A review of the recent ruling on AI calls and its implications for B2B sales and marketing
If you are a B2B revenue leader, you might be wondering how the Telephone Consumer Protection Act (TCPA) affects your ability to use artificial intelligence (AI) bots for cold calling prospects. The TCPA is a federal law that regulates telemarketing and protects consumers from unwanted and unsolicited calls, texts, and faxes. The TCPA imposes strict rules and penalties for violations, such as requiring prior express consent, providing opt-out options, and maintaining a do-not-call list.
However, the TCPA was enacted in 1991, long before the advent of AI and voice technology. The law does not explicitly address the use of AI bots for cold calling, which creates a legal gray area for B2B revenue teams. In this blog post, we will review the recent ruling on AI calls by the Federal Communications Commission (FCC), the agency that enforces the TCPA, and discuss what it means for B2B sales and marketing.
What is an AI bot cold call?
An AI bot cold call is a phone call initiated by an AI system that uses natural language processing and speech synthesis to mimic human conversation. AI bots can be used for various purposes, such as lead generation, appointment setting, customer service, and survey collection. AI bots can also be integrated with CRM systems and other data sources to personalize the call and provide relevant information.
AI bot cold calls are different from robocalls, which are prerecorded messages that play automatically when the recipient answers the phone. Robocalls are usually easy to identify and ignore, whereas AI bot cold calls are designed to sound natural and engaging, and can even respond to questions and objections. AI bot cold calls can also be combined with human agents, who can take over the call if the AI bot encounters a complex or sensitive situation.
What is the FCC ruling on AI calls?
On February 8, 2024, the FCC announced the unanimous adoption of a Declaratory Ruling that recognizes calls made with AI-generated voices are "artificial" under the Telephone Consumer Protection Act (TCPA) The FCC further ruled that AI calls are subject to the TCPA's consent requirements, which vary depending on whether the call is made for a commercial or non-commercial purpose, and whether the call is made to a residential or wireless number. For example, AI calls that are made for a commercial purpose, such as selling a product or service, require prior express written consent from the recipient, regardless of the type of number called. AI calls that are made for a non-commercial purpose, such as conducting a survey or providing information, require prior express consent, which can be oral or written, if the call is made to a wireless number, but do not require consent if the call is made to a residential number.
What are the implications of the FCC ruling for B2B revenue teams?
The FCC ruling on AI calls has significant implications for B2B revenue teams that use AI bots for cold calling prospects. The ruling means that B2B revenue teams must comply with the TCPA's rules and regulations when using AI bots, or risk facing hefty fines and lawsuits. The FCC can impose a penalty of up to $1,500 per violation of the TCPA, and consumers can sue for up to $500 per violation, or up to $1,500 per willful or knowing violation.
Therefore, B2B revenue teams should take the following steps to ensure that they use AI bots in a TCPA-compliant manner:
- Obtain prior express written consent from prospects before making AI calls for a commercial purpose, such as offering a product or service, or inviting them to a webinar or event. The consent must be clear and conspicuous, and must disclose that the prospect is authorizing the caller to use an autodialer and/or an AI bot, and that the consent is not a condition of purchase or participation.
- Provide an easy and effective way for prospects to opt out of receiving AI calls, such as pressing a key or saying a word during the call, or following a link or sending a reply in a text message. The opt-out request must be honored immediately and permanently, and the caller must maintain an internal do-not-call list.
- Respect the national do-not-call registry, which is a list of phone numbers that consumers have registered to indicate that they do not want to receive telemarketing calls. The caller must check the registry before making AI calls, and must not call any number that is on the registry, unless the caller has an established business relationship with the consumer, or the consumer has given prior express consent to receive the call.
- Monitor and supervise the performance and quality of the AI bots, and ensure that they comply with the TCPA's standards and expectations for telemarketing calls. The caller is responsible for the actions and statements of the AI bots, and must ensure that they do not make false, misleading, or deceptive claims, or engage in any abusive, harassing, or unfair practices.
Conclusion
AI bot cold calls are a powerful and innovative tool for B2B revenue teams to generate leads, set appointments, and nurture prospects. However, AI bot cold calls are also subject to the TCPA, which is a complex and evolving law that regulates telemarketing and protects consumers from unwanted and unsolicited calls. The FCC's recent ruling on AI calls clarifies the applicability of the TCPA to AI calls, and imposes strict rules and penalties for violations. B2B revenue teams should be aware of the FCC ruling and its implications, and should take the necessary steps to ensure that they use AI bots in a TCPA-compliant manner.
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