AI Revolution in Customer Service: Alorica's Groundbreaking Translation Tool

Alorica has introduced an AI translation tool that allows customer service representatives to assist customers in 200 different languages. While there are concerns about AI reducing jobs, Alorica continues hiring and proves AI can enhance productivity rather than eliminate jobs entirely. AI's impact on employment remains uncertain.

Imagine a customer-service center that speaks your language, no matter what it is.

Alorica, a company in Irvine, California, that runs customer-service centers worldwide, has introduced an artificial intelligence translation tool that lets its representatives communicate with customers who speak 200 different languages and 75 dialects.

An Alorica representative who speaks only Spanish, for example, can handle a complaint from a Cantonese speaker in Hong Kong about a malfunctioning printer. Alorica would no longer need to hire a representative who speaks Cantonese.

This showcases the power of AI, though it also raises concerns that fewer employees might be needed if chatbots can manage the workload instead. However, Alorica continues to hire aggressively, countering the fear that AI will lead to mass unemployment.

The experience at Alorica and other companies like IKEA suggests AI might eliminate some jobs while creating others, making workers more productive and benefiting both the economy and the workforce.

Nick Bunker, an economist at the Indeed Hiring Lab, noted that while AI will impact many jobs, it is unlikely to cause mass unemployment. Technological advancements historically create new jobs, and AI appears to follow this trend.

Recent AI advancements, particularly the introduction of ChatGPT in 2022, have raised concerns about AI replacing jobs. Despite this, the White House Council of Economic Advisers reported little evidence that AI will negatively impact overall employment. Moreover, history shows that technology typically boosts productivity and spurs economic growth.

Companies like IKEA have retrained customer-service workers to handle more complex inquiries, even after introducing AI-powered tools, demonstrating that AI can enhance rather than replace human jobs. Studies confirm that AI tools significantly improve worker productivity, particularly among less-experienced employees.

The AI tools at Alorica's call center have reduced customer handling times and increased the number of calls representatives can manage, proving AI's potential to enhance efficiency without cutting jobs. Alorica also uses a Real-time Voice Language Translation tool to allow conversations in the user's preferred language, furthering its commitment to leveraging AI for productivity without reducing headcount.

Despite AI's growing capabilities, Alorica's continual hiring efforts underscore that human workers remain vital. AI can complement the workforce, handle routine tasks, and allow employees to focus on more complex responsibilities.

(With inputs from agencies.)