Employing AI for consumer grievance redressal mechanisms in e-commerce (CUTS)
6 Dec 2023 08:00h - 09:00h UTC
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Marilia Maciel
The analysis explores different perspectives on the impact of artificial intelligence (AI) on consumer service and rights. One argument put forth is that AI can significantly improve resolution time and consumer service. It is highlighted that AI has no downtime or learning curve, making it an efficient tool for handling consumer complaints. Moreover, AI has the capability to analyse large volumes of complaints, enabling companies to allocate resources more effectively. Additionally, AI allows for predictive analysis, enabling problems to be solved before they reach the consumers. These points suggest that AI has the potential to enhance the overall consumer experience in terms of quick and effective issue resolution.
However, there have been instances where companies have chosen to rely solely on AI for customer service, refusing to switch to human interaction. This is seen as a negative trend, as it can lead to unsatisfactory consumer experiences. An example is mentioned of a personal experience with a car hailing and food delivery company, where the automated customer service system was the only means of communication and failed to resolve the problem.
The analysis also raises the issue of digital literacy and inequalities in different countries. It is stated that even in large countries like Brazil and India, there are varied levels of digital literacy. Many people are not aware of their rights to seek remedies, which suggests the need for international organisations to focus on smaller, less resourceful countries to address these digital disparities.
Furthermore, it is argued that AI needs to be tailored to cater to different needs and levels of digital literacy. This includes incorporating different forms of input like voice and typing and providing options to seek human help when required. Such adaptations are crucial to ensure that AI solutions are accessible and beneficial for users with varying levels of digital literacy.
In addition, the analysis highlights the importance of ensuring that AI solutions work efficiently on mobile devices, given that a majority of people in developing countries access the internet through mobiles. This underscores the need for AI to be compatible with mobile technology to reach a wider audience and effectively deliver its benefits.
Another key point raised is the need for localised content and personalised solutions. It is emphasised that tailored content is critical in understanding and solving problems. This highlights the importance of considering cultural and regional contexts when implementing AI solutions to address consumer issues.
Lastly, the analysis acknowledges that offline options and human-entity interaction should be provided as part of the consumer redress mechanism. It is noted that many people in developing countries may not be comfortable with solving issues online, and trust can be enhanced through face-to-face interaction. This suggests the need for a balanced approach that combines AI with traditional offline methods to accommodate diverse consumer preferences.
Overall, the analysis presents a comprehensive examination of the impact of AI on consumer service and rights. It highlights the potential benefits of AI in improving resolution time and service quality, while also addressing concerns related to the lack of human interaction, digital literacy inequalities, and the need for personalised solutions. By considering these different perspectives, stakeholders can make informed decisions on how to effectively integrate AI into consumer service and ensure fair and accessible assistance for all.
Teresa Moreira
During the discussion on consumer protection and technology, several key topics were explored. One of the main points raised was the importance of online dispute resolution platforms. The speakers highlighted that businesses should make available complaints handling mechanisms to address consumer grievances effectively. By subscribing to domestic and international standards in this area, businesses can ensure fair resolutions and maintain consumer trust.
Cooperation agreements in the field of dispute resolution were also emphasized as promising. The speakers noted that out of the 108 countries that responded to the questionnaire, 34 countries have already established cooperation agreements. Furthermore, 78 countries have specific consumer law provisions on dispute resolution. These figures illustrate the increasing recognition of the need for cooperation and collaboration in resolving cross-border consumer disputes.
Concerns and challenges surrounding the use of technology in consumer protection were also discussed. It was noted that consumers tend to mistrust the online environment, which presents a barrier to the effective implementation of digital solutions. Additionally, businesses, especially smaller ones, need to overcome their hesitancy towards using technology and become more comfortable with its capabilities. Building trust among users and addressing technological concerns are crucial for advancing consumer protection measures in the digital era.
The regulation of artificial intelligence (AI) was another focal point of the discussion. The speakers acknowledged the potential of AI while highlighting the need to regulate associated risks. Initiatives such as the US executive order and the EU's efforts to classify AI according to risk levels demonstrate ongoing efforts to strike a balance between leveraging AI's potential and ensuring it is used responsibly to safeguard consumer rights.
The lack of standardization in AI applications was raised as a concern. It was noted that there is currently no standardized format for AI applications, which may hamper its future effectiveness. Establishing common guidelines and standards for AI can contribute to its responsible and ethical development, ensuring that it benefits consumers and society as a whole.
