British Gas Owner Says Customers Prefer AI Chatbots Over Staff 2026

British Gas owner Centrica says customers prefer AI chatbots over human staff as it cuts 1,300 jobs, citing a shift in customer behavior toward digital channels. The FTSE 100 utility company plans to eliminate 800 roles through a targeted deployment of AI tools, adding to 500 cuts announced last month. CEO Chris O’Shea defended the move, noting that over 90% of customers now use digital channels first and call volumes have dropped 20%.

Why Centrica Is Cutting Jobs Despite Rising Profits

Centrica reported a rise in retail profits even as British Gas lost customers to rivals. The job reductions will affect call centers and back offices in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds, reducing the customer service workforce by 14% over two years. Some roles will be left unfilled after resignations, while others will result from redundancies. Trade unions have criticized the plan, saying it hands hundreds of human jobs to chatbots. However, O’Shea insists the changes reflect evolving customer preferences, not just cost-cutting.

How AI Chatbots Are Changing Customer Service

The use of AI-powered chatbots in customer service is growing rapidly across industries, especially in energy utilities. These digital assistants handle routine queries, billing issues, and account management, freeing human agents for complex cases. According to Centrica, the shift to digital has reduced the need for phone-based support, leading to a structural reorganization.

The table illustrates the dramatic shift. Centrica expects to grow jobs in digital interface development while reducing phone-based roles. This mirrors a broader trend: many companies are investing in AI chatbots to improve efficiency and customer satisfaction.

Key Takeaways From the British Gas Job Cut Announcement

• Centrica will cut 1,300 jobs across call centers and back offices over two years.
• Over 90% of customers now use digital channels first, reducing call volume by 20%.
• CEO Chris O’Shea says AI is not the primary driver—customer behavior is changing.
• Trade unions warn that hundreds of human jobs are being replaced by chatbots.
• British Gas will pay up to £112 million in compensation for force-fitted prepayment meters.

What This Means for the Energy Industry

The shift toward AI-driven customer service is not unique to British Gas. Many utility providers are adopting chatbots to handle high volumes of inquiries, especially after the Russian gas crisis highlighted the need for scalable support. While job losses are painful, companies argue that digital channels offer faster, more convenient service for most customers. Critically, the remaining human agents can focus on complex issues that require empathy and judgment.

FAQ

As the debate continues, one thing is clear: the role of AI in customer service will only grow. For businesses, the challenge is balancing efficiency with human touch. For workers, upskilling in digital roles may become essential. Centrica’s move could be a sign of things to come across the energy sector and beyond.