Could visual avatars flip the traditional customer experience (CX) script by providing a more human-like exchange?
Research from AI-powered CX firm Cyara shows a psychological shift in consumer attitudes toward AI, making customers more comfortable interacting with AI than with chatbots. According to the report, more than one-third (36%) of consumers feel less judged when interacting with AI than when interacting with a live customer service representative, especially in sensitive or uncomfortable situations.
One of the most sought-after goals in CX is to provide human empathy. Many customer service strategies have traditionally assumed that live representatives are best equipped to provide customer comfort and answer complex questions. Amid ongoing consumer frustration with many call center experiences, a new breed of artificial intelligence offers an alternative for improving CX.
An anonymity advantage is transforming AI from an efficiency tool into a trusted emotional sounding board. For Gen Z and millennials, the shift is even more pronounced, with nearly half admitting they use chatbots specifically to avoid the awkwardness or embarrassment of human interaction.
However, this emotional safety is fragile. The CRM industry is reaching a critical crossroads where relatability meets reliability.
Danny Tomsett, CEO of UneeQ, focuses on improving CX results by emphasizing the role of emotion in how humans engage with chatbots for shopping and other purposes. He believes that the human element needs further study and that the concept of digital humans has proven highly effective.
"What digital humans have done really well is connect at a more human level and address that emotional need, not just the informational need. That's really why we started using this technology in this area," Tomsett told CRM Buyer.
Why Digital Humans Need a Backstory
UneeQ creates digital humans to enhance CX. It provides retailers with a digital human platform to create, manage, and deploy AI-powered, photorealistic avatars. These human-like screen images serve as digital brand ambassadors, conversational shopping assistants, and personalized service agents.
By integrating these avatars into e-commerce websites, mobile apps, and kiosks, retailers can offer 24/7, emotionally intelligent, and personalized customer experiences that go beyond traditional chatbots. The success of these high-stakes interactions hinges on technical perfection.
UneeQ and similar companies push the boundaries with photorealistic digital humans designed to engage customers on a more personal level. Some AI digital human avatars are trained the same way actors prepare for a role. This includes programmers giving the AI a backstory to make it more authentic and relatable to customers.
Tomsett noted that even when people know something is not human, they can still connect to it authentically. He likened the connection to the way humans react to animated films.
"If you've ever watched [an animated] movie, you know it's not real, but you still connect to that character emotionally, and the art of that is really keeping the character authentic to the brand and what they represent," he explained.
"That is why a digital persona needs a backstory," Tomsett continued. "It makes them a little bit more authentic."
AI-Enhanced Alternative to Shopping Chatbots
According to Tomsett, lifelike avatars add a new dimension for consumers who feel insecure, fear making the wrong decision, or are otherwise a little anxious. If consumers buy something they already know all about, the purchase can be quite transactional.
When more information is needed, such as buying an unfamiliar product or signing up for a new telco plan involving technical terms and confusing options, friction and discomfort can arise when dealing with a human sales rep. Those interactions can raise new questions and create additional anxiety.
"A backstory can be quite important because it makes the avatars a little bit more authentic. You know what you're getting, you know what it's there to do, and therefore you relax around it a bit more," he observed.
Tomsett noted that the initial back-and-forth with the digital experience might be the hardest moment for many people. But new is also exciting, which is another human behavior.
"One of the things I love about this is that once they start talking, we end up winning them over more times than not. So that's quite helpful as well," he added.
New Research Strengthens the Case
Cyara recently released new research exploring the emotional dynamic between consumers and AI-driven customer service, particularly around judgment, embarrassment, and trust. The findings highlight that AI is becoming a lower-pressure entry point for customer engagement.
Nearly one-third (30%) of consumers have used a chatbot because they felt too embarrassed to speak to a human. One in four (25%) have avoided contacting a company altogether due to embarrassment. Among those consumers, many said they would have been more likely to reach out if AI had been available.
The findings reinforce the idea that AI is becoming a trusted emotional sounding board, but only when interactions are accurate and reliable. Yet more than half (56%) say a bad AI interaction reduces trust in the company itself.
As companies become more dependent on AI for customer interactions, ensuring those systems behave consistently becomes increasingly important.
In March, Cyara announced new agentic AI testing and governance capabilities to ensure AI agents deliver consistent, reliable interactions once deployed in customer service. These tools validate and monitor AI behavior across voice and digital channels, before and after customer interactions.
This move supports the company's broader goal of addressing the gap between the projected benefits of agentic AI and current customer perceptions of its performance. According to Amitha Pulijala, chief product officer at Cyara, this new platform helps brands test for tone and empathy to ensure the AI remains the judgment-free zone customers expect.
"Our new agentic testing capabilities simulate real-world, multi-turn conversations to validate outcomes, behavior, compliance, and customer experience across dynamic AI interactions," she told CRM Buyer.
Where Judgment-Free AI Agents Work Best
Pulijala noted that opportunities exist across several industries for this new AI approach. It is most evident where emotional friction or perceived judgment occurs.
"Financial services are top of mind. Missed payments, overdraft fees, or debt conversations carry a lot of stigma," she said.
Many consumers are turning to AI because it can provide a more comfortable environment for asking questions, especially around payments or penalties. Take tax season as an example.
"It’s stressful, high-stakes, and emotionally charged, which makes it exactly the kind of experience where consumers want that extra layer of reliable, fast, and judgment-free assistance," she offered.
CX Leaders Must Set Better Guardrails
CX leaders can create customer interactions that feel neutral and supportive. The key is not hard-coding AI's response path.
Pulijala explained that with non-deterministic agentic AI, the same question can generate different responses depending on context, phrasing, or prior interactions. That variability is powerful.
"Instead, they need clear guardrails for tone, neutrality, and empathy, backed by continuous, scenario-based testing," she said.
A customer may ask sensitive questions like, “How do I get approved for this loan?” or “Can you explain what this alert means I received from my bank?” In those moments, a bot must recognize the sensitivity of the situation and respond in a way that feels supportive and free of assumptions.
"CX assurance helps validate consistency of responses at scale by identifying where tone drifts, where responses feel biased or abrupt, and where customers may feel judged. The goal is to ensure every version of the answer feels safe, respectful, and aligned to the brand experience," Pulijala said.
Unexpected Adoption Across Age Groups
Younger generations are among the quickest to embrace digital humans. Tomsett noted that many are already comfortable interacting with digital characters through gaming, making the transition feel more natural.
"This is the future. What might surprise you is that one of our highest usage demographics is 65 years and older," he shared, noting that his company has had success in several areas, not just online purchasing.
UneeQ's platform uses its proprietary software integrated into almost any technology. Businesses can build their own knowledge base and use their own data systems.
"The digital human will just inform its brain from what you've built. The digital human is completely customizable. It can be a male or female, a rabbit, or a Geico Gecko. It's like Lego blocks. You just change things out," Tomsett said.
As AI becomes more sophisticated and consumers grow more comfortable interacting with it, the challenge for businesses may shift from convincing customers to use AI to ensuring those experiences remain trustworthy, consistent, and genuinely helpful.
Loading ...