Chatbots are increasingly sophisticated and could make up the majority of customer service interactions surprisingly soon. Reuters
Chatbots are increasingly sophisticated and could make up the majority of customer service interactions surprisingly soon. Reuters
Chatbots are increasingly sophisticated and could make up the majority of customer service interactions surprisingly soon. Reuters
Chatbots are increasingly sophisticated and could make up the majority of customer service interactions surprisingly soon. Reuters


The surprising reasons that chatbots deserve our respect


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October 17, 2022

Last week our team, an international collaborative spanning four universities, published its latest research findings in the journal Informatics. Our project explored chatbots, those occasionally annoying computer programs that simulate conversation with human users. Led by Dr Mohammad Kuhail from Zayed University, we examined whether altering a chatbot's personality traits might make it more trustworthy, engaging and liked.

Such research is increasingly important, as these eager electronic helpers begin to facilitate more and more of our routine online transactions. Also known as conversational agents, chatbots are everywhere, from "celebrity" helpers such as Siri and Alexa to the multitude of nameless bots that pop up online offering unsolicited assistance.

Some of the earliest chatbots, however, pre-date the internet. Eliza, for example, was developed in 1966. This chatty piece of software was based on the communication style of a Rogerian psychotherapist. Eliza typically repeats back what the user said, while also posing an open-ended question. For example, tell Eliza that you hate her, and she will respond with something like: "I see. You hate me. Why do you think you feel that way?"

The fact that virtual assistants such as Alexa and Siri overwhelmingly have female voices could point to human bias during their development. AP
The fact that virtual assistants such as Alexa and Siri overwhelmingly have female voices could point to human bias during their development. AP

As an undergraduate psychology student, I would introduce some of my fellow students to Eliza as though she were an online human. These conversations might go on for several minutes before my naive classmate realised they were pouring their soul out to a bot.

Today's bots, though, are not trying to pass themselves off as humans. Generally, it's enough that they are polite and efficient and help us achieve our goals. According to a 2022 report by Gartner, a leading information technology advisory company, chatbots will become the primary customer service channel for roughly a quarter of all organisations in the US by 2027. The same report suggests that 54 per cent of us are already regularly interacting with chatbots, typically in commercial contexts, for example, online shopping or travel bookings.

What are the psychological implications of our reliance on artificially intelligent chatbots? Does the fact that we are dealing with non-human agents make us less polite?

Research presented at the Conference on Human Factors in Computing in 2019 suggests that more than 10 per cent of our interactions with chatbots are abusive. Some people feel disinhibited when talking to a chatbot, using a tone and language they would rarely use with a fellow human. In the future, such chatbot abuse might not be so lightly tolerated. An article published in 2016 in the Harvard Business Review warns that cursing out an underperforming chatbot may soon become a workplace disciplinary issue. The article suggests that, at the very least, it represents poor leadership-by-example.

Consider also how the social development of a young child might be affected by regularly witnessing an adult verbally abuse a chatbot. One of my colleagues, a psychologist specialising in childhood development, expressed concerns that her young children were being rude and abrupt when speaking to chatbots. She now insists on "please and thank you" for bots too.

Another subtle psychological impact bots can have on us is to reinforce existing social stereotypes. For example, how best to represent the bot using a human avatar? What ethnicity? What gender?

In 2019, Unesco launched a policy paper titled "I'd Blush if I Could: Closing Gender Divides in Digital Skills through Education". The document warns that, as gendered chatbots become increasingly common, they have the power to entrench and reinforce existing gender-related stereotypes. The report draws attention to the fact that, by default, the English-language versions of Siri, Alexa and Cortana were all initially assigned female names and personas. More troublingly, even when faced with aggressive and abusive enquiries, these servile bots with female personas remained docile, agreeable and, occasionally, even flirtatious. About 91 per cent of those employed in Silicon Valley are male.

The radical prospect of the metaverse means humans should be thinking even harder about making the internet safe. AFP
The radical prospect of the metaverse means humans should be thinking even harder about making the internet safe. AFP

On March 31, 2021, Apple updated its operating system and Siri no longer defaults to female. Regardless, how chatbots are represented remains a critical social issue. Furthermore, the metaverse (collective virtual/augmented reality) will introduce us to life-like, three-dimensional chatbots: slapable Siri.

Our research is a small contribution to understanding how we can make chatbot interactions more effective, human and humane. In our most recent study, we tinkered with chatbot personality, dialling up and down the levels of extraversion. We also did the same for levels of agreeableness and conscientiousness (the tendency to be careful, diligent and dutiful). Our usage context was academic advising, helping undergraduate students navigate college life. Personality mattered. All the chatbots were equally helpful. However, the students trusted and liked (intended to use) those with higher levels of extraversion and agreeableness.

As more of life is lived online, making the world a better place becomes synonymous with improving the internet, not speed and coverage, but content and culture. Interdisciplinary research is critical to this mission. This focus is more important than ever as we begin unlocking the potential of the metaverse.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: October 17, 2022, 9:00 AM