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Applying AI in CX: How Many Businesses Are Succeeding (So Far)?

 

Every organization is under pressure to cut costs and improve customer experience (CX). They’re also under pressure to apply AI, in some way or another, toward accomplishing those goals. After all, new technology presents new ways to address prevailing challenges, and the promise of AI as is powerful as any technology in recent memory.

But how many organizations are actually using AI to enhance CX right now? How are they using it? And are they seeing returns from those applications yet?

CCW Europe Digital released a new survey to answer those questions. “AI in CX: The Practicalities of Implementation” gathered insights from over 100 customer management executives across various industries to provide a picture of where European organizations are in their journey of using AI in CX initiatives. The survey reveals how AI is redefining customer management strategies, organizations’ readiness to implement AI and the challenges they’re facing as they do it.

Want to see if your organization is keeping pace? Here are some of the major takeaways from the survey.

The Boardroom Wants You to Apply AI

With AI’s promise going mainstream, it’s no longer just a topic for tech and data teams, as CCW Europe Digital noted. It’s gotten attention from the top leadership in organizations. Nearly three out of four respondents said that investing in AI technology focused on customer experience is “high” on their C-suite’s agenda, with 21% rating it as “very high.” This shift underscores the growing sense among businesses that AI is an important competitive asset. Couple that with the fact that CX improvement remains a major priority, then you can see C-suites putting two and two together.

Why It Matters

The attention from senior executives means that AI initiatives are getting significant backing and resources. They have concerns about how the technology will be used, what it will cost, and the risks involved, but for most organizations the willingness is there. This is an opportune moment to advocate for AI projects that can help boost customer satisfaction and reduce churn.

Businesses Are Investing in AI Tools Already

How many organizations are actually using AI for CX? A good many, in fact. Over half of the surveyed businesses (54%) have already invested in CX-focused AI tools, and 30% plan to deploy new AI solutions within the next six months. This momentum indicates a strong commitment to leveraging AI for better customer outcomes.

Why It Matters

From a competitive perspective, a lot of players in your space are likely piloting or fully rolling out AI-powered tools to address their CX challenges. Where they’re applying those tools, and whether they’re having a significant impact, is another matter. But the survey shows how quickly businesses are moving to identify and implement AI solutions to gain a competitive CX advantage.

A ‘Surprising’ Share of Businesses Are Already Seeing Benefits

If you’ve been following generative AI’s emergence in the past two years, you’ve heard experts emphasize this over and over: The technology is still in its early stages. The CCW Europe Digital survey notes this, too, when it shares that “the benefits of AI investment are emerging surprisingly quickly” for some organizations. One in nine respondents (11%) reported a “significant positive impact” on revenue generation from their AI tools, with 25% noting a “moderate positive impact.”

Why It Matters

The early successes some organizations are experiencing raise the questions of where and how they’re applying AI tools to get these results. You’ll want to pay attention to the practical use cases that these businesses are using. Another thing to note: These organizations will likely get the resources to expand their AI application in CX. Then comes the challenge of scaling those tools. But as we’ve seen at CSG, that’s where businesses multiply the value driven by AI. You can read how one global technology leader scaled AI with stunning results in this customer case study.

Are Businesses Equipped to Adopt AI? Sort Of.

With all the excitement surrounding AI’s potential for CX, how ready are organizations to wield it? Only 12% of CX leaders say their organizations have highly developed principles governing AI adoption, and just 8% say their data frameworks are highly robust for supporting AI initiatives. Then there’s the talent part of the equation: Just 6% of respondents consider their teams highly equipped to handle AI technology.

Why It Matters

The share of businesses that consider themselves highly prepared to implement AI in CX is obviously much smaller than the share that are already using it (54%). That means most of them aren’t waiting to fully adapt their frameworks for using the technology or skill up their workforce before they start investing in AI. If it seems like your organization is figuring it out as it goes when it comes to AI implementation, the survey says you’re not alone.

 

 

The Most Common Focus? Chatbots.

According to the study, improving customer service was the most widely cited driver for buying CX-focused AI technology (84% of respondents). Other significant areas include driving business efficiencies, boosting agent productivity and enhancing personalization strategies. Drilling down into specific areas, chatbots and virtual agents were the most popular use cases that businesses were looking into (68%). Self-service automation and automated workflow management tied for second-most popular use case with 58%.

Why It Matters

It’s perhaps no surprise to CX leaders that virtual agents were the most cited use case. Organizations leveraged them for years before the GenAI boom, so it might be one of the more readily understood applications of AI in CX. But the survey also shows that leaders are investigating AI’s benefits behind the frontline, like in the workflow management or content production processes. There’s a desire among businesses to put AI to work in various facets of CX, not just in the customer interactions themselves.

 

 

How Ready Is Your CX Program to Leverage AI?

Whether your business is an early adopter of AI or it’s been taking a wait-and-see approach, you’ll want to get the rest of the insights from the survey. Its other findings include CX leaders’ biggest concerns around adopting AI and where they’re using it in the contact center.

Don’t miss our upcoming webinar, “Beyond the Hype: The Real Potential of AI for CX.”

You’ll hear experts explore three key themes for maximizing AI’s potential in CX: strategic alignment, common challenges and fast-yet-sustainable implementation.

Register now

Mathieu Acin

VP, Global GTM – CX