Verizon’s ai gamble: 2.25 million subscribers lost and a risky bet on ‘humanity’
Verizon’s CEO, Dan Schulman, is doubling down on artificial intelligence, betting the carrier’s future on a radical shift – handing over customer experience entirely to AI. But the strategy appears dangerously misaligned with actual customer needs, leaving a trail of subscriber losses and skepticism in its wake.
A numbers game that doesn’t add up
Schulman admitted the network advantage is shrinking, a reality that’s already driving customers away. His solution? Treating subscribers “like humans, not like accounts,” a sentiment met with immediate derision and a concerning recognition of the layoffs already underway – a staggering 13,000 positions eliminated.
Mythos and the illusion of ‘human’ service
Verizon is already integrating Anthropic’s Mythos model across its workflows, a move Schulman proudly proclaimed as embracing “AI-everything.” Yet, the underlying disconnect remains stark. Customers aren't seeking sophisticated chatbots; they crave genuine human assistance to resolve tangible issues – a problem Verizon is actively dismantling.
Price hikes and a trust vacuum
Adding fuel to the fire, Verizon quietly raised prices on its bundled Netflix and HBO Max subscriptions, a move that directly contradicts promises of value and further erodes customer trust. This comes on the heels of admitting a massive subscriber bleed – over 2 million attributed directly to pricing strategies.
Social backlash: subscribers reject the ‘human’ facade
Social media is ablaze with criticism, with users vocally protesting the shift towards AI. The sentiment is clear: Verizon’s attempt to rebrand its customer service as ‘human’ is a cynical attempt to mask a fundamental problem – a lack of accountability and a reactive, rather than proactive, approach.
Beyond the algorithm: a missing piece
While Mythos can undoubtedly optimize promotional emails and streamline ticket routing, it fundamentally misses the core of what constitutes a truly satisfying customer experience. It's not about smarter software; it’s about consistent policies, proactive problem-solving, and the rare, invaluable moment when a human representative actually understands and addresses a customer’s specific needs. Verizon’s missing piece isn’t an AI model – it’s a clear, demonstrable loyalty program and a commitment to real human intervention when problems arise.
The bottom line: cost cutting disguised as customer care
This isn’t about empathy; it’s about streamlining operations and offsetting the fallout from previous missteps. The simultaneous layoffs and the AI pivot paint a clear picture: Verizon is prioritizing cost reduction over genuine customer engagement. The question isn't whether Mythos can improve efficiency – it’s whether Verizon truly understands what its subscribers actually want.
A realistic path forward
Schulman’s honesty regarding pricing issues is a welcome change, and Q4 finally showed some signs of improvement in the top of the funnel. However, the ‘human’ element remains conspicuously absent. Verizon needs to dismantle the illusion of AI-driven customer service and focus on the tangible improvements – lower price surprises, a robust loyalty discount, and genuinely accessible human support when it matters most.