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Bad news? Send an AI. Good news? Send a human

For a marketer who is about to deliver bad news to a customer, an AI representative will improve that customer’s response. This would be the best approach for negative situations such as unexpectedly high price offers, cancellations, delays, negative evaluations, status changes, product defects, rejections, service failures, and stockouts. However, good news is best delivered by a human.

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Photo by Alex Knight from Unsplash.com

Researchers from University of Kentucky, University of Technology Sydney, and University of Illinois-Chicago published a new paper in the Journal of Marketing that examines the customer response and satisfaction implications of using AI agents versus human agents.

The study, appearing in the Journal of Marketing, is titled “Bad News? Send an AI. Good News? Send a Human” and is authored by Aaron Garvey, TaeWoo Kim, Adam Duhachek.

Are we more forgiving of an artificial intelligence (AI) agent than a human when we are let down? Less appreciative of an AI bot than a human when we are helped? New research examines these questions and discovers that consumers respond differently to favorable and unfavorable treatment at the hands of an AI agent versus another human.

Consumers and marketing managers currently are in a period of technological transition where AI agents are increasingly replacing human representatives. AI agents have been adopted across a broad range of consumer domains to handle customer transactions, including traditional retail, travel, ride and residence sharing, and even legal and medical services. Given AI agents’ advanced information processing capabilities and labor cost advantages, the transition away from human representatives for administering product and services is expected to continue. However, what are the implications for customer response and satisfaction? 

The researchers find that when a product or service offer is worse than expected, consumers respond better when dealing with an AI agent. In contrast, for an offer that is better than expected, consumers respond more favorably to a human agent. Garvey explains that “This happens because AI agents, compared to human agents, are perceived to have weaker personal intentions when making decisions. That is, since an AI agent is a non-human machine, consumers typically do not believe that an AI agent’s behavior is driven by underlying selfishness or kindness.” As a result, consumers believe that AI agents lack selfish intentions (which would typically be punished) in the case of an unfavorable offer and lack benevolent intentions (which would typically be rewarded) in the case of a favorable offer. 

Designing an AI agent to appear more humanlike can change consumer response. For example, a service robot that appears more humanlike (e.g., with human body structure and facial features) elicits more favorable responses to a better-than-expected offer than a more machinelike AI agent without human features. This occurs because AI agents that are more humanlike are perceived to have stronger intentions when making the offer. 

What does this mean for marketing managers? Kim says, “For a marketer who is about to deliver bad news to a customer, an AI representative will improve that customer’s response. This would be the best approach for negative situations such as unexpectedly high price offers, cancellations, delays, negative evaluations, status changes, product defects, rejections, service failures, and stockouts. However, good news is best delivered by a human. Unexpectedly positive outcomes could include expedited deliveries, rebates, upgrades, service bundles, exclusive offers, loyalty rewards and customer promotions.”

Managers can apply our findings to prioritize (vs. postpone) human to AI role transitions in situations where negative (vs. positive) interactions are more frequent. Moreover, even when a role transition is not entirely passed to an AI agent, the selective recruitment of an AI agent to disclose certain negative information could still be advantageous. Firms that have already transitioned to consumer-facing AI agents, including the multitude of online and mobile applications that use AI-based algorithms to create and administer offers, also stand to benefit from our findings. Our research reveals that AI agents should be selectively made to appear more or less humanlike depending upon the situation. 

For consumers, these findings reveal a “blind spot” when dealing with AI agents, particularly when considering offers that fall short of expectations. Indeed, the research reveals an ethical dilemma around the use of AI agents – is it appropriate to use AI to bypass consumer resistance to poor offers?

“We hope that making consumers aware of this phenomenon will improve their decision quality when dealing with AI agents, while also providing marketing managers techniques, such as making AI more humanlike in certain contexts, for managing this dilemma,” says Duhachek.

BizWiz

Focus on service: Lessons from Caltex station employees

All work—regardless of the profession or industry—serves a deeper purpose in society for as long as it is done with integrity and passion.

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All work—regardless of the profession or industry—serves a deeper purpose in society for as long as it is done with integrity and passion.

