Where Generative AI Fits Into Your Retail CX

Right now, generative artificial intelligence (AI) tools, like ChatGPT, are all the buzz — making many retailers wonder: How can this technology be used to improve the customer experience?

The use cases for AI in the CX retail experience are many. AI is especially good serving customers online by responding to simple questions quickly and clearly, or personalizing experiences at scale by learning customer preferences through interactions and providing relevant products at the right time. AI is also good at augmenting retail contact center agents by giving them the tools and data they need to be more efficient and effective.

On the other hand, AI isn't good at providing the human touch that customers need. That means retailers need to strike a balance between automated interactions and human interactions. They need customer-worthy AI.

Achieving Customer-Worthy AI

Implementing a customer-worthy AI solution into your CX can be achieved by following the three laws of human-centered design in AI-driven CX:

1. Think Responsibly: You must consider issues like data lineage (i.e., where did this data come from, and did it capture bias?), input bias (i.e., is your ability to intake information reflecting reality or your expectations?), prejudice reinforcement (i.e., did you influence the answer by how you phrased the question), diversity of perspectives (i.e., who is being represented and who isn’t?), privacy, and potentially overlooked angles and consequences.
2. Consider Overlooked Angles and Consequences: When you’re setting up your AI outcomes, you need to consider the consequences of them being wrong. Even if you think you’re getting the kinds of outcomes you wanted, you need to measure the downstream effects of those outcomes. Remember, AI can only be as effective as the data it’s given.
3. Keep a Human in the Loop: So far, AI solutions aren’t as adept at ensuring that the data it relies on was collected ethically or providing a nuanced and empathetic response to a customer experiencing a complex problem. This is why AI-powered CX solutions must include a human element. Keeping a human in the loop helps ensure that your AI solution is giving you the outcomes and solutions you want. Humans also provide the human touch that can’t be replicated by a machine.

Successful AI Starts With Strategy

If your retail brand is focused on the human element in your customer experience, AI can be a powerful tool for empowering your employees to make better decisions and provide a better customer experience. However, while generative AI technology is new and exciting and endlessly promising as a tool in your overall CX strategy, it must be implemented mindfully — and it can’t replace having a strong CX strategy. AI can’t replace understanding where the gaps are in your customer experience and what needs to happen in order for you to overcome those gaps. No technology, no matter how sophisticated, can replace understanding what your customers want and how your customers experience your brand.

Aaron Schroeder is director of analytics and insights at TTEC Digital, one of the largest global CX technology and services innovators. The company delivers leading CX technology and operational CX orchestration at scale.