Leading in customer experience in the age of AI

AI is likely to drive the most value by focusing on:

• Improving knowledge management, making knowledge easier to access, aiding retrieval and automatically summarizing lengthy documents, making it easier for users to grasp essential information quickly.
• Integrating generative AI-powered chatbots into websites or messaging platforms to provide instant customer support, answer queries, guide users through processes and assist with product or service selection.
• Making personalized recommendations for customers based on their historical data, preferences and behaviors.
• By analyzing vast amounts of customer data, generative AI algorithms can produce tailored suggestions, such as personalized product recommendations, content recommendations or targeted marketing messages.
• This enhances customer engagement, improves conversion rates and drives customer satisfaction.
• Enabling the translation of text or documents between multiple languages, improving communication and facilitating collaboration across international teams or with global customers.
• Helping to leverage historical data, market trends, competitor behavior, strategic priorities and other relevant factors to generate accurate forecasts for enterprise- level planning and future skill requirements. It can provide insights into future demand, revenue projections, resource requirements and market trends. This helps organizations make informed decisions and develop robust strategic plans.
• AI coding and engineering support to analyze code for quality, security and compliance with coding standards. It can identify potential bugs and security vulnerabilities.
• Integrating data from diverse back-office systems, such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Human Resources (HR) and Finance to create a comprehensive view of the enterprise. By analyzing this integrated data, generative AI can uncover hidden patterns, correlations and insights that can drive improved performance across the organization.

Patenting and trademarking AI technologies: American Express leads with several patents. Chase also applied to trademark a product called IndexGPT, a cloud computing software using AI for analyzing and selecting securities tailored to customer needs.

Strong in-house AI capabilities: Most organizations already have a workforce for the advancement of AI, or are currently heavily investing in bringing such people onboard.

Rise of chatbots for customer support: Chatbots have become popular with financial services organizations because they provide faster, cheaper and more personalized customer service.

AI for fraud and risk detection: Organizations have been leveraging data-driven AI capabilities to identify credit fraud and improve fraud prevention, including money laundering.

AI strengthening data security: Organizations are using AI to protect data and gain deeper insights into their customer needs and preferences, offering more relevant and tailored products and services.

Leveraging AI can drive value by:

• Aiding the detection and prevention of fraudulent payments and transactions by monitoring real- time customer payments and operational data and the identification of anomalies or deviations from normal patterns.
• Accessing, scanning and summarizing product, policy and regulatory information to create personalized summaries to contact center colleagues and to customers.
• Aiding the relationship manager role by summarizing market information and by analyzing real time customer/client sentiment and emotion to facilitate deeper relationships.

Annual ICT (Information and communication technology) spending: Organizations have been focusing on using AI, data analytics, blockchain and mobile technologies to digitally transform their operations.

Lack of talent in AI: Most organizations are wrestling with a skills deficiency in AI-related roles. There is also insufficient investment in hiring more AI talent and skilled resource.

AI-powered virtual assistants, chatbots and robots for smooth operation: Organizations have embraced AI technology with the implementation of AI-powered virtual assistants.

AI reducing and monitoring waste: Organizations in this sector have been using AI-enabled energy, water and waste monitoring tools.

AI-powered ‘smart rooms’: Some organizations have rolled out AI-powered ‘smart rooms’ which allow guests to control the temperature, lighting, TV and other features of their room using their smartphone or voice commands.

Leveraging AI can drive value by:

• Personalized travel recommendations that can help travel organizations attract new customers and increase bookings.
• The development of new and innovative travel experiences, such as virtual reality tours and augmented reality hotel rooms, to help travel organizations appeal to new customers and grow their businesses.
• The automation of travel booking processes (and re-booking during disruption) to help travel organizations reduce costs and improve efficiency.

AI for personalized recommendations and customer service: Organizations have adopted a number of AI technologies, including machine learning, natural language processing and computer vision to improve the customer experience, such as by providing personalized recommendations and customer service.

Using a variety of technologies to collect, manage, and store data: There is a specific focus on network resilience and performance – AI can monitor performance over time, predict when preventative maintenance is due and identify potential issues.

Leveraging AI can drive value by:

• The optimization of network performance to improve the quality of telecom services and reduce costs.
• The analysis of various market factors such as demand patterns, competitor pricing, customer behavior, seasonality and other relevant data points to generate dynamic pricing strategies.
• Developing new and innovative services, building on 5G and the Internet of Things, to help telecom organizations grow their businesses and reach new customers.

AI aiding customers in government paperwork and documentation: Public sector departments have been using AI to help customers file and apply for schemes, documents, licenses etc.

AI to detect fraud and malice: The public sector has also invested in a number of research projects that are exploring the potential of AI to improve the detection of fraud and malice in areas such as benefits claims.

Rising partnerships using AI for predictions: The public sector has a number of partnerships and collaborations with other organizations that are working on AI to predict important activities needing immediate attention. For instance, the DWP has a partnership with the University of Cambridge to develop an AI-powered system for predicting the risk of fraud in benefits claims; National Highways has partnered with the University of Cambridge to develop a new AI-powered system for predicting road accidents; and National Highways also partnered with Microsoft to develop a new AI-powered traffic management system that uses data from sensors and cameras to predict traffic flows and congestion, adjusting traffic signals and lane closures.

