Consumers aren't exactly falling in love with chatbots and other types of artificial intelligence, but they're spending more because of them, a new study found.
According to a recent survey of 1,000 U.S. consumers by Raleigh, N.C.-based software company PointSource, over half (54%) have used an AI application in the past year. That's significant because when AI is present, about half (49%) of consumers were willing to shop more frequently and 34% spend more money, the data showed.
Consumers have mixed feelings about AI, however. Most (83%) said they're fine shopping with a brand or retailer that uses chatbots or other AI capabilities, but most (54%) would rather talk to a human customer service representative.
"Services like recommendations from Amazon and Facebook Ads, have done a good job of warming people up to the idea of AI in their everyday lives – normalizing it through seamless digital experiences that ultimately take place beneath the surface without the user realizing it," PointSource Chief Technology Officer and AI Studio VP Barry Pellas said. "However, this has also created a gap in how consumers understand the technology. Businesses are investing millions of dollars in AI and chatbot technology with the goal of improving the customer experience. But all that effort is useless if the consumer doesn't understand it."
"I'm sorry Dave, I'm afraid I can't do that."
Only 16% of the respondents in the survey said they were "extremely satisfied" with their previous chatbot experiences.
One of the biggest hangups appears to involve comprehension. According to the PointSource study, most consumers (51%) are worried chatbots won't understand what they're looking for, and 44% aren't sure chatbots are giving them accurate information.
The study also found that 39% of respondents would be more comfortable using chatbots if they had guarantees about the accuracy and timeliness of the information chatbots provided. Another 39% of respondents said they'd be more comfortable using chatbots if they had a clearer understanding about how the business used their information.
Data privacy was also a big concern for 41% of the respondents.
"This number drastically spikes when highly sensitive information is involved," the study said. The vast majority of consumers (80%) want to speak with a human when they're giving or receiving medical information from healthcare providers, it noted.
"Insurance policyholders are most open to the idea of chatbots facilitating simple and routine activities like policy reminders (36%) or checking the status of a claim (29%)," it said.
"Shall we play a game?"
The data also suggested that chatbots could be a way to quell impatience.
"If a customer is on hold with a customer service representative, 34% of customers want to switch to a chatbot after five minutes have passed. However, 59% get frustrated if a chatbot doesn't resolve their inquiry in that same time frame," the study said.
About half (49%) of consumers said they'd be more comfortable using chatbots if they knew they could escalate things to a human if necessary.
"Every new channel of interaction you open with your users must provide fast value," PointSource COO and Chief Digital Officer Stephanie Trunzo said. "Moving too fast to serve too many use cases at once likely will lead to a frustrating chatbot experience, where the user will not return."
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