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AI ushers in era of intelligent CX, fuels massive industry transformation

Zendesk annual CX Trends Report shows 69 percent of UK CX leaders are completely reimagining their customer journey

by Fiona Briggs
January 17, 2024
in Data
Reading Time: 4 mins read

Zendesk, Inc. today released its annual Customer Experience (CX) Trends Report, the findings of which signal a rapid transition towards intelligent CX. In this era, the shift to AI-driven service will create a big divide between companies who use AI to create the best customer experiences and those that miss the mark on implementing, or worse, don’t embrace AI at all. Those with the ability to bridge this divide will completely transform CX, delivering personalisation at scale and elevating service quality while reducing costs.

“We’re on the verge of the most significant inflection point we’ve ever seen in CX with the latest advances in AI,” said Adrian McDermott, Chief Technology Officer, Zendesk. “Businesses will need to rethink the structure of everything, from their tech stacks to their teams to how they deliver support. Companies that thrive will shift to a much more intelligent CX strategy, using AI to manage volume, lower costs, increase quality and ultimately improve customer satisfaction.”

The report reveals 69% of UK CX leaders (70% global) are reimagining their customer journeys using tools like generative AI. This adoption has real benefits – 88% of UK CX leaders (83% global) who are using generative AI in CX report positive ROI, proving these changes set a new standard for successful CX. The report also places a spotlight on some defining elements of the era of intelligent CX:

  • Chatbots are evolving into advanced digital agents: generative AI and evolved chatbots are revolutionising consumer interactions by facilitating personalised, instant and interactive experiences.
  • Live and immersive interactions will redefine experiences: as consumers expect more engaging and interactive experiences, CX leaders will need to transition to tools like conversational commerce, live streaming and voice.
  • CX leaders are the new drivers of data privacy: CX leaders, not IT, are the new drivers of data privacy, integrating security seamlessly into CX for protection and ease.

Chatbots evolve into advanced digital agents  

Two-thirds (68%) of UK CX leaders believe chatbots can build a stronger emotional connection with their customers. This is largely due to AI chatbots evolving into skilled digital agents, playing key roles in customer service and the overall customer experience. Their ability to mirror brand styles and evaluate their customers’ feelings and desires enables them to deliver tailored, accurate responses.

The transformation of chatbots into digital agents aligns with escalating expectations – over half (53%) of UK consumers believe chatbots should have the same level of expertise and quality as highly skilled human agents. Furthermore, 48% of Brits (51% global) prefer to  interact with advanced bots for quick and immediate responses. Businesses are grasping the importance of upgrading chatbots into digital agents and plan to boost their AI investments to speed up this process.

Live and immersive interactions redefine experiences

Consumers have now come to expect more than just traditional support to truly enhance their experiences. Forty-one percent of UK consumers (59% global) surveyed believe the way they interact with a company will completely change within two years due to generative AI.

People are embracing conversational commerce – buying products within chat interactions – and turning to live-streamed sessions for immediate help with shopping. To keep pace with this change, 66%  of UK CX leaders (72% global) are partnering with external vendors and experts to implement conversational commerce. Brands are also turning to social media and in-store influencers for sales – an approach that attracts new consumers and caters to those who prefer shopping at home. Sixty-five percent of UK and global CX leaders believe failure to leverage tools like live streaming that provide real time support will lead to lost opportunities.

CX leaders are the new drivers of data privacy

Amidst escalating privacy concerns and rising demands for AI-enhanced personalised experiences, data privacy is becoming a central responsibility for CX leaders. In fact, 83% of UK CX leaders (77% global) see themselves as responsible for making sure their customers’ data is safe. Another 81% of UK leaders (83% global) say data protection and cybersecurity are top priorities in their customer service strategy.

With CX leaders now active drivers of data privacy decision-making processes, they’re focused on delivering solutions that protect data while facilitating personalized experiences and deploying AI. More than half (57%) of UK consumers feel they’re constantly under the threat of being scammed. When they see that a company is proactive about data security, they’re more likely to feel comfortable providing personal information, leading to stronger trust and loyalty.

The future outlook for CX 

Leaders are confidently preparing for the future of CX, not just waiting to see what happens. They’re betting big on smart customer experiences for 2024, signalling a landmark year for CX due to new technology. To learn more, download the Zendesk CX Trends Report and access all 10 key trends shaping the era of intelligent CX.

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