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How AI is revolutionising CX across industries

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Businesses must invest in the right technology, people, and processes to unlock the full potential of AI as experts suggest

New Delhi: AI-driven technologies are transforming customer service, enabling businesses to create more personalised, efficient, and scalable experiences. In a recent webinar by Twilio titled AI Alchemy: Crafting Next-Gen Customer Service Experiences industry experts explored the emerging AI trends in customer experience (CX) and discussed practical approaches to meeting these demands while driving business growth.

Twilio is a California-based software development company and the webinar was held in partnership with IndiaRetailing.

The session featured Nicholas Kontopoulos, VP of Marketing at Twilio, and Shivram Chandrasekhar, Solutions Architect at Twilio, both of whom shared insights on leveraging AI to enhance customer interactions, build trust, and ensure compliance.

Data-first approach to customer engagement

Kontopoulos highlighted the importance of adopting a data-first approach to customer engagement. “Businesses must ensure that they are collecting and organizing high-quality data, with zero-party data — data customers willingly provide — being the “holy grail” for building trust and deepening customer relationships,” he said.

“Companies need to move beyond simply gathering data to focus on creating meaningful, personalised experiences for their customers,” he added. “The future of customer engagement will be driven by AI tools that can harness this data effectively to tailor interactions.”

AI’s role in customer service

Chandrasekhar demonstrated the power of generative AI through a use case involving a voice bot created for Fabindia. The virtual agent, equipped with natural language understanding and real-time adaptability, was shown to handle customer inquiries with a personalised touch, addressing specific customer needs based on data from previous interactions.

Chandrasekhar explained, “AI-powered virtual agents can not only enhance operational efficiency by handling routine queries but also scale customer service 24/7, offering businesses a cost-effective way to maintain high levels of service.”

The demo highlighted how AI can reduce the burden on human agents by managing high-volume customer interactions while providing a more seamless and personal experience. This allows businesses to focus their human resources on more complex tasks.

AI and budget reallocation

Kontopoulos spoke about how businesses in Asia are rethinking their budgets to prioritise AI investment. A report he referred to revealed that 60% of the top firms in the region are shifting resources towards generative AI, recognising its potential to improve customer experience and operational efficiencies.

“Incorporating AI into customer engagement isn’t just about technology. It’s about reshaping how businesses operate and how they can engage with customers on a deeper level,” Kontopoulos noted.

Personalisation 

A key focus of the discussion was the importance of personalisation in customer engagement. Studies show that consumers are more likely to remain loyal to brands that offer personalised experiences, with 69% of consumers less likely to continue engaging with a brand that fails to personalise interactions.

Chandrasekhar pointed out that a major challenge in India is the fragmentation of data across different platforms, which hinders the creation of a unified customer view. This fragmentation, referred to as “dark data,” remains underutilised in many organisations, and overcoming this challenge is critical for AI’s success.

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