The landscape of Customer Experience Management (CXM) has witnessed a remarkable transformation within the advent of Generative AI (generative artificial intelligence). Based on periodic comprehensive studies conducted by Everest Group with customer experience (CX) leaders from over 300 enterprises globally, we present comparative insights that highlight the progress made in the past year (2023 to 2024).
Using two different primary studies, research has been conducted regarding gen AI in CXM operations, in the process providing our perspective on future developments.
Reach out to us to discuss this topic further with our expert analysts.
Adoption of digital CX solutions – 2023 vs 2024
Propelled by gen AI, a significant shift has been observed in the adoption of digital CX solutions such as automation, self-service, conversational artificial intelligence (AI), data and analytics, and migration to cloud contact centers.
There was a 15-30% increase in the number of enterprises having deployed these solutions from 2023 to 2024.
Generative AI awareness and its potential
Noteworthy changes in the awareness and potential of various gen AI use cases were also observed during this analysis. In 2023, while most enterprises had a good understanding of applications such as text, image, and code generation, few had robust knowledge of other application areas.
However, this scenario changed significantly in 2024. The majority of enterprises across industries now report having a solid working knowledge of various gen AI applications. Many are even considering synthetic data generation and audio and video generation as high-potential applications for gen AI in CXM.
The role of third-party providers
The role of third-party providers has become pivotal for enterprises, as they look to navigate complexities. Their importance is increasingly becoming more significant as enterprises realize the various nuances required in developing these solutions.
In 2024, there is a significant uplift in enterprises opting for tech-heritage or specialized AI companies, to use for implementation of gen AI, to be able to leverage their expertise in this technology and achieve faster time to market.
Additionally, more enterprises are outsourcing to contact center providers for gen AI integrations, capitalizing on their CXM domain expertise to better customize customer journeys and improve productivity and CX metrics.
Conversely, there has been a notable decline in the hybrid approach to gen AI development which combines both in-house and outsourced development. From a whopping 70% in 2023, the percentage of enterprises preferring this mode has reduced to only around 30%. This decline, accompanied by a decline in internal development, can be attributed to the change in business priorities for organizations and their need to have eagle-eyed focus on improving their core competencies and achieving their business objectives of revenue improvement, cost reduction, and adapting to new business challenges.
Enterprises choosing to invest wisely in their long- and short-term approach to Gen AI
From a financial perspective, enterprises exhibited a more optimistic stance toward generative AI adoption in 2023, with nearly two-thirds planning to invest over US$1 million in the next 12-18 months on gen AI solutions in CXM.
However, as the technology has matured, enterprises now have a clearer understanding of the returns these investments can generate. Over the past year, many enterprises observed that a significant number of gen AI pilots failed to progress to the deployment phase.
Consequently, in 2024, enterprises have taken a more cautious approach toward gen AI adoption. They now prefer to evaluate each application on a use-case basis before committing to full-scale investments. This shift is reflected in the investment budgets for gen AI, with only half of the enterprises (down from two-thirds) now planning to spend more than US$1 million on these initiatives. This decrease in investments on gen AI is propelled further by the current difficulties in the macroeconomic and business environments, where organizations are placing cost reduction and revenue enhancement as their top priority.
This cautious stance, however, does not mean that there is a decrease in the perceived potential of gen AI. 2025 continues to hold promise of a booming gen AI adoption. In fact, more than 80% of the enterprises plan to invest more than US$1 million in 2025. As gen AI continues to demonstrate its potential and deliver its promised outcomes, enterprises are likely to embrace it with increased enthusiasm.
If you found this blog interesting, registrations are now open for our Gen AI Unhyped: How It Is Evolving And How To Plan For Success | LinkedIn Live – Everest Group event LinkedIn Live event on September 11, 2024!
If you have questions or want to discuss CX strategies and solutions, please contact Mohit Kumar at [email protected] or Aishwarya Barjatya at [email protected].
