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Bipartisan Bill Introduced to Regulate AI and Offshoring in U.S. Contact Centers

TLDR: Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) have introduced the ‘Keep Call Centers in America Act of 2025,’ a bipartisan bill aimed at regulating contact center operations. The legislation mandates disclosure of AI use or offshore agents, grants consumers the right to speak with a U.S.-based human representative, and imposes penalties, including ineligibility for federal funding, for non-compliance. The bill seeks to protect American jobs and enhance consumer service quality amidst growing concerns over AI displacement and data privacy.

A new bipartisan bill, the ‘Keep Call Centers in America Act of 2025,’ has been introduced in the U.S. Senate and House, targeting the increasing use of artificial intelligence (AI) and offshoring in customer service roles. Introduced by Senators Ruben Gallego (D-AZ) and Jim Justice (R-WV) on July 29, 2025 (some reports state July 30, 2025), the legislation aims to safeguard American jobs and consumer privacy while improving service quality for consumers.

The bill addresses two primary concerns: the relocation of call center jobs overseas and the expanding deployment of AI in customer interactions. Senator Justice emphasized the consumer-centric motivation, stating, ‘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.’ This sentiment is echoed by a Data for Progress survey, which found that 70% of Americans find automated phone systems more frustrating than human customer support.

Key provisions of the ‘Keep Call Centers in America Act of 2025’ include:

Disclosure Requirements: Businesses engaged in customer service communications will be required to disclose, at the outset of each interaction, whether the call is being handled by a human agent located outside the United States or by an AI system.

Right to U.S.-Based Human Representative: If an offshore agent or AI is involved, consumers must be informed of their right to request an immediate transfer to a human representative physically located within the U.S.

Public List of Offshore Employers: The act directs the Secretary of Labor to create and maintain a publicly available list of employers that relocate a call center overseas or outsource at least 30% of a call center’s work to a foreign provider. Employers must provide at least 120 days’ advance notice before such relocation or outsourcing.

Penalties and Federal Funding Ineligibility: Non-compliance with the advance notice requirement can result in civil penalties of up to $10,000 per day. Companies appearing on the public list become ineligible for federal grants or guaranteed loans for a period of five years.

Removal from List: An employer can be removed from the list if they relocate a call center from outside the U.S. to a domestic location, employing as many or more workers than the overseas center it replaced, or if they amend contracts to require all call center work to be performed within the United States.

Federal Contracts Preference: Federal agencies would be directed to give preference in contracting to companies that do not appear on the Department of Labor’s list of offshore call center operators.

The legislation is motivated by Bureau of Labor Statistics data indicating that call centers employ approximately 3 million Americans, with projections forecasting a loss of 150,000 jobs by 2033. The Communications Workers of America (CWA) union strongly supports the bill, highlighting the dual threats of AI job displacement and potential offshore data privacy risks. Dan Mauer, CWA’s Director of Government Affairs, stated, ‘This much-needed legislation protects U.S. call center jobs and addresses the growing threats posed by artificial intelligence and offshoring.’ He further noted that ‘companies are using AI to de-skill and speed up work and displace jobs, which undermines worker rights and degrades service quality for consumers.’

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The bill also aims to track AI-related job losses, reflecting broader concerns about AI’s impact on the workforce. Anthropic’s CEO, Dario Amodei, for instance, predicted that AI could eliminate 20% of white-collar roles by 2030. For financial services providers, who already operate under tight customer service and compliance regulations, this act will necessitate significant operational and strategic adjustments, particularly for those relying on offshore call centers.

Ananya Rao
Ananya Raohttps://blogs.edgentiq.com
Ananya Rao is a tech journalist with a passion for dissecting the fast-moving world of Generative AI. With a background in computer science and a sharp editorial eye, she connects the dots between policy, innovation, and business. Ananya excels in real-time reporting and specializes in uncovering how startups and enterprises in India are navigating the GenAI boom. She brings urgency and clarity to every breaking news piece she writes. You can reach her out at: [email protected]

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