Tag: CX

Everest Group Reports Demand for IVA Technology Grew 42% in 2019, Projects 70% Growth Through 2022 After Momentary Dip Due to COVID-19 Pandemic | Press Release

IVA market growth will accelerate post-pandemic as enterprises strive to overcome recession with focus on automation, customer experience

The global Intelligent Virtual Agent (IVA) market stood at US$300 million-US$350 million in 2019, exhibiting about 42% growth year on year, according to Everest Group. The firm projects a dip in demand in 2020 due to the COVID-19 pandemic but expects the IVA market to post strong growth going forward, achieving as much as a 70% compound annual growth rate (CAGR) through 2022. In fact, Everest Group has boosted this estimate by 13-22%, anticipating that enterprises will place greater emphasis on cost reduction and improving business continuity in the post-pandemic period.

IVA solutions are a key enabler of automation in the front office, currently being used primarily for customer support as well as IT and help desk functions due to their large volumes of repetitive queries. These functions account for more than 80% of the IVA market today. Banking, insurance, and telecom industries account for the highest adoption of IVA and continue to exhibit impressive growth, particularly given the maturity of contact centers within these industries.

Increasing sophistication and collaboration with complimentary artificial intelligence (AI) based technologies are driving IVA popularity in the market. Enterprises across industries and geographies are leveraging or plan to leverage IVA solutions for different use cases to reduce human involvement and improve customer experience (CX).

“IVA is still in the realm of early adoption today, but that is rapidly changing as enterprises realize what a tremendous opportunity they have to leverage this technology,” said Anil Vijayan, vice president of Everest Group. “IVA technology is continuously advancing and growing in sophistication well beyond rule-based chatbots. Today we see a higher level of maturity in intelligent IVA applications, which are being used for a variety of use cases including payment services account resolutions and employee onboarding, for instance. We’re also beginning to see IVA playing a key role in conversational AI ecosystems, where a collaborative set of tools—including IVA, AI, robotic process automation, learning and listening engines, analytics and more—is used to seamlessly integrate front and back office systems. Here, IVA supports more advanced use cases such as cross-selling and upselling, customer retention, and making personalized recommendations. We expect this evolution to continue, leading to reliable and delightful customer experiences while reducing human effort through automation.”

These findings are discussed in more detail in Everest Group’s recently published report “Conversing with AI – Intelligent Virtual Agents (IVA) State of the Market Report 2020.”  The report includes a detailed analysis of the IVA market, including a market overview and adoption trends, solution characteristics, vendor landscape, barriers to IVA adoption and best practices, and the outlook for 2020-2021.

Evolution of the IVA Market

  • The IVA market is witnessing a significant shift from rule-based solutions to AI-driven IVA solutions, propelled or aided by the following:
    • Increase in consumer demand for self-service
    • Integration of IVA solutions with critical enterprise back-end systems
    • Innovation of voice-based conversational capabilities
    • Shift from multi-channel to omnichannel delivery by software vendors
  • In order to meet the evolving CX needs, next-generation intelligent automation technologies are expected to witness high growth as they play a key role in transforming service delivery.
  • The conversational AI ecosystem in contact centers will enable seamless collaboration between front and back office and empower faster, more reliable, and lower cost operations.

*** Download a complimentary abstract of the report ***

About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com/.

Automation + Conversational AI | Webinar

Everest Group CEO Peter Bendor-Samuel will join IPSoft’s webinar to discuss how enterprises are reinvigorating their customer service, especially within the context of the post- COVID-19 next normal. They’ll discuss how companies can leverage enterprise automation and conversational AI together to augment customer care.

When

Thursday, July 16, AM EST

Where

Watch the replay

Presenters

Peter Bendor-Samuel
CEO
Everest Group

Mickey Davis
Global Vice President, Digital Workplace Services
Unisys

Jonathan Crane
Chief Commercial Officer
IPsoft

The Three ‘I’s of CX Digital Transformation | In the News

Ask any retail CEO what keeps them awake at night and most will come up with a list that includes:

  • how to transform customer experience, infrastructure and operations at the same time as reducing costs
  • demands on them to facilitate new business opportunities and better customer experience at the same time as implementing an agile, flexible, scalable digital platform
  • how to nurture innovation and creativity to attract and keep customers and the kind of employees who can build a digital future

They’re big issues which demand bold solutions, yet according to analysts Everest Group, only 10% the C-suite are ready to take action and make digital transformation happen. It takes a degree of business bravery to set the digital store ball rolling, knowing that it may take out a number of existing structures on its way through the business.

