AI Ethics a Top Consumer Concern

More than two in five consumers (43 percent) are concerned about the ethical use of artificial intelligence by companies, according to a report by CX Network.

And that’s a trend that’s caught the attention of customer experience leaders. The research found that 55 percent of CX professionals agree that data privacy and security is becoming more important to customers. As a result, customers are demanding tighter security across data privacy and greater transparency where companies are implementing AI.

The research also found that 29 percent of CX professionals have already recorded a positive impact on customer loyalty as a result of their use of generative AI, particularly as customers level up their understanding of how AI works and uses company data.

“Transparency is crucial. Companies should be open about how AI technologies are employed in their operations, specifically in how data are collected, analyzed, and utilized to improve CX. This involves clearly communicating the purposes of data collection and the benefits to the customer, ensuring there is an understanding of the value exchange,” says Jaakko Lempinen, head of customer experience at YLE Finland, in the report.

But there is more to it than that.

“Organizations should actively involve customers in the development of AI solutions through feedback loops, allowing them to express their concerns and preferences. Engaging in dialogue about AI and its role in CX helps demystify technology for customers and builds a foundation of trust,” Lempinen says further. “Collaborating with regulatory bodies, industry groups, and other stakeholders to shape the future of ethical AI use not only positions the organization as a leader in this space but also helps to ensure that the development of AI technologies benefits all stakeholders in the CX ecosystem.”

AI is not the only investment priority for CX professionals this year, though. CX Network found that automation in general is the top investment priority for CX in 2024, with 42 percent of professionals listing it as their main focus. Other spending priorities included data insights and analytics (38 percent) and conversational AI chatbots and virtual assistants (28 percent).

While investment in AI technologies will be a necessity, 42 percent of CX professionals cite demonstrating ROI as the most common obstacle to bringing these investments to life. CX professionals will face pressure to prove the worth of their spending plans.

“CX often adopts technology after other functions, such as marketing, where cutting-edge technologies are required to grab the customer’s attention in new and inventive ways,” says Anna Noakes Schulze, head of community experience at TheNTWK. “Customer experience is tasked with nurturing and preserving the customer relationship, which naturally lends itself to more conventional, lower-risk approaches that already have a proven track record. These conservative tendencies work against experimentation with cutting-edge tech, except in a few rare cases like generative AI where the efficiency gains all but guarantee a positive return on investment.”

“If these technologies are not yet important to your customers, then pay attention to what the more future-forward brands are doing and see what you can learn from their initiatives,” she advises.