AI for the Customer Experience: Benefits, Challenges, and 10 Examples

min read
AI for the Customer Experience: Benefits, Challenges, and 10 Examples

Businesses across industries are investing a lot of resources in artificial intelligence (AI), hoping it will deliver big returns to their bottom lines. They’re implementing and experimenting with AI technologies in many ways — from automating processes in their back office, to crunching vast amounts of data to identify trends and gain business insights, to delivering more efficient and personalised customer experiences.

Initiatives related to the latter goal can be especially important for generating AI ROI. According to research from Gartner, Inc., one of the top three sources of AI business value is the customer experience. Gartner also states that the “customer experience is a necessary precondition for widespread adoption of AI technology to both unlock its full potential and enable value.”

That’s all positive news for businesses that develop and use AI technologies. But what about customers? Are AI-enhanced customer experiences really able to deliver value for them? The short answer is yes.

In this post, we cover the basics of AI for the customer experience, including its benefits, challenges, and real-life examples of how innovative companies are using it.

What Are the Benefits of Using AI for the Customer Experience?

Artificial Intelligence (AI) has revolutionised the customer experience landscape, enhancing efficiency and delivering personalised interactions. Here are a few key benefits of implementing AI into your customer service: 

  • Improved Customer Support Efficiency: AI-powered chatbots and virtual assistants can handle routine inquiries, freeing up human agents to focus on more complex issues, resulting in faster response times and reduced wait periods for customers. 
  • 24/7 Availability: With AI-driven automation, businesses can provide round-the-clock customer support, ensuring customers can get assistance anytime, even outside regular business hours. 
  • Personalisation at Scale: AI algorithms analyse customer data and behavior to offer personalised product recommendations, tailored responses, and targeted promotions, enhancing the overall customer experience.  
  • Seamless Multi-Channel Support: AI streamlines the customer service process across various channels, including email, social media, chat, and phone, ensuring consistent and coherent support experiences. 
  • Reduced Response Times: AI-powered systems can analyse and categorise incoming inquiries, helping agents prioritise urgent requests and significantly reducing response times.
  • Cost Savings: Automating customer interactions with AI reduces the need for a large customer support workforce, leading to cost savings for businesses in the long run. 
  • Data-Driven Insights: AI technologies like conversation intelligence can gather and analyse customer conversations at scale and automatically surface trends. Customer experience teams can use these insights to get ahead of common issues, update talk tracks, and improve contact centre agent training.

Incorporating AI into customer service strategies empowers businesses to deliver exceptional customer experiences, and build lasting relationships with customers to stay ahead in today's competitive market. To learn more about the benefits of prioritising your customers’ experience check out our other blog post here

What Are the Challenges of Using AI for the Customer Experience?

While AI offers numerous benefits for enhancing customer experience, its implementation comes with certain challenges. Here are some challenges businesses may face when incorporating AI into customer service: 

  • Lack of Human Touch: AI-driven interactions, though efficient, can sometimes lack the human touch and empathy that customers expect, leading to a potential disconnect and dissatisfaction. 
  • Integration Complexities: Integrating AI technologies with existing customer service systems can be complex and time-consuming, requiring seamless alignment to ensure a smooth customer experience.
  • Overcoming Customer Trust Issues: Building customer trust in AI-powered interactions remains a challenge, as some customers may be skeptical about the reliability and accuracy of AI-driven solutions. 
  • Balancing Automation with Human Intervention: Striking the right balance between AI-driven automation and human intervention is critical, as excessive automation may lead to a lack of personalised support, while too much human intervention can negate the efficiency gains of AI. 

AI Customer Experience Statistics You Need to Know

Our recent report on the state of the contact centre sheds light on important AI customer experience statistics. These findings provide valuable insights into the impact of AI on customer interactions and service delivery. Here are our top three significant statistics from our State of the Contact Centre Report:

  1. 47% of customers call in for things they can do online. AI can help your call centre's numbers by answering those pesky repetitive questions that could easily be answered with the information on your website! 
  2. 85% of call centre managers are likely to implement a conversation intelligence solution in the next year. It’s highly likely that your competitors will be adopting one of these solutions as well. And if they don't, your service will differentiate itself from your competitors as you reap the benefits of automation! 
  3. Contact centre employees that use conversation intelligence report that they analyse a higher percentage of their calls. Of the contact centres that analyse over 80% of their calls, 30% of those use conversation intelligence and 13% use manual call listening. Clearly, conversation intelligence is a whole lot more scalable than listening to every call! In addition, since it uses the power of AI, its scores are unbiased and free of human error.