The speakers also stressed the importance of regional and international cooperation in consumer protection. The United Nations Conference on Trade and Development (UNCTAD) was highlighted as the focal point for consumer protection within the United Nations. The promotion of knowledge and experience exchanges, particularly with advanced countries supporting resource-constrained ones, can foster effective consumer protection measures globally.
Lastly, the significance of multi-stakeholder focus groups in technological development was emphasized. This approach, which involves including consumers, businesses, and member states, ensures that the interests of all relevant stakeholders are considered. By engaging multiple perspectives, innovative solutions can be developed to address the evolving challenges in consumer protection.
In conclusion, the discussion on consumer protection and technology highlighted the need for effective measures in the digital age. Online dispute resolution platforms, cooperation agreements, regulation of AI, trust-building through technology, international cooperation, and multi-stakeholder engagement were all identified as key components in advancing consumer protection. By addressing these areas, policymakers and businesses can work towards creating a secure and trustworthy digital environment for consumers while promoting innovation and economic growth.
Kritika Sethi
Artificial intelligence (AI) has had a transformative impact on the dispute resolution landscape in India. Prior to the COVID-19 pandemic, technology played a minimal role in the Indian legal system. However, since the onset of the pandemic, various stakeholders, including the judiciary, governments, and lawyers, have embraced technology and incorporated AI into the resolution of disputes.
One significant development is the emergence of online dispute resolution (ODR) mechanisms that leverage AI. ODR, facilitated by AI, offers a significantly shorter timeline for resolving disputes compared to traditional methods. While court proceedings and alternative dispute resolution (ADR) methods could take years to reach a resolution, ODR aims to resolve disputes within 90 days. AI technology automates multiple steps in the process, such as serving notices and recording proceedings, enabling such efficiency. This expedited resolution of disputes benefits all parties involved, saving them time, resources, and unnecessary prolonged conflicts.
Furthermore, the integration of digital public infrastructure with grievance redressal mechanisms holds significant potential for the Indian market. A prime example of this is the United Payments Interface (UPI), which has revolutionized the Indian digital payments landscape. Similarly, the integration of digital public infrastructure could be transformative in streamlining the grievance redressal process. By creating an effective, accessible platform for resolving consumer disputes, similar to UPI, individuals will be empowered to seek redress for their grievances efficiently, leading to greater consumer satisfaction and trust in the market.
It is crucial to note that an efficient consumer grievance redressal mechanism plays a vital role in preventing conflicts from escalating into formal disputes. By addressing conflicts at their early stages, before they escalate, an effective mechanism can save time, effort, and costs for all parties involved while promoting peace, justice, and strong institutions. However, to achieve this, a robust consumer grievance redressal mechanism is necessary. This mechanism should be designed to address conflicts promptly and provide timely resolutions, utilizing technology and AI to enhance efficiency and effectiveness.
In conclusion, AI has brought about a paradigm shift in the Indian dispute resolution landscape. With the adoption of ODR and the integration of digital public infrastructure, India has the potential to enhance its legal system, ensuring swift and accessible resolution of disputes. By leveraging technology and AI, stakeholders can benefit from faster and more efficient resolutions, ultimately promoting peace, justice, and strong institutions in the country's legal landscape.
Ujjwal Kumar
Artificial Intelligence (AI) has emerged as a powerful tool with the potential to revolutionise consumer governance. It offers several benefits, including improved efficiency, scalability, response times, and the delivery of justice. By leveraging AI, consumer governance mechanisms can be enhanced, making them more effective in resolving disputes and ensuring fair outcomes for consumers. Furthermore, AI can also facilitate the adoption of proper online dispute resolution (ODR) systems, enabling consumers to access mechanisms for resolving conflicts in a timely and effective manner.
However, alongside these advancements, it is crucial to acknowledge the risks associated with the use of AI in consumer governance. Concerns have been raised regarding data privacy, as AI systems rely heavily on consumer data, which may be susceptible to breaches or unauthorised access. Additionally, biases in AI decision-making processes, stemming from biased training data or algorithmic flaws, can have detrimental consequences. Over-reliance on technology may also result in a lack of human intervention or oversight, potentially undermining the overall fairness and ethicality of consumer governance. Furthermore, the possibility of cyber security threats presents a significant risk, as malicious actors could exploit vulnerabilities within AI systems, potentially crippling the entire consumer governance infrastructure.
