Are Consumers Ready for Generative AI-augmented Interactions? | Market Insights™
September 3, 2024
Generative AI
Generative AI
Customer Experience
Customer Experience
Customer Experience
Customer Experience
In the dynamic customer experience (CX) landscape, competition to achieve an effective tech stack is driving innovation. By integrating service, sales, and marketing capabilities through a platform approach, businesses can streamline operations, centralize customer data for better insights, improve collaboration across departments, and enhance the overall customer experience.
Watch this webinar to discover how leveraging unified platforms and innovative technologies can help businesses scale, increase agility, and create seamless, personalized customer journeys.
Our analysts also covered key buyer pain points, the CX tech vendor landscape, enterprise approaches to unifying CX, pricing strategies for sourcing CX tech, the impact of generative AI in improving CX, and future CX technology trends to watch for.
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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].
The Customer Experience Management (CXM) market in the Americas experienced moderate growth due to a stable economy, especially in the US. This favorable climate encouraged substantial investments from regional providers. Businesses are accelerating their digital transformation journeys. In response, providers offer diverse digital CX solutions, including automation, analytics, conversational AI, chatbots, self-service options, omnichannel delivery, and cloud-based contact centers.
To drive innovation and implementation in digital CX, including gen AI adoption, providers have established Centers of Excellence (CoEs). These centers deploy gen AI solutions, such as knowledge-as-a-service, learner co-pilots, QA&QC co-pilots, conversational AI chatbots, and agent-assist tools. Moreover, most providers are forging strategic partnerships with hyperscalers and AI startups to enhance their gen AI capabilities and expand their service offerings.
In this report, we analyze 43 CXM service providers’ capabilities across industries in the Americas. Each profile examines the provider’s service focus, key IP and solutions, domain investments, and case studies.
Scope:
The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.
In this blog, we explore how generative AI (Gen AI) is not only enhancing our personal and professional interactions but also ensuring that the essence of human connection remains central in our increasingly digital world. Reach out to us to explore further.
In a world where digital transformation is the norm, maintaining genuine human connections becomes our greatest challenge and opportunity. Gen AI isn’t just a futuristic concept – it’s a present-day reality reshaping how we interact on both personal and professional levels. Amidst the whirlwind of technological innovation, the essence of human connection remains a priority. Let’s delve into how gen AI is revolutionizing customer and employee experiences, ensuring that humanity stays at the forefront of our digital journey.
Gen AI is a technology that doesn’t just respond to your commands but anticipates your needs, understands your emotions, and adapts to your preferences. It’s a revolutionary leap beyond traditional AI, enhancing our interactions and deepening our connections. This isn’t about robots taking over; it’s about AI becoming a true partner, understanding us on a more profound level than ever before.
With its ability to sift through vast datasets and interpret the subtleties of human emotions, gen AI is transforming customer experiences into something remarkably intuitive and personalized. Picture your favorite brands offering customized solutions for your needs, with customer service that feels less like a transaction and more like a genuine interaction. Gen AI can improve operational efficiency in contact centers by 15-25% and create experiences that resonate on a deeply personal level, making every interaction feel uniquely tailored to you.
The impact of gen AI goes beyond revolutionizing customer interactions; it’s also redefining the workplace. Gen AI is transforming how we work, learn, and grow. Imagine walking into your office and having an AI-powered system that understands your work habits, suggests ways to enhance your productivity, and even recommends personalized professional development opportunities. This isn’t merely about efficiency – it’s about creating a fulfilling and engaging work environment.
By leveraging gen AI, companies can significantly reduce agent training time by 20-30%, enabling employees to reach proficiency more quickly. AI tools can help managers give personalized and timely feedback, making employees feel more connected and appreciated. AI-driven training platforms tailor learning experiences to each person, ensuring everyone gets the most relevant and useful training. This makes learning exciting, and employees more engaged with their roles. Additionally, AI can analyze how engaged employees are and suggest ways to boost morale and productivity. By understanding how we work and what we need, AI creates a supportive environment where everyone feels valued and empowered.
While diving into the digital deep end, we never lose sight of keeping it human. Gen AI might be smart, but it’s no substitute for real connection. So, how do we strike the balance? Simple: by putting empathy first and foremost in every interaction.
Think of AI as your trusty sidekick, not the hero of the story. By designing AI systems with empathy in mind, we ensure that technology enhances, not replaces, human interaction. For instance, customer service bots are programmed to recognize when a customer is frustrated or upset and respond with appropriate empathy and understanding and when to pass on the conversation to an agent. This isn’t about mimicking human emotions; it’s about creating a supportive and responsive environment.
Similarly, in the workplace, AI tools are designed to support employee well-being. For example, if an AI system notices a drop in an employee’s engagement scores or an increase in negative feedback, it can proactively suggest wellness resources or flag the issue to HR for a more personalized follow-up. These small, empathetic touches can make a big difference in creating a supportive and nurturing work environment.
Forget the man vs. machine showdown. It’s time to embrace collaboration. Gen AI isn’t here to steal our jobs; it’s here to supercharge them. By teaming up with gen AI, we can unlock new levels of creativity, productivity, and innovation. According to research by Everest Group, 65% of enterprises believe that gen AI will improve or transform their workflow, underscoring its potential to revolutionize the workplace.
AI can handle the repetitive, mundane tasks that often bog us down, freeing us up to focus on what we do best: creative problem-solving, strategic thinking, and building meaningful relationships. This collaboration between humans and AI can lead to more innovative solutions and a more dynamic and engaging work environment.
For example, in customer service, while gen AI can handle routine queries, human agents can step in for more complex issues, providing the empathy and nuanced understanding that only humans can offer. This not only improves efficiency but also enhances the overall customer experience, creating a win-win situation for both businesses and their customers.
As we gaze into the future, one thing’s for sure: gen AI is here to stay. But let’s not forget our roots. Let’s keep the human touch alive and kicking, even as we ride the digital wave into tomorrow.
The future of gen AI is bright, with endless possibilities for enhancing both customer and employee experiences. However, it’s crucial that we approach this future with a balanced perspective. While embracing the technological advancements that gen AI brings, we must also prioritize the human element, ensuring that empathy, connection, and understanding remain at the forefront.
In conclusion, maintaining human connections in the digital age isn’t just a matter of convenience – it’s a fundamental aspect of our humanity. As we continue to embrace the possibilities of gen AI, let us do so with a deep appreciation for the power of human connection. By harnessing the transformative potential of technology while preserving the essence of what makes us human, we can build a future where empathy, understanding, and compassion flourish in the digital realm.
Watch the webinar, Gen AI Unhyped: How It Is Evolving and How to Plan for Success, to gain insight into how to stay ahead using this emerging tech as a lever, and how to harness the full potential of gen AI.
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