As AI agents grow in popularity within the debt collection industry, there is a core question being asked by businesses – who do consumers trust more, AI or human agents? There’s an assumption that consumers will always prefer a human since they provide an innate understanding that AI technology can’t replicate.
When we look at the data and consumer trends, the answer is more complicated and nuanced. We’re going to take a closer look at the dynamic between consumers trying to resolve financial obligations with humans and AI agents for debt collection.
Consumer Trust in Debt Collection Often Comes Down to Resolutions
For consumers, the main goal is usually less frustration and a more effective resolution to their financial obligation. Whether it’s an AI or human agent that delivers the frictionless experience, most consumers don’t really have a preference between the two.
There are plenty of automated systems and AI processes in everyday life that often don’t work as intended. So, consumers want digital and AI experiences to work without any hiccups. The question of trust comes in when there’s challenges in the experience like AI not understanding consumer answers, the process taking too long and more.
The AI Agent Trust Gap with Consumers
The Parloa Consumer Patience Index report highlights that customer service automation and AI agents can cause trust issues with consumers. According to the study, roughly 30.4% of consumers have zero trust in AI’s ability to handle complex cases. What’s even more staggering is that 93% of the survey respondents said that legacy Interactive Voice Response (IVR) systems fail too often before their issue is resolved.
Modern AI agents have to regain the trust lost by these outdated AI technology tools. It’s created a consumer trust gap that the debt collection industry should be aware of:
- The 3-Minute Time Limit: 55% of consumers will disconnect with an automated or AI system within three minutes if their problem isn’t solved.
- Frustration is Common: 61% of consumers admitted to yelling at an AI agent to get routed to a human agent faster.
- The Time Trade-Off: Roughly 66% of consumers would rather wait longer for a human agent because they believe AI agents aren’t as accurate.
What This Means for AI Agents Used for Debt Collection
On the surface it might seem like consumers are against AI agents, but that isn’t the case. The same Parloa survey reported that 85% of consumers would prefer to use AI agents if it solved their problems reliably. Consumers want AI agents to be effective in debt collection because it’s a great way to avoid feelings of judgement or shame that often come with talking to another person.
AI technology will continue to evolve and get better at solving consumer problems. In the meantime, there are a few key strategies that businesses can use to help bridge this consumer trust gap in debt collection:
- Easy Human Handoffs: When your business is using AI agents, make it easy for consumers to be transferred to a human agent. Ideally, the AI technology will detect rising consumer frustration through keywords or tone of voice and pull in a human agent.
- Give Consumers Self-Service Options: AI and human agents aren’t needed for every problem. Give consumers the ability to self-serve with payment portals attached to debt collection email and text messages.
- Practice AI Transparency: It’s recommended to disclose to consumers when they’re talking with an AI agent. By disclosing this up front, it reduces the risk of consumers becoming frustrating by finding out later on in the conversation.
Which Agents Do Consumers Trust More
Right now, trust in human agents is higher compared to AI counterparts. However, that gap is closing rapidly as technology evolves. In the debt collection industry, consumers want to trust AI agents, but businesses need to prove that the process can go smoothly. Companies like TrueAccord have shown that empathy and understanding don’t always have to come from a human voice.
AI and human agents can both be used to offer a frictionless and consumer-centric experience for debt collection. Digital-first collection strategies empower consumers to interact when, where and how they want. The true debate isn’t about whether or not an AI or human agent is the best for consumers – the best collection strategies leverage both to provide a better experience.
High-Performance Recovery That Puts Consumers First
Is your business looking to put a more consumer-centric emphasis into your recovery strategy? TrueAccord is a premier omnichannel debt collection agency that offers first and third-party services that put consumers first. We take the guesswork out of collections with a patented machine learning engine that optimizes engagement with each consumer.
Contact our team today to learn more about how business can increase recovery performance and consumer trust.