Caltex Philippines honors the honest work of its station customer service representatives nationwide, who have committed each day to serving Filipino motorists with precision and care.

Alkindar J. Amil

For Alkindar J. Amil, his job at a Caltex station in Zamboanga City is more than just a routine –but a commitment to continue his father’s legacy of humble service.

Back in 2018, Alkindar began working as a customer service representative (CSR) after his contract at a government agency had expired. This career shift allowed him to walk in his late father’s footsteps, a pedicab driver who had served their community for 20 years. “Nagturo siya sa akin na walang maliit na trabaho, basta marangal. (He taught me that no job is too small, as long as it is honorable),” he reflected.

As the station’s supervisor, Alkindar wakes up at the crack of dawn to head to the station. There, he endures the intense heat and long hours on foot, all while serving motorists with a genuine smile. When asked how he gets through these challenges, he answered that he gets by with the help of his late father’s positive mindset.

Luckily, these efforts do not go unnoticed, as Alkindar has had customers thank him for his selfless service. In fact, he had recently gone viral for explaining fuel price fluctuations to motorists, with many thanking him for educating viewers on the complex issue. “May mga customer na nagsabi sa akin, ‘Hindi basehan ang diploma, kundi diskarte sa buhay ang mahalaga para matulungan mo ang iyong pamilya.’ Simpleng salita lang ito pero tagos sa puso at sobrang makabuluhan. (Some customers have told me, ‘A diploma isn’t the basis for success, as what truly matters is your resourcefulness to help your family.’ It’s a simple statement, but it really touches the heart.)”

Now in his eighth year at Caltex, Alkindar wants to pass down the values of humility and perseverance to his own child –just as his own father taught him. “Nais kong maituro sa aking anak na huwag maging mapagmataas. Dapat laging mapagpasensiya at dapat pantay-pantay ang tingin mo sa iyong kapwa. (I want to teach my child not to be arrogant. They should always be patient and treat everyone as their equal.)”

Henry John T. Abonero

Despite working in Caltex for less than a year, CSR Henry John T. Abonero has used his experience to serve motorists south of the Metro. He began working as a trainee at Caltex Magallanes in February 2026 before getting absorbed as an employee two weeks later.

Henry’s purpose of working at Caltex is simple: he wants to serve motorists by assisting them in refueling and providing reliable customer service. However, he admits the job can be quite taxing, especially when dealing with customers in a rush.

When Henry must deal with an impatient motorist, he always takes a deep breath and keeps his cool. That way, he can calmly and efficiently help his customers find a solution to their needs. “Sa trabahong ito, kailangang marunong kang makipag-usap nang maayos at maging mahinahon sa salita. (In this kind of work, it’s important to communicate clearly and be careful with your words.)”

It is through simple acts like this that Henry finds pride in wearing his Caltex uniform. After all, his uniform acts like a badge of honor for his daily service. “Araw-araw kong pinagmamalaki ang aking uniporme dahil simbolo ito ng aming tapat at totoong serbisyo. Ang importante lang dito ay ginagawa mo nang tama ang iyong trabaho nang walang naaabalang ibang tao. (I take pride in my uniform every day because it symbolizes our honest and genuine service. What matters most is that you do your job properly without inconveniencing others.)”

Joseph Nacion

What began for Joseph as a job to support his family soon became an opportunity to exemplify Caltex’s brand of customer service. As one of the CSRs in Caltex’s flagship station at Bonifacio Global City, Joseph always goes the extra mile in his work—from meticulously checking the accuracy of each tank refill, cleaning the station’s premises, to producing accurate sales reports at the end of the day.

Despite the heavy workload, Joseph quickly learned to be an all-rounder in his job by closely following standard procedures, staying focused during his shift, and being open to his supervisor’s feedback. His efforts have paid off, with some customers recognizing his keen eye for detail.

For instance, Joseph recalled a time when a customer was rushing to refuel their car. However, he noticed that their requested amount did not match the amount indicated on their vehicle’s sticker and patiently explained why this could cause misfueling.

