Luke Cuthbertson, Head of CX Consulting Practice, Route 101
Good customer service must always be designed with the customer at its centre, and while technology may be transforming how this service is delivered, it is not rewriting the rules. Patience and empathy remain at the heart of quality service, ensuring customers are treated with care and given the support they need to resolve issues.
For financial institutions, customer service has historically played a central role in building trust and loyalty. Customers seek security and reassurance when dealing with finances, especially those who are more vulnerable. As new technologies like AI transform how organisations deliver their customer experience, it’s crucial that they continue to provide the same levels of care and capability to help resolve any issues that arise.
The introduction of AI
It’s no secret that the rise of AI within customer service operations is revolutionising the industry. The technology brings with it a number of benefits. Chief among these is its ability to act as a first responder, with AI able to reduce wait times by handling initial queries, providing support on simple issues and escalating complex problems.
However, this is not simply a case of implementing a chatbot and calling it a day. AI tools must be carefully integrated into existing infrastructure and deployed with a clear focus on customer needs. The objective should be to use their unique capabilities to create new service opportunities, rather than simply replicate or automate existing human processes.
For example, emerging evidence indicates that some customers already feel more comfortable interacting with AI when discussing sensitive topics, such as debt recovery, because it removes the fear of human judgement.
However, whether they want to communicate with an AI or human agent, providing customers with the choice remains a critical factor for successful implementation. By integrating AI agents and chatbots into existing omnichannel solutions, customer service teams can provide a support service capable of meeting the unique requirements their customers have as and when they need them.
An AI-enhanced workforce
Clearly, while customers are embracing AI, there is still a demand for human interaction. An effective AI solution is one that enhances human capabilities, rather than replacing them. We are already seeing the technology improve the mass-market customer experience by supporting human agents in real time, ensuring they can maintain a high quality of service.
In practice, human agents will now have AI providing key insights and observations in real time. This can help agents resolve problems more efficiently and reduce the time customers spend waiting while information is retrieved from different systems. The technology can even identify subtle cues that may indicate customer vulnerability and suggest tailored approaches to ensure interactions are as helpful as possible.
For financial institutions looking to expand their use of AI, the human element must always be the common denominator, not only in direct customer interactions, but also when it comes to reviewing AI suggestions and outputs. Given that the technology is continually evolving, organisations must understand that it is still capable of making mistakes. Continuous human oversight and clear escalation paths ensure that automated decisions can be reviewed, challenged, and corrected when necessary. Firms can ensure these review processes go smoothly by adopting Explainable AI (XAI) frameworks that provide clear, human-readable reasoning for all algorithmic outputs.
This is particularly crucial given the risk to vulnerable customers in the industry, particularly as organisations are still experimenting with how to implement these systems optimally. To mitigate this, companies can leverage the expertise of established partners who possess a proven track record of delivering AI solutions safely and effectively. A properly integrated AI system will have clear guardrails in place and will also focus on identifying customers who need extra support.
New technology, new regulations
All of this is particularly important in the financial sector, given the strict regulations involved. As AI capabilities develop, organisations must ensure they remain compliant with all regulations – as well as preparing for regulations governing its use to continue to evolve. It is vital that organisations do not get lost in the hype and instead maintain constant oversight.
No matter how good the customer service solutions may be, if they are not compliant, they could lead to organisations facing severe consequences. This could include significant fines under current frameworks, such as the EU AI Act. However, the AI tools themselves can help solve the problem. They can be used to review internal processes against regulations and help with maintaining compliance. AI can also help compile robust evidence of an organisation’s adherence to relevant regulations, such as accurately measuring consumer outcomes to demonstrate compliance with Consumer Duty requirements. It might not be the most glamorous use for the technology, but it will help ensure modern customer service solutions can continue providing support to customers while maintaining compliance.
So, what does the future of customer service look like?
AI is here to stay, of that there is no doubt. The technology will become an established part of omnichannel solutions, providing greater depth and capabilities to existing options. Providing customers with a genuine choice of channels will allow financial institutions to meet different needs while strengthening customer relationships.
AI will increasingly act as a first line of support, resolving straightforward issues and using ‘intelligent escalation’ to bring in a human agent when an issue becomes too complex or requires greater care. As it takes on these additional support levels, when human agents are required, they will have more time to dedicate to those customers who require greater care, or whose requests may be more complex.
The future of customer service is bright, and humans will remain at its heart. The introduction of AI simply empowers them to consistently provide the best support they can.
