Can AI Truly Improve Customer Experience?
As AI solutions in customer service become more prevalent, concerns around their ethical use grow. The recent *Global State of CX 2024* report surveyed industry professionals and found that more than two-thirds are apprehensive about the ethical implications of AI-driven interactions.
We’ve all experienced the frustration of reaching out for support only to encounter an automated system that lacks empathy or genuine understanding.
Whether it’s a broken laptop, a missed flight, or a complex insurance claim, these interactions often feel impersonal and robotic, leaving us more frustrated than before. Instead of receiving tailored help, we end up navigating scripted responses that fail to address our unique needs.
This common experience raises a critical question: as artificial intelligence becomes more embedded in customer service, can it ever truly replicate the warmth and nuanced understanding of human interaction?
Beyond ethics, data privacy has emerged as a key issue, with 55% of respondents identifying it as a major customer concern.
AI and Sensitive Data
One of the main challenges lies in evolving AI’s role from simply replicating human-like responses to creating interactions that feel genuinely helpful and meaningful. Nisreen Ameen, a senior lecturer at Royal Holloway, University of London, notes that “the biggest mistake companies make is prioritizing efficiency over humane experiences.”
This statement underscores a core issue in customer service: while Artificial intelligence can expedite responses and streamline processes, it often fails to satisfy customers’ need for empathy and understanding.
Varsha Jain, a professor at Mudra Institute of Communications, adds, “Humans should guide ArtificiaI Intelligence, not the other way around,” highlighting the importance of a human-centered approach where AI supports, rather than replaces, human interaction.
Effectively implementing AI in customer service requires thoughtful design. While Artificial Intelligence excels at handling repetitive tasks, it should not be the primary touchpoint for complex, nuanced issues. A hybrid model—where AI addresses basic inquiries and human agents manage more intricate concerns—could offer a balanced approach.
This structure helps alleviate the workload on human representatives while ensuring that customers receive an experience that meets both their emotional and practical needs.
Many companies are integrating AI to make customer service more efficient. Banks, for example, use chatbots for basic tasks like balance inquiries, leaving human agents free for more complex problems. AI also helps detect fraud more quickly than humans can. For instance, ING’s AI-powered chatbot handles 5,000 customer inquiries daily, thanks to a set of ethical guidelines:
Fairness: Avoid biases in decision-making.
Explainability: Make the AI's logic easy to understand.
Transparency: Clearly explain how the AI works.
Responsibility: Ensure someone is accountable for AI decisions.
Security: Prevent unintended outcomes.
"A robust ethical framework should be built into the AI from the beginning," says Ameen. Companies must measure how humane their AI services are, since "we tend to improve what we decide to measure," adds Jain.
Some companies focus on using AI to reduce costs, but not AirHelp. Its AI helps passengers claim compensation for flight issues without trying to replace human agents. "Our AI isn't here to block people from talking to a human," says Tim Boisvert, AirHelp’s CTO. The system is designed to answer routine questions while making it easy for users to reach a person when needed.
AI tools also assist AirHelp in processing airline updates and customer documents, taking the burden off agents so they can focus on more challenging cases. ING’s chatbot, too, works alongside humans, with every conversation reviewed to prevent harmful language or misinformation. “People remain central to our process,” says ING's chief analytics officer, Bahadir Yilmaz.
AI's potential extends beyond customer service. ING and the Commonwealth Bank of Australia use AI to personalize marketing, improve cybersecurity, and help customers access government benefits. However, this requires careful handling of personal data. "Protecting user data is crucial to maintaining trust," Ameen notes.
Companies should be transparent about data usage and involve diverse teams in AI development to ensure fair outcomes.
Regularly testing for bias is also key. "Bias can appear at any stage," says Ameen, "so it’s essential to have ongoing audits and processes to address it."
For CIOs and executives, the challenge is to foster a culture of responsible AI development. This includes hiring diverse teams and providing ethics training. "Diversity in AI teams helps create fairer systems," says Ameen. Companies should also collect feedback on AI interactions through surveys and service logs to continually improve.
Boisvert suggests that companies should not assume AI can fully replace human roles. "Start by assuming AI can't be as humane as a person, and find specific areas where it can add value," he advises. Yilmaz echoes this, stating that AI isn’t a quick fix for business problems; it works best when it enhances processes already in place.
In the race to make AI a core part of customer experience, companies need to ensure that these technologies are used responsibly, with a focus on creating fair, human-like interactions.
Source: CIO.com