Are Customer Service Managers Training Their Teams, or Risk Becoming the New Customer Service Reps in an AI-Dominated World?

It’s 8 a.m., and Emma, an experienced customer service representative, picks up the phone. The familiar voice of Mr. Johnson greets her—frustrated again about another delayed delivery. As his anger rises, Emma feels her own frustration bubbling up. She’s heard this complaint many times.

But Emma stays calm. She knows how to manage her emotions, even when the pressure’s high.

Why?

Because she’s been trained to understand the psychological dynamics of every conversation. She uses emotional regulation, strategic language, and framing—not just to manage herself, but to guide the call toward a productive outcome.

This is the real power of customer service training.

It’s not just about solving problems—it’s about managing emotions, building rapport, and creating human connections that shape the entire customer experience.

Why Psychologically Informed Customer Service Coaching Matters—The Link Between Training and Successful Interactions

To perform at a high level, customer service reps need more than product knowledge or scripted responses. Psychological insights—like emotional regulation, framing, loss aversion, and commercial awareness—are essential to delivering quality interactions.

Companies that invest in psychologically informed coaching don’t just improve the customer experience—they build a workforce that’s more resilient and adaptable. This kind of training enables reps to respond in real time to customer emotion, rather than relying on rigid scripts.

That leads to a broader question for businesses: how are customer service structures evolving—and is outsourcing still the right call?

The Business Case for Emotional Intelligence in Customer Service

A 2023 Forbes Insights report shows emotional intelligence is more than a nice-to-have—it’s a critical success driver. Teams that demonstrate high empathy and emotional awareness perform better and turn difficult moments into lasting customer confidence.

As companies seek efficiency, especially large-scale operations, they face a key decision:

• Continue outsourcing call centres, often prioritising cost over service quality?

• Or invest in in-house teams that can manage complex, high-stakes interactions with empathy and nuance?

Research like Deloitte’s 2024 Global Outsourcing Survey and the ICMI 2022 State of the Contact Centre Report underscores a challenge: outsourced models often make it harder to deliver emotionally intelligent service. Without direct control over coaching quality and customer-handling standards, businesses risk falling short.

Where training resources go—and whether emotional intelligence is a priority—will define long-term success.

The Hidden Cost of Overlooking Psychological Training

When budgets tighten and efficiency is king, emotional intelligence training is often first to go.

While studies may not pinpoint poor service outcomes solely on a lack of emotional intelligence training, the connection is hard to ignore.

ICMI’s report shows that many contact centres offer ten or fewer days of training per year across all levels. Most of that time goes to tools, systems, and compliance—not human skill development.

The Contact Centre & Customer Services Summit supports this view: while AI and tech top investment lists, “Agent Coaching and Monitoring” ranks third—without much clarity on whether it’s building capability or just tracking performance.

Meanwhile, factors like well-being, motivation, and incentives are far lower priorities. That suggests many organisations are not investing in the human dynamics needed for strong performance.

Psychologically informed coaching shifts that. By increasing emotional awareness and interpersonal sensitivity, reps become more capable of handling customers and supporting one another.

Grounded in principles of social cognition and perspective-taking, this approach deepens team cohesion. When people feel understood by peers and managers, they’re more engaged. It supports psychological safety—creating teams that are motivated and equipped, rather than overwhelmed or reactive.

But What Do Clients Want?

Customer expectations are shifting—but one thing remains clear: human connection still matters. While AI tools can streamline support and improve consistency, many customers still prefer the reassurance of a real person, especially in emotionally charged or complex situations.

Recent studies reinforce this:

• A study by Cavell, a UK-based research and consulting firm, found that forty-four percent of UK consumers believe customer service quality has declined over the past three years. Around thirty-five percent say automated systems and chatbots fail to deliver, with half of consumers still favouring human interaction to resolve their issues.

• A twenty twenty-three BusinessWire survey showed that forty-six percent of consumers prefer a human representative when deeper understanding is needed.

