How to build an ethical approach to AI in CX

It’s no secret that AI is busy transforming our lives almost everywhere we look, and that’s no different in the world of customer service. But how do customers like you and I really feel about the use of AI when interacting with brands?  We’ve conducted the research and we can now share our findings. Below I will share how you can build an ethical approach to AI in CX, with the help of Sigma Connected.

What do customers think about AI in CX?

Our report, Customer Service in the age of AI , revealed that an overwhelming majority of customers are uncomfortable with the idea that, in the future, we might not be able to tell whether we’re talking to a real person or AI in customer service. People want transparency when interacting with brands – and 86% of adults want the use of AI to be disclosed.

The EU is one step ahead in terms of regulating the transparent use of AI, with the introduction of the AI Act in August 2024. This ensures all AI systems follow 5 principles, and that they are:

• Safe
• Transparent
• Traceable
• Non-discriminatory
• Environmentally friendly

But that’s not all. By 2028, just as they introduced the right to opt out of automated decision making with GDPR, the EU may actually mandate ‘the right to talk to a human’ in customer service. Clearly, transparency is the direction of travel for AI, so it’s good to get ahead of the game when it comes to compliance.

Why is the ethical use of AI in CX important?

• Build and maintain customer trust: Customers are definitely open to the use of AI in customer service now, but they want to know how and when it’s being used. By disclosing this information, and, if possible, giving them a choice about whether they interact with AI or a real person, you’ll build customer trust – and maintain that trust in the future.
• Protect brand reputation: Demonstrating that you’re taking data privacy seriously and operating with fair and transparent practices is crucial for brand reputation. Committing to ethical AI use will likely help you gain a competitive advantage over other brands.
• Comply with regulations and future-proof operations for potential upcoming legislation: While there is currently no general statutory regulation of AI in the UK, various laws touch on AI regulation in practice – including GDPR. And with the EU AI Act coming into force in August 2024, taking an ethical approach to AI in CX now will future-proof your operations.
• Enhance the customer experience: Our research showed that customers aren’t against the use of AI, especially for quicker tasks. Since integrating generative AI into their CX systems, one telecoms firm reported 20% fewer calls and 50% higher customer satisfaction. With this in mind, businesses shouldn’t shy away from AI completely, but use it to their advantage, ethically, to enhance the customer experience.
• Empower employees: When a business has a clear and ethical strategy for AI in CX, their customer facing teams feel supported to focus on the areas of their work where they have most personal satisfaction. AI can be used to automate bulky, low-value tasks, freeing up time for them to make a real difference to their customers.

The risks of unethical AI use

Clearly, there’s a lot to be gained from adopting an ethical approach to AI, but what about the flipside? Here are some of the risks associated with unethical AI use, impacting your customer experience, team, and wider reputation.  

• Mistrust: When customers don’t know if they’re talking to a real person or AI, trust can quickly become damaged – with customers feeling deceived or undervalued. Even if the customer has a good experience in the end, their loyalty to the brand could have already been impacted.

• Privacy & data protection: Inputting customer data into AI risks violating GDPR, as well as creating issues around ownership and consent. Mishandling your customers’ data can not only damage loyalty, but also lead to fines and penalties.

• Customer satisfaction: While AI can be great for straightforward queries, it can struggle with more complex problem-solving – especially when dealing with vulnerable customers. Relying too much on AI can frustrate customers when they need human contact the most – leading to inaccuracy and misinformation.

• Unfair treatment: If the data the AI has been trained on contains historical biases, whether related to gender, ethnicity, language or socioeconomic status, it can lead to discriminatory behaviours being displayed.

• Overreliance: Fully replacing human agents can lead to poor customer experiences, particularly in complex or vulnerable cases. And not only that, it can also cause employee disengagement, with staff feeling undervalued and underrepresented.

What does ethical implementation of AI in CX look like?

So, it’s clear how ethical AI use can benefit your brand and, conversely, how much harm it’s improper use could impose.  With that in mind, a responsible implementation of AI into CX should probably look a bit like this:

Step 1: Give customers the option to opt-in or out of AI, based on their preferences.

• Put the power in your customers’ hands with a clear opt-in/opt-out process, so they can interact with your brand in the way they feel most comfortable.

Step 2: Ensure customers know when they’re interacting with AI rather than a human.

• Our research shows that transparency is a non-negotiable for customers. Don’t make them guess whether they’re dealing with a human or AI – make this distinction clear from the start.  

Step 3: Ensure AI is accessible for customers and free from bias.

• AI tools must be inclusive and fair, it’s vital you ensure all accessibility needs are met in your processes, regardless of age, language or ability.

Step 4: Minimise data collection to only what’s necessary, and with consent.

• Ethical AI use centres on how you collect and use data. Make sure you are meeting regulations and only use this data in the context it’s required.

Step 5: Gain internal buy-in with your CX teams, delivering training and support on what AI tools mean for their role.

• AI should empower your people, not alienate them. By training your teams on its proper use, and giving them the freedom to hand off time-consuming tasks so they can focus on their customers, they will achieve stronger results.

Step 6: Align and test all AI tools, with continual reviews to keep systems safe and compliant.

• AI shouldn’t be implemented and forgotten about. Like most tools you use, it should be continually tested, monitored and optimised for the best results, as well as to keep up with changing regulations.

Find the balance of human and technology with Sigma Connected

Regulations or no regulations, it’s always good to operate responsibly. And being upfront about your AI usage is not just the ethical, responsible business choice, but something that can really give your business a competitive edge in the future. After all, your customers are your livelihood, and their trust is the most valuable commodity of all.

For Sigma Connected, AI technology is an enabler – driving efficiencies to free up high quality human service for clients’ customers – striking the balance between efficiency and empathy. If you’re ready to delve deeper into how you can ethically build AI into your CX, without losing the human touch, get in touch with our team today.