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Report: Banks Using AI to Teach Empathy

mikegibb by mikegibb
March 20, 2025
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It may sound completely counter-intuitive, but technology like artificial intelligence can be used to detect and teach empathy, and a published report details how banks are using the technology to do just that. As AI continues to evolve, it’s increasingly being adopted in employee training programs, helping customer-facing employees in the credit and collection industry enhance essential soft skills, particularly empathy and active listening.

AI tools, particularly generative AI, are being integrated into training programs by banks and corporations to help employees handle challenging customer interactions. For instance, Bank of America utilizes AI to simulate difficult conversations, allowing employees to practice managing complex situations in a safe, controlled environment, according to the report. This enables employees to build confidence while refining their communication skills. By using AI-generated feedback, managers can also track employee progress and identify areas where additional training is needed.

While AI may not inherently understand human emotions, experts like Anmol Agarwal, a consultant and adjunct professor at George Washington University, explain that AI can be trained to detect emotions such as anger or frustration in customer responses. These tools can then prompt employees to adjust their tone or wording, making their responses more empathetic. For example, Microsoft’s Copilot assists employees by refining the tone, clarity, and voice of their communication, whether in emails or customer-facing interactions.

However, there are limits to what AI can do when it comes to teaching empathy. As AI consultant Serena Huang points out, generative AI can help adjust tone and phrasing but lacks the subtle emotional nuance that human interactions naturally carry. Without human oversight, AI-driven responses may become formulaic, potentially creating impersonal or stilted exchanges.

The solution may lie in a balanced approach. Many organizations are now exploring the use of virtual reality (VR) in training, allowing employees to engage in lifelike simulations of customer interactions. Bank of America, for example, uses VR to offer employees realistic training scenarios that enhance their ability to communicate with empathy and build stronger client relationships.

Read the report

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Tags: Artificial Intelligence
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