AI 'can be problem, not solution in retail services'

The Consumer Council has called on the retail sector to proactively follow up on customer complaints and ensure that their handling of any ensuing disputes are transparent instead of solely relying on technology. The call came on Thursday as the watchdog saw a nearly 60-percent year-on-year surge in the number of customer service complaints in the first nine months of the year to 3,078. The figure surpassed that for the whole of last year. While artificial intelligence is widely adopted in handling customer grievances, the council said the technology also contributed to the rise in complaints. Chief executive Alaina Shum said complaints caused by AI-powered customer services rose from 48 in 2023 to 158 as of last month. They included the failure to provide practical assistance and offering incorrect information. "It is also important for the traders to provide sufficient guidance as of how to guide the consumers to use the AI chatroom to obtain the responses that they need," she said. "At the same time, they can actually provide different channels for the consumers to contact them in addition to the AI chatroom in case the AI chatroom cannot provide satisfying responses to the consumers, such as an alternative to contact a human representative to address the inquiries." It is also crucial, Shum said, for traders to set out clear service commitments to allow users to have a clear picture of when they can receive a response. They could also turn to the watchdog's new complaint handling e-platform, which offers a dedicated chatroom for buyers and merchants to resolve disputes and allows complainants to track the process. Since its launch on a pilot basis in November, the platform has handled about 31,000 complaints as of August. Edited by Aaron Tam

2026-10-15 12:11:00