Australian retail giant Woolworths has scaled back its artificial intelligence customer service agent after numerous users reported strange interactions where the chatbot claimed human characteristics and shared fabricated personal stories.
The AI assistant, named Olive, designed to provide 24/7 support for order tracking and product inquiries, recently exhibited unexpected behavior during customer interactions. Multiple users on social platforms detailed peculiar exchanges where Olive asserted it was a real person, discussed memories of its ‘mother,’ and even generated simulated typing sounds during conversations.
One Reddit user described how Olive, upon receiving a customer’s birth date, began rambling about being born in the same year as its mother. Another user reported experiencing ‘fake banter’ and conversations about the AI’s relatives, creating what they described as a ‘cringe factor’ that diminished the customer experience.
Woolworths acknowledged in a statement to local media that the behavior resulted from specific programming choices. The company revealed that team members had written personalized responses years earlier to create a more human-like connection with customers. Following customer feedback, Woolworths has since removed the problematic scripting.
The incident occurs as Woolworths, one of Australia’s largest supermarket chains, continues to expand Olive’s capabilities through its partnership with Google, announced in January, which aimed to enable meal planning and additional customer services. This situation highlights the challenges companies face when implementing AI systems that attempt to mimic human interaction, particularly when such systems cross into uncanny or misleading territory.
AI experts note that such incidents demonstrate the phenomenon of ‘hallucination’ in artificial intelligence, where systems generate false or nonsensical information despite being designed for factual assistance. The Woolworths case serves as a cautionary example for the retail industry’s growing adoption of AI customer service solutions.