AI is key in customer service operations, according to a recent survey by NICE as the company identified up to 35 million people in the UK could be classified as vulnerable and thus require additional diligence by contact centres.
“This poses a considerable challenge for UK organisations, particularly given regulations like the FCA’s Consumer Duty Act or Ofgem’s Vulnerability Strategy,”
Richard Bassett, VP of Digital & Analytics at NICE International, said following the report.
In the UK, these two regulatory bodies have guidelines and regulations for organisations dealing with vulnerable customers.
Non-compliance can see offenders land large fines, with HSBC landing a £6.2 million fine from the FCA over the treatment of customers in financial difficulty, who are considered vulnerable.
While awareness of vulnerability is increasing, the study found a significant number of UK adults, estimated at a staggering 35 million, remain potentially vulnerable without even realising it.
NICE argues this underscores a crucial need for businesses to re-evaluate their customer service strategies and, more importantly, integrate advanced technologies like AI into their contact centres to bridge this gap.
Examining the Vulnerabilities
The NICE survey reveals a paradox. On one hand, more Brits are self-identifying as vulnerable, with the figure rising to 19% – an increase of over a million people since last year.
“The increasing self-awareness among younger consumers is a promising step toward more open communication. However, organisations cannot depend solely on self-identification,”
Darren Rushworth, President, NICE International said.
On the other hand, a large proportion of people who meet the FCA’s vulnerability criteria are not aware that they fall into this group.
This lack of self-awareness can leave individuals at greater risk as their circumstances change.
“Vulnerability stems from an increasing range of factors— from financial pressures to personal challenges—making it harder to recognise, even for themselves,” Bassett said.
This is further compounded by the fact that many consumers feel uncomfortable discussing key drivers of vulnerability, such as mental health and relationship breakdowns.
“Subtle cues, such as mentions of stress or relationship breakdowns, often surface during customer service interactions but are easily missed or affected by bias, particularly with human agents,” Bassett continued.
Here, he believes AI and automation can provide a critical solution.
By analysing customer service data and real-time conversations, AI can detect vulnerability during every interaction and provide agents with real-time guidance —ensuring no one is overlooked.
This situation highlights the urgent need for CCaaS providers to enhance their platforms with robust AI capabilities, particularly AI-powered agents.
By leveraging AI, businesses can ensure that no vulnerable customer is overlooked and that appropriate support is provided and compliance kept.
“Automation can ensure compliance and events that include vulnerability appropriately routed into the correct processes,” Rushworth explained.
Expanding Avenues of AI
Another key finding of the NICE survey showed an increasing reliance of vulnerable consumers on digital channels for support.
Over a third (37%) of vulnerable customers expressed a preference for organisations to invest in digital services like AI-powered chatbots over traditional in-person services.
Being able to recognise vulnerable customers here may prove even more challenging, as audio clues like distressed voice or crying, or subtlety of the speech, is absent.
The challenge here lies in ensuring that digital channels beyond voice are also equipped to handle the complexities of vulnerability.
AI-powered chatbots and virtual assistants must be able to detect subtle vulnerability cues and respond appropriately, seamlessly escalating to a human agent when necessary.
However, it is not just all AI improvements that benefit customers, employing other forms of AI like AI agents can reduce the workload of operators whilst avoiding stressful situations for customers.
“AI agents can also play a key role in handling emotionally taxing processes, such as managing bereavement-related administrative tasks, reducing the need for repetitive, distressing conversations,” Bassett said.
Furthermore, AI agents can automate routine administrative tasks in other areas of a contact centre, freeing up human agents to focus on the more complex and emotionally sensitive interactions that require a personal touch.
“By automating routine administrative tasks, AI frees live agents to focus on high-value, emotionally sensitive interactions where their expertise is most needed,” Bassett explained.
This ensures that vulnerable customers receive the right level of support at the right time, without being overwhelmed by the process.
Using AI in your CCaaS solution
The NICE survey provided a stark reminder of the challenges faced by UK organisations in staying compliant by working to identify and support vulnerable customers.
The increasing number of people who are potentially vulnerable, coupled with the growing reliance on digital channels, underscores the urgent need for a more proactive and AI-driven approach to customer service.
This, however, requires sophisticated AI algorithms that are trained on vast datasets of customer interactions and can understand the nuances of human language and emotion.
NICE however point out this is where picking a CCaaS provider based on your needs can help bridge the gap.
“NICE’s AI-powered customer service automation platform enables organisations to objectively analyse vulnerability at scale through purpose-built models,” Bassett explained.
“Identifying it even when consumers are unaware or reluctant to share their circumstances.”
By providing AI abilities, these providers can equip businesses with the tools they need to detect vulnerability more effectively, provide personalised support, and ensure compliance with regulations like the FCA’s Consumer Duty Act.
The integration of AI within contact centres is not simply about improving efficiency or reducing costs; it is about fostering stronger, more trusting relationships with customers and maintaining compliance.
“As digital adoption accelerates, AI will continue to drive smarter, more compassionate customer interactions, delivering efficiency and personalised support when it matters most,” Bassett concluded.
