The great AI customer service experiment

First, there were self-checkouts and online shopping. Now, machines are automating more of the work previously done by human support staff. But is the generative AI revolution in retail all positive for shoppers? Or is there a line beyond which it risks harming their experience instead of improving it?

In partnership with NewtonX, Google Cloud surveyed 378 business and IT decision makers. The survey found that retailers urgently want to integrate AI into their businesses. And, 95% of respondents think customer service is where the technology will have most impact.?

The survey, released in January 2024 ahead of the NRF '24 trade show in New York, identifies five key generative AI use cases:

• Customer service, including inquiries, appointment-scheduling, and resolving complaints
• Conversational commerce, giving consumers personalized recommendations and responding to product queries as they shop
• Marketing support, specifically more customer-focused copy and more effective product categorization
• Assistance creating images, content, and placements that enhance conversions
• Boosting store associates' knowledge through training materials and other educational documentation

It's hard to argue with the benefits of these use cases. Not only can generative AI drastically lower the amount of busywork human staff have to deal with, it also enables a higher degree of personalization than ever before — something which shoppers expect.?

But over-reliance on technology risks backfiring. While generative AI can handle many run-of-the-mill interactions, the human touch can make a huge difference to a shopper's overall experience.?

Consumer behavior expert and vice chairman of Ogilvy Rory Sutherland puts it this way:

"The real value of technology should be in automating what can be automated and making more personal what needs to be personal … If you install an automatic door at a hotel, you do not fire the doorman — you use him to make a fuss of customers in other, more valuable ways."

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