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A new survey finds that consumers see AI worsening customer service, primarily due to concerns over data use as well as an absence of empathy tied to the lack of human interaction.
The survey of 1,520 U.S. adults from real-estate services firm Colliers found that 54.3% of consumers expect overall customer service at retail to worsen due to AI’s impact, with only 13.2% expecting the technology to improve customer service. The remaining 28.2% expect customer service to remain the same.
When asked what specific concerns they have about using AI in customer service, the top responses were:
- How my data/information is used, cited by 62.7%
- Lack of empathy from AI, 61.3%
- Lack of human interaction, 54.5%
- AI not properly understanding, 54.1%
- Inability of AI to resolve problems, 47.6%
- Lack of friendliness, 46.6%
- Questions/queries taking longer to resolve, 41.3%
Also, 67.2% felt AI will have a “worse” impact on retail jobs as roles are automated. On the positive side, most consumers saw a positive impact from AI on product availability (41.4% “better”/18.9% “worse”), website experience (46% “better”/ 12.4% “worse”), and promotions and offers (36.4% “better”/18.9% “worse”).
An accompanying survey of 59 U.S. retailers found just over three-quarters are optimistic about using AI. The top initial usage areas were product recommendations, day-to-day data analysis, generating website listings, supply chain management and logistics, and forecasting demand.
There is still hesitation when it comes to customer service and support, with fewer than 50% of retailers anticipating the adoption of AI in these areas. Similar to the consumer survey, the top negative impact of the use of AI was increased data security concerns, cited by 39% of retail respondents.
Colliers said the study shows retailers need to do more to highlight the benefits of AI, including being able to free up retail associates from tasks like inventory management and floor merchandising to deliver both elevated and more personalized customer service. Colliers wrote in the study, “This shift promises a more fulfilling and engaging work environment that maintains a genuine connection between the brand and the consumer.”
Capgemini's 2024 edition of its "What Matters to Today’s Consumer" study found that consumers who have used AI for shopping have a positive outlook on GenAI tools, particularly for product recommendations. However, extensive media coverage has led to a sharp uptick in concerns about GenAI producing false/misleading testimonials or reviews as well as the technology’s capability to copy or clone competitors' product designs or formulas.
The study found that 47% of Gen Z and Millennials would like a chatbot with features such as ChatGPT to facilitate asking questions and receiving responses quickly. Nonetheless, 70% of overall respondents who have used GenAI for shopping appreciate prior disclosure if their interaction will involve GenAI, and the same 70% want an option for a human representative in case GenAI’s assistance is unsatisfactory.