5 Ways AI is Transforming the Customer Experience

We all know that artificial intelligence is playing a huge role in how businesses operate. AI programs and services are helping transform everything from data collection and processing in the marketing department to onboarding in the HR department. While AI and automation hold tremendous value in terms of time and cost savings internally, there is another area in which AI promises even bigger, more meaningful returns: customer experience. As I’ve said many times before, customer experience is the root of digital transformation. Every tech decision we make should return to this core foundation. So, let’s take a look at the five biggest ways AI is transforming the customer experience.

Empowering Self-service

By far, one of my favorite aspects of AI is that it eliminates the need to wait “on hold” for the next available agent to help me with a simple problem with my bill, product, or service. AI has changed all of that by allowing companies to use chatbots and virtual assistants to answer common customer service questions, allowing customers to get in and out in a jiffy. Back in 2011, Gartner predicted that by 2020, 85 percent of customer relationships will be managed without human interaction. I’m thinking that number might hit 90 percent by the time we hit the turn of the decade. The first thing I do when I hit a snag on most websites is search for the “chat now” button. Yes, I know I will most likely be talking to a robot. But, as long as they answer my question quickly, I’ll leave a happy customer.

Sure, I know some of you are probably thinking that chatbots aren’t completely effective just yet, and you’re definitely right. But I would argue that for the most part chatbots are doing enough to solve little problems for customers. This frees up customer service reps to work on the more difficult issues.

Improving Personalization

Another important way AI is transforming the customer experience is by providing personalized content. This is an era when we rarely need to search for the products that would make our lives easier. It’s so easy now to find a recommendation based on your past history. I’m talking recommended videos and movies on YouTube and Netflix; recommended music on Spotify; recommended TV shows on Hulu; recommended concerts and performances on Bands in Town; and recommended products on Amazon. AI is essentially putting “in the know” hipsters out of business by bringing any and all content to the forefront. This is an age where everyone knows everything relevant to their needs and wants.

In addition to personalized recommendations, companies are also turning to AI services to help develop personalized content. I’m much more likely to buy from a company that has taken the time, or has a used a program, to get to know me. I like when my marketing messages are targeted directly to me. Yes, there are some issues with privacy, but for the most part I’m satisfied with what I’ve experienced.

Available 24/7

Another bonus of AI: it never needs to sleep. Similar to empowering customers via self-service, AI is also allowing customers to have 24/7 support—something most companies would not be able to afford or staff in the age of old. What’s more, 24/7 support isn’t just “good CX”—it’s table stakes in today’s market. Most customers are not willing to wait until you open your doors to get answers to their biggest account questions. AI makes that possible.

Allowing for Automated Life Assistance

Most of us use Alexa to turn on music or dim the lights. But more and more, companies are using Alexa, Google Home and other robotic AI to make their customers’ lives easier. Banks, for instance, are linking with Alexa and Google Home to allow customers to schedule transfers and bill-pay. Stores are allowing them to order products by voice. Movie theaters can allow them to purchase tickets, select seats, and pre-order popcorn before they even leave the driveway—without even hopping on their smart phones. These are the ways AI is transforming the customer experience, and these use cases will only continue to grow as AI expands outward.

Providing “Happy” Customer Service Agents

Let’s face it: it’s impossible for customer service people to be “on” all the time. Most of us have had some bad encountered that probably led us to “quit” whatever company we were communicating with at the time. The benefit of AI, however, is that it doesn’t get upset. Although it has the power to learn emotional intelligence, it doesn’t get bothered like we as humans do. That gives companies peace of mind that their agents will always be kind and accommodating—and their customers will always leave with a smile on their faces.

Of course, all of the above ways AI is transforming the customer experience are best-case scenarios. The entire point of using AI to improve the customer experience is to help your customers feel known and valued. Bad AI will have the opposite result every time. All of us reading this article have likely encountered a bad AI experience—AI that didn’t dig deep enough into our personal data storehouses, didn’t use the right algorithm, or didn’t have the right “emotional intelligence” controls. In those situations, AI does have the capacity to make things worse for your company. That’s why, to cap this off, I give one important caveat: test, re-test, and test again—from the customers’ viewpoint—all of the AI you put into place. The only thing worse than not using AI for CX today is using it poorly.

The original version of this article was first published on Forbes.

Daniel Newman

Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. From Big Data to IoT to Cloud Computing, Newman makes the connections between business, people and tech that are required for companies to benefit most from their technology projects, which leads to his ideas regularly being cited by CNBC, Barrons, Business Insider and hundreds of other sites across the world. A 6x Best-Selling Author including his most recent “Futureproof, Digital Transformation in the Experience Economy” Daniel is also a Forbes and MarketWatch (WSJ) contriburor. MBA and Graduate Adjunct Professor, Daniel Newman is a Chicago Native and his speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
Daniel Newman