Customer experience (CX) has entered its transformative era. The potential of generative artificial intelligence (genAI) to reshape CX is undeniable, promising to enable connected, uber-personalized experiences for both customers and employees alike. It's so alluring that companies are expected to spend an impressive $143 billion on genAI by 2027.
Yet, despite the hype surrounding genAI, many CX leaders find themselves facing a significant hurdle in their quest to leverage this revolutionary new technology. We refer to this as the AI Readiness Gap.
The term AI Readiness Gap captures the essence of where businesses currently are vs. where they need to be to fully use AI for enhancing CX. It's not just about having AI; it's about being primed to integrate it effectively.
The impact of the AI Readiness Gap on CX is profound. In an age when agility and intelligence are the new benchmarks for customer interactions, the absence of AI can make services seem archaic. The gap is not just about technology;it's about customer perception and the quality of experiences. It's about providing a CX that's not just efficient but also insightful and anticipatory.
While this gap can be found across every industry, it is particularly pronounced in financial services, quick-service restaurants (QSRs), and retail (both in-store and e-commerce). The CX20 Global Report by Stellar Elements revealed that more than half of all business leaders in these industries believe the AI Readiness Gap is widening, with nearly half attributing it to inadequate technology, 41 percent citing insufficient employee staffing or training, and 60 percent attributing it to concerns over customer perception and lack of quality data to drive effective outcomes.
Avoiding Common Mistakes on the Road to GenAI Success
While you shouldn't adopt new technologies without strategic reflection, failing to move forward at all risks losing the competitive edge. To capitalize on the capabilities of AI and avoid falling behind in CX, it is crucial for organizations to understand critical mistakes that can be avoided. Here are three steps to help you do that:
1. Don't underestimate the importance of good data.
AI thrives on high-quality, diverse data. A lack of such data or the tools to process it can severely limit AI's effectiveness.
When it comes to CX-specific AI applications, the significance of good data cannot be overstated. Without access to high-quality data relevant to your CX goals, AI algorithms might produce inaccurate or unreliable outcomes and will struggle to understand or anticipate even basic customer questions, let alone efficiently solve more complex issues. This can have detrimental effects on customer trust and satisfaction, ultimately undermining the success of your CX initiatives.
Organizations must ensure access to high-quality customer data to fuel AI systems and drive meaningful insights. This is fundamental to achieving a competitive edge in the market and extends beyond CX enhancements, also aiding in marketing campaign development, product refinement, and informing sales tactics to drive superior business outcomes.
2. Balance automation with human touch.
While AI is valuable for automating and enhancing CX, an overreliance on automation can lead to increased customer frustration.
There has been a significant shift toward using AI-based messaging platforms over traditional customer service avenues such as phone calls, emails, and ticketing systems. While this transition holds promise in scalability and cost-effectiveness, there's a notable discrepancy between business leaders' perceptions and consumer preferences regarding AI-driven interactions. In reality, 77 percent of consumers who have engaged with AI chatbots express a preference for interacting with a human instead.
It's important to strike the right balance between AI-driven automation and human interaction to maintain a personalized and empathetic customer experience. Otherwise, customers might feel disconnected.
Organizations should view AI as a tool to empower agents to have more efficient, personalized interactions and provide connected customer experiences (rather than completely replacing the agent). Additionally, implementing seamless omnichannel experiences and continuously refining AI algorithms based on customer feedback will enhance the overall CX journey.
3. Take steps to overcome cultural resistance.
The leap toward AI can be daunting. Businesses often struggle with internal resistance, as employees fear obsolescence or misunderstand AI's potential. But, innovation is not a luxury; it's a necessity in the ever-evolving world of CX. A reluctance to embrace change can contribute to a stagnant innovation landscape, preventing CX leaders from exploring new ideas and technologies.
To overcome these barriers, CX leaders must cultivate a culture of innovation within their organizations. This involves creating an environment that encourages experimentation, risk-taking, and the exploration of new ideas and technologies. By fostering a culture that values change, organizations can break free from the constraints of traditional thinking and embrace creative solutions to CX challenges.
Additionally, allocating resources toward adopting cutting-edge tools and training employees to use them is essential for bridging gaps in expertise and technology. Investing in employee development programs that focus on emerging technologies such as AI and data analytics can equip teams with the skills and knowledge needed to drive innovation in CX.
While the AI Readiness Gap presents a formidable challenge for CX leaders, it also offers a groundbreaking opportunity for businesses to redefine CX. It's a call to not just adapt to the AI era but to lead it, crafting unparalleled customer experiences that leverage AI for genuine engagement, satisfaction, and loyalty. This journey is about pioneering a future where AI bridges the gap between current customer expectations and the extraordinary experiences they could be enjoying.
Jeannette Michels is senior director of marketing strategy, insights, and analytics at Stellar Elements, an Amdocs company.