Project Overview
A UK direct-to-consumer brand with 340,000 customers and 22,000 monthly support tickets needed to build an AI ...
Technology Stack
Compliance & Standards
The Challenge
A UK direct-to-consumer brand with 340,000 customers and 22,000 monthly support tickets needed to build an AI customer service platform — reducing first-response time from 4.2 hours to under 60 seconds and resolving 60% of tickets without human intervention. FCA Consumer Duty did not apply (non-regulated product), but Consumer Rights Act 2015, UK GDPR, ICO guidance on AI in customer service, and Equality Act 2010 (accessible AI) were the requirements. Budget: £75,000.
Our Approach
RAG Customer Service AI
Retrieval-Augmented Generation (RAG) architecture: product knowledge base (400+ product pages, FAQ, sizing guides), order data (via Shopify API — order status, tracking, return eligibility), and returns policy documents.
Vector store
pgvector extension on PostgreSQL.
LLM
Claude claude-sonnet-4-20250514 via Anthropic API.
Context injection
customer's order history retrieved from Shopify and injected into context.
Response
AI generates personalised response with specific order details.
AI confidence threshold
- responses with confidence <
- 0.7 escalated to human agent queue.
Escalation triggers
- complaint language (keywords: "terrible", "disgusted", "Trading Standards"), order value >
- £500, return after 30 days (Consumer Rights Act repair/replacement rights — human judgement required), and any mention of personal injury.
Human handoff
full conversation context passed to agent — no repeated customer explanation required.
ICO AI guidance
decisions affecting customers must be explainable and challengeable.
AI responses
labelled as AI-generated, with option to request human review.
Right to human review
GDPR Article 22 applies if AI makes a decision with significant effect — refusal of return claim escalated to human if customer requests.
Data minimisation
order data fetched per session, not stored in AI conversation logs beyond 30 days.
AI hard rules for Consumer Rights Act compliance
- automatic escalation to human for any request involving: statutory return rights (within 14 days, no reason required), repair/replacement rights (within 6 months — fault must be proven), refund requests for digital content (immediate statutory right), and product safety concerns (OPSS escalation required).
- AI cannot refuse a statutory right — it can only acknowledge and escalate.
The Results
Platform live at 10 weeks, £68,000 — under budget.
First response time: 4.2 hours → 42 seconds.
AI resolution rate: 68% (target: 60%).
Customer satisfaction: CSAT 4.4/5 for AI-resolved tickets (human: 4.1/5 — AI outperforming humans on satisfaction).
Support staff: redeployed from first response to complex cases.
CRA escalation: 34 statutory right cases correctly identified and escalated in first month.
ICO AI audit: zero findings.
“AI CSAT of 4.4 versus human CSAT of 4.1. The AI is outperforming our human agents on customer satisfaction, not just speed. 68% resolution rate means 68% of our support team's time was previously spent on questions that have definitive answers. The Consumer Rights Act escalation rules were the detail that made us confident to deploy." — Head of Customer Experience, UK D2C Brand (name withheld)”
Project Details
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