Artificial intelligence (AI) has emerged as the most transformative force in business in recent memory, and it is already reshaping the way companies interact with customers.
Understanding this impact on customer experience (CX) is crucial for companies to stay competitive. Businesses should understand the benefits, like greater efficiency and personalized services, and the risks AI poses.
Customer experience used to simply involve human interaction. When a customer contacts a business seeking a solution, a live person assists with the transaction. However, this experience has been augmented, or even replaced, in some instances, with AI.
This technology enables businesses to analyze vast amounts of data rapidly and offer insights that drive decision-making and enhance customer interactions. Whether through chatbots providing instant support or personalized recommendations, AI can empower companies to deliver tailored customer experiences at scale.
Incorporating AI into CX goes far beyond operational efficiency. That is a component, but that’s not particularly differentiated from existing automation approaches. Through inference-based predictive analytics, businesses can actually anticipate customer needs and proactively resolve issues.
Through AI-powered sentiment analysis, digital and live agents gain real-time feedback interpretation, allowing them to adapt their approaches on the fly. For example, an AI agent can be programmed to pick up on conversational issues, such as changes in tone of voice or words that connote anger or satisfaction.
This more empathetically tuned approach can be a real aid in the customer experience, which drives customer loyalty. In a world where CX seems to be in a death spiral of endless phone trees, using technology for positive experiences can help differentiate brands and enhance brand value.
A real key is understanding where technology is accretive and when to hand it off to human agents. For example, by automating repetitive tasks like membership renewals, prescription drug refills, or changes of address, human error can be reduced, and resource allocation can be optimized—which is key in a world where employment can be difficult to fulfill. These automated workflows can streamline rapid responses to inquiries and provide consistent standards of service.
Robotic process automation (RPA) can further enhance backend operations, including efficient order processing and inventory management. This can translate into improved service quality and accelerated response times, which are essential for maintaining a competitive advantage.
Integrating AI and automation requires strategic planning and deliberate implementation. Specific care must be given to data privacy and security, which require robust safeguards to protect sensitive customer information, whether that be consumer or enterprise.
A real key is overcoming technological barriers in the workforce by upskilling employees to work alongside AI. To do this, front-line employees who already know your product or service can be trained with a more sophisticated understanding of AI so they can become ‘AI Tuners’ for editorial or ethical review, prompt engineering, and conversational design.
Don’t think of AI as a workforce replacement but rather a workforce enhancement. While AI and automation streamline processes, human-centric design remains indispensable for generating authentic customer connections. Companies must prioritize empathy-driven AI development, emphasizing emotional intelligence and cultural sensitivity in order to resonate with a diverse customer base.
This might mean that companies adopt LLMs with more than one language or include sentiment analysis within automated conversations to inform next steps like call escalation.
This is where transitions to human agents need to be architected. We have all experienced the frustration of automated agents who can’t address our questions and concerns. It’s important to understand where to keep humans in the loop.
This involves creating a roadmap for automation that aligns technological investments and human interactions with long-term CX objectives. Begin by identifying pain points across the customer journey prioritizing automation opportunities that enhance efficiency and customer satisfaction. Then, where can your human agents either uniquely respond to customer concerns or add the most value?
You can measure this through metrics such as issue resolution, customer retention rates, cost savings, revenue generation, and other industry—or enterprise-specific criteria.
As you consider your “path to automation,” be cognizant of the internal human barriers that may inhibit progress. This might mean the internal owner of CX is dependent upon the CFO’s budget approval and the CTO’s expertise in incorporating AI into normal business processes.
Resistance to change is normal. Establishing “ownership” within the enterprise over new initiatives can impede AI adoption. Achieving the requisite organizational alignment for this adoption often requires a culture of innovation that empowers employees to experiment with and adopt new technologies such as AI.
Perhaps more importantly, however, is setting a north star for using AI to improve the customer experience, not just as another technology that can save money.
It’s also important to think of CX as more than just a single channel, like a call center or online. Building an “omnichannel” approach that meets customers where they are can further boost your CX experience across platforms you may not have considered, including TikTok, Instagram, X, and other social networks.
You see this more typically in larger, consumer-oriented businesses like airlines that monitor X and Threads and have representatives engage via Direct Messages on those platforms. This customer-focused implementation approach can further boost your brand value.
AI represents a true opportunity to elevate and improve customer experience by streamlining operations and using the strengths of technology and humans to elevate service quality and drive brand loyalty.