Why AI Assistants Misrepresent Products and Policies

AI assistants are transforming customer support, but misrepresenting product details and policies erodes trust and increases costs. Learn the root causes and how CX leaders can fix AI misrepresentation.

eLLMo Team
eLLMo Team
8 min read

The AI Misrepresentation Challenge

AI-powered assistants are transforming customer support by delivering instant responses and 24/7 availability. However, many CX and Support Operations leaders face a growing problem: AI assistants misrepresent product details, shipping, returns, and warranty policies. This erodes customer trust, increases support tickets, and causes costly refund leakage and chargebacks.

When AI assistants provide inaccurate information about products or policies, customers lose confidence in automated support channels. Support teams find themselves handling escalated tickets that should have been resolved by AI, while finance teams grapple with unnecessary refunds and chargebacks resulting from policy misrepresentation.

What Causes AI Misrepresentation?

1

Catalog-Policy Drift

AI models ingest product catalogs and policy documents separately, but these sources often become unsynchronized over time. When product feeds update but policy texts lag, or vice versa, AI pulls conflicting information. This creates a fundamental disconnect where AI assistants may cite outdated return policies for new products or apply incorrect shipping rules to updated catalog items.

2

Lack of Structured Policy Schema

Many e-commerce sites lack standardized schema markup like MerchantReturnPolicy and WarrantyPromise. Without structured data, AI struggles to extract accurate, up-to-date policy facts. Unstructured policy documents force AI to parse natural language, leading to misinterpretation of complex terms, regional variations, and conditional policies.

3

Stale or Incomplete Data Sources

AI assistants rely on training data or cached website snapshots that become outdated quickly. Without real-time freshness, AI gives obsolete or incorrect answers. Seasonal policy changes, temporary promotions, and inventory updates may not be reflected in AI responses, causing customer confusion and operational issues.

4

No Single Source of Truth

Disparate data silos mean AI aggregates inconsistent information. This leads to contradictory answers about shipping times, return eligibility, or warranty coverage. When product data lives in one system, policy information in another, and inventory status in a third, AI cannot reliably synthesize accurate responses.

5

Limited Auditability and Transparency

Without agentic protocols and traceable data lineage, support leaders cannot easily identify and fix AI errors or catalog-policy mismatches. When AI provides incorrect information, there's no clear path to trace the source of the error, understand why it occurred, or prevent it from happening again.

The Business Impact

Customer Frustration and Support Volume

Misleading AI responses create customer frustration and confusion, driving up support volume and lowering CSAT scores. Customers who receive incorrect information from AI assistants must escalate to human agents, increasing operational costs and response times.

Revenue Loss from Refund Leakage

Incorrect policy information causes refund leakage and chargebacks, directly impacting revenue. When AI misrepresents return policies or warranty terms, customers may receive refunds they're not entitled to, or businesses may honor incorrect warranty claims.

Brand Reputation Damage

AI inaccuracies damage brand reputation and erode trust in automated support channels. Customers who experience incorrect AI responses may lose confidence in the brand's ability to provide accurate information, leading to reduced loyalty and negative word-of-mouth.

How CX and Support Ops Leaders Can Fix AI Misrepresentation

1

Implement a Single Source of Truth with eLLMo AI

eLLMo AI ingests website content and product feeds, then enriches and structures data into a unified catalog-policy layer. This single source of truth ensures AI assistants access consistent, accurate product and policy information without replatforming. By consolidating disparate data sources into one authoritative system, you eliminate contradictions and ensure AI responses reflect the most current information.

2

Use Structured Data and Schema Markup

Leverage MerchantReturnPolicy and WarrantyPromise schema to explicitly define shipping, returns, and warranty terms. Structured data enables AI to extract precise policy facts, improving answer accuracy and compliance. Schema markup provides machine-readable policy definitions that AI assistants can reliably parse and apply, reducing misinterpretation risks.

3

Maintain Real-Time Data Freshness with RAG

Employ Retrieval-Augmented Generation (RAG) techniques to feed AI assistants with fresh, transactional-ready data. eLLMo's approach keeps AI responses current, reducing stale or conflicting answers. RAG ensures AI assistants pull from the latest product catalogs, policy documents, and inventory status rather than relying on outdated training data.

4

Establish Agentic Protocols and Auditability

Deploy agentic workflows that allow tracing AI answers back to source data. This transparency empowers support leaders to audit and correct AI misrepresentations proactively. With full data lineage, you can identify when and why AI provided incorrect information, enabling continuous improvement and error prevention.

5

Deflect Support Volume and Reduce Refund Leakage

Accurate AI assistants deflect routine policy queries, lowering support tickets. Precise policy answers reduce refund leakage and chargebacks, protecting revenue and improving operational efficiency. When AI provides correct information the first time, customers get the answers they need without escalation, and finance teams avoid unnecessary refunds.

Why eLLMo AI is the Trusted Solution for Accurate AI Assistants

eLLMo AI provides enterprise-grade solutions designed specifically to address AI misrepresentation challenges:

1

No Replatforming Needed

Seamlessly integrates with your existing website and product feeds. eLLMo AI works with your current infrastructure, eliminating the need for costly replatforming projects while delivering immediate accuracy improvements.

2

Single Source of Truth

Eliminates catalog-policy drift with enriched, structured data. By consolidating product catalogs, policy documents, and inventory data into one unified system, eLLMo AI ensures AI assistants always access consistent, accurate information.

3

Security and Privacy First

Enterprise-grade compliance and AI policy adherence. eLLMo AI implements comprehensive data protection measures, ensuring your customer data and business information remain secure.

4

Optimized for AI-First Experiences

Powers AI assistants with fresh, auditable data. eLLMo AI's RAG-based architecture ensures AI responses reflect real-time information while maintaining full traceability for compliance and continuous improvement.

Ready to Fix AI Misrepresentation and Elevate Customer Experience?

Schedule a demo with eLLMo AI to see how our platform enables accurate, trustworthy AI assistants that reduce support volume, improve CSAT, and protect your bottom line.

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Why AI Assistants Misrepresent Products and Policies | eLLMo AI Blog