A new report reveals that while businesses view generative AI (GenAI) as a game changer for customer experience (CX), many struggle with the cost of implementation. The findings come from CallMiner’s 2024 CX Landscape Report, developed in collaboration with research firm Vanson Bourne, which surveyed 700 global CX leaders across industries including financial services, healthcare, retail, and technology.
According to the report, 87% of CX leaders see generative AI as essential for improving customer service. An even higher percentage, 91%, believe AI will optimize their CX strategies. However, despite this enthusiasm, 63% of respondents admitted that the financial investment required to implement AI technology has been higher than initially expected.
The Increasing Role of AI in Customer Experience
Over the past two years, AI has revolutionized how organizations approach CX, particularly in contact centers. AI is becoming central to how businesses streamline operations, enhance agent productivity, and personalize customer interactions.
The report highlights that 62% of organizations have already implemented some form of AI in their operations, while 24% are in the early stages of adoption. However, these early adopters are cautious, focusing on foundational AI applications that demonstrate quick returns on investment (ROI) before exploring more complex implementations.
In particular, organizations are adopting AI-driven automation to boost efficiency, with 44% of respondents using AI to streamline tasks and 43% deploying chatbots or recommendation systems to improve CX. By automating routine tasks, AI allows employees to focus on more strategic and creative problem-solving, a trend that 43% of respondents have embraced.
The Financial Challenges of AI Implementation
Although AI is seen as a critical driver of business success, the costs associated with its deployment have been a significant obstacle. In fact, 63% of CX leaders noted that AI implementation has been more expensive than anticipated. This includes not just the cost of acquiring and maintaining the technology, but also the resources required to train teams and integrate AI solutions effectively. Specifically, 42% of respondents cited the cost of maintaining an AI-supporting team, while 40% mentioned the time needed to train staff on the new technologies.
One of the major ongoing challenges is the difficulty of measuring ROI from AI investments. According to the report, 27% of CX leaders stated that they still don’t know how to gauge the success of their AI systems. Moreover, 37% of respondents struggled with determining which AI technology best suits their organization’s needs, though this figure shows a modest improvement from last year’s 44%.
Growing Confidence in AI, Fewer Fears
Interestingly, the survey indicates a growing confidence in managing AI, with the complexity of AI technology being less of a concern compared to previous years. Only 21% of respondents now consider AI too complicated, a notable drop from 31% in 2023. Additionally, worries about AI-related security and compliance risks are waning, with only 38% of leaders expressing concerns, down from 45% last year.
This reduction in AI-related fears is largely attributed to better education and increased awareness of AI’s potential. As organizations become more knowledgeable, they are increasingly confident about using AI to enhance CX without jeopardizing security or compliance.
AI as a Tool for Employee Empowerment
While some still fear that AI could replace jobs, the report paints a different picture. Instead of replacing human workers, 90% of organizations see AI as a means of empowering employees to reach their full potential. The majority of companies are using AI to handle repetitive, low-value tasks, freeing up employees to focus on more complex challenges.
This trend is further evidenced by the fact that 37% of organizations are adopting AI to increase their workforce’s capacity for high-level tasks. In many cases, AI is also being used to provide real-time guidance during customer interactions, with 46% of respondents reporting the use of AI-powered live support.
Additionally, 39% of organizations are turning to AI-driven scoring systems to evaluate both customer interactions and employee performance. This shift toward data-driven, objective evaluation methods is helping companies offer more unbiased assessments of their CX strategies and employee effectiveness.
Evolving Data Collection and Customer Feedback
As customer interactions spread across more channels, organizations are collecting vast amounts of data. However, the report notes that solicited customer feedback—gathered through surveys and reviews—has proven limited in scope. In contrast, unsolicited feedback from customer interactions, especially those in contact centers and social media, provides a more nuanced view of customer experience.
A growing number of organizations recognize the value of unsolicited feedback. The report shows that 64% of respondents are still primarily relying on solicited feedback, down from 71% in 2023 and 79% in 2022. In addition, 25% of organizations now collect an equal mix of solicited and unsolicited feedback, up from 20% the previous year.
This expanding data collection is driving the need for automated analysis. According to the report, 60% of organizations are using automation to process their customer data, a 5% increase from last year. By analyzing this data more efficiently, companies can uncover valuable insights that inform their CX strategies and drive improvements across the business.
Looking Ahead: Balancing AI’s Promise and Challenges
As the CX landscape continues to evolve, the CallMiner 2024 CX Landscape Report reveals a growing awareness of both the potential and challenges of AI. While the technology offers significant benefits, such as improved efficiency, greater personalization, and enhanced employee productivity, organizations must navigate the complexities of implementation and the financial costs that accompany it.
The key to success, according to CallMiner’s founder and CEO, Jeff Gallino, lies in balancing the promise of AI with practical and secure execution. Companies that can strike this balance will be well-positioned to capitalize on AI’s transformative potential in the contact center and beyond.
With 87% of organizations recognizing the importance of generative AI in CX, it is clear that this technology is set to play a pivotal role in shaping the future of customer experience. But as the report makes clear, businesses must be strategic in their approach, ensuring that they invest not only in the right technology but also in the people and processes that will drive long-term success.
For more detailed insights, readers can access the full CallMiner 2024 CX Landscape Report.
