Microsoft saved half a billion dollars thanks to AI in call centers

Last year, Microsoft saved over $500 million by deploying artificial intelligence across key areas of its business, revealed Judson Althoff, the company’s chief commercial officer, during an internal presentation obtained by Bloomberg. Most of these savings came from using AI in customer support, particularly in its call centers.

AI boosts productivity and revenue

According to Bloomberg sources, AI tools not only reduced costs but also improved employee productivity and customer satisfaction. The technology has taken over handling interactions with smaller customers, while in sales, staff use Microsoft’s Copilot assistant to find leads and close deals faster. As a result, revenues in this segment have increased by around 9%.

Not just success stories — thousands of layoffs in the background

The revelations about huge savings and higher efficiency come at a tough time for Microsoft’s public image. The company just announced another wave of layoffs affecting about 9,000 employees worldwide. This is on top of cuts earlier this year, including 6,000 positions two months ago, mainly software engineers at its Redmond headquarters.

AI increasingly pushing humans out of jobs

While AI clearly delivers tangible benefits to companies, concerns are growing about its impact on the labor market. Salesforce recently admitted that already 30% of its tasks are handled by AI systems. Meta, meanwhile, predicts that algorithms will soon be performing the work of mid-level engineers. Similar signals came from Salesforce CEO Marc Benioff, who suggested the company may limit hiring new developers because “agentic” AI systems are taking over their duties.