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By Sharath Keshava Narayana
March 26, 2025

Call Centers Were Supposed to be Dead by Now. They're Not.

AI

“Generative AI will end call centers.” 

That’s the first thing I heard in nearly every Series B meeting last year. Some said that within 24 months, maybe even 12, human agents would vanish. And then came the question that followed me everywhere: “What will Sanas do, considering your whole business model revolves around human-to-human interaction?” After more than a dozen conversations, the message was loud and clear: human-centered businesses were doomed.

These past six months have felt surreal. It began with Sebastian Siemiatkowski and Klarna sparking a frenzy with an experiment that, despite being early and limited, was presented as the inevitable future. Investors jumped in eagerly, pouring billions into agentic solutions, fueling an atmosphere where human-centered businesses appeared to be doomed. Market caps of major contact centers evaporated almost overnight, pushed by short traders betting heavily on the demise of human interactions. 

Yet, as quickly as this storm began, cracks appeared. Sebastian himself later admitted things might not be as revolutionary as initially proclaimed. Evidence mounted that purely agentic companies, particularly AI-driven SDRs, struggled significantly, revealing up to 90% churn rates and negative gross margins. In this rush to innovate, code quality deteriorated, revenue numbers became dubious, and definitions of ARR were rewritten. Eventually, Sebastian returned with a revised stance, acknowledging the irreplaceable value of human interactions. Wait - what just happened?

Source: X
Source: X

Throughout this rollercoaster, my reactions ranged from disbelief to frustration, every imaginable “WTF” moment included. At Sanas, we paused to ask hard questions: Were we missing something? Should we pivot, chasing after another AI-driven solution like countless others? 

I’m deeply grateful we didn’t. Our team reaffirmed our foundational vision: Sanas isn’t merely a speech AI company; we’re a speech understanding company. Our mission remains clear: to empower authentic, genuine human interactions by eliminating communication barriers like accent biases and disruptive noise. We believe passionately that AI and humans will coexist, with AI enhancing human capabilities rather than replacing them. 

Reflecting on this whirlwind, it’s clear how quickly industry-wide panic - driven by bold claims and amplified by eager investors - can impact market valuations and livelihoods. At Sanas, we remain committed to a future where AI enriches human communication rather than replaces it. Thoughtful innovation matters, and we believe the best technology serves humanity first.

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