Moreover, there has been a decline in priority given to consumer-driven businesses in some countries, particularly in India and Europe. This decrease in emphasis has been observed within the G20 discourse, particularly with the discontinuation of the G20 Consumer Summit. However, Ujjwal Kumar, an advocate for reviving the consumer-driven business mechanism, argues for its revitalisation within the G20 discourse. Kumar highlights the importance of consumer-driven businesses in achieving the Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth). To pursue this idea, Kumar has partnered with Brazilian authorities to garner support and attention towards this cause.
Additionally, the existence of a digital divide in sub-Saharan Africa poses challenges to the implementation of AI in consumer governance. Teresa Moreira points out the difficulties faced by sub-Saharan African countries, as well as small developing island states in the Caribbean and the Pacific, in bridging the digital divide. This digital divide underscores the importance of addressing infrastructural gaps and providing access to AI technologies to ensure inclusivity and equitable use of AI in consumer governance.
In response to the need for a comprehensive approach, India is promoting the concept of digital public infrastructure. This initiative aims to establish a robust foundation for digital services, including consumer-driven modules. One proposal is to incorporate a consumer rights literacy module in the Open Network for Digital Commerce (ONDC), which could enhance consumer awareness and protection. However, it is important to consider the possibility of a cultural divide arising from biases in AI training data, as this could perpetuate and amplify existing inequalities.
In conclusion, while AI holds immense potential for transforming consumer governance, it is crucial to address the associated risks and challenges. The decline in priority given to consumer-driven businesses highlights the need for renewed attention to this aspect within international forums such as the G20. Moreover, bridging the digital divide in sub-Saharan Africa and incorporating consumer-driven modules in digital public infrastructure initiatives, like the ONDC, are essential steps towards ensuring inclusive and effective implementation of AI in consumer governance. By striking the right balance, AI can be harnessed as a powerful tool to drive positive change and protect consumer rights in the modern digital era.
Rashika Narain
The analysis reveals several key findings regarding the capabilities of large language models and the challenges of integrating AI technology for consumer protection.
Large language models have evolved and can now perform various functions, such as calling APIs, recognizing images, and dealing with multiple languages. OpenAI has been working on these models, which have the potential to facilitate communication between sellers and buyers who speak different languages. This highlights their importance in enhancing global commerce.
However, integrating AI technology for consumer protection faces challenges due to the absence of standardized solutions. While open networks for digital commerce exist, they often lack consumer protection measures. To address this, state or regulatory bodies should encourage the development of standardized solutions and their integration with AI technology. This will enable effective scaling up of consumer grievances and resolution.
The use of AI in resolving consumer disputes can increase efficiency and provide contextual resolution. Different types of AI solutions are needed based on the nature of the dispute. Therefore, the availability of robust open data sets that contain contextual information becomes crucial for training or fine-tuning AI models.
Furthermore, the integration of AI alongside human escalation is recommended. Depending on the nature of the dispute, some cases may require AI assistance in forming case files and escalating quickly, while others could benefit from AI-assisted negotiation. This combination of AI and human intervention ensures a comprehensive approach to resolving consumer grievances.
Finally, technology should be considered the fifth layer in grievance redress, and mediators and arbitrators should receive training in utilizing it effectively. Online alternative dispute resolution requires a deep understanding of technology, with technology being referred to as the "fourth intermediary" in this context. By incorporating technology into the dispute resolution process, consumer grievances can be addressed more effectively.
In summary, the analysis highlights the advancements in large language models and their potential to perform various functions. However, integrating AI technology for consumer protection presents challenges that require standardized solutions. The use of AI can enhance efficiency in resolving consumer disputes, but different AI solutions are needed for different types of disputes. The integration of AI with human escalation and considering technology as the fifth layer in grievance redress are recommended approaches.
Speakers
KS
Kritika Sethi
Speech speed
136 words per minute
Speech length
1077 words
Speech time
475 secs
MM
Marilia Maciel
Speech speed
185 words per minute
Speech length
2015 words
Speech time
653 secs
RN
Rashika Narain
Speech speed
176 words per minute
Speech length
912 words
Speech time
310 secs
TM
Teresa Moreira
Speech speed
131 words per minute
Speech length
2014 words
Speech time
925 secs
UK
Ujjwal Kumar
Speech speed
135 words per minute
Speech length
2144 words
Speech time
955 secs
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