Menu
Welcome to the third episode of our podcast, ‘The ITSM Spotlight’. In this episode, we’re discussing the personal or human side of AI and answering why companies should focus on personalisation and AI-driven customer experiences in 2024.
Hello, and welcome back to the ITSM Spotlight podcast, where we discuss the IT industry’s latest trends, insights, and thought leadership topics. I’m your host Anna, and joining me today is my AI colleague, Matt.
Hello, Anna! I’m excited to delve into this fascinating topic with you and our listeners.
Fantastic! Yes, today, we’re diving into a fascinating topic: the human touch or side of AI. Matt, to kick things off, why do you think personalisation is so important in today’s AI-driven landscape?
Well, I always like to say that personalisation is key because it bridges the gap between technology and human needs.
You see, in the world of generative AI, it’s not just about automating tasks. It’s more about enhancing the human experience, making work more meaningful and, tailored to individual strengths and preferences.
So, it seems like understanding these human factors is crucial for businesses to thrive. And could you give us an example of how a company has successfully integrated AI while maintaining a strong focus on human elements?
Absolutely. As we know, many companies are now using AI to free up employees from mundane tasks, allowing them to focus on more creative and strategic activities.
I recently read McKinsey research, stating that 88% of employees surveyed are now using AI to handle routine tasks.
I think that says a lot. If you enable AI to handle data crunching or schedule management, what you get is more time for people to use their cognitive skills for decision-making or other innovative projects.
⚡ Let’s take the example of a healthcare organisation that implemented AI for administrative tasks. Things like scheduling and patient data management…There are 3 things we can mention here. First, what they achieved is this allowed their workers to spend more time with patients, improving the quality of care.Then, they also saw a rise in employee satisfaction. You see,. Now their workers felt like their jobs had become more meaningful and impactful. And finally, this also led to a decrease in turnover rates, as 72% of engaged employees reported feeling more connected to their workplace.
That shift must have a significant impact on workplace satisfaction and productivity.
Yes, exactly! I mean, studies have shown that when employees engage in meaningful work, that really resonates with their values and skills. And of course as a result – productivity soars. But more importantly is that they feel valued and part of a community. And that’s crucial for retention and satisfaction.
I’ll refer to the same McKinsey study I already mentioned.
51% of employees who are heavy users and creators of AI technologies are considering leaving their jobs. And that’s due to a lack of flexibility and meaningful engagement.
That’s quite concerning. So how should companies address this?
Ok, so. I think that companies need to realise that while AI can take over repetitive tasks. The human elements of work—such as decision-making and personal interactions—are still irreplaceable. Then, you have employees who value flexible work arrangements and meaningful work far more than before. I mean research has shown that when asked, employees ranked flexibility and meaningful work as top reasons for staying at their jobs, far above compensation.
So, basically, what you are saying is that it’s not just about the technology. But how it integrates into the human side of things.
Yes. It’s about how these tools support and enhance human capabilities…So. You know, the truth is that companies that understand this see lower turnover rates and higher engagement levels. For them, they’re not just implementing technology; they’re reshaping their organisational culture.
They’re reshaping their organisational culture! I like that. It’s quite a powerful statement. So, Matt. What about the challenges of integrating AI? How do companies ensure that the technology supports rather than alienates their workforce?
Great question. One of the key challenges is the re-skilling and up-skilling of the workforce to handle AI-driven tasks.
Most organisations today aim to build their AI capabilities internally through up-skilling, rather than relying solely on new hires. So, this approach not only fills the skills gap. But also engages employees by investing in their growth.
Yeah, it’s interesting to see how companies are now focusing on building generative AI talent, mostly in-house. I read recently, that according to Adobe research, 72% of global consumers believe that Generative AI will improve their customer experience. I mean, we all know how important it is to understand what customers want. Meeting their needs is the key to business success. But we also know how challenging it can be to meet their needs. And complexity often hampers their experience, particularly when we’re constantly trying to introduce new channels or services. Matt, what are your thoughts on this?
I think that Generative AI should really simplify our connection with customers and make their experiences feel more personal. But let’s take a step back. Let’s first remind ourselves what Generative AI essentially is?
I always like to say that it’s AI systems that can generate new content, such as text, images, or even music, based on patterns and examples from existing data. Basically, these systems use advanced algorithms and deep learning techniques to understand and mimic human behaviour. And that enables them to create highly personalised and contextually relevant experiences for customers.
