About 84 per cent Indian consumers agree that Artificial Intelligence (AI) has the potential to provide better customer experience, improve brand reputation, and increase customer loyalty, a study revealed on Thursday.

According to software company Pegasystems, the study surveyed over 1,000 consumers in India on their views about AI as it relates to morality, ethical behaviour and empathy.

Indian consumers generally trust new technologies like AI if they see the potential to improve their productivity and make things simpler. But at the same time, respondents still worry about the ethics behind AI and the potential for it to act with bias, the company said in a statement.

The study also indicated that almost 78 per cent are comfortable interacting with AI for business-related queries.

"This presents an important opportunity for Indian companies to accelerate their AI adoption -- particularly as the pandemic forces them to increase their digital engagement capabilities," Suman Reddy, Managing Director, Pegasystems India, said in a statement.

"By taking an empathetic and ethical approach to AI, businesses can ensure their customers' faith in AI is rewarded with better service - which ultimately leads to an increase in customer loyalty," Reddy added.

In the study, 75 per cent of those surveyed believe that machines can behave morally and thus make 'good' decisions based on empathetic considerations.

In addition, 76 per cent of respondents in India believe that when an organization uses AI to make relevant, appropriate, and valuable offers to their customers, it is an example of AI demonstrating empathy.

Organizations should adopt transparent and unbiased AI, which means their AI models can explain exactly why a decision was made, the study said.

By combining AI-based insights with proper AI governance, organizations can more safely adopt AI while driving better customer engagements, it added.