British Gas Axes 1,300 Jobs as Customers Prefer AI Chatbots 2026

British Gas is cutting 1,300 call centre and back office jobs because its customers increasingly prefer AI chatbots over human staff, according to owner Centrica. The FTSE 100 energy supplier plans to reduce its customer service teams by 14% across multiple UK cities over two years, citing a 20% drop in customer calls.

The shift reflects a broader trend in energy utility customer service. Centrica CEO Chris O’Shea stated that over 90% of customers now use digital channels first, and that the job reductions are driven by changing customer behavior rather than AI forcing cuts. However, trade unions argue that the company's investment in artificial intelligence is directly replacing human roles with chatbots.

Why British Gas Is Cutting Jobs

Centrica’s decision to cut 800 jobs from call centres and back offices—on top of 500 cuts announced last month—is part of a “targeted deployment of AI tools.” The company expects some roles to be left unfilled after resignations, with the remainder coming from redundancies. Locations affected include Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds.

Customer Preference for Digital Channels

According to O’Shea, “AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour.” He noted that the company has seen a 20% reduction in customer calls, leading to more investment in digital interfaces and fewer phone-based roles. Centrica plans to grow jobs around its digital platforms, but the overall headcount is shrinking.

Impact on Customer Service

While AI chatbots can handle routine queries efficiently, critics worry about the loss of human empathy in complex situations. British Gas has also faced controversy over forced prepayment meter installations, for which it expects to pay up to £112 million in compensation. The company’s retail profits rose in the first half of the year despite losing customers to rivals.

Comparison: Traditional Call Centres vs. AI Chatbots

Key Takeaways

• British Gas is cutting 1,300 jobs across call centres and back offices.
• CEO cites customer preference for digital channels and AI chatbots.
• Unions warn of human jobs being replaced by automation.
• Centrica plans to invest in digital interfaces while reducing phone support.
• Customers forced to use AI may lose access to human agents in urgent cases.

FAQ

The shift to AI chatbots in energy utilities is likely to continue as companies like Centrica invest in automation. For customers, this means faster responses for routine tasks but potentially less support for complex issues. British Gas aims to balance digital growth with customer care, but the number of human agents will shrink significantly over the next two years.

As AI chatbots become the first point of contact for most energy customers, understanding how to navigate these systems—and when to request a human—will be essential. The industry is watching Centrica's move as a bellwether for customer service trends across utilities.