Artificial intelligence has evolved into a multifaceted tool within the business sector, pivotal for enhancing sales, streamlining operations, and engaging with clientele. However, recent investigations conducted by Texas McCombs have unveiled a novel application of AI in the corporate realm: its capability to contribute towards societal welfare.

This innovative utility of AI facilitates corporations’ more effective catering to the needs of vulnerable consumers, defined as individuals in the marketplace who encounter obstacles in accessing and managing resources.

Gizem Yalcin Williams, an assistant professor of marketing at Texas McCombs, has developed an AI framework for corporations alongside colleagues Erik Hermann from ESCP Business School in Berlin and Stefano Puntoni from the Wharton School at the University of Pennsylvania. This framework aims to pinpoint vulnerable consumers, tailor services to their unique requirements, and diminish the risks of discrimination and inequality.

Williams articulates that AI’s value extends beyond its operational and financial advantages, highlighting its potential to promote social welfare and encourage businesses to adopt socially responsible practices. By enhancing the accessibility, interactivity, and dynamism of customer service, AI equips vulnerable consumers with the necessary tools to comprehend information better, thereby enabling more informed decision-making. For instance, specific AI applications allow companies to analyze consumer voices and reactions, offering real-time feedback and advice to customer service representatives on improving their interactions.

The framework introduces several key concepts, including that vulnerability can fluctuate, influenced by cognitive, physical, or emotional factors, such as job loss, relationship breakdowns, or grief. “Vulnerability varies in duration and severity, but essentially, it can affect anyone,” Williams notes. That redefined perspective on vulnerability paves the way for AI technologies to impact society positively. Through advanced machine learning and natural language processing algorithms, AI is uniquely positioned to identify vulnerable consumers and assist staff in delivering more effective and empowering customer service.

The framework also highlights the importance of assessing risk, as customer service agents are frequently unaware of interacting with vulnerable consumers. AI can conduct real-time analysis of consumer communications, employing cues to generate a risk score for agents. Additionally, when AI identifies a vulnerable consumer, it can offer tailored advice to agents, suggesting specific actions to provide extra support.

Implementing and integrating AI into customer service systems demands investment, but it offers substantial benefits. Businesses can reap financial and reputational rewards by recognizing vulnerability and guiding consumers through challenging periods. Williams asserts, “Doing good often results in positive outcomes.” Businesses that utilize AI to support their vulnerable customers can anticipate beneficial effects, including increased loyalty, enhanced customer satisfaction, and higher profits.

More information: Erik Hermann et al, Deploying artificial intelligence in services to AID vulnerable consumers, Journal of the Academy of Marketing Science. DOI: 10.1007/s11747-023-00986-8

Journal information: Journal of the Academy of Marketing Science Provided by The University of Texas at Austin