How AI is Transforming Customer Service at Virgin Media O2

Virgin Media O2 managed to cut more than 1.3 million call transfers from its phone support operations throughout 2025 following a major overhaul of its customer service systems.

Through AI-powered upgrades and internal team restructuring, the telecoms operator saved customers more than 400,000 hours of call time over the course of 12 months. 

“We always aim to provide a seamless experience for our customers and minimise the need to contact us for support,” explains Alan Stott, Director of Customer Contact at Virgin Media O2. “After all, nobody enjoys spending their time on the phone to their service provider, particularly when they’re being transferred between teams.”

AI-led voice tech replaces menu navigation

Virgin Media O2 replaced its old menu system, which asked customers to press buttons to route their call, with a natural language AI solution. Most callers are now invited to speak in their own words about why they are calling.

The system uses natural language understanding (NLU), a type of AI that recognises speech and analyses intent. It helps identify what the caller needs and automatically routes the call to the most relevant agent without multiple handovers.

By shifting to this method, the company reduces unnecessary steps, aiming for faster first-time resolution.

Virgin Media O2 has confirmed the NLU system will be rolled out across all phone-based support in the coming months, meaning more customers avoid repeating themselves or being passed between departments – cutting down overall time spent on the phone.

Internal restructuring reduces transfers further

Alongside AI-based changes, Virgin Media O2 has also reviewed its internal team structure using performance data. Heatmaps showing where transfers occur most allow the company to identify pain points and streamline call handling.

The result is a smaller number of handovers between departments, as agents are now better positioned to handle a broader set of queries.

The shift follows the cross-training of around 5,000 support staff. Each trained agent can now deal with a wider range of customer issues, helping reduce transfers and improves consistency across service touchpoints.

Alan continues: “Where a customer does need to speak to us, we want to make their experience as simple, efficient and productive as possible. That is why we’ve introduced AI technology which allows a customer to explain the reason for their call at the outset and quickly routes them to the appropriate team."

“Together with cross-skilling agents and simplifying our team structures, these improvements helped to reduce call transfers by over a million last year, saving our customers a combined 400,000 hours on the phone to us.”

Customer experience and complaints improve

Virgin Media O2's changes form part of a wider effort to simplify the contact process and increase the chances of resolving issues first time.

The company's overall strategy focuses on cutting friction and improving resolution speed – resulting in a measurable improvement in service quality.

By removing 1.3 million call transfers from its support journey, customers were saved 1.45 billion seconds, 24 million minutes or more than 400,000 hours.

Ofcom, the UK’s communications regulator, reports that complaints about Virgin Media O2 over the past year more than halved. The drop corresponds with the company’s AI deployment and contact centre changes, with fewer customers forced to repeat information or start the process again.

Virgin Media O2 has confirmed AI will remain central to its service delivery model. The operator plans further investment in both its support systems and contact centre staff throughout 2026 and beyond. 

Alan concludes: “We’ll continue to invest in our people and systems throughout 2026 and beyond to ensure we’re consistently giving our customers the best possible service.”