4 min read.
Introduction
Artificial intelligence is here to stay, revolutionizing how CX practitioners work. While businesses strive to maximize its potential, it’s equally crucial to ensure its responsible and ethical use. This guide shows you how.
Why Ethical AI Matters
A recent CX Network survey found that 67% of respondents believe customers are concerned about ethical AI use in customer experience. Additionally, 38% ranked awareness of how AI uses their data as one of the top three concerns.
These findings highlight the need for brands to be transparent about their AI practices and data protection to maintain customer trust.
Governments worldwide have introduced regulations to ensure AI is used responsibly. Examples include the AI Bill of Rights in the U.S. and the EU’s Artificial Intelligence Act. Major companies like Lenovo, Mastercard, Microsoft, Salesforce, and Telefonica have also pledged to follow ethical AI guidelines by joining UNESCO’s initiative on AI ethics.
To comply with regulations and maintain trust, businesses must use AI responsibly. This also plays a key role in improving customer satisfaction.
Key Ethical Considerations for AI in CX
1. Data Privacy

Over half (54%) of CX professionals say data privacy and security are major concerns for customers. Since AI relies on large datasets, companies must collect and use customer data responsibly.
For example, Zoom does not use customer data to train its AI models or those of third parties. AI features are also disabled by default unless users opt in.
Experts recommend that companies clearly explain what data they collect, why they collect it, and how it will be used. Customers should also have control over their data and be able to manage their preferences.
2. Transparency

Brands must be clear about when customers are interacting with AI and how their data is being used. Customers should know what data is collected, how it is analyzed, and why AI-driven decisions are made.
Being open about AI use helps customers understand its benefits and builds trust in the technology.
A 2024 Zendesk report found that 75% of organizations believe that failing to be transparent about AI use could lead to losing customers. For example, clearly explaining why a chatbot recommends certain products helps build trust.
3. Human Oversight in AI

AI systems need human supervision to ensure they are used responsibly. People should be able to step in when AI decisions may cause harm or violate ethical guidelines.
Experts stress that human oversight is key for AI-powered virtual assistants. It ensures AI is trained for specific scenarios while maintaining transparency and consistency. Human intervention also improves customer service by taking over when AI reaches its limits.
Many researchers emphasize that AI should assist humans rather than replace them. The goal is to create technology that supports and enhances human abilities rather than competing with them.
4. Addressing AI Bias

AI systems can reflect biases found in the data they are trained on. Reports have shown that some mortgage algorithms unfairly charge higher interest rates to certain groups, and virtual assistants often reinforce gender stereotypes.
To prevent bias, organizations must regularly audit AI algorithms, identify potential unfair outcomes, and take corrective measures. Corporate culture also plays a role—companies with strong ethical values are more likely to develop fair AI systems.
5. Regulations and Compliance

AI-related privacy breaches are increasing and can lead to legal issues. Companies must ensure they do not enter sensitive data into AI models that save information for training purposes. Following basic cybersecurity practices, such as using strong passwords and complying with laws like GDPR (Europe) and CCPA (U.S.), is essential.
Ethical AI in Practice
Totaljobs AI Job Search Companion
Recruitment platform Totaljobs is developing an AI assistant to help job seekers. The company has a dedicated ethical AI team ensuring compliance with regulations and preventing issues like bias and inaccessibility.
Zoom’s Data Privacy Measures
Zoom prioritizes user privacy by disabling AI features that use customer data for training. Customers have control over what data is shared, and meeting hosts can manage AI settings.
Steps for Ethical AI Use
Set Internal Policies – Define accountability for AI decisions and establish oversight mechanisms.
Appoint AI Leadership – Consider hiring a Head of AI to align AI initiatives with ethical and business goals.
Gather Feedback – Regularly collect input from customers and stakeholders to improve AI practices.
Train Employees – Ensure staff stays updated on AI regulations and ethical considerations.
Publish AI Guidelines – Make AI policies publicly available to demonstrate commitment to ethical use.
Conclusion
Ethical AI is key to building trust and delivering great customer experiences. Businesses must prioritize data privacy, transparency, human oversight, and bias prevention to ensure responsible AI use. By setting clear policies, appointing AI leadership, gathering feedback, and training employees, companies can harness AI’s potential while maintaining customer trust.
Commit to ethical AI today to stay compliant, build credibility, and lead in a responsible digital future.
Stay ahead with ethical AI! Implement responsible AI practices to build trust and enhance customer experience.