Are Traditional Answering Services Obsolete? What the Labor and Pricing Data Show
BLS projections, published prices and the vendors' own pages show live answering shrinking and changing, not disappearing. Here is what the figures say and where a live service still earns its price.
Traditional answering services aren't obsolete in 2026, but the work is shrinking and changing: the Bureau of Labor Statistics projects employment of switchboard operators, including answering service, to fall 26% from 2025 to 2035. Live services still publish plans and still win calls that need a person, and their own pages show three different responses to AI: selling it, using it behind the receptionist, or refusing it. Here is what the labor projections, prices and vendor pages actually say, and where a live service still earns its price for a locksmith shop.
Key takeaways
- The job category is shrinking. BLS projects switchboard operators, including answering service, to fall from 35,400 jobs in 2025 to 26,200 in 2035, a 26.0% drop, while total employment grows 3.5%.
- Receptionist work isn't vanishing. The BLS outlook for receptionists is a 2% decline from 2025 to 2035, with about 105,100 openings a year from people leaving the job.
- Vendors are splitting three ways. Smith.ai and Abby Connect sell AI answering next to people, Ruby uses AI to support its human receptionists, and PATLive says it does not use AI to answer calls.
- Prices show the pressure. By our arithmetic, live plans in our survey cost about $1.50 to $5.00 per included minute, against about 15 to 48 cents on AI minute plans such as Rosie and Dialzara.
- Live answering still fits some calls: judgment calls, a person as part of your brand, and payments taken by a person.
What would "obsolete" actually mean?
An obsolete product is one nobody sells and nobody buys. Neither is true of live answering. As of October 2026, PATLive, Posh, Abby Connect, Ruby and Smith.ai all publish live receptionist plans, from $49 a month plus $2.99 a minute at PATLive to $1,900 a month for 1,000 minutes at Posh.
The vendors also still compete on terms buyers like: PATLive offers a 14-day free trial and no contracts, Posh works on month-to-month agreements with a free trial of seven days or 250 minutes, and Abby Connect lists a free trial on every plan and no setup fee. Those aren't the habits of a dying product.
The better question for a shop owner is narrower: is live answering still the right buy for my calls, and will the service I pick still look the same in two years? The figures below help with both. Older versions of this article cited market-share and adoption percentages that we couldn't trace to any published source, so they're gone; what's left can be checked on a government page or a vendor's own page.
What do the labor projections show?
The Bureau of Labor Statistics publishes ten-year projections by occupation. The closest official category to the person answering the phone at an answering service is "switchboard operators, including answering service". BLS counts occupations, not companies, so this isn't a count of answering services, and some services' agents may hold other job titles. It is still the best official signal of where that work is heading.
| Occupation (BLS) | Jobs in 2025 | Projected jobs in 2035 | Change | Median annual wage, 2025 |
|---|---|---|---|---|
| Switchboard operators, including answering service | 35,400 | 26,200 | -26.0% | $38,630 |
| Telephone operators | 3,500 | 2,500 | -27.6% | $41,740 |
| Receptionists | 947,500 | About 931,500 | -2% | $38,010 |
| All occupations | 170.3 million | 176.2 million | +3.5% | $50,980 |
The switchboard-operator line sits on BLS's table of the fastest declining occupations, next to word processors and data entry keyers. Receptionists are a much larger and steadier group, and BLS stresses that the job keeps hiring:
"Despite declining employment, about 105,100 openings for receptionists are projected each year, on average, over the decade."
That line is from the BLS Occupational Outlook Handbook, which says those openings come from replacing workers who leave. Read together, the two lines say the narrow job of answering phones for other companies is shrinking fast, while front-desk work in general is roughly flat.
Two cautions about reading projections. They describe the whole country, so a local answering service in a growing area may hire while the national category shrinks. And they are projections, built from assumptions about technology and demand, not a schedule. They tell you the direction of the work, not what any one vendor will do.
How are live answering services responding to AI?
Their own pages show three different strategies.
1. Selling AI answering next to people. Smith.ai offers an AI Receptionist from $0 for 25 calls a month, and says complex calls can be transferred to a live North America-based receptionist. Abby Connect runs human and AI answering from one pool of minutes, where one minute of AI answering uses half an Abby Minute, and offers trained, US-based receptionists for the calls that need a personal touch. Posh points buyers to plans for its AI-enabled live receptionists.
2. Using AI behind the human. Ruby draws the line explicitly. Its AI page says an AI receptionist "usually refers to software that answers or routes calls on its own", while its AI-enhanced receptionist is AI that supports a trained human receptionist rather than replacing them. Ruby lists AI-generated call transcripts, caller-sentiment insights and AI spam filters, and says all its AI features are included at no extra cost in every plan.
3. Refusing AI on calls. PATLive's pricing page says it does not use AI to answer calls, so callers always reach a person.
