The use of AI in our day to day continues to rise, from the use of large language models such as ChatGPT and Claude to chatbots, recommendation systems and driver assist features. AI has become a large part of our lives and continues to evolve and change the way we perform our daily tasks.
When it comes to wealth management, we have seen how some firms have already started embedding AI into their systems and processes, to increase efficiency and enhance their controls. But how are customers interacting with firms using AI?
The Customer Fightback
Our recent AI whitepaper explores how customers are pushing back against the use of AI and how they are using it to interact with firms. One area in particular, where AI is being used on the most, is complaints. Whether it’s financial services or other industries, customers are using AI to draft complaints, understand their rights and communicate or pushback to firms. But this comes at a cost for firms.
During our industry interviews, Katie Pender of Target Group highlighted “Consumers are using AI to draft complaints and understand their rights… sometimes resulting in more sophisticated correspondence but also inaccuracies when consumers rely solely on AI-generated information.”
Financial services is heavily regulated and filled with jargon. So it’s no surprise that customers are having to rely on AI to defend and understand their entitlements. And why write a whole complaint letter from scratch, when AI can use your summary, add to your points and back it up using regulation – right?
Moments of Truth
Complaints are a moment of truth. They are real life scenarios and feedback from customers of what has gone wrong and how firms can fix what’s broken. If a customer is complaining, the last thing they want is a letter that is filled with jargon that they’re barely able to understand – it aggravates them and causes follow on’s or even FOS referrals.
Customers want to understand, through better communication and wording, tone of voice and jargon-free.
Similarly, it’s all well and good AI writing your complaint for you – but do customers truly understand it? Has it got the complaint points and timelines correct? Is it pointing to the correct regulatory rules? Are they relevant? This is where knowledge and experience is crucial.
Keep up with the pace of get left behind
If AI is making it easier for customers to complain, then complaint volumes aren’t going anywhere – they’re going to keep climbing. Firms will need to design their processes to keep up, making AI adoption more crucial than ever.
Ø Complaint Logging – AI can detect complaints from tone and key phrases whilst listening in on calls or scanning correspondence. AI can flag vulnerability indicators and capture complaints, removing extensive manual effort.
Ø Allocation: Skills-based case routing and risk scoring can be automated, matching cases to the right handler faster and more consistently than manual allocation.
Ø Investigation: Summarising evidence, locating similar historical complaints for consistency and suggesting an outcome for the handler to sense-check rather than build from scratch.
Ø Resolution & Closure: Drafting resolution communications and initiating redress payments.
Ø Root Cause Analysis (RCA): Root cause themes and MI can be pulled automatically, rather than relying on someone spotting a pattern manually months later. Timings for capturing root cause and turning them into actionable insights for prevention is crucial.
Technology supports automations and the rules-based decision making to improve efficiency, whilst AI enhances identification, analysis and insight generation. But it doesn’t just stop there. The appropriate human oversight to ensure accuracy, robust controls and quality is fundamental.
Are your processes really fit for purpose?
Customers are demanding more than ever – faster responses, handling time, etc.
Customers don’t see the process in between – only the wait. Which is why regular updates to keep the customer in the loop is so important. Is AI Driving this shift? When information is so instantly accessible now, it’s little wonder customers expect firms to move at the same speed.
Yet even as customers turn to AI to interact with firms, our research shows that 80% still want a human involved in their complaint.
AI continues to transform the way that we operate day to day and complaints are no exception. It’s vital that firms keep up with the pace rather than resist it. In a world of digital transformation and continuous evolvement, customers will always remain central and the most vital.
We’re here to help
At Simplify Consulting, our personalised consulting approach results in tailored support designed to address the problem statement and get you to world class. We help firms
turn intent into outcomes. When you engage Simplify, you get experienced people who are credible, accountable and focused on outcomes. Our delivery tenacity and commitment to client value sits at the heart of everything we do.
