The Tipping Point for AI in Customer Experience

Explore the tipping point for AI in Customer Experience with NPSx.

Get the scoop on AI's evolution and learn how it will transform the CX landscape.

Before we jump into why we're at the tipping point for AI in customer experience, let's look at how we arrived here.

Scientists have been using artificial intelligence (AI) since the 1950s to prove mathematical theorems (and play games like chess and checkers). Since then, it’s become so pervasive that we barely acknowledge it in our everyday lives.

AI isn’t new.

So, what’s the hubbub? Why does today’s AI have the potential to be "as transformative as the Industrial Revolution?”

The technology is more advanced and accessible, and the payoffs are greater. Companies have only had months to experiment with generative AI, yet they’re reporting double-digit improvements in key capabilities, like customer service.

The pace of innovation is also mind-blowing. Technologists have been developing AI for nearly 75 years without garnering too much attention. In 2022, ChatGPT released GPT-3.5—and attracted a million users in about five days.

And here we are … at technological and ROI tipping points.

The technological tipping point

Technological advancements propelled us into a new era of AI. The technology foundation and the economics of implementation are fundamentally new. Today:

  • There’s more computational power.

    Graphic processing units, hardware accelerators, and large language models have more computational power. Today’s tools compute faster, work through more complex calculations, and can manage multi-modal data.
  • Computing is cheaper.

  • The cost to compute has gone down, partly because of open-source frameworks and tools. Developers and researchers have been free to experiment with tools and speed up innovation and adoption.
  • More data is available.

  • As devices and digital services have multiplied, so has data. Massive amounts of text, video, and audio are being generated every day. Modern AI systems need large and diverse data sets to “train” and become more accurate and effective.
  • Machine learning is new and improved.

    Machine learning algorithms are more sophisticated, and new architecture models (like transformers) introduced new capabilities like content generation.
  • There’s more funding.

    Corporate AI investments jumped nearly a third in just one year, from 2020 to 2021, and sixfold since 2016. Money poured into AI is paying off.

Today’s AI is far more advanced than “regular” models. It can create original content, rather than simply analyzing or categorizing existing data. And that opens new and transformative applications for AI in customer experience (CX)—and new sources of value.

The CX tipping point

Generative capabilities empower new ways for companies to improve CX and earn growth. This generation of AI is also accessible to smaller companies and individuals, so it can drive top-line growth, lower costs, and increase customer satisfaction for brands of all sizes.

Drive top-line growth

Generative AI makes it easier for companies to deliver “right offer, right message” marketing campaigns. It also helps frontline staff improve performance on growth-oriented tasks, like cross-selling and upselling.

Generative AI in customer experience can synthesize all the dimensions of a customer—demographics, purchase history, customer value—and suggest ultrapersonal offers and messaging, practically on the spot. And it can be trained to suggest natural language that looks and feels like your brand. Account executives and service reps gain an all-star co-pilot to help them search, integrate, and apply customer data.

Personalized rewards, tailored user interfaces, and dynamic content will all help brands deliver exceptional CX, keep customers, and grow their value. With new AI tools, advanced CX strategies are quick and easy to deploy.

Dramatically lower costs

AI automates repetitive, low-value tasks and empowers customers to use digital self-service channels. This application of AI isn’t new, but the results are dramatically improved.

Today’s tools can handle more data from more sources, so chatbots and service apps have fuller context about a customer’s experience. In return, customers get better and faster resolutions without bouncing between channels. Companies can finally deliver the “seamless experiences” they’ve been aiming for. And they can do so by integrating AI into existing technology systems, instead of investing in new platforms.

Generative AI can ingest, organize, and summarize information faster and more accurately than humans. That means it can find themes in customer verbatims, product reviews, service calls … and more. It harvests information from data lakes and culls it into actionable insights—fast. The right information is available at the point of action.

Increase customer satisfaction

More compelling experiences. Quicker service times. Better issue resolution. Those lead to better CX.

If a customer has an issue, AI can close the loop. AI agents can summarize interactions, draft responses, and suggest resolutions or offers—automatically. This generation of chat bots can do more than just post or relay information; they can offer tailored advice and recommendations. In contact centers, AI can improve predictive routing, agent coaching, and accuracy.

Today’s AI can assess interactions with customers too and offer a predictive Net Promoter Score® rating. Agents get real-time feedback on their interactions and coaching on emerging patterns and outcomes.

How to launch generative AI

About a quarter of NPSx webinar participants are building and testing generative AI prototypes with their customers or employees right now. Participants said they’re most excited about opportunities to improve contact center interactions and agent scripting. They’re also expecting to pick up productivity and analytics gains.

CX applications are no-regrets moves—and just getting started will accelerate learning. Experts caution not to wait for all the rules to be written. Find uses cases that align with your existing AI capabilities and strategic goals, and where data is readily available. Then, follow the playbook of iterative product development.

Companies that are willing to experiment will reset the CX bar—for everyone. They are quickly learning how to use generative AI in customer experience to win and wow their customers.


Where would you like to begin? We can help you transform CX and grow customer value with generative AI.


About the Author

Evan Brennan-Johnson

Communications Manager, NPSx | Evan manages external communications and engagement, helping business leaders develop their capabilities and drive customer experience in the third wave of CX. He loves roller coasters, yoga, and traveling the globe.