And when we talk about customer experience – Generative AI is already revolutionising how businesses interact with their customers by automating tasks, providing personalised recommendations, and delivering more engaging and responsive service.
Matt, and could you provide us with some examples of how Generative AI is being used to enhance customer experience?
Absolutely, Anna. Let’s take the retail industry, for example. Many e-commerce platforms are leveraging Generative AI to improve product recommendations for customers.
How do they do that?
They examine extensive amounts of data on customer preferences, browsing history, and purchase behaviour. Then, they create customised product suggestions that are tailored to the individual shopper’s tastes and preferences. And this not only helps customers expand their product choices but also boosts the chances of successful transactions and repeat purchases.
⚡ Take Amazon, for example. They are really taking customer experience to the next level with Generative AI. They are now using a new large language model custom-built to improve customer interactions with Alexa. So you see, thanks to the new technology today, you can have back-and-forth conversations with Alexa that can flow more smoothly without many interruptions.
Yeah it’s pretty impressive how Amazon keeps making Alexa better and better. With each update, it’s like Alexa gets more intuitive, responsive, and capable! Oh I remember the times when you had to repeat your questions a few times for Alexa to get the context of what you’re saying.
Exactly. And, of course, they didn’t stop there. You know how Amazon’s product detail pages are a key source of information for customers. Well, they are also using generative AI to create compelling product titles and descriptions. They are even using it to create more engaging advertisements.
Yes, it’s incredible to see how this technology is reshaping the customer experience landscape across so many different industries. Now, let’s dive a bit deeper into the specific examples. Can you tell us more about how companies are using AI-powered chatbots to enhance their customer service?
Absolutely, Anna. One of the most common applications of Generative AI in customer experience is in customer service and support. Many companies are using AI-powered chatbots to provide automated assistance to customers, answering frequently asked questions, resolving common issues, and even handling basic transactions.
These chatbots can understand natural language and generate human-like responses. And in many cases that makes them indistinguishable from human agents.
Great example is the airline industry. You may have noticed how many airlines have implemented AI-powered chatbots to assist customers with booking flights, checking flight status, and managing their reservations. These chatbots usually handle a wide range of inquiries and can provide quick and accurate responses to customers, even during peak travel times when call volumes are really high.
So you see, this not only improves the overall customer experience but also helps airlines save time and resources by reducing the need for human agents to handle routine inquiries. Then I recently also read about Walmart. It’s another interesting example. Basically, they implemented a chatbot that employs Generative AI technology to negotiate purchase terms and costs with its suppliers. Their chatbot handles negotiations for vendors. It uses a variety of factors, like historical trends, competitor pricing, and material costs, to determine fair prices.
Yeah, that’s interesting. And it’s certainly promising for businesses aiming to provide personalised service. Matt, for our listeners who might be unfamiliar, could you explain what personalised service entails? And why do you think customers expect it, especially now in 2024?
Sure. So simply put, personalised service refers to the practice of tailoring products, services, and interactions to meet customers’ individual needs and preferences. This approach usually involves leveraging customer data, such as their preferences, past actions, or their purchase history, to provide that unique and customised experience for them. So, you know the ultimate goal with personalisation should be to make customers feel special and valued, to enhance their overall experience with a brand or company. And to improve their satisfaction.
So, why is this so important in 2024?
Well, the truth is that the digital revolution has given consumers greater expectations of companies than ever before. See, with everything being so fast-paced and digital now, people want experiences that feel like they’re made just for them. It’s all about feeling special and having things catered to your preferences, you know?
A recent study found that 71% of consumers expect personalised interactions with brands—and three-quarters will switch if they don’t like their experience. But personalised service not only makes us feel valued but also impacts our brand choices. So, businesses gotta keep up with that demand for personalisation if they wanna stay ahead of the game.
That’s really interesting, Matt. So, basically, what you’re saying is that there’s no question if companies should focus on personalisation and AI-driven customer experiences in 2024.
Exactly! In my mind, there’s no question that they should focus on it. I think the big questions for many leaders here are: Are they ready to meet their customers on a deeper level? Are they ready to have a personalized conversation with each one of them? And finally, are they really ready for an AI-driven customer experience?
Those are some great questions, Matt. I mean, AI and customer experience really do seem like a perfect pairing! I think it’s amazing to see how Generative AI is being used to deliver personalised experiences to customers across so many different touchpoints.
