Question

The essence of agency relationship is losing its potency due to technological advancement. Do you agree? Discuss.( not less than 250 words)(law question)

Answer 1

Yes, I agree that the essence of agency relationship is losing its potency due to technological advancement.

Agency relationship is the fiduciary relation which results when one person (the agent) agrees to work for another person (the principal), under the control of the another person (the principal).

Now-a-days industries are adopting many advanced technologies that manage not only business but also customers. Technologies, like artificial intelligence, chatbots, e-signature, apps for customers are immensely adopted by companies to give a fast move to their business. Artificial intelligence is programmed to work like a human, here the process of communication is fully automated. It doesn't require a person as an agent to communicate with the customers.

The use of robots in business has automated many of the processes, giving less chance to agents to interfere. Chat bots enabled websites are more popular among many businesses, it is available 24 hours to provide solution to customers.

These technologies are designed in such a way that it provides the customers a feel like their issues will be sorted out soon. Many business organizations do not need agency relationship for their customer care department, they have made it automated and 24 hours online presence. By making their processes automated, companies are free from unnecessary disputes and expenses which they need to bear hiring agents.

Today's scenario of business handling reflects that the importance of agency relationship is diminishing due to technological advancement.