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US Court Challenges Use of AI in Contact Centers

The use of AI un contact centers is facing legal troubles in the US.

Members of Navy Federal Credit Union filed a lawsuit in the Northern District of California against CX automation firm Verint for its use of AI to record and analyze customer calls.

While call recording for quality assurance is common practice with customer notification, the lawsuit argues that AI integration adds a new wrinkle.

Unlike traditional recording, Verint’s software can analyze calls in real-time and potentially use the data to develop its own AI models, according to the petitioners.

The lawsuit further alleges a lack of transparency. The plaintiffs claim they were unaware that their calls were being used for purposes beyond helping Navy Federal and that they never consented to this broader data use. They believed their conversations were confidential discussions solely with the credit union.

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Similar lawsuits have been launched against Google for its use of AI technology in its cloud-based CX solution. Google (and some of its clients) have been accussed in violating California privacy laws that date back to the 1970s.

Though there is very little regulation specific to AI technology in general, attorneys in California are betting that existing laws and regulations in the state apply to some of the uses of AI.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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