Can Bots Teach Empathy?
Generative AI tools are becoming more adept at recognizing human emotions, offering banks a powerful way to rapidly upskill employees in essential customer service skills. However, without proper human oversight, these tools risk creating impersonal interactions that could alienate customers.
By Caroline Hroncich, Contributor at The Financial Brand
Soft skills like empathy and active listening may not be the first qualities associated with AI. Yet, companies are increasingly investing in AI tools to help train customer-facing employees, improving their interactions and preparing them for challenging situations.
"AI is not empathetic, but you can train it so ‘x-y-z’ means ’empathetic,’" says Anmol Agarwal, a consultant and an adjunct professor at George Washington University in the School of Engineering and Applied Sciences. "You can train AI to detect emotion. There are various AI tools that can help you determine, this customer is angry or their response has a negative connotation."
Generative AI is rapidly emerging as a powerful tool for employee training, with adoption expected to expand as AI chatbots become more advanced. Companies like DHL and Johnson & Johnson are already leveraging generative AI to train employees and identify skill gaps. A small but growing number of banks are also beginning to integrate AI into training programs.
For example, Bank of America uses AI to simulate customer conversations, aiming to create a more consistent client experience across the bank. Employees at the bank use AI to practice difficult conversations with clients, Michael Wynn, senior vice-president for innovation and learning technology, said in an interview with the Financial Times.
"It gives them the opportunity to build some confidence, test out their skills that traditional methods don’t allow them to do," Wynn said in an interview with the outlet.
Managers can use the tool to track employee progress more effectively by analyzing AI-generated feedback, identifying areas of improvement as well as challenges that may require additional training and support. This is done through Bank of America’s internal training and professional development tool called The Academy.
"One thing that really helped us navigate through the labyrinth of technology was understanding that our learners don’t want to learn the same way," Wynn said. "They don’t just want to read or watch training materials; they want to be an active participant."
By leveraging AI-driven insights, banks can tailor their training programs to address specific skill gaps and enhance employee development. However, AI isn’t infallible, and it’s crucial for banks to implement tools that not only support learning but also foster a reliable and effective training environment. Striking the right balance between AI-driven training and human oversight ensures that these tools enhance employee growth without compromising accuracy or effectiveness.
Learn more:
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As banks work to build meaningful customer connections, properly implemented AI-powered tools can both improve the customer experience and service efficiency. Here are a few ways bank marketers can leverage generative AI to strengthen their teams’ communication and soft skills.
Toning it Up, or Down
Generative AI tools can help employees improve written communication by refining clarity, tone, and voice. Microsoft’s Copilot, for example, integrates with platforms like Teams and Outlook to help employees respond to queries more efficiently.
Some companies have developed their own generative AI systems that prompt agents responding to customer inquiries, says Serena Huang, an AI consultant and author of "The Inclusion Equation: Leveraging Data & AI for Organization Diversity and Wellbeing."
"The prompt will say ‘Respond to this problem, using an empathetic tone,’" she says. "It will adjust the tone to make it more appropriate."
These tools can also generate scripts based on company policies and procedures, helping customer service agents respond to client questions quickly and accurately. This is especially helpful for new team members as they familiarize themselves with bank policies.
But while AI tools can help to improve communication, Agarwal cautions that when more nuance is needed, an overuse of generative AI may make responses feel stilted.
"I think the challenge with AI is it’s going to apply the same template to everyone, everyone is going to sound the same," she says.
Using AI to Create an Experience for Learners
AI is being increasingly leveraged to create immersive simulated learning experiences. Generative AI tools create a low-risk environment where employees can practice handling difficult customer interactions without the fear of losing business.
Experiential learning has long been a cornerstone of learning and development. Students, for example, who participate in experiential learning often develop a deeper understanding of the material and achieve statistically better outcomes than those who do not.
While AI may not perfectly replicate a customer’s response, it provides new employees with a valuable opportunity to practice handling complex issues before interacting with real customers. AI-powered versions of these trainings can make it more accessible, allowing more employees to benefit.
Some organizations offer proprietary tools for role-playing customer interactions, but employees can also use free tools to enhance their soft skills and customer communication. These tools can be especially useful for teams exploring how to integrate AI into their daily workflows, particularly those just beginning to experiment with generative AI. But experts caution employees against sharing proprietary customer information in tools like ChatGPT or Gemini due to privacy risks.
Some companies are also turning to virtual reality (VR) for employee training, Huang says. VR headsets provide a more immersive experience, enabling employees to practice challenging conversations in realistic scenarios, she adds.
"In certain types of training it is very helpful," Huang says. "I would encourage companies to explore maybe a small pilot and see where they can be very effective for certain types of skills."
For example, Bank of America has integrated VR headsets into its training programs, offering employees lifelike customer interactions to enhance their learning. The bank has deployed these headsets across more than 4,300 financial centers globally. Through a variety of VR simulations, employees can hone critical skills such as building stronger client relationships, handling difficult conversations, and responding with empathy and active listening.
"VR is highly effective at helping teammates build and retain new skills and it is one of many ways we are using technology to support internal mobility and provide best-in-class learning opportunities," says John Jordan, Head of The Academy at Bank of America in a press release.
Many employees find it challenging to incorporate AI into their daily tasks and may need guidance to understand its value, especially in managing customer interactions. Some may also be resistant, fearing that AI could eventually replace their jobs, Huang says.
"I think transparency goes a long way," she says. "Be open about how AI is going to have an impact on jobs. I think the worst thing you can do is deny it. We know it’s coming, we see it happening. Say ‘I may not have a full plan, but I’m looking into it, and our commitment to you is that we want to get you ready and upskilled, reskilled for new roles when AI starts to do more of your work.’"
Engage in a Collaborative AI Training
Simple exercises using publicly available generative AI tools can help employees refine their communication skills on a smaller scale.
To demonstrate the potential of generative AI, Huang prompts new teams to imagine receiving an angry customer email and think through their response. She then encourages them to explore how AI tools can provide a useful starting point for crafting a thoughtful reply.
Employees can use generative AI to create a sample response or refine their own draft by improving tone, voice, and word choice. They can also refine the tone by prompting the tool to be more empathetic, professional, or another desired style, adding nuance to their communication.
Once employees generate their responses, Huang encourages them to share their experiences and discuss the tool’s strengths and limitations. This collaborative exchange not only helps them refine their AI strategies but also fosters critical thinking about their own communication. By analyzing and adjusting their responses, employees can better tailor their messaging to enhance the customer experience.
Regardless of how you incorporate generative AI into training, it’s essential to encourage employees to engage with the technology in a way that feels authentic to their role and experience, Huang says. AI should be seen as a tool — one that can enhance, but never replace, human interaction.
"Everyone is now developing a slightly different relationship with their AI," she says. "What works for me, might not work for you. It takes a bit to get to a place where it’s great.