A market where established vendors take three different paths is changing, not ending. For a buyer, the practical point is that "live answering service" no longer means one thing, so ask exactly who or what answers your calls.
What does an hour of a person cost?
Part of the answer is in what employers pay for people. BLS's June 2026 Employer Costs for Employee Compensation puts total compensation for office and administrative support occupations at $36.73 an hour worked, of which wages are $25.22 and benefits $11.51, or 31.3%. A live answering service pays for every hour an agent is ready to answer, busy or not, and each agent takes one call at a time. Software doesn't have either constraint, which is why the per-minute prices below differ by so much.
That doesn't make the person worthless; it makes the person expensive. The sensible use of an expensive resource is the calls where it matters most.
What do prices say about the pressure?
Published prices show the pressure plainly. These are October 2026 list prices; the per-minute figures are our arithmetic.
| Comparison | Live | AI |
|---|---|---|
| About an hour a month | $99 for 50 minutes at PATLive | $29 for 60 minutes at Dialzara |
| Same vendor, per call | $10.00 a call on Smith.ai's 30-call live plan | $2.00 a call on Smith.ai's AI Pro plan |
| 1,000 minutes a month | $1,499 at PATLive; $1,900 at Posh | $349 at Dialzara; $149 at Rosie |
| Per included minute, range in our survey | About $1.50 to $5.00 | About 15 to 48 cents |
People also cost what they cost. The median annual wage for switchboard operators, including answering service, was $38,630 in 2025 by the BLS projections table, and a live service has to cover that wage for every hour someone is ready to answer. Our seven-number comparison and price survey go through these prices in detail.
Where does a live answering service still earn its price?
For a locksmith shop, a person on the line is still the better buy in a few situations:
- Calls that need judgment. A caller who has just been burgled, a property manager negotiating a multi-site rekey, or a customer disputing a bill.
- A person as part of your brand. Some commercial accounts expect a human voice, and you may want one.
- Payments taken by a person. Ruby's FAQ describes an optional PCI-compliant service for taking card details, and Smith.ai's live plans list payment collection at $1.00 a call.
- Very low volume with long calls. On a per-call live plan, call length doesn't change the price.
And there are places where the live model is weaker. Ruby's FAQ limits bilingual service to Monday through Friday, 5 a.m. to 6 p.m. Pacific in one answer, and live plans bill each minute at well over a dollar, so long intake calls and busy weekends add up. Our guide to choosing a locksmith answering service walks through the trade-offs.
Which locksmith calls need a person?
Sort your own calls before you pick a side. This is our judgment of how common locksmith calls fit, not a published standard; adjust it to your shop.
| Call type | Live person | AI answering | Notes |
|---|---|---|---|
| Overnight car lockout | Works, at live per-minute prices | Works, if it collects location, vehicle and safety details | The safety line (child or pet inside, call 911) must come first either way |
| Price shopper asking about a key | Works if the agent has your price list | Works if it quotes from your price sheet, or says a tech will confirm | Never let either invent a price |
| Key programming quote with VIN and key type | Works, but long calls cost more per minute | Works on per-call or per-caller plans without a length penalty | Test with a real vehicle from your price list |
| "Where's my technician?" repeat call | Expensive for what it is | A good fit | Per-caller billing makes repeats cheap |
| Commercial rekey or access-control negotiation | Better fit | Better as intake, then a handoff | Route to the owner or estimator |
| Billing dispute or complaint | Better fit | Take details and escalate | A person should call back the same day |
| Spanish-speaking caller at night | Check the vendor's Spanish hours | Works if the plan publishes Spanish | Test after hours either way |
| Card payment over the phone | Works where the service offers PCI-compliant handling | Works where the plan includes payments | Ask how card data is handled |
If your list looks like this one, the routine and overnight calls fit an AI plan and a handful of call types still belong with a person. That split, more than any trend line, is what decides your setup.
Where is AI already the better fit?
Where the call is routine and the hour is inconvenient. Overnight lockout intake, overflow when two calls arrive at once, and repeat "where's my tech" calls are the clearest cases, because the AI plans above answer every call at a fraction of a live minute's price. The limits are real too: an AI plan is only as good as the prices, rules and handoffs you give it. Our guide to what an AI receptionist can't do covers when to route a call to a person, and our guide to warm and blind call transfers covers how.
Which questions should you ask any answering service now?
Because the market is shifting, ask these before you sign or renew, whether the service is live, AI or both:
| Question | Why it matters |
|---|---|
| Does a person or an AI answer my calls, and does that change by hour or by call type? | Several vendors now do both, and the answer can differ at night |
| If AI answers some calls, how are those minutes billed? | Abby Connect counts an AI minute as half; others bill AI separately |
| How is a minute counted, and does hold time count? | Ruby rounds each call up to 60 seconds and counts hold time |
| What notice do I need to give to leave? | Smith.ai's AI plan asks for 30 days |
| Do I keep my phone number if I leave? | Porting rules decide how painful a switch is |
| How was each performance claim measured? | The FTC says there is no AI exemption from the law |
On that last row, then-FTC Chair Lina M. Khan said in 2024 that "there is no AI exemption from the laws on the books" (FTC), and a 2025 FTC order over an AI accuracy claim required "competent and reliable evidence to support the claim at the time it is made" (FTC). Ask any vendor, live or AI, how its numbers were measured. Our guide to keeping your phone number when you switch covers the porting question.
