Generative AI for Customer Experience

Among the major technology trends driving business in 2024 and beyond, generative AI is a powerful game-changer. With its ability to streamline, propel, and optimize the Customer Experience (CX), generative AI for customer experience shapes commerce—all the way from hopeful new Etsy retailers to global technology enterprises.

CX reaches out to humans with astounding intuition that is personalized, memorable, and influential. Now, generative AI increasingly infuses CX with ingenious new capabilities and conveniences that delight and empower customers like no other resource to date.

Generative AI Role in Customer Experience and Engagement

Today’s customers are flexing their muscles and showing little mercy to organizations lacking proactive CX agility; the ease with which customers can switch to competitors makes generative AI indispensable.

It’s no surprise that two-thirds of millennials expect real-time customer service and three-quarters of all customers expect smooth cross-channel customer service. As cost pressures build, simply adding trained employees to handle high volumes of customer service is inefficient.

So enterprises are surging into amazing new customer service apps and clever new lures like easy payment systems. Some businesses, however, are either procrastinating or playing catch-up, with negative consequences.

In terms of AI customer experience, we optimize AI tools to transform customer service, of course, is more than simply launching headline-seizing innovations. Leaders must choose the ideal use cases, integrate them cost-effectively with legacy systems, hire the best talent, and ensure smart governance.

Nevertheless, it’s no surprise that companies are eagerly turning to generative AI to deliver increasingly proactive, personalized service and charm their customers. The benefits are inarguable: AI-enabled CX increases customer engagement and encourages cross-sell and upsell while reducing cost-to-serve.

In global banking alone, research from McKinsey conducted in 2020 estimates that generative AI in banking could potentially deliver up to $1 trillion of additional value each year, and revamped customer service serves up a significant portion of this feast.

Whether a company faces the challenge of a fast-arising sales opportunity or needs to resolve a disappointing customer engagement, generative AI lets them navigate turbulent seas and build lasting, lucrative relationships.

Additional Resources on Generative AI

Real-World Examples of Generative AI in Customer Experience

There’s no shortage of ingenious ways that generative AI can support customer service. Here are examples across key industries that deploy generative AI in their customer service functions. Whatever the vertical, we’re certain that generative AI changes the game; there’s a tremendous amount of value now being unlocked, and the tech landscape is changing in real-time as a result.

How large companies use AI for personalization and efficiency.

  • Amazon excels in the use of generative AI to create personalized customer recommendations. The company uses machine learning to suggest products based on a customer’s past purchases and the behavior of similar users. This software not only enhances customer satisfaction but drives sales by presenting relevant items to shoppers based on business intelligence information. Amazon also helps customers redirect their search to the customer reviews section of a product page to inform the purchase process and also helps control Amazon’s reverse logistics and inventory systems.

 

  • Starbucks Rewards members develop a routinized long-term relationship with the brand that increases both tickets and transactions. They have activated new capabilities within their proprietary “Deep Brew” data analytics to identify and incentivize specific reward members. Starbucks saw its recent rewards program’s 90-day active member base in the U.S. increase to 34.3 million, with about 4 million new members. And that’s just the beginning of programs to further drive engagement, like rewards partnerships that target built-in audiences of companies in other industries.

 

  • Delta Airlines uses generative AI in its “Ask Delta,” chatbot, helping customers conveniently check in, track bags, and find flights. They respond to needs smoothly and quickly and call center volumes as a result have dropped by 20 percent.

 

  • Wealthsimple is a Canadian financial company that leverages AI in fintech and offers smart money management products like high-interest checking accounts or free fiduciary advice. They use generative AI to optimize customer service, answer FAQs, let customers quickly access their financial information, and obtain guidance on money management, resolving more customer issues without a live advisor.

ServiceNow incorporates generative AI into all of its workflow offerings. Their AI Virtual Assistant app lets business users self-serve for help with ServiceNow products and apps. Their new “Now Assist for Virtual Agent” solution uses generative AI to answer customer questions quickly for ServiceNow users to easily self-serve.

Generative AI for customer experience

Comprehensive Ways Generative AI Enhances Customer Experience

Generative AI does more than enhance customer experience; it revolutionizes and transforms how companies approach customer engagement itself, by automating and optimizing multiple aspects of the customer journey. Generative AI analyzes data and provides deep insights into understanding customer preferences and behaviors; it creates customized marketing materials, product recommendations and support responses that resonate sharply and accurately with individual customers in the millions. Generative AI scales the quality of customer interactions and enables businesses to ingeniously and cost-effectively improve CX.

