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

Centrica, the owner of British Gas, is cutting 1,300 call centre and back office jobs, claiming that customers increasingly prefer AI chatbots over human agents. The FTSE 100 energy giant plans to eliminate 800 positions through a targeted deployment of AI tools, on top of 500 cuts announced last month, reducing its customer service teams by 14% across Glasgow, Edinburgh, Cardiff, Leicester, Stockport and Leeds over two years.

Why British Gas Is Choosing AI Over Employees

Chief Executive Chris O’Shea defended the decision, stating that the shift is driven by changing customer behaviour rather than cost-cutting alone. “AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour,” O’Shea said. “Over 90% of our customers use digital channels in the first instance, and we’ve seen a 20% reduction in customer calls.”

Trade unions have criticised the move, arguing that the company’s investment in artificial intelligence will hand “hundreds of human jobs” to chatbots. However, O’Shea insists the transition will create new roles in digital interfaces and data management, even as traditional phone-based roles decline.

Impact on Customer Service and Job Market

The job cuts come as British Gas gradually loses customers to rival suppliers. Centrica reported a rise in retail profits for the first half of the year despite a shrinking customer base. Additionally, the company is expected to pay up to £112 million in compensation to thousands of customers who had prepayment meters force-fitted during the height of the Russian gas crisis—the largest energy supplier settlement on record.

Key Takeaways: What This Means for Businesses

• AI chatbots are becoming the primary customer service channel, reducing reliance on human agents.
• Companies like Centrica are cutting thousands of call centre jobs while investing in digital interfaces.
• Customers increasingly prefer self-service options, a trend accelerated by the pandemic and AI advancements.
• Job losses in traditional roles are often offset by new positions in data analytics, AI management, and digital support.

The Future of Customer Service: Human vs. Machine

O’Shea’s comments highlight a broader shift across industries. Many firms now deploy AI-powered chatbots to handle routine queries, freeing human agents for complex issues. Yet critics warn that automation can lead to impersonal service and hidden costs, such as the compensation payouts British Gas now faces.

For businesses considering similar moves, the key is balance—using AI to enhance efficiency while retaining enough human touch to handle sensitive cases. British Gas’s experience shows that customer behaviour is evolving fast, and companies must adapt or risk falling behind.

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