Yes, technically, AI calls are legal but their use is now heavily regulated, and rightfully so. These new regulations are there to protect consumers and ensure that businesses act fairly and transparently. As a business, if you don’t comply with these regulations, you are looking at significant penalties and even legal action. But even with regulation, Voice AI calls offer massive upsides. So to use these, you need to know the correct and legal way of using AI-powered voice calls.
The content in this article is not legal advice. Always consult with a legal professional who understands the current artificial intelligence and compliance requirements.
TCPA Regulations: An Overview of the Legal Landscape
In the right hands, technology is a force for good, but in the wrong hands, it can be devastating. So to prevent misuse, regulating certain aspects of Voice AI is a step in the right direction. Consumer rights are paramount, especially when some bad actors are using AI to scam and intimidate people and also extort vulnerable family members. Regulation has to keep up.
TCPA or the Telephone Consumer Protection Act is one such act. The 2024 update to the TCPA places stricter controls on AI-generated voices and automated phone calls. Under this law, any business that wants to use AI technology to make calls must have prior express written consent from the called party. Any violations in this case can invite stiff penalties and lawsuits, with fines reaching up to $1500 per infraction. The FCC (Federal Communications Commission) in the United States enforces these laws to protect US consumers from unsolicited calls. Here’s what you need to know.
Consent Requirements
All businesses that wish to use AI-generated voice and pre-recorded voice calls, must obtain prior express consent from the caller. This applies to outgoing telemarketing calls and any situation where AI technologies are used to collect customer data.
Moving forward without clear and documented consent is not wise. It opens your business to severe financial penalties and lawsuits. Transparent communication is the simple answer here. The consumer must know when they are interacting with AI-generated voices or artificially created human voices.
Do Not Call Registry
The Do Not Call Registry has been in place since 2003. It remains an essential part of compliance to prevent companies from targeting individuals with unsolicited robocalls. If the call involves voice cloning or AI-generated voices in robocalls, businesses must honor this registry. The AI should respect user preferences for both incoming and outgoing calls.
Penalties for Non-Compliance
Consumer protection laws are in place for a reason. Compliance with these laws is not optional. Anyone found violating the TCPA or FCC guidelines can face fines, lawsuits, and irreparable damage to their reputation.
FCC and state attorneys are taking the hard line against businesses using AI-generated voices to mislead or annoy consumers. Some companies have been fined for over $200 Million for non-compliance. While this is an extreme case, it stresses the need for compliance with the laws.
Ethical Considerations in AI Call Usage
We see new developments in AI almost by the minute, but the technology is still new. As businesses that create and use AI, we need to be proactive in our approach. This includes ethical considerations that come with its use.
Transparency
Informing your consumers that they are interacting with AI-generated voices is a legal requirement and an ethical obligation. When your customers know that the voice on the other end is AI, they will be mindful of the information that they share. A simple introduction like “This is an AI-generated call.” would be a great starting point.
Personalization and Consent
You must have prior express consent from your customers before using AI calls. It’s a legal and ethical requirement. Only personalize these calls to improve customer experience without crossing into intrusiveness. Yes, tailored calls with AI have major upsides but consensual boundaries would always be higher in the priority order.
Balancing AI with Human Touch
AI innovations are some of the most advanced technologies that humans have created, but there are things that artificial intelligence can’t replace. That’s the human touch. Real human agents must always handle sensitive queries, personal questions, and other vulnerable situations. The path forward involves a hybrid use of AI efficiency with human empathy. It’s the only solution for a seamless and ethical customer experience.
Use AI Calls Responsibly in Your Business
Using AI within your business and contact center can unlock tremendous growth opportunities. Responsibly using this technology can help you stay compliant while improving customer satisfaction rates and other KPIs.
Building Trust
- Obtain Consent: Prior express consent is not just a checkbox for legal compliance. Use multi-channel opt-ins including email and SMS, to confirm consent. Store this information securely to show compliance when necessary.
- Consumer Preferences: Regularly update your call lists to respect the Do Not Call Registry and any opt-out requests. You can even automate this process internally to ensure that AI systems don’t accidentally reach a restricted number.
- Compliant AI Calling Partner: Having a trustworthy AI calling partner like Phonely is also paramount to trust building. It’s efficient and respectful of your customers’ preferences. Phonely helps you seamlessly manage opt-ins and updates to ensure smooth and personalized interactions. Try Phonely for free and enhance your customer outreach with confidence.
Improving Customer Experience
- Use AI for Routine Tasks: Automate common and repetitive tasks with AI. Using AI-generated voices for appointment reminders, payment confirmations, and basic inquiries is a good idea. This can help reduce wait times and enhance efficiency.
- Handoff to Humans for Complex Issues: A good AI system knows when a caller needs to speak with a human. Human representatives can handle complex and sensitive issues far better than AI, so the handoff must be smooth. See how this will affect workforce requirements and schedule accordingly.
- Real-Time Personalization: Integrating AI with your CRM systems can provide real-time customer insights. This way AI can offer personalized, contact-aware interactions without sounding robotic.
Alternatives to AI Robocalls
- Power Dialers: Power dialers can help human agents make more personalized and legally compliant calls, for follow-ups, power dialing software is an absolute gold mine.
- SMS and Email Automation: SMS and email automation are less intrusive than phone calls and prerecorded voice messages. Customers often prefer these over unsolicited phone calls. They are also easy to unsubscribe from.
- AI and Human Agents: Using both human and AI agents together can help you meet compliance while improving efficiency. AI can screen calls and handle routine tasks. A human agent can help address legal or sensitive issues. This is the only path forward.
Conclusion
Yes, AI calls are legal but they are now heavily regulated to prevent customer interests from bad actors using this tech. Businesses that want to use AI-powered calls must first prioritize transparency and consent. As a business, you should also balance the use of AI and human interaction within the calls to effectively serve the customer. Complying with legal and ethical guidelines enables you to responsibly use AI to enhance customer experience without the hassle of penalties and legal trouble.
