As consumers, I am sure we can all see and feel the rapid expansion of artificial intelligence in customer service. For all the hype however, our latest breakthrough research reveals that its current impact remains more incremental than transformative.
Perhaps most starkly, only 24% of employees believe their organisation has seen a return on investment in AI to date. This chimes with the government’s research into AI adoption: most businesses using AI report an increase in workforce productivity, but have yet to realise significant financial benefit from it.
The Institute’s body of research over many years points to a reason why: too often, AI has been approached through the lens of cost-reduction rather than efficiency and effectiveness, while the real opportunity lies in using AI across the entire customer journey – from experience design and product development to research, CRM, logistics, and operations.
Effective AI and tech-driven transformation will require stronger data integration, greater ambition, and a more customer-focused approach.
Successful AI adoption means building trust – with customers and employees alike
The Institute’s report – Hype or Reality? How AI is impacting customer service, productivity and governance – points to a number of core issues which are holding back the AI rollout from achieving its full potential for businesses.
In it, we identify a common thread to many of these teething problems – trust. As many as 40% of people doubt businesses can keep their data secure in AI applications. At the same time, over half say their comfort with AI-driven product recommendations depends on how much they already trust the organisation they’re coming from. The gap analysis showing the different views of organisations and their customers is most enlightening!
Interesting, too, is that the consumers most optimistic about AI are also the strongest advocates for ethical frameworks and employee training.
Put all this together, and a clear picture emerges: the businesses that successfully integrate AI into their service proposition in a way that adds real value to customers will be the ones that also build and maintain customers’ trust in the way they are deploying tech to serve them better.
And employees need to be brought on this journey too. Those best placed to identify productivity gains are often the same people worried about job security. Even employees who are positive about AI want clear communication about how it will be used and how it will affect their roles.
Perhaps most instructive here is what our research found consumers to value and want most from AI. At its core, providing 24/7 availability, faster responses and easy and efficient access to accurate information is what matters to customers. However, their concerns around AI revolve around the loss of human contact and oversight, data privacy, and job displacement.
To unlock AI’s full potential, organisations should adopt a ‘fusion’ approach
Layering data from different sources to enhance the customer experience appears is key and is not yet being achieved consistently. For me, this is where things will become more interesting from a customer service outcome perspective.
The integration of tech and business objectives requires leaders who are accountable for business and technology decisions, and performance. The skills mix will change, but people will be at the heart of safe, effective and ethical AI deployment.
There are questions we need to be asking ourselves: How do organisations manage risk and ensure ethical governance when AI is deployed at scale? How will AI avoid bias and guide us in ways that are appropriate, healthy and beneficial? How do we demonstrate credible care in deploying AI to employees, customers and other stakeholders? How do we avoid greater polarisation between customers who embrace new technologies and those who lack the knowledge, confidence or desire to do so?
There’s certainly a lot of work to do, but perhaps the ultimate question is – what is the problem we are trying to solve and what is the solution that delivers the best customer outcomes along with appropriate efficiency and effectiveness gains for the organisation?
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