AI was supposed to revolutionize customer service. Morgan Stanley's interns aren't buying it. - 3 minutes read




Is artificial intelligence actually useful in the real world? Is it worth paying extra for this technology?

One positive answer is supposed to come from customer-service call centers, where AI has the potential to either replace or supplement legions of human employees handling questions from confused and sometimes grumpy consumers.

Earlier this year, the startup Klarna said an AI assistant based on OpenAI's models was doing work equivalent to 700 full-time customer-service agents. Last week, Microsoft CEO Satya Nadella cited the company's use of Dynamics software in contact centers as an example of AI being deployed successfully.

The problem is that no one really wants their customer-service questions handled by machines. Not even the young'uns.

That's according to research from Morgan Stanley, which has been closely tracking AI adoption this year.

Ask the interns

The investment bank surveys its interns from time to time to get a gut check on tech usage from younger people who will grow into tomorrow's big consumers.

The bank recently asked these interns about using AI-powered customer-service agents. The results were not pretty. It's another warning to the tech industry about the potential limits of AI adoption in practical situations.

The majority (93%) prefer to talk to a human when it comes to solving a query10% said AI chatbots never solve their problems75% said chatbots fail at least half of the time to solve their problem












A chart from a Morgan Stanley research note.



Morgan Stanley




Morgan Stanley's analysts noted that AI models should improve, helping machines to solve more customer-service questions and complaints. But they also highlighted another risk.





"In many cases technology improvement in and of itself cannot force behavioural change that is generally slow and iterative — particularly emotionally-driven complaints or trust-centric conversations," the analysts wrote in a note this week to investors.

This makes sense intuitively. When you have problem, especially one involving something you paid real money for, you want to be heard by a human who feels your pain and is capable of fixing the issue ASAP, ideally by cutting through red tape and just getting it done.

The AI reality

The AI reality is nowhere near that at the moment. Take Klarna's AI customer-service agents.

Gergely Orosz, a software engineer, tried out Klarna's technology by calling up with questions, and then wrote about his experience on X.

"Underwhelming," was his conclusion.

When he asked questions, he said the AI bots regurgitated information that was already available from Klarna.

If he asked about anything other than what was documented, "I'm boom talking with a human agent," he wrote.



Source: Business Insider

Powered by NewsAPI.org