AI chatbots in Australia need human touch for empathy

An increasing number of Australian companies are employing AI-based chatbots for customer service, yet the technology is not poised to replace human interaction entirely.

Richard Valente, Executive Vice President of Business Solutions at Teleperformance, addressed the role of AI in customer service, stating, "While AI enhances efficiency and helps meet customer needs, it can never replicate the emotional intelligence (EI) that fuels trust, connection, and loyalty."

AI's involvement in customer service is substantial, performing routine tasks such as answering frequently asked questions, providing order status updates, and offering basic support.

Valente noted, "AI has played a role in customer service for years and will continue to support routine tasks like answering FAQs, providing order status updates, or offering basic support. It's available 24/7, so it makes sense to quickly and efficiently handle high-volume inquiries through tools like chatbots and automated responses."

Highlighting the application across different sectors, he mentioned, "Major banks use virtual assistants to help customers with basic banking inquiries, while major Australian retailers use AI-driven chatbots to track orders and returns."

Despite these capabilities, Valente emphasises the limitations of AI, stating that it cannot replicate emotional intelligence, an area where human agents excel. "When it comes to the basics, AI has it covered. But what it can't do is replicate emotional intelligence. Humans have empathy and compassion. They can creatively solve problems particularly when addressing sensitive or personalised customer requests," he explains.

Valente offers guidance on balancing AI with emotional intelligence, suggesting approaches such as personalised responses by using clients' names to make them feel valued. "Personalising responses shows customers that we care and they aren't just a number," he shares.

He further advises experiencing the customer's side by engaging with one's own customer service teams to better understand the level of service being provided. "Customers need to feel understood," Valente remarks.

Additionally, Valente points out the importance of cultural sensitivity, acknowledging the limitations of AI in interpreting language and cultural nuances, an area in which human agents naturally excel.

Valente maintains that a balanced approach, as adopted by Teleperformance, utilises AI for routine tasks to allow human agents to focus on the more complex and emotional facets of customer service. He underscores the need for prompt engagement to assure clients of their importance, asserting, "Ensure wait times are as short as possible."

Illustrating the significance of human intervention, Valente recounts an incident involving retail giant Country Road, where a chatbot's limited response to a delayed delivery complaint was transformed by a human agent.

"Recently, retail giant Country Road witnessed the limitations of its chatbot when a long-term customer complained that an outfit they'd ordered for a special occasion hadn't arrived on time. The AI chatbot's suggestion was a refund or credit.

"However, when a human agent took over, they recognised the emotional weight of the situation and quickly organised for express delivery and a discount as a gesture of goodwill. It was a customer service decision based on empathy which cemented customer loyalty far beyond what AI could ever achieve," he concludes.