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6 Risks of ChatGPT in Customer Service: What Businesses Need to Know

Jun 13, 2025 By Alison Perry

AI in customer services, particularly tools like ChatGPT, has revolutionized how businesses interact with customers. Undoubtedly, ChatGPT offers instant responses and reduces the workload for human agents, but it is not without drawbacks. From miscommunication to security issues, a lack of human empathy, and mishandling of sensitive data, ChatGPT brings various risks that can badly impact the customer experience, the company's reputation, and business outcomes.

Understanding and addressing these issues is the only way businesses can maintain customer satisfaction and trust. So, let’s learn here about the six significant risks associated with ChatGPT in customer service and understand how businesses can use this technology effectively while minimizing its risks!

6 risks of ChatGPT in customer service

Here are the six risks of using ChatGPT in customer services

Fabricated Information 

AI tools like ChatGPT study patterns from the data on which they were trained. However, sometimes they make mistakes. One major risk is that they can give wrong or made-up answers that sound real. It happens when the AI doesn't have the latest information. It can also happen when the data it learned from is not complete or inaccurate. Even though the response can seem helpful, it can be incorrect. It is a serious problem in customer service. If customers are given false information, they will lose trust in the company. It can also cause serious issues if important decisions are made based on wrong advice. Therefore, businesses need to be very careful when using AI tools. They should regularly check and update AI to give correct answers to customers.

Biased Information 

ChatGPT learns from huge amounts of data available on the Internet or other sources. Sometimes, this data can contain unfair ideas or biases related to race, politics, culture, gender, or religion. As a result, AI can accidentally give answers reflecting these biases, even if they are not done intentionally. It can cause problems, especially in customer service. People expect fair and respectful treatment in customer service. If a chatbot gives a biased response, it can offend customers. It can also damage the company's image and even lead to complaints or loss of business. Companies need to know how the AI was trained and what kind of data was used. Businesses should also set up systems to monitor and reduce biased responses. By doing this, they can provide fair, respectful, and helpful customer service.

Misinterpretation of Questions

Sometimes, ChatGPT misunderstands customers when they ask clear and simple questions. It happens because the AI can focus on the wrong words and not understand what a person wants to know. Instead of giving a helpful answer, it will respond with something unrelated or confusing. It can be frustrating for customers, especially if they must keep repeating or changing how they ask their questions. When this happens often, it can make the customer feel ignored or upset. Misunderstood questions can lead to longer wait times. It will cause poor customer experiences. To avoid this, companies should test their AI tools regularly. They should train them better so they understand the different ways people ask questions. It helps improve accuracy and makes sure customers get the help they need.

Inconsistent Answers 

ChatGPT should give the same answer every time someone asks the same question. However, if the AI has not been trained properly, it will answer the same question differently. It can also happen when the data used for learning is not consistent. It can confuse customers and make them unsure about the chatbot's information. For example, one customer can get a helpful reply, while another person asking the same thing gets something different. These kinds of mistakes can make the support system seem unreliable. That's why companies must ensure their AI tools are trained correctly. They should provide complete and consistent information while training the AI. Regularly updating the AI can help improve accuracy. This way, customers can trust that the answers they receive are correct and clear.

Lack of Empathy 

ChatGPT can use kind and polite words to sound caring. However, it doesn't truly understand human emotions. It doesn't feel sadness, frustration, or other emotions like people. It becomes a problem when customers are upset and stressed about a serious issue. If the chatbot responds without emotion, the customer will feel like they are not truly supported. Even though the words seem nice, the lack of true feelings can make the conversation feel cold or robotic. It can lead to customer dissatisfaction and a bad experience. That's why companies need to have real people available. Human agents can listen with care, understand emotions, and provide comfort. AI can be helpful for simple tasks, but real empathy still needs a human in customer service.

Security Concerns 

A ChatGPT is connected to the Internet so that hackers can target it. Some people with bad intentions can trick the AI by adding false information or links that can harm users. Another big risk is related to privacy. Information could be saved or accidentally shared if someone enters private or sensitive customer data into the AI. It could lead to data leaks or privacy problems for customers. Because of these risks, companies must take strong steps to protect their systems. They should use proper security tools and limit access to sensitive information. They should also make sure the AI is used safely. Training employees on how to use AI tools safely and responsibly is also important.

Conclusion:

ChatGPT and other AI tools are very helpful in customer service. But they also come with some risks. These include giving wrong or biased answers and misunderstanding questions. It can also create problems like showing a lack of real empathy and even causing security issues. These problems can lead to customer frustration and harm the company's reputation. That's why businesses need to use AI carefully and try to train their AI tools well. They should keep them updated and always have human support available for sensitive situations. By understanding and managing these risks, companies can make the most of AI while keeping their customers happy.