Redpoint Global, a leading software provider that helps brands deliver revenue-generating, personalized customer experiences, today announced new research that reveals how consumers really feel about brands using Artificial Intelligence (AI) and Machine Learning (ML) to influence their experiences. While many consumers (45 percent) expressed a lack of understanding of how these technologies are being implemented, the majority of consumers (73 percent) believe there is potential for impact on customer experience (CX), particularly in digital settings. Nearly half (48 percent) of all consumers say they would interact with AI more frequently if it would make their customer experience with a brand more seamless, consistent and convenient.
The human touch matters markedly in how AI is perceived. The survey found 77 percent of consumers believe positive customer experiences still need an element of human touch, and 58 percent of consumers say they want companies to be clear about when AI is being used. The interaction between humans and AI must be flawless as well. If consumers sense disjointed communication with AI across channels, 76 percent say that they are less likely to trust and continue engaging with a brand. Approximately one third of consumers see positive CX impact from AI in website, mobile, text/SMS and in-store interactions, and 1 in 4 consumers also see improvements for email and phone. Consumers rank chatbots as the most ideal use of AI to improve the customer experience, but 70 percent prefer human interaction over chatbots.
“As AI technology evolves and moves into more aspects of the customer experience, brands have to focus even more on delivering a frictionless consumer experience,” said John Nash, Chief Strategy and Marketing Officer for Redpoint Global. “Positive CX outcomes depend on access to relevant customer information in real-time as consumers navigate between channels, AI and human interaction. Consumers are quick to pick up on inconsistencies as evidence that brands simply do not understand them and will move their business elsewhere. The fragmentation may be driven by different decision criteria, or different data being accessible at different points in a journey, but for consumers, it is one and the same – a negative experience.”
Generationally, comfort with AI varies considerably. Gen Z and Millennials feel more confident in how brands use AI than Gen X and Boomer counterparts. All generations agree they’d be willing to engage with AI more frequently if it would solve problems faster than waiting for a human representative to solve the problem, but Gen Z is the most comfortable having active interactions with chatbots/AI before humans (42 percent). In addition, 57 percent of all consumers think the pandemic has greatly increased acceptance of AI across many industries.
There are several positive impacts consumers highlight as important in the use of AI, for example, 54 percent of consumers think AI can help brands keep personal information safer and more secure. In fact, the younger the consumer, the more they believe that security impact to be true (66 percent of Gen Z). Around 1 in 4 (26 percent) also identify AI’s ability to help brands problem-solve more quickly, regardless of channel, and identify a solution or trigger action as the most beneficial to them in their customer journey.
This survey was conducted via Dynata Research in January 2023 and targeted 1,000 U.S.-based consumers over 18 years of age. For complete survey methodology, email firstname.lastname@example.org.
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