A bipartisan group of US senators introduced legislation Wednesday that could significantly restrict how companies use artificial intelligence and offshore labor in customer service operations. The “Keep Call Centers in America Act of 2025,” spearheaded by Senator Ruben Gallego and co-sponsored by Senator Jim Justice of West Virginia, aims to protect American jobs while addressing consumer privacy concerns.
The proposed legislation would require businesses to offer customers the option of speaking with human representatives based in the United States. Companies planning to move call center operations overseas would face mandatory reporting requirements and potential penalties under the new framework.
New Requirements for Businesses Using AI and Offshore Labor
Speaking with CBS MoneyWatch, Senator Gallego highlighted the frustration many consumers experience with automated systems. “Who hasn’t pressed zero repeatedly to try to skip the automated systems because they want to talk to a human?” the Arizona senator remarked, emphasizing the human preference for direct interaction.
Why the hell is this in the Big Beautiful Bill?
"No State may enforce, during the 10-year period beginning on the date of the enactment of this Act, any law or regulation of that State or a political subdivision thereof limiting, restricting, or otherwise regulating artificial… pic.twitter.com/iah26RpouM
— George (@BehizyTweets) June 3, 2025
Under the proposed rules, companies would need to notify the Department of Labor at least 120 days before moving call center jobs offshore. The DOL would maintain a publicly accessible registry of these employers, with company names remaining on the list for five years unless they bring operations back to American soil.
Businesses appearing on this list would lose access to new federal grants and federally backed loans. Meanwhile, companies maintaining domestic call center operations would receive priority consideration for federal contracts. The legislation also mandates that call center representatives disclose their physical location and any AI usage at the beginning of customer interactions.
Strong Labor Union Support Amid Data Security Concerns
The Communications Workers of America, representing thousands of call center workers nationwide, has thrown its support behind the legislation. Dan Mauer, the union’s Director of Government Affairs, described the bill as addressing twin challenges facing the workforce.
“This much-needed legislation protects US call center jobs and addresses the growing threats posed by artificial intelligence and offshoring,” Mauer stated. “Now companies are using AI to de-skill and speed up work and displace jobs, which undermines worker rights and degrades service quality for consumers.”
Senator Gallego echoed concerns about data security when customer service operations involve offshore workers or AI systems. “We are concerned about what it means for American consumers if they’re not talking to a human based in the US, when it comes to security around their private information,” he explained.
Senator Justice emphasized the bill’s focus on American workers and service quality. “West Virginians and all Americans deserve good service. When folks pick up the phone and ask for help, they shouldn’t have to deal with AI robots or be routed to someone across the world. This bill puts American workers first,” he noted.
The legislation comes as AI tools increasingly handle tasks previously performed by human employees across customer service, software development, and administrative roles. Anthropic CEO Dario Amodei predicted in May that AI could eliminate up to 20% of white-collar positions within the next five years. However, Nvidia CEO Jensen Huang suggested to CNN that AI-driven job losses would only occur “if the world runs out of ideas.”
Potential Industry Response
The proposed legislation represents a measured regulatory approach that could influence how technology companies structure their customer service operations. Given the neutral market sentiment, immediate sector-wide impacts may be limited as investors assess the bill’s likelihood of passage and implementation timeline.
Leave a comment