Generative AI's Detrimental Impact on Customer Experience and Creative Development: The Uncanny Valley

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Generative AI (GenAI) technologies promise to revolutionize content creation by simplifying processes and reducing costs. However, these technological advancements have a significant drawback: they need the human condition essential for genuine interactions. This issue is partially explained by the phenomenon known as the uncanny valley, which describes the unsettling feeling people experience when encountering nearly human-like behaviors that aren't quite lifelike enough. The other part is that people simply don't like it.

I have consistently expressed my views on GenAI and large language models (LLMs). While I see GenAI as little more than a glorified search engine that processes inputs and generates outputs based on existing data, the actual value of AI and machine learning (ML) technologies lies in their strategic use and implementation. In other words, use AI/ML to enhance experiences and expectations, while maintaining human connections.

Unfortunately, widespread misconceptions about LLMs' capabilities, overly hyped marketing, and bandwagon beliefs among businesses, consumers, and consultants have had a detrimental impact on our experiences.

The missing question will always be, have your customers asked for this?

An Emotional Response

The emotional response evoked by the uncanny valley can escalate to extreme levels, including revulsion, sometimes surpassing the discomfort felt when viewing a corpse. This response varies among individuals, often influenced by their familiarity with the subject matter. Traditionally associated with human-like simulations, the phenomenon extends beyond to include instances in modern media and technology. For example, generative AI applications such as Midjourney, which produces digital images, can inadvertently contribute to this effect.?

These AI-generated visuals often possess irregularities—extra fingers, distorted facial features, or asymmetrical proportions—that can elicit a sense of unease or discomfort.?

This reaction to the uncanny valley is not confined to humanoid figures but can also emerge in AI interactions where the experience approaches human likeness yet remains noticeably off. The discomfort extends into various domains of AI applications, such as chatbots, voice assistants, and AI-driven elements of customer experience.

Chatbots and voice assistants often generate frustration when their responses or tone fail to accurately mirror human conversational nuances, leading to disconnect and dissatisfaction. In customer service, replacing human interaction with AI can strip away the essential human element of engagement, leaving customers feeling they need to be more valued and understood. Additionally, AI can sometimes produce hallucinatory or unrealistic responses due to its limitations in understanding context or generating appropriate content, further alienating users.

These issues challenge creators to balance realism with perceptual acceptance in AI design finely. The goal is to enhance user interaction without crossing into the uncanny valley, which can lead to disengagement and discomfort. Developers must navigate these waters carefully, constantly refining AI's capabilities to align more closely with human expectations and improve the overall experience.

Video Games: The Erosion of Player Experience

I?previously wrote?on my LinkedIn feed:??

"There are only two types of AI for games.

1. AI for players: to enhance their experience and make the game more engaging and fun.

2. AI for developers: to genericize originality and take jobs away from the creation and artistic processes.

If you are focused on 2, then you don't care about the players or developers."

Video games are an art form that hinges on immersion, a magic circle where players can escape reality, delve into new worlds, and experience stories in ways other media cannot replicate. GenAI, when applied to creating character interactions or procedural storytelling, often needs to catch up to the delicate balance required to maintain this immersion. Instead of enhancing the gaming experience, GenAI frequently introduces elements that feel artificial, disjointed, or unsettlingly inhuman.

A critical aspect of the uncanny valley in video games is its impact on character design and interaction. AI-generated characters can sometimes achieve a high degree of realism in appearance. However, their behaviors or expressions may need more subtle nuances that human artists infuse into characters. This discrepancy leads to an uncanny effect; characters appear almost natural but have certain elements that are unsettlingly off, which can disrupt the player's immersion and enjoyment.

Although AI can facilitate coding, error checking, and implementing repetitive or more challenging functions, the research underscores the challenges posed by the uncanny valley in gaming. However, according to?Bain & Company, 60% of gaming executives "don't expect generative AI to significantly affect their talent model or alleviate the industry's critical talent shortage.

While?research highlights?that AI can enhance player engagement by 29%, it's crucial to differentiate between traditional AI used as a gameplay mechanic and GenAI, which could disrupt a player's immersion in the game world.

Traditional AI in video games, encompassing algorithms for non-player characters (NPCs) behavior, game logic, and environmental interactions, has been a staple in game design for over six decades.?

