The pace of technical innovation in the customer experience (CX) arena is so rapid that it's difficult to figure out where to invest. Companies are committed to increasing revenue, improving service and customer satisfaction, reducing operating costs, and enhancing their employee experiences. These have been the primary CX goals for decades, but little progress has been made.
To further complicate matters, most consumers say that service quality has worsened over the years. Despite large investments in technology and business transformation and claims of improved net promoter scores, overall CX ratings continue to fall.
AI to the Rescue
Artificial intelligence (AI) is widely viewed as the technology that will turn the tide, but the market is so confusing that it's difficult for companies to decide what to purchase. New options emerge with each passing week, and it's hard to determine how one solution is different or better than another, whether it is ready for deployment at scale, and if it is time to make a purchase or wait for the next great innovation. While the proliferation of intelligent automation solutions offers CX executives powerful tools to transform outdated and overburdened CX functions, the large number of options has created decision paralysis in many organizations.
Build an Investment Decision Framework
Organizations need a decision framework to help them cut through the marketing noise and identify genuinely transformative capabilities that will deliver measurable benefits and return on investment (ROI) within a specified time frame. Companies need to accept that the technological investments they make today will become obsolete within three years (at most) and align their procurement strategies accordingly, prioritizing flexible, easily integrated, and open systems to avoid vendor lock-in rather than buying long-term monolithic solutions. It's also essential to carefully assess the roadmaps of technology providers and determine whether the vendor has the financial strength and vision to keep up with the rapid pace of AI innovation; otherwise, the acquired solutions are likely to become obsolete too quickly.
Go Back to Basics: ROI is King
AI is new in many CX organizations, making it more important for it to deliver measurable benefits. AI for the sake of AI is a waste of time and money. However, while a limited pilot might not deliver the promised benefits for some organizations, it doesn't always mean that there aren't benefits to be realized. It could be that the organization didn't deploy at sufficient scale or with an appropriate measurement framework.
To increase the chances for success, consider deploying AI solutions, such as conversational AI self-service applications in high-impact functions with enough activity to yield quantifiable benefits. And before piloting or deploying, identify and specify the key performance indicators (KPIs) that will be used to track success.
These success factor requirements should be documented in the purchase agreement, along with the time frame that was agreed upon with the vendor. Leave nothing open to debate by documenting all metrics, acceptance criteria, and consequences in the contract. This could include specific performance targets (e.g., 15 percent reduction in average handle time or 10 percent increase in call containment), measurement methodologies, reporting frequency, implementation resources (vendor and company), and an action plan for next steps if the targets aren't met within the predetermined timeframe.
While many AI tools are new, vendors should have the experience, knowledge, and willingness to make these commitments if they want your business. And if a vendor is not willing to assume this level of risk, if you still want to move forward with an investment you must be prepared to proceed without a safety net and build a contingency plan, as the vendor is clearly communicating concerns about its own capabilities.
Let's inject some practical reality into the AI craze. Most AI applications are new, and both vendors and end-user companies are learning as they go. Like any solution, AI-based systems need a specific purpose and must deliver measurable benefits within an established and agreed-upon time frame. The degree of risk and benefits associated with each solution will vary based on its use case and maturity and should be shared by the vendor and enterprise.
AI is the most transformative and potentially beneficial technology to come to market in general, and specifically for the CX sector, where it is tailor-made to address many of the market’s long-term opportunities. But as it is technology that is purchased from a vendor, companies should apply an investment decision framework to ensure they acquire the right solutions to address their specific business challenges and deliver measurable ROI.
The winners in 2026 and beyond will deploy AI strategically, match capabilities to real needs, demand contractual vendor accountability for results, and put in place a process that measures success by business outcomes rather than technology adoption.
Donna Fluss, founder and president of DMG Consulting, provides a unique and unparalleled understanding of the people, processes, and technology that drive the strategic direction of the dynamic and rapidly transforming contact center and back-office markets. As the foremost analyst and visionary dedicated to the contact center and back-office markets, she has provided expert guidance for more than 30 years to technology leaders as well as disruptive newcomers, investors, and enterprises that want to build next-generation AI-enabled contact centers. She can be reached at Donna.Fluss@dmgconsult.com.