As 57% of Australian companies use AI in customer services, their biggest challenge is consumer trust

Using artificial intelligence (AI) in customer services helps companies improve the customer experience (CX). But how can businesses mitigate consumer trust concerns and effectively implement AI into their service operations?

Over half of Australian businesses (57%) now use AI in customer services, such as chatbots and virtual assistants, so delivering excellent support must remain a priority when it comes to the customer experience (CX). 

While customers might be hesitant about AI-driven interactions —assuming the tech lacks the personal touch, needs help understanding or addressing complex queries, or faces data privacy issues— proactive businesses can mitigate these concerns. 

Capterra's first article in this two-part series found that service technologies, such as call centre software, help boost customer satisfaction scores for most Australian businesses.

However, AI can't fully replicate the human approach in customer services, meaning transparency around its use and data handling needs careful consideration. Businesses will want to avoid declining customer satisfaction levels, if individuals feel their needs are not effectively or safely addressed.

To learn more about the benefits and challenges of utilising AI-driven software, Capterra’s Customer Service Technology Survey* collected responses from 2,307 employees worldwide involved in their company’s customer service operations. This article focuses primarily on the results from the 193 Australian respondents and outlines what other businesses must consider when incorporating AI into the CX.

Using AI in customer services mainly helps increase productivity 

Leveraging AI customer support tools can help companies significantly improve both the customer experience and operational efficiency within call centres. For example, AI chatbots can handle repetitive and straightforward queries, such as checking account balances or tracking orders, freeing up human agents for more complex tasks. 

When asked what they believe would be the top benefits of adopting AI-enabled customer service software, employees mostly cited that it would help with faster customer response times (60%), as well as cost savings (58%) and improved customer satisfaction (28%). Customers undoubtedly appreciate quick responses to their inquiries and issues, as long wait times can lead to frustration and dissatisfaction. 

Employees who are already using AI tech were asked about the impact it’s made on their company’s customer service operations. Respondents say AI has generally increased productivity (66%), customer satisfaction levels (53%), and call volume (45%)—three very important areas to impact the CX. This is made possible as AI automation reduces the workload on human support agents, allowing them to focus on higher-value interactions.

Employees say maintaining consumer trust is a key challenge

Implementing AI-powered solutions within customer support can be complex but can be handled relatively easily if some of the potential challenges are strategically addressed. 

Employees who work in customer service operations say maintaining customer trust (51%) and ensuring accurate information (42%) are the main challenges of adopting AI-powered support software. They also find implementation and training (34%) challenging, perhaps due to the complexities of integrating the tools with existing customer service platforms and the skills gaps among employees who may need a more technical background to work alongside AI systems.

Other areas of concern in utilising AI usually revolve around privacy breaches and data security. If an online bank implements an AI chatbot to handle customer inquiries, including sensitive financial information and the system is hacked, customer data is compromised. Trust in the company protecting private information is damaged, and customers will lose confidence in using AI tools to secure transactions, fearing further breaches. 

Most employees (73%) agree that they are concerned about the accuracy of information being provided to customers via AI-enabled tools. If, for example, a customer uses an AI-enabled chatbot to inquire about loan eligibility and interest rates, bank employees may worry about the accuracy provided by the chatbot, fearing it might be outdated or incorrect. This could impact the customer’s financial decisions. 

Companies can proactively address these areas of concern by ensuring that the AI tool is frequently updated with the latest information on loan policies and other financial data. It is important to communicate that, while the AI tool is designed to provide up-to-date information, they can always contact a human agent for verification.

Businesses must also implement robust security measures—firewall solutions, Multi-Factor Authentication (MFA), and endpoint detection—and communicate when AI is in use and the limitations of what information it can provide. Educate customers via various channels (website, email, social media) about the benefits that AI brings to CX.

What to consider when implementing AI in customer services to improve the CX

Implementing AI into customer service operations requires a well-thought-out strategy to ensure a smooth transition and maximised benefits. Business decision-makers should consider the following: 

1. Leverage the areas in which AI and humans perform best 

Identifying the strengths of both AI and human agents allows management to allocate tasks more efficiently. For example, AI can handle repetitive, straightforward queries, while human agents can focus on complex, nuanced, and emotionally sensitive issues.

Balancing work tasks between AI tools and human call center agents can be difficult and companies need to define clear roles to ensure seamless collaboration. 

According to Capterra’s survey, employees think humans perform better in most core customer service areas, such as personalized interactions (81%) and facilitating sales and upselling (72%), placing Aussies above the global averages (65% and 58%, respectively). Australian survey takers believe AI-related customer support is better at having conversations in multiple languages (58%), and analysing data and generating insights (52%).

2. Train support agents to safely handle AI tools and customer data

Employee training ensures workers understand how to use AI tools and facilitates a collaboration where AI assists support agents by providing relevant information and suggestions in real-time. Capterra found that 72% of employees using customer service software with AI capabilities say they have received training on handling customer data in relation to AI technology. 

Employees must learn to use dashboards and understand AI-generated insights, knowing when to take over from AI during interactions. Proper training on handling consumer data also ensures compliance with data protection regulations and helps prevent data breaches, ultimately maintaining customer trust.

3. Inform customers about AI support interactions for effective CX

Customers are more likely to trust and engage with a company that is open about its AI practices. The most common ways that companies inform their customers about using AI in support interactions include:

• Notifying customers of the policies or terms of service (60%)
• Giving customers the choice between AI or human-assisted interactions (54%)
• Providing a notice or labelling during customer interactions (47%)

It is worth noting that 5% of employees say their company doesn’t inform customers about AI’s involvement in support interactions. However, clearly communicating AI's capabilities and limitations helps set realistic expectations. Inform customers at the beginning of an interaction that they are speaking with an AI tool, with an option to escalate to a human agent if needed.

According to Gartner, businesses should position customer-facing AI as a facilitator of customers' best-fit solutions rather than an agent replacement. Customers must know the AI-infused journey will deliver better solutions and seamless guidance, including connecting them to a person when necessary. [1]

Customers are more understanding and patient when they know they’re interacting with an AI tool and understand what it can and cannot do. Transparency about AI usage can increase customer acceptance and comfort, particularly for those who might be sceptical about interacting with the technology.

The outlook on AI in customer service and the CX is positive

Despite some of the concerns and challenges surrounding customer service technologies, most employees (76%) believe AI-powered software has positively impacted customers. It’s crucial that businesses have a well-defined strategy to ensure that both AI and human agents are utilised effectively, and it doesn’t negatively impact the customer experience.

The future of AI adoption looks relatively promising, as employees believe that, on average, almost half of customer service inquiries (44%) will be managed exclusively by AI (rather than human agents) within the next five years. By integrating AI for routine tasks and reserving human agents for complex interactions, businesses can optimise resources, enhance customer satisfaction, build trust, and maintain operational efficiency.