Third Thoughts

RIP Customer Service

1. What happened

Customer service used to be a relationship.

You had a problem. You called. A person answered. They fixed it or they didn't. Either way, you spoke to a human who could make a decision.

That model is dead.

It was not killed by technology.
It was killed by incentives.

2. The new model

Many large companies now route customer complaints through a system designed to do one thing:

Make resolution more expensive than giving up.

The tools are familiar:

Not every company does this. Some get it right. But enough do it that the pattern is unmistakable.

3. The economics

Customer service is a cost centre.

Every contact costs money. Every resolution costs more.

The rational move is:

Most customers will give up before the company's support system gives in.

This is not a failure.
It is triage by frustration tolerance.

4. Why it got worse, not better

Technology made customer service cheaper to deliver badly — but consistently.

Of course, the cheapest customer support is not creating the need for support in the first place. But that requires caring about the product more than the margin.

Each generation of tooling reduced the cost of deflection while maintaining the appearance of availability.

The company still has a "Contact Us" page.
It may or may not lead somewhere useful.

5. The complaint rate trick

Companies measure complaint volumes.

When complaint volumes drop, they report success.

But volumes can drop for two reasons:

Most complaint reduction is the second kind.

Activity is measured. Outcome is not.
The metric improves while the problem worsens.

6. The human cost

Customers are not just inconvenienced.

They are conditioned.

After enough failed attempts to resolve a problem, most people learn:

This is learned helplessness applied commercially.

The company did not solve the problem.
It solved the complaining.

At one point, the Commonwealth Bank's call wait time to reach a human was approximately eight hours. That meant you could not get through before the bank closed, so you were forced to use CEBA — their AI chatbot. CEBA is about as smart as a bag of rocks and has no power to resolve anything. The loop was complete: you could not reach a person, and the machine could not help.

7. Why frontline staff cannot help

The people answering phones are not the problem.

They are:

The system is designed so that the person you reach cannot help you, and the person who could help you cannot be reached.

But this is not universal.

Amazon's customer service is generally good — they resolve most issues quickly, with real authority at the front line. The exception is IT-related problems, where they fall into the same loops as everyone else.

AliExpress is the opposite. Support is slow, formulaic, and often useless.

eBay has taken a different path entirely: they offer almost no customer support at all, except to refund you if you cannot work it out with the vendor directly. It is a system that outsources resolution to the marketplace.

The variation matters. It proves this is a design choice, not an inevitability.

8. The Fuckwit layer

Between the customer and anyone with authority sits a layer of middle management optimising for:

These metrics reward exactly the wrong behaviour.

A complaint closed without resolution counts the same as one closed with resolution. A customer who gives up counts the same as one who is satisfied.

The Fuckwit does not need to lie.
They just need to report the metric.

9. What AI changes for customers

We predict the rise of the personal AI complaint and support bot.

Your AI agent will not:

It will:

The company's entire deflection architecture is built to exhaust humans.

AI does not exhaust.

10. The asymmetry flips

Right now, the company uses automation against the customer.

AI gives the customer the same weapon.

For the first time, the cost of deflection rises faster than the cost of resolution.

11. What companies will be forced to do

When AI agents handle complaints:

Companies will face a choice:

The economics flip.
Resolution becomes the cheaper option.

12. Why this is Paragentic

Customer service died because passivity was profitable.

Paragentism does not ask companies to be nicer.

It changes the conditions:

No regulation required.
No outrage required.
Just agency, delegated and persistent.

13. Final line

Customer service was not murdered by greed.
It was optimised away by a system that discovered most people will accept being ignored.

AI does not accept being ignored.

That changes everything.