Here's a statistic that might surprise you: 71 percent of Gen Z respondents now believe live phone calls are the quickest and easiest way to reach customer care. This finding flies in the face of conventional wisdom that younger generations prefer digital-only interactions. Yet while companies rush to implement chatbots and digital channels, many are overlooking the channel that remains their highest-value customer touchpoint—the phone.
This digital-first bias is creating a dangerous blind spot. As organizations pour resources into chatbots, social media support, and mobile apps, they're leaving their most critical channel largely untouched by artificial intelligence. The urgency of this transformation was recently underscored when OpenAI CEO Sam Altman, speaking at a Federal Reserve conference, highlighted AI's transformative potential in customer service, specifically contrasting "old, frustrating phone tree systems" with new AI capabilities that can resolve customer issues instantly.
The phone remains the most expensive channel to ignore when automation fails. The hidden costs of neglecting phone automation in 2025 extend well beyond obvious operational expenses, creating compounding financial and strategic risks that threaten competitive positioning.
Call volume has increased by 61 percent since 2021, suggesting that rather than being displaced by digital channels, phone support is experiencing renewed demand. The phone channel consistently delivers the highest customer satisfaction rates when executed well, with customers citing the ability to convey emotion, receive immediate clarification, and build rapport with service representatives.
However, this highest-value touchpoint becomes the most expensive liability when automation fails. Customers expect phone support to be as efficient and intelligent as their digital alternatives. The challenge is that while customer expectations have evolved, many organizations still operate with legacy call center models designed for a pre-digital era.
The financial implications become clear when examining traditional call center economics. According to the Bureau of Labor Statistics, a customer service representative costs approximately $42,830 in salary alone. When factoring in benefits, training and overhead costs—typically an additional 30 percent to 40 percent—the total cost per agent reaches $55,000-$60,000 annually. For a 1,000-agent operation, this translates to more than $55 million in annual labor costs alone.
The most expensive consequence occurs when enterprises automate digital channels while leaving phone support untouched. This creates an inconsistent customer experience that undermines broader digital transformation efforts. Customers notice when they receive intelligent, personalized service through a chat interface but encounter outdated, inefficient processes when they call—the very channel they value most.
The business case for voice-first automation becomes compelling when examining real-world results. McKinsey research found that organizations using generative AI-enabled customer service agents experience a 14 percent increase in issue resolution per hour and 9 percent reduction in time spent handling issues.
Case studies demonstrate why voice-first matters: A global healthcare leader reduced call handling time 30 percent and improved first-call resolution rates by 25 percent after implementing AI-powered voice automation. Voice AI solutions can handle interactions for as little as 20 cents per minute, compared to more than $55,000 annual cost per traditional agent.
The most expensive scenario occurs when phone automation fails while digital channels succeed. This creates a hierarchy of customer experience that positions the highest-value touchpoint as the most frustrating interaction. Failed phone automation compounds costs through increased escalations, customer churn, and negative word-of-mouth that undermines digital channel investments.
Modern voice automation addresses these risks through advanced natural language processing, sentiment analysis, and seamless human escalation while maintaining the personal connection customers value in voice interactions.
The evidence is unambiguous: Companies that neglect phone automation accept unnecessary costs while ceding competitive advantage. With 8.4 billion voice assistants in active use worldwide and the speech analytics market growing at 15.61 percent annually, voice-first automation has moved from experimental technology to business imperative.
The Federal Reserve's recent AI transformation conference signals that voice automation is no longer a niche concern but a fundamental economic shift requiring strategic attention from company leaders. The hidden costs of neglecting phone automation compound daily, making voice-first strategies essential for sustainable competitive advantage.
Marie Angselius-Schönbeck is chief impact officer of teneo.ai.