Optus Data Breach Spurs Surge in Complaints, TIO Tests AI for Resolution
Last year, a massive data breach at Optus resulted in a significant increase in consumer complaints, prompting the Telecommunications Industry Ombudsman (TIO) to explore the use of artificial intelligence (AI) for complaint resolution. The TIO’s annual figures highlight a 16.5% drop in overall complaints, but a staggering surge of 29% in complaints lodged specifically against Optus.
The breach, which occurred in October last year, saw millions of customers’ personal and financial information stolen and held for ransom. As a result, the TIO received 6,800 complaints in the following month alone, representing a 25.9% spike. These numbers overwhelmed the TIO, leading to delays in complaint resolution and underscoring the need for a more efficient system.
Interestingly, while Optus faced a surge in complaints, the largest telecommunications company, Telstra, experienced a significant drop of 35.7% in complaints year on year. Similarly, other major Telcos witnessed declining complaint numbers, except for Vodafone.
Recognizing the need for improvement, the TIO’s Early Resolution Group began exploring the use of AI to streamline complaint handling. This move came as a response to the increasing number of complaints and the evident slowdown in resolving them, compounded by a limited TIO workforce.
Over the past three years, the TIO struggled to maintain efficient resolution timeframes. In the fiscal year 2020-2021, 53% of escalated cases were closed within 60 days. However, this figure dropped to 43% in the aftermath of the breach, showcasing the challenges faced by the TIO. Although there was a rebound in fiscal year 2022-2023, with 63% of cases closed within the allotted timeframe, it fell short of the TIO’s 75% target.
To address these issues, the TIO is implementing a revamped complaints management solution, with the first phase expected to roll out next month. This transformation will include the use of AI to streamline and expedite the handling of complaints. The AI-driven system will be trialed over the next 12-18 months, aiming to enhance efficiency and provide consumers with timely resolutions.
The TIO’s foray into AI technology reflects the increasing reliance of industries on technological advancements to improve their services. By incorporating AI into complaint resolution processes, the TIO aims to ensure prompt and satisfactory outcomes for consumers.
It is crucial for the TIO to strike a balance between leveraging technology for efficiency and maintaining a human touch in addressing customer complaints. While AI can undoubtedly assist in handling a large volume of complaints, human involvement and empathy remain essential aspects of effective resolution.
Overall, the Optus data breach and the subsequent surge in complaints have prompted the TIO to reevaluate its complaint management system. The introduction of AI technology is expected to play a crucial role in expediting complaint resolution and providing consumers with a more efficient and satisfactory experience.
