Karnataka Minister Issues Warning to E-Commerce Over AI Chatbots

Karnataka’s IT and Biotechnology Minister, Priyank Kharge, has raised concerns over the growing inefficiencies of AI-powered chatbots used by major e-commerce and quick commerce platforms, warning that if service standards do not improve, the government may intervene with regulations. His remarks come as frustration grows among consumers over poor grievance redressal mechanisms and ineffective AI-driven customer support.

Kharge took to X (formerly Twitter) to criticize leading food delivery platforms Swiggy and Zomato, stating that while AI chatbots and automated prompts are useful for handling basic inquiries, they often fail to address genuine customer concerns, leaving users trapped in endless loops of automated responses. “Swiggy, Zomato, and other quick commerce platforms must enhance their customer service and delivery experience, or the government may have to step in with regulations,” Kharge wrote.

The issue of delayed deliveries, refund disputes, and unresponsive AI-based customer support has become a major point of frustration for Indian consumers. Many users have taken to social media to share experiences where they were unable to reach a human representative, making dispute resolution nearly impossible. Critics argue that excessive reliance on AI chatbots has led to a decline in service quality, with companies prioritizing automation over human interaction.

This growing dissatisfaction highlights a larger challenge in the digital economy—striking the right balance between AI-driven efficiency and genuine human assistance. While chatbots can quickly process routine requests, they often lack the empathy and problem-solving abilities needed for complex issues, such as incorrect deliveries, refund disputes, or urgent customer complaints.

Kharge’s warning suggests that if e-commerce and quick commerce platforms fail to improve customer service voluntarily, the government may introduce regulatory frameworks to ensure better service standards. Potential regulations could mandate minimum human support requirements, improved grievance redressal mechanisms, and stricter service quality benchmarks.

Despite the backlash, Swiggy and Zomato have yet to issue an official response. Meanwhile, industry experts argue that companies need to redesign their customer service strategies, integrating AI while maintaining an efficient human escalation system to handle critical concerns. Some businesses have already started hybrid customer support models, combining AI-powered chatbots with human intervention to enhance user satisfaction.

As AI-driven customer support becomes increasingly prevalent across industries, companies must ensure seamless issue resolution while maintaining consumer trust. Whether e-commerce platforms will voluntarily adapt or be compelled through regulation remains to be seen, but Kharge’s remarks signal a shift towards greater government scrutiny over AI-powered services in India.

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