British Gas owner defends AI chatbot use amid 1,300 job cuts

By the Editorial Team · Friday, July 24, 2026

Centrica is cutting 1,300 call centre jobs over two years as it shifts customer service toward digital channels and increased use of AI, with job losses affecting multiple UK locations. The company says this reflects changing customer behavior rather than AI-driven cuts, and it plans to grow roles in digital services despite union concerns about employment and service quality.

Centrica, the owner of British Gas, has defended its decision to reduce call centre staffing by 1,300 jobs amid a transition toward greater use of artificial intelligence (AI) in customer service. The company plans to cut 800 positions as part of an ongoing move to integrate AI tools more extensively, adding to 500 job losses announced last month. These reductions will affect call centres in Glasgow, Edinburgh, Cardiff, Leicester, Stockport, and Leeds.

The workforce cuts represent roughly 14% of the supplier’s customer service teams and are expected to unfold over two years, with some roles left unfilled following resignations. While trade unions have criticised the company’s increased reliance on AI, warning it could lead to hundreds of jobs being replaced by chatbots, Centrica’s chief executive, Chris O’Shea, maintained that the changes mainly reflect shifting customer preferences rather than AI itself being the direct cause.

“AI isn’t driving these particular job reductions; that’s mainly due to changing customer behaviour,” O’Shea said. He highlighted that more than 90% of customers now use digital channels as their first point of contact, coinciding with a 20% drop in customer calls. “This simply reflects the changing customer behaviour. We expect to grow more jobs around our digital interface, and maybe having fewer people on the phones,” he added.

Despite the reduction in call centre roles and a decline in domestic customer numbers from 7.5 million at the end of last year to 7.45 million, Centrica reported an increase in retail division profits over the first half of 2026. Profits rose to £346 million, up from £338 million in the same period the previous year. O’Shea attributed the profit growth to the company’s focus on higher-margin fixed-price tariffs.

The move to more automated customer interactions comes amid broader industry trends as energy suppliers adapt to digital tools to improve efficiency and reduce operating costs. However, unions remain concerned about the impact on employment and the quality of customer service, maintaining that the shift towards AI-driven support risks reducing human engagement. Centrica’s stance contends that evolving customer habits justify the changes, with a continued commitment to expanding digital roles within the company.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.