The first video game to include AI is widely considered to be "Nim." Created by?Ferranti?and first demonstrated at the 1951 Festival of Britain, Nimrod was explicitly designed to allow a human player to play the game of Nim against the computer. The computer controlled the game by making strategic moves based on the rules of Nim, effectively using a form of AI to challenge human players.?

This form of AI enhances the game's mechanics and challenges, offering a controlled environment where player interaction with AI is predictable and designed to enrich the gameplay experience. These AIs manage tasks like controlling enemies, managing game rules, adjusting difficulty levels, and keeping the game engaging and responsive to player actions.

In contrast, GenAI introduces a different layer of interaction. GenAI can dynamically generate content, such as dialogue, quests, or even entire game worlds, which the developers need to predefine. The key challenge with GenAI lies in its integration into the game world seamlessly and naturally. It must complement the established narrative and gameplay mechanics without overshadowing them or introducing jarring elements that feel out of place. Developers must find a balance where GenAI acts as an enhancer of the game's world without becoming a source of distraction or confusion for the players.

The Uncanny Valley in Customer Experience

As companies increasingly turn to GenAI to automate customer interactions, the benefits of cost reduction and operational efficiency are undeniable. However, the deployment of AI in customer experience (CX) roles, particularly in frontline communication like chatbots, is encountering a critical backlash—primarily due to the unsettling effects of the uncanny valley.?

The backlash against implementing GenAI in customer experience isn't just theoretical; it's palpably present in everyday reactions from real people encountering these technologies. A recent promotional campaign on social media for an AI-powered CX service highlights the stark divide between corporate expectations and consumer preferences. The campaign's comments section became a battleground showcasing widespread discontent with the perceived over-reliance on AI for customer interactions.

Businesses should map out the balance between AI and human engagement with customers. As the graph below illustrates, with increased use of AI, the speed and overall efficiency of service tend to grow, but the quality of service that can come from the human touch decreases. A balance of positive AI implementation and happy customers is at the intersection - your task is to find that sweet spot for your company and customers.

Examples of Public Sentiment

One user expressed their dismay quite vividly: "Yes, that's right. Throw all your marketing needs in a heap with dull, soulless, samey media made on the cheap and not by humans. That will make you a success." This comment underscores a common perception that AI-driven content lacks the authenticity and creativity that human creators bring to the table, qualities that are crucial for engaging and retaining customers.

Another comment highlighted the disconnect between corporate decision-making and customer preferences: "Imagine a bunch of marketing people sitting in a meeting, and one of them says, 'You know how we all hate it when we have to deal with a chatbot or read mediocre-generated content. I bet our customer would love that!'" This sarcastic take illustrates the frustration felt by consumers who are often on the receiving end of these automated solutions, which can feel impersonal and frustrating.

Finally, a more critical perspective on the broader implications of AI adoption was shared: "Don't you just LOVE all these AI companies figuring out how to make a billion dollars before they send our civilization down a rat hole?" This comment points to a more profound societal concern about the long-term effects of replacing human roles with AI, not just in customer experience but across various sectors, potentially leading to significant economic and social consequences.

Bridging the Relationship between Humans and AI

These examples are a stark reminder that while businesses may be tempted to pursue technological advancements to cut costs and improve efficiency, the human element remains irreplaceable in many aspects of customer interaction. The public's sentiment reveals a clear preference for genuine, thoughtful customer service facilitated by real people who can understand and respond to the subtleties of human emotion and communication.

Developers and businesses must heed these concerns. Balancing technological integration with human insight will be critical. Leveraging AI to handle mundane tasks and augment human capabilities rather than replace them could help mitigate the risks while maximizing the benefits. This approach will preserve and enhance the human-centric experiences vital in keeping audiences and customers engaged and satisfied.

As AI continues to evolve, the focus should remain on enhancing rather than replacing the human elements that foster genuine connections and creativity. By doing so, we can harness the power of AI to create richer, more engaging experiences that resonate well with the human psyche, ultimately leading to a harmonious coexistence between human ingenuity and artificial intelligence.

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Chris Hood is a customer-centric strategist and author of “Customer Transformation,” and has been recognized as one of the Top 40 Global Gurus for Customer Experience.

To learn more about building customer-centric organizations, or improving your customer experience, please contact me at chrishood.com/contact.