THE LAST WORD How AI is transforming customer experience Customer experience (CX) provision is a crucial aspect of any business strategy, as it can influence consumer loyalty, retention and satisfaction. Cavell’s annual research studies, which canvass thousands of businesses each year, found that ‘providing better customer service’ was the top strategic priority for around 20 per cent of businesses between 2024 and 2026. With CX a top priority for many businesses, a key question arises: how can firms improve their service? Cavell’s Voice of the Consumer Report 2024 found that 44 per cent of consumers believe customer service is worse now than it was three years ago. This implies that customer service providers globally have a lot of work to do. One essential tool in achieving this CX improvement goal is artificial intelligence. Contact centres are often the bastion of customer service provision in any business, focusing solely on handling customer interactions. Businesses are rapidly expanding AI usage throughout the contact centre space, with 22 per cent of Cavell contact centre manager respondents saying they have already deployed AI-enabled tools and a further 28 per cent planning to do so in 2024. AI adoption is being driven by the world’s technology powerhouses, with leaders including Microsoft already incorporating AI capabilities into their commercial portfolios. One of the most common applications of AI in customer experience provision is intelligent automated systems and chatbots handling simple and repetitive queries, such as booking appointments or checking order status. This allows human agents to focus on more complex issues, such as those requiring empathy, a skill that AI is yet to simulate effectively. Cavell’s research found that over half of contact centre buyers across the UK, Western Europe and North America aim to increase automated case resolution in the next three years. The world’s leading contact centre software providers are now incorporating AI and automation technology into their solutions to streamline this process. One prevalent example would be Microsoft launching its Copilot solution with specific use cases to assist in customer handling scenarios. Over the next three years, nearly all consumers will likely interact with AI in some form, improving their experiences for the better. Patrick Watson is head of research at Cavell “ Customer service providers globally have a lot of work to do” Businesses are using automated systems and chatbots to enhance customer service and efficiency PATRICK WATSON: CAVELL 172
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