We know that there are some great benefits, but there are some challenges too that should not be ignored, right? And that’s especially important for leaders and practitioners who need to approach this opportunity strategically and pragmatically. Should we talk about the benefits first.
Sure. We already mentioned a few benefits earlier, and you know different industries will discover different advantages.
For example, for customer service, one of the main benefits of AI is that it can provide quick responses and resolutions to customer issues. AI can help you address customer questions earlier in their journey by using automated messaging instead of surveys after the experience. Then, there’s also providing personalised recommendations, resolving complaints, and offering more proactive support.
But we also know that using Generative AI in customer experience has some challenges and limitations, right? Can you walk us through some of the key challenges, in your opinion?
Absolutely, Anna. I would say that one of the biggest challenges of using Generative AI is ensuring the accuracy and reliability of AI-generated content and recommendations. You know, AI algorithms are only as good as the data they’re trained on.
So, if you have training data that is biased or incomplete, the AI-generated output may be inaccurate or misleading. And not only that this can lead to poor user experiences but even damage your brand reputation.
Another challenge is the potential for algorithmic bias and discrimination. What do I mean by that?. As we know, AI algorithms rely on historical data for learning, but it’s important to recognise that these datasets can contain bias and prejudice that mirror the social inequalities present in society.
If these biases are not recognised and rectified, AI algorithms may continue to perpetuate or worsen existing inequalities, leading to unjust or discriminatory outcomes for specific groups of users.
It’s clear that while Generative AI has tremendous potential to improve customer experience, it also comes with its fair share of challenges and ethical considerations. Now, let’s talk about some best practices for using Generative AI in customer experience. Can you share any tips or strategies for companies looking to leverage Generative AI effectively?
I always like to say that one of the most important best practices for using Generative AI is to prioritise transparency and accountability! I am a believer that companies should be transparent about how AI algorithms are being used. They should also be accountable for any errors or biases that may arise as a result of AI-generated content.
Then I also can’t stress enough how important it is to continuously monitor and evaluate the performance of AI algorithms to ensure that they’re delivering accurate and reliable results. This may involve conducting regular audits of AI-generated content and recommendations,. Or soliciting feedback from users and making adjustments to the algorithms as needed to address any issues or concerns that arise.
And let’s be honest, there are always a few hiccups that might pop up from time to time. Oh and it’s also worth noting that personalisation through Generative AI should not be confined to a single channel. This means that to create unique customer experiences, businesses need to integrate various communication channels, from emails, chatbots to social media channels and SMS.
That’s great advice, Matt. It’s clear that this requires careful planning, monitoring, and oversight to ensure success. Now, let’s talk a bit about the future of Generative AI. Can you share any insights or predictions about how Generative AI will continue to evolve and shape the customer experience in the years to come?
I believe that Generative AI will continue to play an increasingly important role in shaping the future of customer experience. And there’s no reason why this level of personalised customer support and communication couldn’t be available to any company. I mean, these technologies will continue to evolve.
So, I do expect that we’ll see even greater integration of Generative AI into customer experience strategies. And that should enable companies to deliver truly transformative and innovative experiences to their customers.
That’s really exciting, Matt. It seems that when it comes to personalisation and simplifying conversations with customers, Generative AI is set to raise the bar for many businesses! And we can expect 2024 to be the year that personalising the customer experience becomes the norm.
Exactly. Generative AI has the potential to revolutionise the way companies interact with their customers. So yeah, going forward, I think it’s safe to say that being able to understand customers’ wants and needs in real time will be even more important.
So, the message for all companies is to think about the right data, technology, and actions they need to create an effective personalisation strategy.
As we wrap up, what do you think leaders should be aware of when it comes to AI and personalisation?
The future lies in AI systems that can personalise the work experience and customer experience. That can anticipate needs, and support complex decision-making. I think that leaders should focus on continuous learning and flexibility. They should encourage a culture that embraces AI as a partner rather than a replacement, as that fosters a more dynamic and resilient workforce. And they have to find the right balance of technical AI skills and social-emotional skills.
Thank you, Matt. That’s a powerful takeaway for all our listeners.
And to our listeners. Thank you for tuning in to the ITSM Spotlight podcast. We hope you found today’s episode interesting. Be sure to join us next time for more captivating conversations on all things IT & IT service management. Until then, stay curious and keep innovating!