He recalled, “Noong nangyari ito, kinausap ko siya nang maayos at ipinaliwanag ang risk ng misfueling. Medyo naiinip siya noong una, pero kalaunan na-realize niya ang mali at nagpasalamat pa. (During this moment, I patiently explained to them about how this could cause misfueling. Although they were initially a bit impatient, they soon realized why I pushed back on their request and even thanked me for it.)”

In the end, Joseph tells motorists that he, along with his fellow CSRs, will always be there to help them drive safer and longer journeys. He added, “Hinihikayat ko rin po silang maging patient at understanding lalo na kapag busy hours, dahil ginagawa po namin ang best namin para mas mapagsilbihan sila. (I would also like to request that customers remain patient and understanding with us, especially during our peak hours, as we are doing our best to serve them in any way we can.)”

Alkindar, Henry, and Joseph are among the thousands of Filipino CSRs who remained loyal to Caltex’s mission of bringing high-quality fuels and world-class services to motorists nationwide.

Chevron Philippines Inc. General Manager and Country Chairman Pongtorn “Bon” Tangmanuswong said, “We are incredibly grateful to Alkindar and Henry and all our customer service representatives who have made refueling a more valuable experience for our customers. Thanks to them, we have more people who exemplify Caltex’s values and mission to bring quality, affordable, clean energy to areas where it is needed the most.”

He added, “More importantly, we will continue empowering our people by recognizing their wins, supporting their efforts to innovate each station’s services, and providing them with much-needed growth opportunities.”

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BizWiz

Empowering the next wave of Filipino freelancers in Pampanga

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At a time of rising costs and economic uncertainty, freelancing has emerged as a growing source of opportunity. As more Filipinos turn to freelancing as a viable long-term career, many are adopting digital tools like the GCash Virtual US Account to simplify cross-border payments.

Recognizing this, the GCash Freelancer Connect, a series of community events designed to bring freelancers based in different cities in the country, made its way to Pampanga for its first regional leg. Attendees gathered to learn from speakers KD Creatives and Dani Jacobe, who led practical sessions on how to diversify income streams, charge more competitive prices, and build greater financial confidence with the support of tools like GCash. Here are key insights shared during the event:

1. Strong relationships create steady opportunities

With more Filipinos entering the freelancing industry, standing out has become a bigger challenge. For Dani Jacobe, building meaningful connections – and knowing how to communicate value clearly – makes all the difference.

“Your goal is not just to find one client. Your goal is to build a system that helps you keep finding and serving clients,” she shared.

What she has learned over the years is that outreach should go beyond simply introducing one’s services. Freelancers should learn to identify problems, offer clear solutions, and create opportunities for intentional conversations from the very beginning.

“Your skill becomes more valuable when you connect it to a specific business need,” she added.

2. Be confident in your worth

For Kyla Dizon, the journey to becoming “KD Creatives” didn’t happen overnight. Before building her online community around content creation and offering digital guides and advice through her platform, she experienced self-doubt and pressure as a young freelancer. One area where that hit hard was in communicating her value to potential clients.

“The truth is, a lot of freelancers are incredibly talented, but still undercharge because they haven’t fully recognized the value of what they bring to the table,” she explained.

The turning point came when she stopped pricing from a place of fear or being scared that clients would walk away because she’d be too expensive and instead, began pricing from a place of confidence. But that confidence, Kyla noted, came only once she fully embraced her personal brand as a freelancer.

“Now, I approach pricing differently — not based on fear, but on the value and experience I know I can deliver,” she explained. During the Freelancer Connect, she urged attendees to use a pricing matrix, which she has made available online, to accurately determine how much they should charge clients for the services they offer.

3. Receiving payments should not feel complicated

Another common challenge freelancers face is receiving payments, especially from overseas clients, where the process is often inefficient. To address this, GCash has introduced the Virtual US Account, a feature designed to make receiving USD payments easier.

