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AI 'can be problem, not solution in retail services'

The Consumer Council has called on the retail sector to proactively follow up on customer complaints and ensure that their handling of any ensuing disputes are transparent instead of solely relying on technology. The call came on Thursday as the watchdog saw a nearly 60-percent year-on-year surge in the number of customer service complaints in the first nine months of the year to 3,078. The…

The Consumer Council has warned that artificial intelligence can sometimes exacerbate issues rather than solve them for retail businesses. In the first nine months of the year, complaints to the watchdog jumped by nearly 60% to 3,078, surpassing the volume from the entire previous year. While AI is frequently employed to resolve customer grievances, the council claims the technology itself is a contributing factor to the increase in complaints.

Chief executive Alaina Shum revealed that complaints stemming from AI-powered services grew from just 48 in 2023 to 158 as of last month, encompassing failures to provide practical assistance and disseminating inaccurate information.

To mitigate these problems, the council advises retailers to offer comprehensive guidance on navigating AI chatrooms effectively, as well as other avenues for consumers to reach out, such as human representatives. Transparency in service commitments is also crucial, enabling customers to anticipate response times. The council has introduced a new complaint handling platform, which has already processed around 31,000 disputes since its trial launch in November.

Written by urgent.news from RTHK English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Also reported by 1 other outlet

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