Enhancing 24/7 support and predictive services with AI chatbots and predictive analytics.

The importance of quality CX can’t be overemphasized. With the rise in the sophistication of AI, businesses are turning to AI-driven chatbots to improve customer service and support workflows. What role do AI-driven chatbots play in enhancing customer service?

What are their benefits, challenges, and implementation considerations? Over the years, AI-driven chatbots have leveraged machine learning and NLP to comprehend and respond to customer inquiries in real time. Chatbots now handle increasingly complex tasks and provide personalized experiences to users. A key benefit is their 24/7 availability and instant response capabilities.

Unlike human agents, chatbots are front and center at any time; additionally, they are highly scalable and cost-efficient, handling huge volumes of inquiries without raising operational costs.

Enterprise chatbots that are powered by conversational AI eamlessly integrate with existing platforms: websites, mobile, and messaging apps. Customers receive timely, relevant responses across their preferred channel, improving satisfaction and driving loyalty. By automating routine tasks and inquiries, AI-driven chatbots streamline support workflows.

Now human agents can focus on more complex, higher-value issues while Chatbots handle common inquiries like FAQs, order tracking, and product information. Advanced natural language processing enables a pleasant, conversational effect for troubleshooting technical issues or recommending products. Chatbots can provide relevant information and solutions to customers, improving customer service metrics and reducing resolution times.

A key advantage of a conversational AI platform is its ability to collect and analyze customer data, providing insights into customer behavior and preferences. By analyzing interactions with chatbots, businesses can identify trends, patterns, and areas for improvement, allowing them to make data-driven decisions and optimize their customer service strategies.

Chatbots also bring challenges and considerations, such as ensuring accuracy and reliability to maintain customer trust and maintaining a credible human touch in interactions while balancing automation with personalized assistance.

Boosting sales and customer engagement through personalized recommendations, advanced analytics, and AI-powered CRM.

Advanced analytics have changed the universe of customer acquisition and engagement. Enticing new customers is costly: Paid ads, outreach, leveraging historical data to predict behavior, and spending all the time and people hours required to draw consumers into the sales funnel. Following that, customers must be pleased, retained, and upsold/cross-sold. Loyal customers are worth their weight in gold, and that’s why investing in data-driven customer loyalty campaigns is worth it to improve customer retention.

It’s natural for people to gravitate to the familiar, comfortable, and trustworthy brands. Increasing positive experiences through generative AI chatbots and other resources will drive loyalty and consistent purchases over competitors. Quality services, smart value, and customer satisfaction are the foundation of loyalty—borne out by the boom in brand membership programs.

Customer loyalty is a rare, valuable thing, worth preserving. Even after a sale, a brand has to keep customers hooked. A high Net Promoter Score generates 2.5 times faster revenue growth than comparable competitors.

There are many ways generative AI can augment your CRM strategy: For one, personalizing customer experiences. AI in CRM analyzes customer data and behavior to generate personalized recommendations and offers, improving customer satisfaction and loyalty.

Predictive analytics for sales are a product of AI algorithms, which analyze historical sales data, customer behavior, and market trends to predict future sales opportunities. This process supports sales teams in turning leads and helping customers make data-driven decisions.

Automating customer service with AI-powered chatbots and virtual assistants yields benefits as discussed earlier, handling customer inquiries smoothly and quickly, improving response times, and reducing the workload on customer service teams.

Additionally, generative AI can automate data entry, cleansing, and organization. This ensures accurate, timely, and current customer information. It can also reveal patterns and insights from large data volumes and inform smart business decisions.

Improving operational efficiency with quick resolutions, reduced errors, and skill-based routing using voice assistants and natural language processing.

Natural language processing (NLP) is a subset of AI that utilizes machine learning to allow computers to understand and communicate using human language.

Using NLP, computers and digital devices can recognize, understand, and generate text and speech by means of sophisticated computational linguistics—the rule-based modeling of human language. NLP combines these capabilities with statistical modeling, ML, and deep learning to generate a heretofore unheard-of ability to intuit even the subtlest meanings in human language.