What should a locksmith shop do in 2026?
- List your calls by type for one month: lockouts, quotes, status calls, commercial, billing. Mark the ones that need judgment.
- Price the routine calls on an AI plan and the judgment calls on a live plan or your own phone. Many shops end up with a mix.
- If you use a live service, ask whether AI is already answering any of your calls, and how those minutes are billed.
- Test Spanish at night on whatever you choose, because hours vary.
- Recheck every year. Vendors are changing their models, so last year's comparison may not hold.
Where does TheKeyBot fit?
Disclosure: TheKeyBot, which publishes this blog, makes an AI receptionist. TheKeyBot Lite is $149 a month with 100 calls included, then 50 cents a minute; it answers 24/7 in English and Spanish and takes messages but doesn't quote or book. Core is $500 a month with 500 minutes, then 45 cents a minute, and adds scheduling, GPS dispatch, POS and payments, QuickBooks sync and unlimited users; our AI call handling page describes transferring to a live tech when needed. Every plan has no setup fees and no contracts, and Core, Pro and Elite include a 14-day free trial, per our pricing page. If your calls need a person on every line, a live service may suit you better, and the comparison in our AI receptionist vs human answering service guide can help you decide.
Frequently Asked Questions
Are traditional answering services obsolete?
No. Live services still publish plans and still suit calls that need a person, but the work is shrinking: BLS projects employment of switchboard operators, including answering service, to fall 26.0% from 2025 to 2035.
Is the answering service industry shrinking?
The closest official job category is shrinking fast: BLS projects it to fall from 35,400 jobs in 2025 to 26,200 in 2035. BLS counts occupations rather than companies, so treat it as a signal about the work, not a count of answering services.
Do live answering services use AI now?
Many do, in different ways. Smith.ai and Abby Connect sell AI answering alongside people, Ruby uses AI to support its human receptionists, and PATLive says it does not use AI to answer calls.
Is a live answering service still worth it for a locksmith?
It can be for calls that need judgment, for commercial accounts that expect a person, or when a person takes card payments. For routine and overnight calls, AI plans cost far less per minute, so many shops use a mix.
What is the difference between an AI receptionist and an AI-enhanced receptionist?
Ruby's AI page defines an AI receptionist as software that answers or routes calls on its own, and an AI-enhanced receptionist as AI that supports a trained human receptionist rather than replacing them. Ask any vendor which one will answer your calls.
How much does TheKeyBot cost?
TheKeyBot Lite is $149 a month with 100 calls included, then 50 cents a minute; it answers in English and Spanish and takes messages but does not quote or book. Core is $500 a month with 500 minutes, Pro $750 with 1,000 and Elite $1,200 with 2,500, and all three include a 14-day free trial.
Sources
- U.S. Bureau of Labor Statistics, Employment Projections, Table 1.5, Fastest declining occupations, 2025 and projected 2035: https://www.bls.gov/emp/tables/fastest-declining-occupations.htm
- U.S. Bureau of Labor Statistics, Occupational Outlook Handbook, Receptionists: https://www.bls.gov/ooh/office-and-administrative-support/receptionists.htm
- Ruby, AI for small business customer communication: https://www.ruby.com/ai/
- Ruby FAQs: https://www.ruby.com/faqs/
- Ruby plans and pricing: https://www.ruby.com/plans-and-pricing/
- Smith.ai AI Receptionist pricing: https://smith.ai/pricing/ai-receptionist
- Smith.ai live receptionist pricing: https://smith.ai/pricing/receptionists
- Abby Connect pricing: https://www.abby.com/pricing/
- Posh pricing: https://www.posh.com/pricing
- PATLive pricing: https://www.patlive.com/pricing/
- Dialzara pricing: https://dialzara.com/pricing
- Rosie pricing: https://heyrosie.com/pricing
- FTC, crackdown on deceptive AI claims (September 25, 2024): https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-announces-crackdown-deceptive-ai-claims-schemes
- FTC, final order against Workado (August 28, 2025): https://www.ftc.gov/news-events/news/press-releases/2025/08/ftc-approves-final-order-against-workado-llc-which-misrepresented-accuracy-its-artificial
- TheKeyBot pricing: https://www.thekeybot.com/pricing
About the Author
TheKeyBot Team is dedicated to helping locksmiths grow their businesses through AI automation and smart technology. With years of experience in the locksmith industry, our team provides actionable insights and proven strategies.
