Category: In the News

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Tariff-hit brands cut back on customer service reps and turn to AI chatbots to cut costs

This article was first published by Digiday sibling Modern Retail.

Brands are relying more heavily on chatbots powered by artificial intelligence to handle customer service queries as they seek to mitigate tariff costs.

Some brands, particularly small businesses, are laying off customer service agents or scaling back outsourced call center contracts in favor of AI chatbots as part of broader efforts to offset tariffs imposed this year by the Trump administration.

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As AI alters cost of creative, indie agencies review how they charge clients

Generative AI tools promise enormous economies of scale for small creative agency teams. Good news for independent agencies struggling to find some breathing room on the ever-squeezed bottom line — until clients begin expecting those savings to be passed along to them, that is.

Digiday spoke with seven indie agency execs in the U.S. and U.K. about how they’re navigating that problem.

In recent weeks, we’ve seen how major advertisers like Unilever, Kimberly-Clark and Yum! Brands have overhauled creative production workflows to take advantage of generative AI’s potential. Naturally, it’s been music to the ears of shareholders hungry for signs that CEOs are using AI to drive down costs.

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