A recent FCC proposal suggests new rules to ensure that customer service agents are located in the US, with the proposition that Americans receive better support when they call a business and connect with a person in the same country. Improved customer service is an important goal that we share, but the current proposal risks creating the opposite outcome.

The legislation discourages offshore agents, but it does nothing to actually incentivize hiring US-based human agents. So, instead of bringing customer service jobs back to the United States, the rules will likely accelerate a massive shift toward AI-dominant customer service. And that’s not what consumers want. When people pick up the phone to call a business, it’s usually because they need help solving a problem quickly. They don’t want to fight through automated systems or conversational bots.

At AnswerConnect, we conducted a 6,000-person study with market-leading research company OnePoll, examining customer preferences for service interactions. The results were clear: 83% of consumers want to speak to a real person rather than an AI when contacting a business. In high-stakes industries such as legal, medical, and the trades, this percentage was even higher, reaching nearly 90%.

While AI customer service tools are becoming more common, they fail at natural, two-way conversations. They struggle with nuance, context, and answering questions. Common complaints about AI in customer support include failure to understand intent, irrelevant or incorrect responses, breakdowns outside scripted scenarios, and a lack of empathy when issues arise. Customers are left frustrated, and businesses pay the price.

The AI loophole

We’re pleased to see that the proposal calls for businesses to disclose whether a caller is speaking to AI and to provide an option to request to speak to a human. But this still creates a gray area.

Instead of bringing more jobs to American workers, businesses are likely, in most cases, to replace people in customer service roles with bots. The key gap is that the law enables calls to be handled by AI as the default. This loophole undermines the spirit of the legislation, which positions itself as a champion of a better caller experience. 

In practice, many customers won’t realize they can request a human or may abandon the call before doing so. Our research shows that 1 in 3 callers will just hang up on AI. Policy should empower companies to deliver the service customers actually want: real, empathetic humans who can solve problems, with AI being used as a tool to support, not replace them. This approach prioritizes quality, trust, and transparency over arbitrary geographic mandates.

Security concerns won’t disappear

Another aspect of the FCC proposal is requiring certain sensitive transactions, like password resets or sharing bank information, to occur only at US-based call centers in order to reduce the risk of fraud, which they explain more often happens in off-shore interactions. But if businesses respond by deploying AI systems instead of human agents, the risk doesn’t go away; it just moves.

AI systems handling sensitive customer information introduce new security and trust challenges, particularly when consumers already express significant concerns about sharing personal data with automated systems. In our study, we found that 67% of consumers did not want AI to have access to their personal information at all.

Sensitive transactions require judgment, adaptive questioning, and strong fraud detection. AI systems struggle with identity verification, off-script conversations, and sophisticated impersonation attempts. Humans are adept at realizing when something is off and adapting accordingly. Allowing AI to handle these interactions will create new security vulnerabilities rather than reducing them.

A better path forward

If the goal is to improve customer support, heighten security, and create more jobs in the United States, the policy should focus on encouraging human customer service roles, not inadvertently replacing them.

We believe the FCC should:

  • Prioritize policies that support human customer service jobs
  • Close loopholes that allow companies to replace offshore agents with AI-majority systems
  • Ensure transparency while also protecting the consumer preference for human support
  • Consider incentives for businesses that maintain predominantly human customer service agents

Technology has a role to play in customer service, helping agents work more efficiently. But AI should not replace the human connection customers rely on when they need help most. If we want better service, stronger trust, and real job creation in the United States, the answer isn’t more bots. It’s more people. 

We encourage the FCC to ensure that these rules truly support the future consumers want: one where technology assists but human-to-human conversation is protected.

Frequently asked questions

1. Will the FCC call center proposal increase AI customer service?
Yes, the proposal discourages offshore agents but does not restrict AI systems. It also does nothing to incentivize businesses to use human customer service reps. This will likely lead most businesses to automate customer service rather than hire US agents. 

2. Do consumers prefer AI or human customer service?
Most consumers prefer humans. In our study of 6,000 people, 83% said they want to speak to a real person when contacting a business. And 1 in 3 said they’ll hang up if connected to AI.

3. Will the FCC call center proposal improve customer service? 
The proposition is based on the belief that Americans receive better support when they call a business and connect with a person in the same country. However, as it does nothing to restrict the use of AI in customer service, businesses will likely choose to use AI by default. And that’s not what callers want. 

4. Will the FCC call center proposal help improve the security of phone transactions? 
No, because it enables businesses to use AI as the default option for customer service, it will create more security threats. Sensitive transactions, such as sharing passwords and bank information, require judgment, adaptive questioning, and robust fraud detection. All things that AI systems struggle with. Humans are more adept at noticing when something is off and adapting accordingly. 

5. Will the FCC call center proposal create more jobs in the US?
No, it will likely shift towards AI-dominant customer service, as the proposal does nothing to incentivize the use of human agents.