Relying on NLP, generative AI, and the communication skills of large language models (LLMs) and image generation models, people can now understand requests with keen accuracy and relevance. These abilities make NLP part of everyday life for millions, empowering search engines, and prompting chatbots for customer service via spoken commands, voice-operated GPS systems, and digital assistants on smartphones.

NLP now plays an indispensable role in helping enterprises streamline and automate business operations, increase employee productivity, and simplify mission-critical business processes. A natural language processing resource works quickly and effectively once the models are properly trained. It can take on administrative tasks and liberate staff for higher-value and more fulfilling tasks.

Creating a seamless omnichannel experience that integrates different customer interaction points.

Online customers utilize a vast spectrum of channels for shopping and gaining access to customer support services. Leveraging generative AI in retail, eCommerce apps, and social media platforms are popular choices. However, unless services are consistent and accurate, the result can be attrition and dissatisfaction. These vulnerabilities are why creating a seamless experience is so critical to CX and customer retention.

An omnichannel experience strategy encompasses many touchpoints, each offering specific services, such as registering new customers or providing support services.

Creating a seamless customer journey requires uniting sales, marketing, services, and other business processes. Customers must be able to switch channels with agility, maintaining a consistent CX as they navigate these touchpoints. This makes them feel secure and confident, resulting in higher engagement rates and sales.

What gains arise from this effort? Enhanced customer experience as customers enjoy shopping and switching among channels for an interesting, stimulating experience. You can also highlight products/services through social media posts; and then provide a more detailed view via blogs.

Place the buying link in posts and blogs. Allow customers to order products that may not be available in retail stores via the website or mobile app. Then deliver the product to the customer’s doorstep to show your caring about their convenience.

The Future of Generative AI in Customer Experience

Generative AI solutions are reshaping operational, functional, and strategic landscapes, but countless ethical concerns surround the technology. Generative AI is causing us to rethink our traditional ethics as it guides us into new terrain and raises sometimes distressing issues and questions, searching and rethinking how we interact, work, and understand our civilization.

The footprints and paths of generative AI now appear across nearly every aspect of modern life. We follow them in entertainment, literature, science, ethics, finance, politics, law, art, education, and so forth. We are awed, impressed—and more than a little frightened by its potential and power.

It’s easy to believe that generative AI will raise global productivity by trillions of dollars—and in a relatively short time. That’s why KPMG tells us that 70% of CEOs have positioned generative AI high on their list of priorities, with most (52%) optimistically expecting a return on their investment in three to five years.

Ethical concerns around generative AI are well known when it comes to copyright conflicts or stolen data, hallucinations, inaccuracies, biases in training data, cybersecurity vulnerabilities, and environmental considerations, among others.

Copyright is a complex concept (and always has been), but battles over intellectual property ownership and theft have exploded into public view like a big bang recently, along with issues of data protection and cyber vulnerability. The need for sophisticated governance mechanisms, both from a technological and legal perspective is urgent.

Exploring future technologies including emotion AI, immersive AR/VR experiences, and the impact of quantum computing and neural networks on personalization

With 3.5 quintillion bytes of data generated daily, people are both fascinated and apprehensive about using AI models heavily reliant on user data. Data privacy and security concerns infest the finance and healthcare industries. Personal and corporate data can inadvertently find its way into generative AI training algorithms, exposing users to potential data theft, loss, and privacy violations.

But these technologies have arrived and new industries are sprouting everywhere, with ingenious marketing ideas and no shortage of venture capital. One of the most powerful aspects of generative AI is Emotion AI (also called affective computing or artificial emotional intelligence).

This subset of AI is targeted to measure, understand, simulate, and react to human emotions. Back in 1995, MIT Media published “Affective Computing.” The tool relies on how people interact with other humans, studying their faces and bodies, and responding by changing their own positions, emotions, and responses. A machine can now more effectively communicate information once it knows the emotional state of its conversational partner.

Today, we have entered an age where AI, VR (Virtual Reality), and AR (Augmented Reality) are increasingly sophisticated tools transforming how (and what manner of) content emerges. While AI refers to machines impersonating humans, VR lets users experience a totally artificial world.

AR adds virtual elements to the real world, making the visual experience even more thrilling by means of digital information. “Content creation” is the core of all this creativity, spanning words, images, and interactive experiences. It drives interaction, educates, and spurs innovation and experimentation in all it touches.

