation for a large portion of customer interactions.
The impact on employees is significant. Call centre jobs have long been a vital source of employment in many UK cities. The affected centres in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds provide thousands of stable, skilled jobs. Trade unions argue that the cuts will disproportionately affect women and younger workers, who make up a large share of call centre staff. They also warn that replacing human workers with AI could lead to a decline in service quality, as customers struggle with automated systems during crises.
Centrica’s financial motivations are clear. The company has faced pressure to reduce costs amid rising energy prices and increased competition. British Gas, once the dominant energy supplier in the UK, has lost market share to smaller rivals in recent years. Investing in AI could help improve margins and maintain profitability. However, the company must balance cost savings with customer retention. If customers perceive a drop in service quality, they may switch providers, negating any financial benefits.
Public perception of AI in customer service is mixed. While younger generations are more comfortable with chatbots, older customers often prefer phone support. A study by PwC found that 59% of consumers say they have stopped doing business with a company because of poor customer service, and 76% expect companies to understand their needs and expectations. Trust is a critical factor. If customers feel that a company is using AI primarily to cut costs, they may become less loyal, even if the technology performs well.
Regulators are also paying attention. In the UK, the Financial Conduct Authority and the Competition and Markets Authority have issued guidance on the use of AI in customer interactions, emphasising the need for fairness, transparency, and accountability. Companies must ensure that their AI systems do not discriminate or give misleading information. There are also concerns about data privacy and the security of customer information when handled by AI systems.
The gas giant’s decision to cut jobs despite survey data showing a preference for human support may seem contradictory, but it reflects a broader tension in the business world. Companies are under constant pressure to innovate and reduce costs, even when customer preferences suggest caution. The challenge is to implement AI in a way that enhances, rather than replaces, human touch. Many experts argue that the best approach is a hybrid model, where AI handles routine tasks and human agents manage complex interactions. This allows companies to achieve efficiency without sacrificing satisfaction.
British Gas customers will likely continue to see changes in how they interact with the company. The app and website will become more capable, chatbots will handle more inquiries, and human agents will be reserved for the most difficult cases. Whether this leads to higher satisfaction or increased frustration will depend on execution. If AI works seamlessly and escalates appropriately, customers may adapt. If it creates barriers and errors, backlash could be severe.
The story of Centrica and British Gas is a case study in the evolving relationship between technology and employment. It highlights the need for companies to listen to their customers, not just their balance sheets. The surveys are clear: most people still want a human option when they need real help. Ignoring that preference could be a costly mistake, even if the AI tools are cheaper.
Source: Digital Trends News