You didn't address it, you handwaved it.
> Why are you making the assumption that AI == no appeal and zero staff?
I explicitly stated the reason -- it is cheaper and it will work for the majority of instances while the edge cases won't result in losing a large enough user base that it would matter to them.
I am not making assumptions. Google notoriously operates in this fashion -- for instance unless you are a very popular creator, youtube functions like that.
> That makes zero sense, one has nothing to do with the other.
Cheaper and mostly works and losses from people leaving are not more than the money saved by removing support staff makes perfect sense and the two things are related to each other like identical twins are related to each other.
> The human element comes in for appeal process.
What does a company have to gain by supplying the staff needed to listen to the appeals when the AI does a decent enough job 98% of the time? Corporations don't exist to do the right thing or to make people happy, they are extracting value and giving it to their shareholders. The shareholders don't care about anything else, and the way I described returns more money to them than yours.