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AI Risks That Can Ruin Customer Experience If Not Handled Properly

08 September 2023

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Artificial Intelligence (AI) has brought revolutionary changes in the business world with its various applications that offer efficiency, personalization, and better decision-making. However, like everything in life, AI also carries a number of risks that must be handled wisely. One of the main risks is the potential to spoil the customer experience if not managed properly. In this article, we'll explore some of the risks AI can harm the customer experience and how companies can address them.

1. Errors in Decision Making
AI is used extensively in decision-making, especially in product or service recommendations to customers. However, AI algorithms are subject to errors and misinterpretation of context which can be detrimental to the customer experience. For example, if AI recommends a product that doesn't match a customer's preferences or needs, this can frustrate the customer.

Companies need to regularly monitor and audit AI algorithms to ensure that they provide relevant and accurate recommendations. Improving the quality of the training data can also help reduce these errors.

2. Non-transparency in Decisions
The lack of transparency in the AI decision-making process is another risk that needs attention. Customers may feel uncomfortable with decisions made by AI if they don't understand how the algorithm achieves them.

Companies must commit to transparently explaining to customers how AI is used in decision-making and why certain decisions are made. This can be done through easily accessible documentation and clear communication.

3. Excessive Personalization
AI is often used to personalize the customer experience by offering appropriate recommendations based on customer data. However, if this personalization is excessive or inappropriate, customers may feel irritated or not valued.

Companies need to find the right balance in the use of personalization. Using customer data with care and giving customers control to set the level of personalization they want can help avoid this risk.

4. Privacy Breach
AI needs access to customer data to operate. The risk of a privacy breach arises when the data is not properly guarded and can be misused.

Companies must prioritize customer data security and comply with applicable privacy regulations. Conducting regular security audits and giving customers control over their data are important steps.

5. Lack of Human Interaction
While AI can increase customer service efficiency, its overuse can reduce the human interaction that is essential in building strong customer relationships. Customers may feel underappreciated or not get the support they need.

Companies must ensure that there are human communication channels available for customers who require them. This can be in the form of live customer support or easy access to personnel who can help.

In an era of increasingly sophisticated AI, companies need to understand and address the risks associated with using this technology. With a thoughtful approach, companies can harness the potential of AI without compromising the customer experience. It is important to stay focused on customer interests and convenience while maintaining data security and transparency in the use of AI.

PT VADS Indonesia provides AI solutions to make it easier for your company to serve customers. In addition, VADS Indonesia also provides chatbot and voicebot solutions according to your company's needs. Various features are available such as:

1. Give rewards/points to customers
2. Can provide information on the location of the company's branches
3. Can provide reminders to customers
4. Can make transactions for the needs of your company
5. Can make video calls that can be used for data verification
6. Can be used for customer service and customer engagement

For more detailed information, consult immediately regarding AI optimization to enhance your company's customer experience. Contact right now

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