Read more in MyCustomer

AI for Experience: From Customers to Stakeholders | Sherpas in Blue Shirts

Everest Group’s digital services research indicates that 89 percent of enterprises consider customer experience (CX) to be their prime digital adoption driver. But we believe the digital experience needs to address all stakeholders an enterprise touches, not just its customers. We touched on this topic in our Digital Services – Annual Report 2018, which focuses on digital operating models.

Indeed, SAP’s recent acquisition of Qualtrics and LinkedIn’s acquisition of Glint indicates the growing importance of managing not only CX, but also the digital experience of employees, partners, and the society at large.

AI Will Usher in the New Era of the Digital Experience Economy

Given the deluge of data from all these stakeholders and the number of parameters that must be addressed to deliver a superior experience, AI will have to be the core engine powering this digital experience economy. It will allow enterprises to build engaging ecosystems that evolve, learn, implement continuous feedback, and make real time decisions.

 

Exhibit experience economy AI blogAI’s Potential in Transforming CX is Vast

Today, most enterprises narrowly view the role of AI in CX as implementing chatbots for customer query resolution or building ML algorithms on top of existing applications to enable a basic level of intelligence. However, AI can be leveraged to deliver very powerful experiences including: predictive analytics to pre-empt behaviors; virtual agents that can respond to emotions; advanced conversational systems to drive human-like interactions with machines; and even to deliver completely new experiences by using AI in conjunction with other technologies such as AR/VR, IoT, etc.

Digital natives are already demonstrating these capabilities. Netflix delivers hyper personalization by providing seemingly as many versions as its number of users. Amazon Go retail stores use AI, computer vision, and cameras to deliver a checkout free experience. And the start-up ecosystem is rampant with examples of cutting-edge innovations. For instance, HyperSurfaces is designing next-gen user experiences by using AI to transform any object to user interfaces.

But focusing just on the customer experience is missing the point, and the opportunity.

 AI in the Employee Experience

AI can, and should, play a central role in reimagining the employee journey to promote engagement, productivity, and safety. For example, software company Workday analyzes 60 data points to predict attrition risk. Humanyze enables enterprises to ascertain if a particular office layout supports teamwork. If meticulously designed and tested, AI algorithms can assist in employee hiring and performance management. With video analytics and advanced algorithms, AI systems can ensure worker safety; combined with automation, they can free up humans to work on more strategic tasks.

AI in the Supplier and Partner Experience

Enterprises also need to include suppliers and other partners in their experience management strategy. Using predictive analytics to automate inventory replenishment, gauge supplier performance, and build channels for two-way feedback are just a few examples. AI will play a key role in designing systems that not only pre-empt behaviors/performance but also ensure automated course correction.

AI in the Society Experience

Last but not least, enterprises cannot consider themselves islands in the environment in which they operate. They must realize that experience is as much about reality as about perception. Someone who has never engaged with an enterprise may have an “experience” perception about that organization. Some organizations’ use of AI is clearly for “social good.” Think smart cities, health monitoring, and disaster management systems. But even organizations that don’t have products or services that are “good” for society must view the general public as an important stakeholder. For example, employees at Google vetoed the company’s decision to engage with the Pentagon for use of ML algorithms for military applications. Similarly, employees at Microsoft raised concerns over the company’s involvement with Immigration and Customs Enforcement in the U.S.  AI can be leveraged to predict any such moves by pre-empting the impact that a company’s initiatives might have on society at large.

Moving from Customer to Stakeholder Experience

As organizations make the transition to an AI-enabled stakeholder experience, they must bear in mind that a piecemeal approach will not work. This futuristic vision will have to be supported by an enterprise-wide commitment, rigorous and meticulous preparation of data, ongoing monitoring of algorithms, and significant investment. They will have to cover a lot of ground in reimagining the application and infrastructure architecture to make this vision a distinctive reality.

What has been your experience leveraging AI for different stakeholders’ experiences? Please share with us at [email protected] and [email protected].

 

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