Tariff-hit brands cut back on customer service reps and turn to AI chatbots to cut costs

This article was first published by Digiday sibling Modern Retail.

Brands are relying more heavily on chatbots powered by artificial intelligence to handle customer service queries as they seek to mitigate tariff costs.

Some brands, particularly small businesses, are laying off customer service agents or scaling back outsourced call center contracts in favor of AI chatbots as part of broader efforts to offset tariffs imposed this year by the Trump administration.

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