How Telecoms Can Cut Costs by 59% with Conversational AI + IVR

In the telecom industry, every missed call, long wait, or inefficient routing isn't just a customer experience issue—it's a significant loss of money.

Many companies still rely heavily on outdated IVR systems or expensive live agents to handle routine customer queries. But there's a better way: a hybrid model that blends Conversational AI with your existing IVR.

Below, we break down exactly how this approach works—and why telecom operators adopting it are slashing costs while improving service.

Cost Structure: AI vs IVR vs Live Agents

What a Hybrid IVR + AI System Looks Like

In a hybrid setup:

1. IVR handles structured tasks: Call intake, identity capture, basic routing. Cheap and efficient.

2. Conversational AI takes Tier-1 calls: Natural Q&A, billing queries, plan changes, FAQs.

3. Live agents handle escalations only: Reserved for Tier-2+ complex or sensitive interactions.

This structure ensures that each customer interaction is handled by the most cost-effective resource available.

Cost Savings Example (Telecom Call Volume)

Let’s model a typical telecom contact centre scenario:

• Monthly Call Volume: 30,000 minutes

• Tier-1 (Basic) Queries: 80% of volume = 24,000 minutes

• Tier-2 (Complex) Queries: 20% of volume = 6,000 minutes

• AI handles 80% of Tier-1 without escalation

Cost with Traditional IVR + Live Agents

Even with IVR, most calls end up with a human:

• 30,000 minutes × £1.00 = £30,000/month

Cost with Hybrid IVR + AI Model

Tier-1 (24,000 mins):

• 80% handled by AI: 19,200 mins × £0.08 = £1,536

• 20% escalated to human: 4,800 mins × £1.00 = £4,800

Tier-2 (6,000 mins):

• All handled by human agents: 6,000 mins × £1.00 = £6,000

Total Monthly Cost =
£1,536 (AI) + £4,800 (Escalated) + £6,000 (Tier-2) = £12,336

Total Monthly Savings: ~£17,664

Old Model: £30,000/month
Hybrid Model: £12,336/month
Savings: ~59% reduction in support costs

Why This Model Works for Telecom SMBs

• Lower Cost per Minute: AI drastically reduces spend on high-volume, low-complexity calls.

• Agent Efficiency: Live staff only focus on complex tasks—reducing burnout and improving resolution.

• Faster Changes: AI systems update in hours, not weeks—no more hardcoded IVR tree delays.

• Always-On Support: Conversational AI operates 24/7 without additional labour cost.

Real Results: One Telecom’s Experience

A mid-sized telecom client implemented our hybrid IVR + AI setup for billing and plan-change queries. In 90 days, they achieved:

• 28% drop in average handle time (AHT)

• 19% reduction in Tier-1 call escalations

• ~£200,000 projected annual savings

• Improved CSAT and NPS scores

All without replacing their existing telephony systems.

Ready to Start Small and Scale Fast?

You don’t need to overhaul your IVR or retrain your entire support team.

With plug-and-play Conversational AI, you can:

• Start with a few call types (like billing or FAQs)

• Measure impact in weeks

• Scale AI to other areas as ROI grows

Want to see what this would look like for your telecom business?
Book a quick consultation or try our cost-savings calculator.

Let’s Talk: Schedule Your AI Call Experience Audit

Related Resources:

• Conversational AI vs Traditional IVR – Infographic