This weekly update covers major changes happening in customer service as AI agents become smarter and more powerful. These intelligent machines are learning to do real work, not just answer simple questions. Let's explore what is happening and why it matters for businesses and customers everywhere.

Google Cloud's Big Announcement

On January 8, Google Cloud introduced Gemini Enterprise for Customer Experience, an AI platform that brings shopping and customer service together. Before this, most stores used separate systems for product searches, buying, and customer support. This meant customers had to repeat their information over and over as they moved between different websites and apps. Google's new platform solves this problem by using AI agents that remember everything about a customer and can help them from start to finish. The system can help customers pick the right size or style of product, add items to their shopping cart, and even handle returns and refunds. Early customers using this system include Kroger (which uses it for meal planning), Lowe's (for home improvement advice), Papa Johns (for taking food orders), and Woolworths Group.

AI is Getting More Mature and Serious

According to a report called "2026: The Year of Grown-Up AI in Customer Service," artificial intelligence in customer support has moved beyond the testing stage. Instead of just experimenting with AI, companies are now using it every single day to help their workers and customers. AI is improving at understanding tone, emotion, and what customers really want, even in the middle of a conversation. This means AI can now suggest exactly what a customer needs at the right moment. In banking especially, AI is solving about 80% of all customer questions, and experts predict this will reach 90% or higher by the end of 2026.

Companies Are Rethinking Customer Service Jobs

New research from Gartner shows that 91% of company leaders are being told by their bosses to use AI to improve customer service. This is changing how many workers businesses need and what kind of jobs they are creating. More than 80% of organizations expect to hire fewer customer service workers over the next 18 months, while at the same time, almost 80% plan to move workers into new types of jobs. The good news is that instead of firing workers, companies are asking them to learn new skills. As AI handles simple, repetitive questions, human workers are moving into work that requires empathy, judgment, and creativity—things that machines still cannot do well. These new jobs might include helping AI systems learn, reviewing content that AI creates, or handling the toughest customer problems.

AI That Speaks Many Languages

One exciting development is that AI agents are getting better at helping people who speak different languages. Companies have discovered that agentic workflows (AI systems that work together on complex tasks) can answer questions in multiple languages 63% faster than before. The AI can detect what language a customer is using, find the answer in one language, and then translate and adjust it for the customer's specific region and style of speaking. This technology even picks up on emotions—if a customer sounds frustrated in Spanish, the AI can tell and adjust how it responds.

Shopping Is Changing Too

Retailers are experimenting with new ways for people to shop using AI. Shopify announced agentic storefronts that let customers buy things inside conversations on platforms like ChatGPT, Perplexity, and Microsoft Copilot. This means instead of going to a store's website, a customer could be chatting with an AI on their favorite platform, mention they need something, and buy it right there in the conversation. The purchase information automatically goes back to the store so they can track the sale.

What Companies Need to Do Now

Exports from Orange Business say that the real operating system of good customer service in 2026 is something called Customer Journey Management. This means thinking about the entire experience a customer has, from the first time they learn about a product all the way through getting help after they buy it. Companies using AI agents successfully are combining technology with better human skills, focusing on solving customer problems on the first try, and making sure every team understands what the customer actually needs. The most important lesson is that technology and people need to evolve together if businesses want to succeed in 2026.