The combination of AI, VR, and AR is leading this transformation. When interactive experiences are further enriched with the immersive features of VR/AR, the level of engagement reaches new heights. These experiences, powered by AI, dynamically adapt to user actions and preferences.

It’s possible now for advanced algorithms and machine learning to compose complex musical pieces and model chart-topping hits. And of course, filmmaking has been revolutionized by Virtual Reality and AI. This immersive storytelling engages viewers and enables them to respond to the story.

Neural Networks and Deep Learning allow generative AI to deliver unprecedented Personalization that will attract a customer’s attention and build loyalty. By analyzing volume data sets on how users behave, AI algorithms can unravel preferences, and recommend content that addresses those desirable products and services. This muscle empowers marketing campaigns and sales as never before.

Generative AI is exceptionally good at sifting through massive user data and interpreting it to benefit a company’s business goals. After unlocking user preferences, it can propose ideas for customer service campaigns. Such agility is a powerful competitive tool to attract and retain customers.

Combining AI with VR/AR creates personalized experiences that surpass what’s possible in the “real” world. The end result is a personalized customer experience, whether exploring a virtual landscape, learning a new skill, or embarking on a game. The engagement is tailored to customer preferences, generating awesome potential for ROI.

Combining quantum computing and AI enhances the speed at which AI processes customer data and makes predictions. It will be something that you might have never seen. It will enable more real-time personalization and quick responses to customer actions.

As we all know, digital computers have been easing information processing for decades. Now, quantum computers are taking computing to a whole new universe. Quantum computing uses fundamental physics principles to solve mind-bending statistical problems that would leave digital computers in the dust.

While classical computers work with a limited set of inputs, quantum computers are a dimension different. When data are input into the “qubits,” these interact with other qubits, which enables dizzying numbers of calculations to take place simultaneously. Quantum computers save time by narrowing down the range of possible answers to extremely complex problems.

Quantum computers are also becoming indispensable for discovering new pharmaceuticals and for helping healthcare organizations run more efficiently and deliver much-needed customer service improvements for people worldwide.

Generative Ai in customer experience

Ethical Considerations and Deployment Challenges in Generative AI

Gen AI solutions and offerings are reshaping operational, functional, and strategic landscapes across industries, but ethics has many leaders struggling with the perceptions and consequences of their leadership decisions in years to come. What to do and how to get started with generative AI?

A responsible AI framework must ensure that models are fair and unbiased, transparent and explicable with adequate corporate governance and accountability over data and its use. All of these concepts are abstract and capable of raising fierce debate.

For example, safeguarding consumer data against unauthorized access, beach, theft, and misuse is a major concern, as is maintaining the privacy of PII—personal confidential details of consumers. Leaders employing generative AI are responsible for ensuring that their creations don’t have a negative impact on humans, property and the environment. While accepting the need to balance innovation with trustworthiness, many leaders are aware of unanticipated consequences that will redound to decisions they make now.

A majority of these leaders see explainability, ethics, bias, or trust as a major concern on the route to generative AI adoption. Can meaningful and personalized customer experiences strike a balance with privacy?

Personalization demands that data ensure responsible protection, transparency, and responsibility, not to mention customer comfort—approval that their data is handled responsibly and used only in ways that they condign. Companies owe their customers a rewarding and secure as well as personalized experience.

Conclusion

When it comes to quantifiable business benefits, infusing generative AI into the Customer Experience is proving spectacularly successful and cost-efficient. It goes without saying that improved CX boosts customer satisfaction and spurs loyalty and advocacy.

Companies lacking customer self-service face growing challenges: support costs rise; many chores remain manual when they could and should be automated; response and resolution times expand and lengthen. All of that adds up to low customer satisfaction amid a high volume of support requests. Factor in budget limitations, and falling productivity—and it’s obvious how urgent is the need for an Rx for CX.

Because generative AI is becoming instrumental to customer satisfaction, adopting AI has become an urgent priority for many organizations. Understanding customers better is foundational to improving the customer experience. Leveraging generative AI streamlines and supports this process.

Learn more about AI Customer Service and the AI products powered by Aisera’s Gen AI. You can experience the capabilities of Gen AI by booking a custom AI demo for your enterprise today!