Companies are rushing to harness the benefits of generative AI (GenAI) tools such as ChatGPT, Copilot, and DALL-E. While GenAI promises cost savings and efficiency, however, customers still value genuine human connections. Striking a balance between AI-driven interactions and authentic human experiences is vital for earning customer trust and maintaining empathy.
See also: A Reality Check for Generative AI
Despite the excitement around GenAI, customers remain cautious, selectively trusting AI with low-risk tasks like crafting communications, creating meal plans, or generating workout routines. However, when it comes to more complex, high-stakes interactions, customers prioritize privacy and security. A 2023 study by the International Association of Privacy Professionals highlighted these customer concerns:
- 57% believe AI poses a threat to privacy.
- 53% think AI makes it harder to protect personal information.
- 81% worry about how their data will be used.
- 69% don’t trust companies to use AI responsibly.
While businesses explore AI for efficiency, customer-focused companies are addressing these concerns by being transparent about data usage and providing customers with control over their data. Offering human interaction channels alongside AI solutions helps maintain consistent and trustworthy experiences.
Customers Desire Authentic Empathy
In 2023, a peer-to-peer emotional support service faced backlash for using ChatGPT to communicate with users who expected human empathy in a vulnerable and challenging situation. While GenAI can deliver empathetic-sounding responses, customers were disappointed by the lack of authentic human connection, particularly in an emotionally challenging journey.
This incident underscores the importance of aligning empathy with customer expectations. For emotionally charged moments, such as dealing with insurance claims after the loss of a home or loved one, customers often seek real human support. As Danny Allred, leader of the conversational AI strategy at Nationwide says:
“Companies need to consider how the transparent artificial empathy is transformed into authentic empathy with a person. This is where they will see real value in leveraging Gen AI at scale while still retaining the human element.”
By balancing GenAI’s scale with human intervention, companies can offer genuine empathy where it matters most.
See also: Balancing Technology and Empathy in Claims
Focusing on the Customer
To meet customer expectations, companies should assess key customer journeys and feedback to determine where human touch is needed and where AI can be beneficial. These interactions typically fall into two categories: consultative and transactional.
Consultative interactions require guidance, empathy, or emotional support. Here, human connections are essential, and AI should enhance, not replace, these interactions. For example, AI can support employees in providing empathetic service during claims or new product purchases.
Transactional interactions prioritize speed and efficiency, such as bill payments or routine policy changes. AI can automate these tasks, improving convenience for customers.
Recognizing the difference between consultative and transactional experiences allows companies to design more effective digital interactions. However, these distinctions aren’t always clear-cut. A transactional interaction may shift to a consultative one if the customer encounters issues, requiring empathy and human intervention.
Customer journey orchestration technologies can help businesses identify these shifts in real-time, allowing them to intervene with empathy and prevent negative experiences.
By ensuring that customer needs drive engagement strategies, companies can build trust and loyalty. Involving customer experience teams in AI strategy decisions ensures that AI is used to enhance customer well-being, ultimately helping them thrive.
