How AI is transforming customer experience in regulated industries
AI is streamlining complex tasks, but enhancing trust remains crucial for customer interactions in financial, healthcare and insurance sectors.
In today's rapidly evolving landscape, businesses in highly regulated industries such as financial services, insurance, pharmaceuticals and healthcare are increasingly harnessing AI-powered tools to streamline complex and sensitive tasks. From conversational AI-driven interfaces that help hospitals track the delivery of time-sensitive cancer drugs to generative AI chatbots that assist insurance customers in resolving inquiries, the impact of AI is profound. Additionally, agentic AI systems are emerging to support financial services customers in navigating intricate financial planning and budgeting decisions. Our research shows that 25% of companies in regulated sectors are currently utilizing AI, highlighting the growing recognition of its potential. How are regulated industries going to increasingly use this technology to transform customer experiences?
MIT Technology Review Insights in association with EY Studio+ has surveyed 250 executives and business leaders in regulated industries to explore how AI is being used to improve the customer experience.
Harnessing regulatory expertise for AI innovation
Our research indicates that up to 80% of customer service issues are potentially resolvable autonomously, presenting a significant opportunity to enhance operational efficiency as well as customer satisfaction. As companies in regulated industries embrace AI, their experience with regulatory compliance becomes a significant advantage. Companies that have long operated within stringent regulatory frameworks possess a deep understanding of the complexities involved in deploying new technologies responsibly. This expertise allows them to navigate the evolving landscape of AI regulation more effectively, turning potential challenges into opportunities for innovation. While some organizations may view regulation as a barrier, those in regulated sectors can leverage their regulatory acumen as a strategic asset, fostering trust and confidence among stakeholders.
Building trust in AI
“Over the last 15 years of digital transformation, the orientation in many regulated sectors has been to look at digital technologies as a place to provide more cost-effective and meaningful customer experience,” says Peter Neufeld, EY Studio+ EMEIA Financial Services Digital Customer Experience Leader.
When we get into these more complex service needs, there’s a real bias toward human interaction.
“Over the last 15 years of digital transformation, the orientation in many regulated sectors has been to look at digital technologies as a place to provide more cost-effective and meaningful customer experience,” says Peter Neufeld, EY Studio+ EMEIA Financial Services Digital Customer Experience Leader.
However, the “last mile” of the customer journey often presents significant challenges. Many services involve complex interactions that traditional apps or self-service portals struggle to manage. Whether it’s dealing with a challenging health diagnosis, addressing late mortgage payments, applying for government benefits, or understanding retirement options, customers often prefer human interaction. “When we get into these more complex service needs, there’s a real bias toward human interaction,” Neufeld explains. “We want to speak to someone, we want to understand whether we’re making a good decision, or we might want alternative views and perspectives.”
This preference for human interaction stems from the complexities and sensitivities involved in many customer service scenarios. As organizations strive to enhance their service delivery through AI, it becomes essential to address the underlying concerns that drive this bias. With 57% of respondents citing data privacy as a top concern, building transparency around AI processes and the usage of customer data, and fostering trust with customers are critical steps in this journey. By prioritizing open communication and demonstrating the reliability of AI systems, companies can alleviate apprehensions and empower customers to embrace these technologies. Ultimately, cultivating trust in AI and achieving transparency with data will enable organizations to unlock its full potential, transforming customer experiences and driving greater efficiency in service delivery.
Download the full report to explore how AI is transforming customer experience in regulated industries and understand the importance of building trust with your customers.
