CVS may soon show whether AI can start to replace call centers

• Companies are increasingly turning to AI to see if it can improve the customer service experience.
• CVS plans to use AI so that pharmacy customers don't have to go through a menu option, per The Wall Street Journal.

CVS plans to use artificial intelligence in an effort to improve the customer-service experience, CVS Health Chief Technology Officer Tilak Mandadi told The Wall Street Journal.

Mandadi told the publication that the retail giant's health division plans to roll out an app so that customers don't have to get on the phone to reach a pharmacist or a live agent at a call center — a practice that's less favored by Gen Z.

The app will rely on AI so that customers can get text-based answers in a "natural language," Mandadi said.

But for those who still want to call, Mandadi said that CVS will also use AI so that customers don't have to go through a tedious menu option on the phone and can immediately ask their questions.

"For calls, we want to move away from the traditional, incredibly annoying menu-based options—such as press 1 for this, press 2 for this, etc.," Mandadi told The Journal. "Instead, you will just say what you are calling about, and AI will respond if it can answer the question."

The CTO added that customers will be directed to a live customer representative if the AI cannot answer their questions.

CVS is the latest retail giant to rely on AI to assist customers.

For a few years, McDonald's was testing an AI-powered drive-through service at 100 locations. The restaurant recently ended the program after viral videos online showed the technology screwing up customer orders.

But for call centers, AI is already being tested in pivotal roles in assisting employees.

The technology, for example, could help emergency dispatchers get real-time translation of a caller's speech, Business Insider previously reported. AI could also help prioritize those calls during high-volume periods, which can be crucial for a field that is understaffed.

SoftBank Corp. is also testing an AI that can soften the tone of a caller's voice to reduce the stress of a customer service representative.

AI chatbots have also started to replace some need for a live representative, especially for the phone-call-averse generation.

Affirm, the buy-now, pay-later provider, found that less than 40% of customers needed to speak with a person after using its AI chatbot, according to the company's CEO Max Levchin.

One study by Gartner, a tech research firm, showed that AI could replace 20 to 30% of customer service agents by 2026.

It's unclear when CVS will roll out its new app and AI-powered service.

A CVS spokesperson did not immediately return a request for comment sent outside business hours.