The Biden administration has initiated a new campaign, dubbed "Time Is Money," aimed at reducing consumer frustrations caused by inefficient business practices. Central to this effort is a focus on customer service chatbots, with new rules set to be developed by the Consumer Financial Protection Bureau (CFPB).
The campaign targets businesses that, according to the administration, contribute to unnecessary consumer headaches, ultimately degrading the quality of life. A primary concern is the use of chatbots in customer service, especially those that employ AI-generated voices designed to mimic real human interaction, misleading customers into thinking they are speaking with a person.
The CFPB has been directed to create rules that will address "ineffective and time-wasting chatbots," particularly in the financial sector. The White House announcement emphasized that while chatbots can be useful for handling basic inquiries, they often fall short when dealing with more complex issues or disputes. The administration's stance is that chatbots should enhance customer service by providing quick and efficient responses, not as a means to avoid fundamental responsibilities, such as issuing refunds.
One of the campaign's key points is ensuring that consumers can reach a human representative without undue delay if they prefer, especially when dealing with more intricate matters. The initiative also extends beyond chatbots, addressing other consumer pain points such as difficult-to-cancel subscriptions and enforcing automatic refund rules for canceled flights, a measure influenced by recent issues in the travel industry.
The U.S. Chamber of Commerce has expressed concern over the regulatory impact of the campaign, arguing that it could result in increased costs and inefficiencies for businesses and consumers alike. Neil Bradley, the Chamber's chief policy officer, stated that businesses generally excel at customer service and warned that the proposed regulations could backfire by raising costs for consumers.
The administration, however, is inviting public input on additional measures to further protect consumers from time-wasting practices, signaling a broader commitment to improving customer service standards across industries.
