As we move into another year of AI dominance, we are seeing the tech becoming ingrained into the very identity of consumer-facing brands and businesses—and consumers want to set some ground rules regarding ethics and bias with retailers before online shopping and purchasing becomes fully immersed. New research from enterprise contact center firm Talkdesk, for example, finds that a large majority (86 percent) of consumers believe retailers should be taking steps to make AI more diverse, equitable, and inclusive.
The firm’s new Talkdesk Bias & Ethical AI in Retail Survey provides insights into customer experiences and expectations in the ever-changing world of AI. The DEI mandate comes as nearly two-thirds (64 percent) of shoppers say they have received an AI-powered product recommendation that did not match their preferences, interests, or previous shopping behaviors—a number that is even higher for Hispanic (72 percent) and Black (69 percent) shoppers. In fact, a significant 60 percent of shoppers are starting to avoid AI-fueled product recommendations because they may be biased or stereotypical.
The survey affirms that ethical and transparent use of AI is top of mind
In fact, 44 percent of respondents worry that AI will make the shopping experience less inclusive because brands aren’t deploying it responsibly, with Hispanic (50 percent) and Asian (52 percent) consumers most concerned—and only 39 percent believe retailers take into account diverse communities when using or developing AI products.
“The power of AI is undeniable as retailers increasingly leverage it to build stronger customer relationships and offer a more personalized shopping experience,” said Shannon Flanagan, general manager and vice president of Retail & Consumer Goods at Talkdesk, in a news release. “That being said, without the proper commitment to responsible AI, it could have the power to do the exact opposite.”
Additional findings from the report include:
Transparency is key with AI and customer data usage
- 87 percent believe customers should have the right to access and review the data retailers have collected from them.
- 80 percent of shoppers want retailers to explicitly seek their consent to use their data for AI.
- 80 percent of shoppers would have more trust in product recommendations if retailers were transparent about their AI use.
- Only 28 percent of shoppers are confident retailers have proper security measures to protect the data used to inform their AI technology or products.
Where retailers should go from here
- Listen to what shoppers are saying: 71 percent have never purchased a recommended product because it makes them feel like a brand is monitoring them, and 45 percent are fearful their online shopping experience will no longer be personalized because retailers are not practicing responsible AI.
- Listen to what shoppers are expecting: They want brands to start developing internal policies to guide the ethical use of AI (88 percent agree), monitoring, controlling, and mitigating AI bias (86 percent agree), as well as developing proactive communications to customers on their AI use and any potential biases in their services (83 percent agree)/
How can retailers promote the ethical use of AI?
Consumers believe the responsibility for improving AI experiences falls on the brands deploying the technology, according to the research. The survey highlights three main focus areas for brands:
- 88 percent agree that brands must develop internal policies to guide the ethical use of AI.
- 86 percent state that brands are responsible for monitoring, controlling, and mitigating AI bias.
- 83 percent express that brands should develop proactive communications to customers on their use of AI and any potential biases in their services.
“Retailers operate in an environment where every single customer interaction matters,” said Flanagan. “If their AI strategy does not ensure the application of this technology is responsible and ethical, they risk losing their customer base.”
