US Labor Costs Hit Record High, AI Customer Service Market Poised for Growth
US average hourly earnings reached a record $37.64 in June, up 3.5% year-over-year. This rising labor cost is accelerating the AI customer service market, projected to grow from $13 billion to $84 billion over the next decade, with a forecast 5% decline in customer service employment.
The cost of labor in the United States has reached an all-time high. According to recent data, average hourly earnings hit $37.64 in June, marking a record high and a 3.5% increase year-over-year. For online retailers, the monthly cost of hiring a single customer service representative now stands at approximately $4,000.
These rising labor costs are driving rapid expansion in the global AI customer service market. The market is expected to grow from $13 billion to $84 billion between 2024 and 2033, representing a compound annual growth rate of 23.2%. Over the same period, employment in customer service roles is projected to decline by 5%.
As labor costs continue to climb, the return on investment for AI-based solutions becomes increasingly compelling for businesses.
Source: The Kobeissi Letter