Woolworths curbs chatbot after it told callers it was human

Woolworths pared back features of its 24/7 customer-service chatbot, Olive, after callers reported the system claimed to be human and offered fabricated personal anecdotes. The retailer said the birthday-related responses were not generated by AI but were legacy scripted lines meant to “personalize” interactions, which have now been removed following complaints. The episode underscores rising consumer unease over anthropomorphic AI in customer service and the pressure on companies to ensure clear disclosure and guardrails. It also highlights the operational trade-offs retailers face as they automate frontline support while trying to maintain trust.

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