The AI Paradox: How to Address Concerns and Close the AI Gap
There’s an intriguing paradox in today’s CX management. Dun & Bradstreet’s latest survey showed that nine out of ten business leaders are optimistic about artificial intelligence (AI) and want to use more of it in their CX operations. However, only three out of ten currently use it, even though there are clear benefits. So, what’s holding back wider adoption? Could it be issues around data security and compliance? Or simply not knowing where to start? We explore how to navigate this paradox, so you can confidently move forward in your AI evolution.
Addressing AI Concerns
To many, AI feels like a black box—powerful but not fully understood. This can lead to uncertainty, which often leads to hesitation…
Not Knowing Where to Start
One of the biggest AI adoption hurdles is often a lack of internal subject matter expertise. According to the same Dun & Bradstreet survey, over a quarter of business leaders say their greatest block is insufficient knowledge about AI, which prevents them from implementing it in a way that aligns with their business priorities. When you aren’t sure what solutions to implement or where to integrate the technology, there’s often a fear of incorrect execution. Business leaders worry that the migration will disrupt their current processes or legacy systems, for a technology whose benefits aren’t entirely clear, and because they don’t always have the internal expertise to properly evaluate the efficacy of AI solutions, some figure it’s just too complex to navigate the change.
Data Security and Compliance Issues
Some of the greatest hesitation comes from data security concerns and fears about regulatory compliance. Almost half of business leaders are concerned about data privacy violations and what this could mean for the collection and use of consumer data, especially to train AI models. Typically, these models require large data sets to generate high-quality outputs. This may naturally include sensitive customer information, which could pose ethical concerns, or even serious legal risks if bad actors were to gain access to customers’ personal data. This requires businesses to stay on top of the latest AI trends to minimize security risks. Not to mention compliance challenges as governments enact new protective regulations like the EU AI Act.
Loss Of Human Touch
While customers may actually prefer AI for things like tracking deliveries (49%), finding products (39%) or making payments (29%), nearly half still find it less personal than human service and prefer to interact with human agents. Even when consumers readily accept AI technology, 73% still want to know it’s being overseen by humans, and almost all want companies to disclose the use of AI in customer care. This highlights the fear that both consumers and companies share that AI will make interactions feel cold and impersonal, and that over-automation could alienate customers and make the whole experience less appealing. There are additional concerns about the effectiveness of AI for tasks that require complex judgement, nuanced handling, or empathy.
How To Close the AI Gap
AI has many useful applications, but the best way to combat uncertainty, and to replace that with confidence, is to follow a few best practices that can help you avoid common implementation mistakes.
Integrate Mindfully
First, understand that AI is not a “cure-all”. Instead of blanket AI adoption, start with a problem-to-solve mindset. What will AI help you solve or do more efficiently? How will it align with your business goals and how will it fit into your existing tech stack? Start with smaller test programs before a wider rollout. If you lack the internal expertise to properly evaluate AI tools, consider working with a CX partner. Partnerships can be a cost-effective way to scale technologies without having to make significant investments in software development or technical infrastructure. Partners can expertly map the customer journey, identifying the best areas for automation or AI, then design seamless integration pathways to minimize any disruption during implementation.
Prioritize Transparency & Data Protection
When it comes to ethical or regulatory concerns when training AI models, data privacy doesn’t have to be a blocker. For instance, we work with clients to ensure their AI systems comply with GDPR, CCPA, and other relevant regulations, sometimes using synthetic or anonymized data for training, wherever it’s appropriate. What’s most important is to prioritize transparency—customers need to know how their data is being used, so it’s critical to update data collection policies to include AI, and to ask for consent where applicable, especially if data is being used for AI training. Also, be aware that AI systems do introduce new data security risks, but these can be mitigated with proper risk assessments, security frameworks, encryption, access controls, and regular audits.
Keep the Experience Human-Centric
When automation goes too far, it can erode the human touch that builds loyalty. While speedy responses and efficiency are undoubted benefits of AI, not every interaction should be handled by a bot. In fact, customers trust a brand 51% less when their issue is addressed by a non-human. The best CX strategies use AI to augment, not replace, human agents. For instance, using AI to uncover insights that help live agents to personalize recommendations. More crucially, never hide AI use, especially when deployed for data collection. Always be transparent with customers and always leave space to escalate to a real person, especially when emotions or complex issues are involved.
Recognize the Concerns, But Reap the Benefits
There are real reasons to adopt AI in your CX operations. Most who implement it see measurable performance improvements, like 55% lower wait times and 48% higher satisfaction. While any technology change always brings about fresh concerns, it shouldn’t hold you back from experiencing the benefits of AI. The solution is to set clear intentions and goals around AI use, to be strategic and measured at every step, and to seek to enhance not replace the human experience.
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