Artificial intelligence (AI) offers great retail reward — and risk. A mainstream media culture of exaggerating them both to consumers doesn’t help your customer relationships. It doesn’t help in the boardroom, either. The ethical AI coin has two faces: One for the customer, one for the retailer itself.
The emergence of generative AI — think ChatGPT — has launched a hysterical wave among consumers ill-prepared for on-demand computer-generated artwork, fiction, and dissertations. It’s been as lucrative for advocates to hype its existential threats as to tout its boundless possibilities. Meanwhile, the underlying technologies — machine learning, natural language processing, predictive analytics, and the ability to parse and infer connections among staggering numbers of data points — have been toiling anonymously under the hood for years, streamlining human decision-making everywhere from banks to medical institutions.
Retail is a particularly precarious space for AI practitioners because backlash can be instant and expensive. Retailers are easier to boycott in the event of a real or imaginary transgression than distributors or consumer packaged goods (CPG) companies, which might comprise thousands of brands. A customer-facing commitment to principles of ethical AI use is critical to reducing that risk.
Show Leadership
Governments and the tech industry may fret over regulation and legislation of responsible AI, but any company that collects and uses customer data is one step ahead. They have (or should have) existing guidelines for the stewardship of customer data. Regardless of use-case, be it chatbot shopping assistant or real-time pricing, extend those principles to AI applications.
Communicate
Transparency goes hand-in-hand with customer experience. If the intent of self-checkout is to expeditiously process quick transactions, avoid positioning it as a full-service experience. The use of technology for efficiency is generally understood, however, there are trade-offs. Share the intended use with customers so their expectations are shaped appropriately.
Human Centricity
Retailers are accustomed to centering on the needs of customers. However, as more data is collected about individuals, the ability to understand customers outside of the purview of the retail shop is greater than ever. While the desire to personalize is great, are the data practices sufficient to avoid undue exposure and harm?
The AI conversation must be all inclusive, not only about what government or tech companies will do with AI. It must be about: What are retailers going to do with AI to enhance the customer experience and the bottom line? This is indeed a conversation worth having.
Reggie Townsend is the vice president of the SAS Data Ethics Practice.