Are AI Answering Services Worth It? An Insider’s Perspective

If you run a business, and you're looking for cheap ways to handle your calls, chances are you’ve come across something called an "AI answering service" before. Now we're not going to be covering what that is and how it works here, but we do have a blog on all things AI answering services. 

You probably know this already, but AI can handle calls, capture customer info, and maybe even help close deals. Some even promise outbound calling, including cold calls. But here’s the big question that we're going to be covering in this blog: are AI answering services actually worth it, or are they just another tech trend that doesn’t live up to the hype?

I’ve been deep in the answering service industry for over 30 years, and let me tell you—this topic isn’t as straightforward as it seems.

Who Am I & Why Should You Listen?

I’m Aaron Boatin, president of Ambs Call Center. We’ve been handling business calls since 1932 with a fully US-based team. So when AI answering services started becoming a big deal, we didn’t just sit back and watch. We rolled up our sleeves and got to work—programming, testing, and refining AI models to see what they could really do. I’ve seen the good, the bad, and the frustratingly weird.

And now? I’m here to give you the honest truth: the good, the bad, and whether AI is actually the right fit for your business.

The Hype Around AI Answering Services

Let’s talk about why AI answering services seem so appealing in the first place. Here are the big selling points you’ll hear:

• Cheaper than hiring people – AI doesn’t need a salary, benefits, or a coffee break.
• Available 24/7 – No sick days, no PTO, just endless call answering.
• It never gets tired or distracted – No human error, no missed calls.
• It scales effortlessly – Whether you get 10 calls a day or 10,000, AI doesn’t complain.

Sounds good, right? And honestly, there is truth to these benefits. But before you go all-in on AI, there are a few things to consider—things that companies pushing AI services won’t tell you.

The Three Big Issues You Need to Know About

1. Security Isn’t a Given

If your business handles sensitive information (healthcare, finance, legal, etc.), you have to ask: Is this AI actually secure? Because here’s the reality—most AI answering services weren’t built from the ground up with security in mind.

Take healthcare. If an AI service isn’t HIPAA-compliant, it could accidentally mishandle patient data, opening your business up to legal nightmares. In South Korea, AI chatbots were recently suspended because they were found to be violating privacy laws. Imagine if that happened to your business. This obviously depends on if the AI is in an open or closed loop system, but it's still an important consideration.

If an AI service provider's service seems a little insecure, it's probably very insecure.

And it’s not just healthcare. AI systems process and store data. If they’re not built with ironclad security, your customer info could be at risk. When shopping for an AI answering service, ask AI providers how they handle security. If they dodge the question, run.

2. AI Needs Training—A Lot of It

Let’s be real, AI isn’t magic. It doesn’t just “know” how to handle calls perfectly. It has to be trained—and that takes time.

Training an AI answering service goes way beyond just flipping a switch. It’s not just about recognizing words, it’s about understanding how people communicate, when to pause, when to push forward, and when to listen.

Here’s a real example from our own experience. When we were building our AI answering service, we noticed something odd. If a caller made a noise mid-sentence, the AI would immediately stop talking. Sounds polite, right? Except in testing, this actually frustrated people. They had to ask the bot to repeat itself more often, slowing the whole call down. So, callers were frustrated and the call went on longer than necessary, which meant that each call would cost more to our customers.

After refining the system, we trained the AI to finish its sentence even if the caller made a noise, which ended up making conversations smoother and less frustrating.

That’s the level of detail AI training requires. Programming responses is one thing, but training is about shaping the entire flow of a conversation.

Therein lies the issue. AI isn’t a person. It doesn’t understand context the way humans do. Training it to handle your industry’s lingo, customer frustrations, and call flows takes time and expertise—moreso than with a human-agent answering service.

And if the AI answering service you’re looking at isn’t putting in that time? You’re going to give your caller a robotic, frustrating interaction and they might not call back.

3. Reliability is a Huge Question Mark

Here’s something no AI answering service provider will tell you: the industry is still very new. That means reliability is all over the place.

Some AI answering services are built on solid foundations, sure. Others? They’re cobbled together using off-the-shelf AI models that weren’t designed for answering calls. That means they can crash, misunderstand common questions, or just fail when things get too complex.

There will definitely be a shake-up when it comes to AI Answering Services that may be peppering your feed already. Many likely won't be around after burning through their venture capital funding. We’ve already seen a few up and ghost their users in the last two years, but consolidations in the answering service industry have always been an issue.

Before investing in AI, ask:

• How long has this provider been in business?
• Do they have a process for training their AI models?
• How many iterations or versions have their AI models gone through?
• Do they have real customer success stories?

If the answers are vague...you already know what to do by now.

A Secret Third Option? AI + Humans Working Together

At Ambs Call Center, we’ve seen firsthand that the best approach isn’t just AI—it’s AI plus real humans.

AI is fantastic for certain tasks like answering simple questions, handling FAQs, and collecting basic caller information. But when a conversation gets complex, sensitive, or requires real problem-solving? That’s where human agents excel. With an AI-exclusive answering service, you miss out on that. So, what's the alternative?

AI-powered answering services. Because you can't replace human customer service. A few answering services are already doing this. They use AI to handle routine tasks and keep humans in the loop for everything else. This approach means you get the efficiency of AI without losing the personal touch customers expect. And, for whatever reason, a human can always step in to handle a call!

Should You Use an AI Answering Service?

So, is an AI answering service worth it? The answer: It depends.

• If you want an ultra-basic system to handle very simple calls? AI could work.
• If your industry requires security, accuracy, and personalized service? AI alone probably isn’t the best bet.
• If you’re looking for a reliable, proven way to handle calls? An AI-powered human answering service model is the safest approach.

AI is evolving fast. But right now, a fully AI-powered answering service isn’t a magic bullet. It can be a useful tool only if it’s done right.

Read more about AI answering services here.

And if you’re wondering what “done right” looks like? That’s exactly what we’re working on here at Ambs Call Center.

Have questions? Want to talk about AI for your business? Let’s chat.