The CFPB recently issued an “issue spotlight” to address concerns with the use of “chatbots”. It has apparently received “numerous” complaints from individuals who have tried to interact with this form of artificial intelligence when looking for answers from their financial institutions. Some chatbots have names; some try to respond using machine learning/technology; and some dictate how a user may proceed by limiting the user’s options. Recently, even more advanced “generative chatbots”, have been used for customer service needs. The CFPB notes:
Financial institutions are increasingly using chatbots as a cost-effective alternative to human customer service.
Chatbots may be useful for resolving basic inquiries, but their effectiveness wanes as problems become more complex.
Financial institutions risk violating legal obligations, eroding customer trust, and causing consumer harm when deploying chatbot technology.
The CFPB is concerned that chatbots are ineffective and unable to provide meaningful assistance, especially as questions get more complex. The CFPB does not believe institutions should use a chatbot …as their primary customer service delivery channel when it is reasonably clear that the chatbot is unable to meet customer needs. The point being, even chatbots must be in compliance. Here are some specific concerns noted by the CFPB:
1. Limited ability to solve complex problems
2. Hindering access to timely human intervention
3. Technical limitations and associated security risks
Ultimately, institutions using chatbots in any form need to understand the limitations involved with their use and the reality that the institution may be responsible for any resulting harm.
Published
2023/06/30