• Vonage’s latest research revealed that eighty-five percent of consumers believe it’s crucial to have the option to speak to a live agent, even as self-service options improve.

These findings point to a critical limitation of AI: while it’s efficient, it struggles with the emotional nuance required in real conversations. Customers value speed, yes—but when frustration, sarcasm, trust issues, or context come into play, a human touch is still irreplaceable.

For businesses, over-relying on AI risks eroding trust—especially when customers are looking for empathy, clarity, or tailored support. Rather than seeing automation as a replacement, companies need to strike the right balance: using AI for efficiency, while strengthening the human skills that deliver emotional depth.

And that balance requires more than technology. It requires a well-prepared workforce—one that is confident, emotionally aware, and equipped to complement what AI can’t do.

It’s also important to remember: customers’ relationship with AI is evolving. Natural Language Processing and Sentiment Analysis—things like polarity detection or contextual analysis—are improving AI’s ability to read tone and emotion. That’s changing expectations, too.

For example:

• Vonage reports that seventy percent of consumers feel AI has improved self-service support.

• Sixty percent believe it’s made brand interactions more efficient.

• Fifty-one percent are comfortable with AI personalising support based on past conversations.

Some even report feeling emotionally connected to AI tools. And we should also consider how this varies across generations. Millennials, Gen Z, and even Gen Alpha are likely to engage with AI differently, depending on what they value and how they communicate.

Surveys are just snapshots, of course. They vary with sample size, timing, and audience. But the fact that these studies are being done—and that customer sentiment toward AI is becoming a legitimate area of research—shows just how quickly expectations are changing.

One thing is clear: the bar is rising. As AI becomes standard, human interaction must do more. It must be deeper, smarter, and more emotionally intelligent. That’s where your people come in.

And that brings us to a challenge that’s too often overlooked.

Bridging the Gap: The Need for a Sustainable Workforce Strategy

To meet this challenge, companies need to move beyond surface-level engagement. Retention strategies aren’t enough. What’s required is a sustainable, long-term workforce approach that invests in human growth alongside technology.

That means:

• Personalised coaching that builds emotional intelligence and real-world problem-solving.

• Clear skill development pathways that help employees connect their experience to future opportunities.

• AI-assisted tools that enhance—not replace—human judgement and communication.

Companies that prioritise these areas won’t just retain their talent—they’ll elevate their service. They’ll build call centre teams that are seen as strategic assets, not cost centres. And they’ll create alignment between marketing promises and actual customer experience.

If that doesn’t happen? Then the weight of emotionally charged interactions will fall to the only people left to carry them: managers.

Which leads us to the next overlooked piece of the puzzle.

The Overlooked Skill: People Management in Call Centres

As automation reshapes service delivery, many organisations continue to underinvest in the one skill that could determine their future: people management. Budgets go to technology. Time goes to operational targets. But leadership training? Often sidelined.

The "accidental manager" problem is widespread. A Times report revealed that eighty-two percent of UK managers have never received formal leadership training. Many are promoted based on performance, not readiness to lead. The result? Inconsistent leadership, teams that feel unsupported, and attrition that quietly chips away at performance.

In a world where AI handles the basics, human leadership must evolve. Managers aren’t just tracking metrics anymore—they’re coaching teams through emotionally complex situations. Without those skills, service quality—and team engagement—will suffer.

The Evolving Role of Call Centre Managers: From Oversight to Experience Architects

Traditionally, managers focused on metrics: average handling time, script adherence, resolution rates. But now, with AI taking over those transactional tasks, managers must shift their focus from monitoring to meaning.

Their role becomes one of shaping the customer experience and creating the conditions for human agents to thrive.

This includes:

• Using AI insights to personalise coaching, not just track performance.

• Building emotional intelligence and adaptive communication skills in their teams.

• Creating a work culture that supports high-quality, high-empathy human interaction.