Users can now receive USD transfers directly from US-based clients using their own routing and account numbers, similar to a traditional US bank, within the GCash app. This feature helps freelancers avoid unnecessary deductions, hidden fees, and lengthy transfer processes, while also ensuring competitive forex rates. Users can convert their USD to PHP when it is most favorable for them – they have full control of when they want to withdraw it into their GCash e-wallet.

“We want to ensure that freelancers in the Philippines can receive and manage their money in the most convenient way possible and in a manner that ensures they don’t lose so much of their hard-earned cash. Once in your Virtual US Account, you can access and manage your earnings instantly inside the GCash app – whether that’s converting to PHP, paying bills, buying load, or even growing your wealth through our financial services,” shared Sophia Sison, Product Manager under the International Business Group at GCash.

Create your Virtual US Account today

As freelancing continues to grow across the country, GCash hopes initiatives like the Freelancer Connect can help create more spaces where freelancers feel supported — not just financially, but as a community navigating a rapidly changing world of work together.

Creating your Virtual US Account is easy:

  1. Open the GCash app – Tap US Accounts in the Explore the App section
  2. Tap Continue and verify your information
  3. Complete your account creation

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BizWiz

3 Lessons from women who successfully built careers in freelancing

Freelancers face inconsistent income, unpredictable clients, and little guidance on how to navigate it all. For longtime freelancers Mia Juan and Dana Novales, building a career online has meant learning these lessons in real time.

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 Earning through freelance work has never been more accessible. With a stable internet connection and numerous job platforms, opportunities can come from anywhere – and for many Filipino women, they do. A 2020 study by the Philippine Institute for Development Studies (PIDS) showed that an increasing number of women are engaging in online work because it lets them earn while balancing home responsibilities.

But access doesn’t always mean ease. Freelancers face inconsistent income, unpredictable clients, and little guidance on how to navigate it all. For longtime freelancers Mia Juan and Dana Novales, building a career online has meant learning these lessons in real time. With more women entering the freelancing field, they share three lessons they’ve learned:

1. Build real relationships, not just transactions.

Freelancing can make work feel transactional. You get assigned a task, submit the work, get paid, and then move on. But the most successful freelancers don’t treat work that way. In such an unpredictable field, being remembered matters.

According to Dana, “Real relationships are built on service, not strategy.” Every “Well done!” or “Good work!” can open doors to new opportunities, so don’t waste them. Instead, take an extra step to establish a real relationship with your clients: check in, understand what they need, and find ways to make the process easy for them.

2. Set up systems that work for you.

Handling different clients with different ways of working can get overwhelming fast. For Mia, having systems for your workflow simply makes this easier and helps manage client expectations.

That can be as simple as being clear about what services you offer. “It’s basically saying this is what I can offer and setting a clear boundary of what you do not do. That way, there is no miscommunication of responsibilities, which happens commonly in freelancing work,” she shares. It also helps to have a proper onboarding flow – having contracts, timelines, and payment terms in place before you start, not while you’re already in the middle of the work.

3. Find solutions that work for your peace of mind.

Some challenges only appear once you’re in the midst of them, and for many freelancers, realizing that foreign payments come with fees, delays, and uncertainty is when freelancing starts to feel stressful.

“Earning in USD sounds exciting–until fees, forex, and delays eat into your income,” Dana points out. She shares that this is something she wishes she had known earlier in her freelancing career. “That’s why there is importance in having the right structures in place, especially if you’re a mom who has to think of managing your home, paying your bills, among many other responsibilities.”

That’s why Mia and Dana now use the new GCash Virtual US Account, a feature within the GCash app that lets freelancers receive USD payments from US clients more directly without the usual surcharges. After creating an account, you get your own ACH and Wire Routing Number, which you can give to your clients for direct deposits of your pay.

You can also choose to convert your USD to PHP when you want, depending on live forex rates, which you can see on the platform – giving you control over how much you actually receive. Once it’s in your wallet, you can use it to send money, pay bills, or add to your savings.

Creating a GCash Virtual US Account is easy in just a few steps.

  1. Open the GCash app. Tap US Accounts in the Explore the App section
  2. Tap Continue and verify your information
  3. Complete your account creation

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