US Regulators Crack Down on ‘Time-Wasting’ Chatbots

Deploying chatbots might not be such a safe strategy for contact centers anymore.

US authorities are cracking down on AI-powered CX agents, which they’ve characterized as time wasters.

The Consumer Financial Protection Bureau (CFPB) is set to issue new guidelines requiring service providers, especially in the banking and financial sectors, to give customers the option to speak directly with a human agent at the press of a single button.

“Too often, customers encounter a labyrinth of automated recordings and menu options that waste their time and fail to provide the support they need,” the White House said in a statement. “While chatbots can manage basic inquiries, they frequently deliver inaccurate information and prevent customers from reaching a real representative.”

The new regulations will also force contact centers to clarify when a customer is speaking to a bot, since not informing them properly on who they’re talking to might infringe on their rights.

Heavy impact is expected on the CX industry with this new guidelines. Service providers (and their clients) now rely heavily on chatbots due to how cost-effective they are.

In a related effort to improve consumer experience, the Department of Transportation (DOT) introduced a rule forcing airlines to automatically issue refunds for canceled or significantly altered flights.

This measure aims to save travelers the time and effort typically required to navigate a lengthy refund process.