Applications and Potentials of AI in Customer Experience

Sarina Hermann

February 8, 2024

Sarina Hermann, valantic

Sarina Hermann, Lead Consultant Digital Business, discusses the transformative power of Artificial Intelligence (AI) in customer experience in an interview. She provides insights into the potentials and challenges of AI deployment in CX and the critical basics that are indispensable for a purposeful AI implementation.

AI feels omnipresent. To what extent have you had experience with the use of AI in the field of customer experience?

Oh yes, the topic of AI is indeed very present and will probably remain so. The integration of AI is developing rapidly in all areas and is becoming increasingly important. If we look at the domain of brand communication, we find a good example of application with a high reach in the area of search engine marketing and paid advertising. Platforms like Meta and Google have enriched their algorithms with advanced AI systems to make advertising content even more targeted and context-dependent. This leads to a significant increase in advertising efficiency and effectiveness.

Furthermore, companies are already using AI to analyze large amounts of customer data and gain valuable insights for optimizing their measures. This is expressed, for example, in the form of personalized product recommendations or the strategic adjustment of the timing when customers are addressed to strengthen customer loyalty and increase the conversion rate.

Another example is virtual assistants. These technologies enable real-time responses to customer inquiries, thus providing a personalized communication experience that often reduces the need for more costly personal interaction.

Finally, AI has also revolutionized the personalization of search results on company websites. Through the use of intelligent algorithms, relevant products and services can be highlighted more effectively, leading to an improved user experience and a higher conversion rate.

And there are so many more value-adding use cases.

What potentials do you see in the use of AI in the area of CX?

From my point of view, AI opens up the possibility of realizing highly personalized communication that appears individual and authentic to the customer while remaining efficient and scalable for the company.

AI-powered translation services, for example, enable customers to be addressed in their own language, which is the basis for any successful communication. In addition, GenAI can even create individual content based on the individual preferences and past behavior of the customer. This leads to a significantly more relevant and appealing user experience.

A particularly exciting field is AI-supported dialogue, which is capable of considering all facets of previous interactions with the customer and responding in real time. This creates a deeper and more meaningful connection between the company and the customer.

But not only in external communication, there is also enormous potential in internal processes. GenAI can, for example, assist in the creation of marketing materials by generating visual worlds that would otherwise be created through elaborate photo shoots. This saves resources and allows for the quick and flexible production of content that can be adapted for different markets and campaigns. AI-supported creation of texts and other assets can lead to significant savings, especially in an international context.

How can the success and effectiveness of AI in brand communication be measured?

It all depends on what goal is being pursued with the use of AI. Is it about increasing sales, customer satisfaction, or market shares? Or is the company aiming to become more productive and optimize internal processes? Is it about saving resources or costs?

If the goal and strategy are clear, it is usually simple to measure the results and optimize measures.

What challenges do you see in the implementation of AI?

One of the central challenges is the need for a solid database and a well-thought-out strategy. AI solutions are generally highly dependent on the quality and relevance of the data with which they are trained. It is a fallacy to believe that AI is complete magic. A strategy ensures that AI initiatives actually contribute to the company’s goals.

Another critical point is the ethical handling of AI and the data used. Data protection and ethical guidelines are not only legal requirements but also an aspect of corporate responsibility. Companies must engage with these topics early on and establish clear guidelines for the use of AI. This includes transparent communication about how which data is used, ensuring compliance with data protection standards, and the development of AI systems that consider ethical principles.

How can companies prepare for AI?

For companies, it is essential to engage with the topic of AI early and very concretely and to explore the potential associated with it. The use of AI will represent a strategic advantage for many companies that is decisive for success.

AI is a topic for the C-level. They must take an active role in AI integration and ensure that AI deployment in the company promotes the values and strategy of the company. It is advisable to enter into dialogue with AI and strategy experts at an early stage.

A woman talking to her three colleagues, gesturing with her hands.

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