Leveraging AI can drive value by:

• Automatically reading, validating, and sorting documents for case workers to support customer triage and case management.
• Predicting maintenance and repairs for infrastructure assets such as buildings roads, bridges and tracks and the best time to do so to minimize disruption.
• Scanning and summarizing patient records to predict and/or identify likely disease; and summarizing patient medical notes to free up time for more empathetic care delivery.
  
  

Using predictive analytics for better operations: Organizations are using machine learning algorithms and predictive analytics to help optimize operational activities including monitoring shipment movements, identifying problems in real time and staff allocation.

Using robots and drones for delivery: Logistic organizations are beginning to use AI-powered robots and drones to efficiently deliver packages.

Partnerships to optimize logistical activities: More partnerships are being formed to enhance capabilities. For instance, FedEx partnered with Microsoft to integrate machine learning and AI into its systems to improve logistics and inventory management, while DHL joined forces with Protex AI to enhance safety measures and optimize logistics operations.

Leveraging AI can drive value by:

• Predicting demand by analyzing historical data with external data sets to help logistics organizations better plan their operations and avoid costly delays.
• Optimizing real time routing and scheduling to help logistics organizations reduce costs and improve efficiency, while better managing the delivery time expectations of customers.
• Tracking and monitoring of shipments to help logistics organizations provide real-time updates to their customers. Tracking and monitoring of shipments to help logistics organizations provide real-time updates to their customers.
  

Lack of talent in AI: Most organizations currently have a skills deficiency in AI-related roles. However Lush has a research and development (R&D) division called Tech Warriors, responsible for developing business solutions using AI, ML, AR and VR.

AI providing in-store support to customers: Organizations in this sector are using AI to give customers a better store experience, by recommending products and boosting ease of selection through aided conversation, based on customers’ preferences.

Deploying chatbots to provide better customer support: Organizations are actively using AI- and ML- enabled chatbots on their websites to help customers with their queries.

Leveraging AI can drive value by:

• Creating personalized recommendations for clothing and products based on their historical data, preferences and behaviors to help online retailers increase sales and reduce cart abandonment.
• Enhancing customer service by offering 24/7 support and instant issue resolution from data-driven insights to improve the customer experience.
• Optimizing pricing strategies in real time to provide customers with competitive prices to foster greater customer loyalty while maximizing profits.

AI-powered chatbots and apps: Organizations are working on apps using AI-powered chatbots to provide customers with personalized recommendations and offers.

Using AI to help run powerful marketing campaigns: Restaurant and fast food organizations are developing platforms to help manage their marketing campaigns.

Developing new products and targeted recommendations: AI has helped organizations develop new products and recipes based on data collected and analysed from customers. For instance, Subway has partnered with Tastemade to include thematic culinary explorations and data-driven menu inspiration.

Leveraging AI can drive value by:

• Optimization of menu planning and inventory management to help restaurants reduce costs and improve efficiency.
• Personalizing menu recommendations for customers to help restaurants increase sales and build loyalty.
• Analysis of supplier performance data, market trends and contractual agreements to recommend optimal sourcing strategies to strengthen relationships, ensure timely deliveries and optimize costs.

Patenting AI technologies: The leading organizations in this sector are focusing on patenting innovative AI technologies developed by them that enhance content delivery and improve viewing experience by understanding viewer behaviour. For instance, The Walt Disney Company recently submitted a patent application for a “deep learning framework for video remastering”, and Netflix has also patented AI algorithms.

AI for personalized experience: Organizations are deriving user intelligence from the raw stream, and using it to provide a personalized experience such as content feed or ads that deal with a diversity of users across regions, thumbnail personalization, optimal streaming quality and tailored movie recommendations, etc.

AI for content generation: Organizations are using computer vision and machine learning to support in developing content like realistic clouds, using AI tech instead of hiring extras in new films and pushing visual effects beyond green screen to make them more realistic and precise in real time.

Leveraging AI can drive value by:

• Creating personalized recommendations for movies, TV shows and music help streaming services keep their customers engaged and reduce churn.
• Developing new and innovative games to help gaming organizations attract new players and grow their businesses.
• Supporting the creation of virtual reality and augmented reality experiences to give customers new and immersive ways to enjoy entertainment.

Lack of talent in AI: Most organizations currently have a skills deficiency in AI-related roles. There is also insufficient investment in hiring more AI talent and skilled resource.

AI to establish communication channel with customers: Organizations have been using AI to communicate with customers in several ways. For example, Northumbrian Water developed an Alexa Skill that uses AI to inform and educate customers about leaks, works and emergency repairs in their area – and tell them what is being done about it and when the work will be finished.

AI to monitor status of utility infrastructure: Utility organizations are using AI to improve the way they monitor their sites, infrastructure and resources.

Leveraging AI can drive value by:

• Better predicting and preventing of outages to help utilities improve the reliability of their service.
• Optimizing energy usage across the network to help utilities reduce costs and improve efficiency.
• Monitoring of real-time customer meter readings and operational data to detect unusual behaviour, potential failures or quality issues.

Supply chain optimization: Organizations are using AI to improve forecasting accuracy and reduce food wastage, remove manual interventions for tasks and unify the end- to-end supply chain.

Partnerships for home delivery services: Organizations have developed partnerships to provide home delivery services. AI is being used in support of optimizing deliveries.

Leveraging AI can drive value by:

• Optimizing inventory management to reduce waste and improve efficiency.
• Creating personalized offers and discounts to help grocery retailers attract new customers and increase sales.
• Developing new and innovative products, such as meal kits and ready-to-eat meals, to appeal to busy consumers.