7 Risks of Relying on an AI Receptionist For Your Business

AI receptionists have become increasingly popular in today’s business environment to streamline the customer experience. At first glance they seem cheap and easy to implement. However, there are significant risks when relying on an AI receptionist for your business. This blog post will discuss the potential dangers of using an AI receptionist and provide tips for mitigating those risks.

#1 Lack of Personalization

When it comes to running a successful business, personalization is vital. Personalization refers to tailoring products, services, and experiences to customers’ needs and preferences. It is an essential factor for businesses and can help:

  • Build relationships with existing or potential clients
  • Retain customers
  • Inspire greater brand loyalty

Unfortunately, AI answering services cannot differentiate between different customers and respond similarly to each customer interaction. Without the ability to show empathy or tailor responses to individual customers, it is difficult for businesses to foster strong relationships with their clients.

As a consequence of not being a person, AI cannot adequately personalize.

They can’t listen to your customers and respond to their specific and unique needs. All they can do is provide standard information. This could work if a customer wants to know about your hours. It won’t work if your customers want to know most anything else.

Some studies have found that companies that excel at personalization are able to generate 40 percent more revenue from these activities compared to the average players.1 With a significant percentage increase in revenue by simply investing in personalization, this emphasizes the importance of personalization in today’s market and the risks businesses face if they rely on AI receptionists to provide customer service.

#2 Limited Task & Emotional Capability

AI-based receptionists can only handle a limited range of tasks. While they can manage basic questions and schedule appointments, they cannot provide the same level of customer service as a human receptionist. AI receptionists lack the capacity for emotion, which is necessary to provide personalized and quality customer service.

In addition to the limited range of tasks that AI receptionists can handle, they cannot provide empathy. If you opt for an AI answering service, your customers will miss out on the vital personal touch that comes with a human receptionist. This is especially a problem when customers are already upset or frustrated.

AI receptionists can only handle a limited number of tasks and commands and need help understanding complex inquiries. The inability to understand customers’ needs and requests can make customers feel frustrated or confused, leading them to leave the company.

For example, it is difficult for an AI to answer specific questions a caller may have about their accounts or service offerings. Instead, an AI receptionist may try to make the caller repeat the inquiry over and over and would likely then record a voicemail to forward to a real person who would have to then call the customer back. It adds an extra steps and can be very frustrating for customers. In these situations AI receptionists are more detrimental than not having a receptionist at all.

Qualtrics conducted a survey of 15,000 consumers in 2019 and discovered that customer dissatisfaction should not be taken lightly, as one-third of customers will abandon a brand they previously favored after just one negative experience, and 92% would completely discontinue their relationship with a company after two or three negative interactions.2

Fortunately, Abby Connect’s virtual, but very real receptionists, are hired for and trained on empathy and kindness which are essential skills for any receptionist, making it possible for customers to feel like they are being heard and appreciated. That is something that no machine can replace or replicate.

#3 Data Privacy Concerns

Data privacy concerns are one of the most significant risks of relying on an AI receptionist for your business. As AI technology is still relatively new, no clear regulations are in place to ensure that the data stored by the AI receptionist is secure and private (which is always important, but especially so if you have to abide by HIPAA regulations). As a result, businesses must take extra steps to ensure that their customers’ personal information is safe from unauthorized access or manipulation.

Another potential data privacy issue is the potential for AI receptionists to be trained to collect and store personal information without explicit customer consent. Collecting personal information without their knowledge or consent can lead to customer dissatisfaction and a damaged reputation for the business.

#4 Long-Term Costs

An AI receptionist is a cost-effective way to manage your customer service needs. However, while it may seem cost-effective in the short term, some ongoing costs are associated with maintaining the AI technology.

Some indirect costs to consider are the potential customers you lose because they aren’t interested in dealing with an automated service and customer churn from those who are dissatisfied.

Fortunately, there are still ways to reduce overhead with a virtual receptionist service like Abby Connect. We offer a small team of devoted virtual receptionists dedicated to giving top-notch customer service, helping you conserve time and money.

#5 Decline of Relationship Building

Creating rapport and positive first impressions is vital to the customer experience and building client relationships. Building relationships with customers requires more than just providing answers to questions; it involves creating an emotional connection, something that AI answering services are not equipped to do.

A live receptionist can greet customers in a friendly manner and even help to answer any questions they may have. They are able to detect customer emotions and adjust their responses accordingly, which is an important part of building relationships. AI answering services lack the ability to detect and respond to customer emotions, so their interactions with customers aren’t as meaningful or effective.

Additionally, the impersonal nature of AI answering services can lead to customers feeling less valued and more likely to take their business elsewhere. Without the opportunity to engage with a real person, customers may feel unimportant and may not return to your business in the future.

#6 Limited Flexibility

AI receptionists cannot handle unexpected situations or changes in schedule that may arise in a business setting. Compared to human receptionists, AI receptionists cannot adjust their services when needed or respond to sudden shifts in customer needs. A human can pivot, but even the most sophisticated AI receptionist can’t do much more than respond to basic voice prompts or “click 1 to do X”.

AI receptionists can be programmed to carry out tasks but cannot modify their approach when the situation changes. If a customer requires a change in their appointment or has a unique question, an AI receptionist may be unable to respond. A human could make an exception or go above-and-beyond for their customers. An AI cannot.

#7 Poor Company Image & Reputation

Relying on an AI receptionist to handle customer interactions and inquiries can directly impact a company’s brand image. Poor performance or technical issues related to the AI receptionist can create a negative impression in customers’ eyes, decreasing overall trust and satisfaction. Even if the AI receptionist performs appropriately, customers may perceive it as cold and impersonal, leading to a lack of commitment to customer service.

Ultimately, the success of any AI receptionist depends on its ability to provide an efficient and personalized customer experience, or pairing AI reception with live customer support.

#8 Embrace Human Connection With Abby Connect

Do you want to avoid an impersonal AI receptionist and create the best customer experience for your business? Then Abby Connect is the perfect solution for you. Your small team of 5-10 devoted live virtual receptionists is dedicated to giving top-notch customer service and helping you conserve time and money.

At Abby Connect, we aim to ensure every caller feels welcomed, valued, and respected. Our team gets to know your business before ever picking up the phone and is highly trained to provide a personalized experience using their communication skills, problem solving abilities, and customer service expertise.

Our team can immediately respond to calls and emails, handle complex customer inquiries, provide product or service information, book appointments, take messages, and more. We also offer a range of options, such as 24/7 answering services, live chat services, scheduling, outbound calling services, and bilingual receptionists.

You can count on us to deliver a seamless customer experience while freeing up your time to focus on other aspects of your business. So if you are looking for a reliable and human-powered virtual receptionist service, then Abby Connect is the answer!

 

Sources:

  1. The value of getting personalization right—or wrong—is multiplying. (2021, November 12). McKinsey & Company; McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/the-value-of-getting-personalization-right-or-wrong-is-multiplying
  2. SuperOffice. (2023). Key Customer Experience Statistics to Know. Superoffice.com. https://www.superoffice.com/blog/customer-experience-statistics/

Written by

Anna Taylor

Anna Taylor

Anna is an accomplished marketing professional with an MBA and certification in marketing and eight years of experience in the field. More than half of that experience has been focused on customer experience and small business growth, exploring how businesses balance human and technology solutions. Above all, Anna is committed to human-first marketing and business development, ensuring that every initiative is focused on creating meaningful connections with customers and driving long-term growth.