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

The Consumer Council has urged the retail industry to take proactive steps in addressing customer complaints and ensure transparency in resolving disputes, rather than solely relying on technology. This call was made as the watchdog observed a nearly 60% increase in customer service complaints during the first nine months of the year, totaling 3,078, surpassing the number from the entire previous year.

While artificial intelligence is frequently used to manage customer grievances, the council asserts that the technology also plays a role in inflating the number of complaints. Chief executive Alaina Shum revealed that complaints stemming from AI-powered customer services rose from 48 in 2023 to 158 as of last month. These complaints encompassed instances of providing inadequate assistance and offering inaccurate information.

The council emphasizes the importance of traders providing clear instructions on how consumers should utilize AI chatrooms to obtain the responses they require. Additionally, traders should offer alternative contact methods, such as the option to speak with a human representative for inquiries. Shum also stresses the significance of traders setting clear service commitments to give consumers a clear understanding of when they can expect a response.

The council has introduced a new complaint handling e-platform, which features a dedicated chatroom for buyers and merchants to resolve disputes and enables complainants to monitor the progress of their complaints. Since its launch on a pilot basis in November, the platform has managed approximately 31,000 complaints as of August.