Many companies already use real-time AI tools that detect frustration in a caller’s voice. But metrics alone don’t change behaviour. Managers need the skills to turn that insight into meaningful, human coaching—teaching agents to regulate emotions, de-escalate tension, and lead with empathy.

Without that? Managers end up stuck in firefighting mode—stepping in only when things have already gone wrong.

Call Centres at a Crossroads: A Leadership Reckoning

For years, people management in contact centres was intuitive. Some managers naturally led well. Others didn’t. And as long as service was “good enough,” the cracks were ignored.

Now AI is holding up a mirror.

As automation takes over basic tasks, every remaining human interaction is under a spotlight. Customers aren’t calling because they want to—they’re reluctantly switching channels because they need something AI can’t provide: emotional connection, trust, and nuance.

So when Emma picks up the phone, it’s not just about solving a problem. It’s about shaping trust. Emma isn’t competing with other agents—she’s being measured against AI’s speed and consistency. What she brings is depth, emotional clarity, and reassurance. But only if she’s trained for it.

And the same goes for her manager.

Instinct Isn’t Enough Anymore

Some managers are naturally gifted communicators. They know how to resolve conflict, build trust, and inspire teams. But many haven’t stopped to ask why their approach works—or whether it applies across teams and contexts.

Without this reflection, even good instincts can lead to blind spots.

As AI raises the bar for consistency, human leadership must rise to meet it. And that doesn’t come from copying best practices. It comes from deeper development.

Let’s take a closer look at the skills that will define strong leadership in this new environment.

Developing High-Impact Leadership in the AI Era

As AI handles more, human-led interactions will demand more precision. This is no longer a checklist job—it’s a shift in mindset. Leadership will need to be thoughtful, dynamic, and psychologically aware.

Some of the core challenges include:

• Psychological Safety – Creating environments where people feel safe to speak up, admit mistakes, and share ideas without fear. This isn’t about encouraging generic openness—it’s about understanding the barriers that hold people back and removing them.

• Trust Building – Cultivating relationships built on credibility, consistency, and honesty. Trust isn’t automatic—it takes deliberate work and can break easily if mishandled.

• Blind Spot Awareness – Recognising unconscious patterns that shape leadership behaviour. This requires more than awareness—it needs regular reflection and active unlearning.

• Navigating Organisational Dynamics – Managing the tension between politics, ethics, and performance. Leaders must interpret the undercurrents, not just the surface data.

And when it comes to managing complex human dynamics:

• Selective Disclosure – Understanding why employees withhold information, and how to create conditions for openness.

• Perspective-Taking – Seeing from others’ viewpoints without losing objectivity. Done well, this fosters empathy. Done poorly, it creates distortions.

• Residual Emotion Management – Addressing unresolved tension or past conflict that lingers in a team. These undercurrents quietly influence collaboration and performance if left unacknowledged.

Each of these demands strategic application, real skill, and emotional clarity. Leadership in an AI-powered world means more than managing people—it means understanding them.

Empowering Teams with Psychological Insight

It doesn’t stop with managers. Teams also need to be trained in psychological principles that elevate their communication from reactive to intentional.

That includes:

• Emotional regulation and cognitive reframing—to manage stress and redirect difficult conversations.

• A practical understanding of buyer psychology—to build trust and adapt communication in real time.

These are the skills that shift service from scripted to sincere. Are you focusing on that right now?

AI Is Evolving at an Unprecedented Pace

So take a moment. Just pause.

Where has your attention been lately? Are you constantly in response mode—firefighting, juggling priorities, staying afloat?

Are you leaning on what’s familiar, hoping it still holds up?

Or are you carving out space to lead differently—to think beyond the day-to-day and into what your team really needs next?

Here’s the quiet truth: when you invest in Emma—when you coach her, back her, and give her space to grow—you’re not just helping her succeed.

You’re giving yourself breathing room.

You’re shifting from survival to strategy.

AI isn’t here to replace you. It’s here to refine how you lead.

The only question is: are you ready to lead that change?