Customers have mixed feelings about artificial intelligence. For example, many people don’t trust self-driving vehicles but are happy to engage with chatbots.
Most customers understand the benefits of AI.
They like that it can enhance their shopping experiences, provide personalized customer service, and help them find solutions to their problems much faster.
Despite the positives, many have concerns that AI may cross the line, becoming too invasive and a threat to their privacy.
Businesses need to address these concerns if they want customers to trust their brand.
In this article, we will explore the complexities of consumer trust in AI, the concerns contributing to consumer skepticism, and how businesses can allay customers’ fears.
Why Customer Trust Matters
According to a survey by Qualitrics, the number one contributing factor to brand trust is if a company “respects and protects customers’ data, privacy, and security”.
Yet, Deloitte’s 2024 Connected Customer survey revealed that 48% of respondents said they experienced a security failure in the past year (up from 34% in 2023).
That’s a startling statistic – one that reduces trust in technology.
And trust is fragile – hard to acquire but easy to lose. And once lost, it can be hard to regain.
Why does customer trust matter?
Trust is a key to customer retention and loyalty. Customers who trust your brand won’t hesitate to do business with you again.
They’re also more likely to sing your praises to others, which could bring new customers to your door without you lifting a finger to attract them.
Imagine how much that could save you in marketing and advertising costs.
When it comes to AI, customers’ distrust lies in how companies implement AI in marketing and business processes, how they’re using data, and how AI may lead to errors or expose them to risks.
A lot of distrust of AI is due to a lack of information. If you can demonstrate that you use AI to benefit customers rather than harm them, it can ease their fears.
Biggest Concerns Customers Have Around Artificial Intelligence
Customers worry about the implications of AI. According to a survey by YouGov.com, 54% of Americans approach AI cautiously, while
- 49% are concerned;
- 40% are skeptical, and
- 22% are scared.
What’s driving customers to be cautious, concerned, sceptical and scared of AI?
1. Distrust in The Accuracy of AI
AI technology relies on data and algorithms to function. While a computer can process data much more efficiently than humans can, it can return wrong or inaccurate results if the data is incorrect or biased.
This is particularly evident in generative AI but also applies to predictive analytics, fraud detection, and even medical diagnoses.
Another example is recommendation engines that continuously suggest irrelevant products, creating a poor customer experience.
When AI gets it wrong, it can destroy customers’ trust in its capabilities.
To improve accuracy and minimize biases, you must continuously fine-tune your AI models with ongoing training and updates from a broad spectrum of data – a process increasingly supported by AI coding agents.
2. The Lack of Human Involvement
Customers often struggle to engage with AI applications, like chatbots, when they feel they are talking to a robot.
However, according to a survey by Zendesk, 68% of customers said they are more likely to engage and trust AI chatbots that demonstrate more human-like traits.
For this reason, many companies are investing in developing more human-like AI tools that converse in simple, realistic, and empathetic language.
That said, customers don’t want companies to use AI to avoid dealing with them.
They may use an AI chatbot for basic queries but still want the option of reaching out to a human customer service agent for more complex or urgent issues.
Striking a balance between AI and human support, with easy access to a human agent, can help meet customers’ needs and gain their trust.
3. Privacy and Security Concerns
Customers are increasingly concerned about how their information is collected, stored, and used.
Data breaches and misuse of personal information can severely damage trust in AI-driven platforms.
One way to overcome this is to request user consent before collecting data, clearly explain how it will be used, and then deliver on that promise.
4. Distrust in The Veracity of Information
One of the drawbacks of AI has been its use in creating disinformation and scams.
AI is making it hard to differentiate between true and false information, images, and videos. This has caused many people to lose trust in AI.
Younger consumers, aged between 25 and 44, express more trust in AI, and because they’ve grown up with digital technology, may be sharper at spotting fake content.
In contrast, older consumers, aged 55 and 65+, are less trusting and may have greater difficulty distinguishing between real and fake AI-generated content or scams.
How To Build Your Customers’ Trust in AI
AI has become an integral part of modern business operations, enhancing efficiency, streamlining workflows, and improving customer experiences.
However, despite its many advantages, some customers remain wary of AI.
Businesses that proactively address this can shift their perception from negative to positive.
Here are five strategies to build your customers’ trust in AI.
1. Develop an organizational AI strategy
Implementing AI haphazardly can lead to blunders, which could further reduce customer trust in AI.
Develop an AI strategy that addresses key concerns around ethics, data privacy, and security.
- Explore industry best practices and ethical guidelines for AI development and deployment. If you have a global customer base, ensure your AI practices adhere to other countries’ laws, such as the European Union’s GDPR data protection regulations.
- Develop internal policies and processes that ensure accuracy, accountability, and ethical standards are maintained.
- Invest in ongoing employee training to ensure AI tools are used effectively and responsibly.
- Conduct regular reviews and audits of AI processes and adjust your strategy as your organization and customer needs shift.
2. Share your AI strategy with your customers
Transparency is a key pillar to building trust in AI. Customers want to know how AI is being used and how it impacts them.
- Make it clear to customers when they are interacting with AI rather than a human.
- Provide clarity on AI-driven decisions, especially in areas where customers may feel at risk, like finance and healthcare.
- Explain the security protocols that keep data secure and uphold ethical standards.
- Reassure customers that a human is always accountable for AI-driven decisions and that they have access to human intervention when necessary.
3. Obtain customer consent to collect and share data
According to a survey conducted by MITRE, 78% of respondents said they worry that AI can be used for malicious intent.
That’s why it is essential to clarify your data usage policies and obtain customer consent before gathering and sharing their personal information.
- Notify customers when they’re about to engage in AI platforms where data is collected.
- Use simple language to explain AI processes so customers understand what they are agreeing to.
- Display AI disclosures prominently on website banners and notifications before customers engage with AI chatbots, or expand on them in your FAQs section.
4. Don’t neglect the human factor
Customers still value human interaction, especially when dealing with complex or sensitive issues.
Striking the right balance between AI and human support creates a more robust support structure that customers will feel more comfortable with.
Build a hybrid customer service model that includes human and AI-enabled support.
- Use AI to assist human agents rather than replace them. For example, self-service options like AI chatbots, knowledge bases, and virtual assistants can help customers find answers quickly without human intervention. This could allow agents to manage and resolve more complex queries faster.
- Always offer customers the option to speak with a human customer service agent when needed. Build processes into chatbots and virtual assistants that allow a seamless transfer to a human agent when required.
Conclusion
Consumers are not against AI.
They understand its benefits and are happy with how it improves the customer experience.
However, they are concerned that companies may use their data in ways they don’t approve of. They also worry that AI may be unsafe or replace the human element.
To allay your customers’ fears, be open and transparent about your AI practices, request permission to collect and share customer data, and implement policies that ensure your AI practices adhere to the highest ethical standards.
