Verizon Unveils AI-Powered Customer Overhaul with Project 624: A Multi-Pronged Approach to Enhance Customer Experience and Reduce Churn
Verizon Communications Inc (NYSE:VZ) on Monday unveiled a multi-pronged overhaul of its consumer services, introducing a suite of artificial intelligence-driven tools, retail expansions, and live agent support aimed at reshaping its customer experience. Dubbed "Project 624," the initiative is being called the company's most significant transformation in years and underscores Verizon's push to add personalization and reduce customer churn across its massive user base.
The launch includes a dedicated "Customer Champion" support system powered by Google's AI models, a revamped MyVerizon app with greater personalization, and 24/7 live chat support. Verizon also touted physical store growth, adding nearly 400 retail locations over the last two years, placing 93% of the U.S. population within 30 minutes of a store.
"Today marks another significant step in our ongoing consumer business transformation journey that began two years ago," said Hans Vestberg, Verizon Chairman and CEO. “We are setting a new standard for customer innovation by focusing on both people and technology, using the most advanced AI to make the customer experience simpler, faster, and more rewarding.”
As part of the rollout, Verizon launched a summer rewards campaign through MyAccess, its customer rewards platform, giving away 35,000 prizes including concert tickets to events featuring Beyoncé and Lady Gaga, as well as branded gift cards. On the network side, the company reaffirmed its position as the operator of the largest and fastest 5G network in the country, with continued investment into mobile and fixed wireless services.
While the company highlighted the transformation as industry-leading, investor reactions were mixed. Sam McHugh of BNP Paribas (OTC:BNPQY) Exane reiterated an “Outperform” rating and $51 price target but noted that many of the moves may be "small incremental changes and not hugely disruptive to the wider industry."
McHugh described the updates as more "hygiene factors" than game-changing innovations, particularly in light of Verizon’s 2025 growth aspirations. "While none of these factors appear to be a huge game changer, the fine margins of Verizon’s ‘better than 2024’ net add guide means that even small changes could help reduce churn in the back half of 2025," he wrote.
Still, the enhanced offerings could provide tighter customer retention capabilities and align with Verizon’s broader goal to emphasize service revenue, EBITDA, and free cash flow ahead of raw subscriber additions. As the telecom sector grapples with a plateaued U.S. market, targeted pricing tweaks and digital enhancements may provide a path to modest growth without sacrificing financial discipline.
In other news, OpenAI has designed a rival to Office and Workspace, according to The Information. Additionally, Gross predicts a bear market for bonds and a little bull market for stocks.
