A few years ago, I took a deep dive into the world of AI, long before ChatGPT took the market by storm. My first real experience with AI in the marketing space was using a tool called JARVIS, which later became known as JASPER after a friendly nudge from the lawyers at Disney. What I loved about JASPER was its ability to take my ideas—what I wanted to say—and simply make them better. And really, that’s what AI is all about: enhancement, not replacement.

Of course, with any technological innovation, there’s always the fear that jobs will be lost. And yes, AI has already started replacing some jobs, just as every major innovation has done in the past. But when it comes to AI in customer service, the distrust doesn’t just stem from fear of job loss—it’s deeper than that.

The AI Transparency Problem

Last year, Voice AI caught my attention. The idea of training an AI “agent” to handle tasks like cold-calling for businesses was intriguing, especially considering the potential cost savings. Imagine a call center with 1,000 calls to make in a day, being able to accomplish that task in a few minutes at a fraction of the cost of hiring human agents. The calls could be recorded, analyzed, and then used to train the AI further, making it smarter and better at answering questions over time.

Yet, despite the promising technology, something didn’t sit right with me. The early versions of this Voice AI had issues—latency in responses led to awkward interactions, and customers quickly grew suspicious about whether they were speaking to a human or a machine. I realized that, at its core, the issue wasn’t just the technology—it was the lack of transparency.

I’ve always hated cold calls myself. As a business owner, I get them all the time, and I can’t just ignore them in case they’re from a legitimate client. The idea that I was now contributing to the very thing I disliked didn’t feel right. But beyond my personal distaste for cold calling, there was a more significant issue at play: consumer trust. People don’t like being deceived, and AI cold-calling can easily feel disingenuous when there’s no transparency about who—or what—is on the other end of the line.

AI Mistrust and the Shift Toward Transparency

According to the 2024 Edelman Trust Barometer, global consumer trust in AI has dropped from 61% to 53%. Consumers are smart. They know an ad when they see one, even when it’s cleverly disguised as organic content. They’re also getting better at recognizing when they’re interacting with AI versus a human. If you’ve ever been on a company’s website and used a chatbot, you can likely tell when you’re talking to a machine, despite efforts to make it seem human.

Most companies using AI try to pass it off as human, presumably to make customers feel better or more valued. But this strategy often backfires. A bad AI experience, especially one disguised as human, can turn customers away for good. So why not change the narrative? Why not be upfront about AI use?

The Case for AI Transparency in Customer Service

Imagine going to a chatbot and, instead of being fooled into thinking it's a human, you're greeted with a message that openly states, “Hi, I’m a trained AI model here to help you with your questions.” This simple act of transparency sets the tone for the interaction. Customers lower their guard, adjust their expectations, and understand that while this AI may be highly trained, it’s not a human replacement—it’s here to enhance the customer experience by providing immediate help.

This approach builds trust, not just in the interaction itself but in the brand as a whole. When customers know what they’re dealing with, they’re more likely to give the AI a fair chance, appreciate its capabilities, and understand its limitations. Transparency isn’t just an ethical choice; it’s a smart business move that can lead to greater customer satisfaction and loyalty.

Navigating the Regulatory Landscape

For me, the cold-calling side of the business came to an abrupt halt in early 2024. The Federal Communications Commission (FCC) issued a ruling that classified AI-generated voice calls as “artificial” or “prerecorded” voices under the Telephone Consumer Protection Act (TCPA). This effectively made AI robocalls illegal without prior express consent from recipients, and that was the end of my journey in AI-driven cold calling.

But this ruling highlighted an important point: AI isn’t just a technology issue; it’s a regulatory one too. As businesses continue to explore AI’s potential in customer service, they must do so with an eye on compliance and transparency. The more open and honest companies are about their AI usage, the less likely they are to run afoul of both consumers and regulators.

The Future of AI in Customer Service

As AI continues to evolve, companies have a choice. They can continue trying to pass off their AI systems as human, hoping to keep customers in the dark, or they can embrace transparency. By clearly communicating that AI is being used, explaining its benefits, and providing customers with the option to interact with a human when needed, businesses can build trust and create more positive customer experiences.

In the end, AI isn’t here to replace humans—it’s here to enhance what we do. And when it comes to customer service, transparency could be the key to unlocking AI’s full potential while maintaining the trust and loyalty of today’s savvy consumers.