Customer trust is fragile. But building and maintaining that trust is paramount to fostering loyalty. Consumers expect personalization and crave efficiency, yet many are concerned about how their data is used — and the societal impact of artificial intelligence.

In this environment, ethical AI is a strategic imperative. Executives are recognizing that adopting ethical AI is as much about protecting their brand by fostering trust as it is about optimizing the customer journey to improve both personalization and efficiency.

However, like any technology, deploying AI isn’t a one-and-done solution; it continually evolves. Ensuring the use of AI is ethical must also be a continuous process. It requires ongoing scrutiny to prevent unintended biases or harmful outcomes. And with regulations already in place or being considered globally, the stakes for implementing AI responsibly have never been higher.

Many CX leaders are prioritizing AI ethics as part of their current and future AI deployments. According to the Genesys report “Customer experience in the age of AI,” 69% of CX leaders surveyed say their organization has plans for ethically deploying AI. Two-thirds say they have a clear roadmap for deploying AI in the customer experience, and 69% say their team has the knowledge and expertise to effectively adopt AI. This know-how can be an asset as organizations weave AI ethics into their plans.

Ethical AI Is Essential

For years, AI has been touted as a game-changer in customer experience. As it becomes integral to CX strategy and operations, its potential to drive efficiencies, enhance personalization and foster empathy is unmatched. But as organizations increasingly deploy AI systems, scrutiny around their ethical implications has risen sharply.

Concerns about algorithmic bias, lack of transparency, and misuse of customer data are among the issues driving this shift. Regulators worldwide are stepping up efforts, with frameworks like the European Union’s AI Act setting benchmarks for compliance.

As regulatory frameworks gain momentum, businesses must prepare to navigate this complex terrain. Failing to meet these standards could result not only in eroded customer trust and long-term damage to your brand but also hefty fines.

Bill Dummett, Chief Privacy Officer at Genesys, highlights the importance of taking cues from regions leading the charge, such as Europe. “Even if you’re not operating in the EU, it’s wise to align with their standards,” noted Dummett in a recent webinar, adding that a future-proof ethical AI policy should involve risk assessments, cross-functional collaboration and a global outlook.

Pending regulations emphasize customer rights and transparency, such as disclosing when an interaction is AI-driven. And consumers globally insist on it: 84% of those surveyed for the Genesys report “Generational dynamics and the experience economy” expect to be informed when they’re speaking to a bot — signaling a clear mandate for transparency. By addressing these expectations, companies can build trust and differentiate themselves.

Scrutinizing Data and AI Tools

Whether using first-party data for AI or sourcing data from partners and vendors, organizations should adopt rigorous evaluation criteria. This scrutiny also applies to evaluating any AI-powered solutions that rely on that data. Transparency, reversibility and explainability are non-negotiable when it comes to where the data originated as well as where and how that data is used.

Dummett emphasizes the importance of asking vendors detailed questions about their AI models, data sources and mechanisms for bias detection. Vendors should also expect to disclose how they are preparing for regulatory changes and ensuring compliance with emerging global standards. “You need to be a good steward of your data and ensure your vendors meet the same high standards,” advised Dummett.

Organizations are already taking steps to adapt to these shifts. In our AI report, 83% of CX leaders surveyed believe using artificial intelligence in the customer experience will be a key differentiator for their organization. And many are probing deeper into the ethical underpinnings of the tools they adopt.

Forty-four percent are updating their privacy policies and statements, and 41% are adopting formal AI ethics policies. More than half (54%) are even using or piloting AI to help meet compliance and regulatory requirements.

Practical Steps Toward Ethical AI in CX

Adopting ethical AI isn’t just about compliance — it’s also about building lasting customer relationships and safeguarding brand equity. Here are five key strategies CX executives should consider:

1. Continuous monitoring and risk assessment

AI systems evolve over time, learning from new data inputs. This iterative nature makes periodic checks for bias, fairness and accuracy essential. Organizations must ensure their systems consistently align with intended ethical standards and are delivering results in line with organizational values.

2. Vendor evaluation

Conversations with AI vendors should go beyond technical specifications. Organizations should assess vendors’ approaches to transparency, data security and compliance. Requesting AI model cards, understanding data flow and reviewing third-party dependencies are critical steps.

3. Global compliance

Aligning with leading global frameworks such as the EU AI Act can provide a blueprint for compliance. Forward-thinking organizations are already leveraging these guidelines to future-proof their operations.

4. Employee and customer education

Transparency must extend to all stakeholders. For employees, this means training on ethical AI practices and creating feedback loops for identifying potential issues. For customers, clear communication about how AI is used and the safeguards in place to ensure data security and to avoid bias can bolster trust.

5. Designing for empathy

AI’s ability to create empathetic interactions is one of its most powerful features. By using solutions such as sentiment analysis and predictive engagement, companies can transform CX into a deeply personalized experience, while maintaining ethical safeguards.

Ethical AI as a Strategic Advantage

The road to ethical AI adoption isn’t without challenges. CX leaders report concerns about data privacy, employee buy-in and the evolving regulatory landscape. Yet, those who act now stand to gain a competitive edge.

By embedding ethical principles into their AI strategies, CX leaders can navigate the complexities of ethical AI and turn potential challenges into opportunities. Doing so will help them ensure their organizations remain at the forefront of customer trust and innovation, as well as deliver exceptional, trust-driven customer experiences at scale.

Organizations that prioritize ethical AI not only safeguard themselves against regulatory and reputation risks but also position themselves as customer-centric leaders in a rapidly evolving market. As Dummett aptly states: “Ethical AI creates trust, and trust is the foundation of any meaningful customer relationship.”

The need for ethical AI is just one of the trends you’ll see in CX this year. Watch our webinar “CX trends in 2025 and beyond” to learn what other trends experts say are on the horizon in 2025.