10 Innovative Examples of How Companies Use AI for the Customer Experience

1. Allstate

When Allstate first started using its “You’re in Good Hands” tagline in the 1950s, the company probably did not envision a day when those hands would belong to an AI-powered chatbot.

“Amelia” is a virtual agent well-versed in the world of insurance. She’s trained on more than 50 insurance topics and regulations across all 50 states. She can answer tough questions with concise answers that also meet compliance requirements. And she’s handled millions of customer conservations since she was first tested in 2017; today, she assists most of Allstate’s call centre employees.

Amelia is helping Allstate reduce talk times and resolve more customer issues on the first call. The assistance she provides is also reducing training time for call centre agents.

2. The Faulkner Organisation

Buying a car is a significant investment — and it can be a stressful experience. Many consumers turn to the internet first when researching cars, hoping to ease the pain of the sales process once they get to the showroom. But that process can be just as frustrating because when they do want assistance from a dealer online, it can be hard to get.

To help ensure its online customers get the prompt and courteous attention they deserve, The Faulkner Organisation, one of the largest multi-franchise automobile dealerships in Pennsylvania, employs an AI virtual assistant. The virtual persona “Megan” can create two-way, email-based communication, determine a lead’s intent in real time, alert the salesperson who should contact the lead, and more.

Faulkner’s internet sales department had previously struggled to keep up with the thousands of leads coming in from the company’s multi-brand website and other channels every month. Now, the AI solution automates the entire process of sales conversion for internet leads. (And by better engaging its customers, Faulkner has seen its qualified showroom traffic double.)

3. Mayo Clinic

Clinical trials can save lives, but patient screening and enrollment is a long and manual process. That’s obviously a big problem for people with serious conditions who don’t have time on their side. Mayo Clinic and IBM Watson Health are trying to make the process better. They are working together to match patients more quickly with appropriate trials. Their initial focus: cancer patients.

Mayo implemented the “Watson for Clinical Trials Matching” system in July 2016 in its ambulatory practice for patients with breast cancer. Nearly a year later, Mayo saw an 80 percent increase in enrollment for its systemic therapy clinical trials for breast cancer. The time needed to screen patients for clinical trial matches has also been reduced.

Based on the success of their first effort with breast cancer patients, Mayo is now collaborating with IBM to expand the matching system’s capabilities to include clinical trials for other types of cancer, including lung and gastrointestinal cancers.

4. Bank of America

Few people go into a bank and interact with a teller these days. If they’re missing that personal connection in their banking experience, Bank of America’s AI-driven virtual financial assistant “Erica” may help fill the void. She resides within the bank’s mobile app and customers can interact with her by using voice commands, texting and tapping on their mobile device.

Bank of America rolled out Erica to its 25 million mobile customers earlier this year. Erica uses advanced analytics and cognitive messaging to help customers with several common banking activities, from accessing account balances to scheduling payments to transferring money between accounts.

Bank of America has big plans for Erica — it looks to expand her capabilities so that she can handle more complex tasks, including identifying ways for customers to potentially save money.

The English-speaking virtual assistant is also expected to learn Spanish in the future.

5. Frontier Communications

The telecommunications industry is highly competitive — and consumers know they have choices. And if a provider doesn’t understand its customers’ needs or provide personalised service, those customers may walk. That provider will likely struggle to seal the deal with prospects, too.

Frontier Communications, the nation’s largest pure-rural communication company, uses Invoca Signal AI, which is used to identify call outcomes and caller intent in real time, to ensure it understands what its customers want. The solution automatically analyses phone conversations to help Frontier Communications understand buyer intent, eliminating the time-consuming and resource-intensive process of manually listening to customers’ calls.

The call data Frontier Communications receives from Invoca Signal AI provides insight on why certain callers may or may not buy the provider’s services — for example, they may have concerns about pricing or they may find a competitor’s offer more compelling. The company, armed with knowledge about buyer intent, can then create personalised offers that are more likely to meet prospects’ and customers’ needs and help drive conversions.

6. Renewal by Andersen 

Renewal by Andersen, a leading window replacement company, utilises Invoca's AI-powered conversation analytics to enhance contact centre performance. By automating call quality assurance (QA), they can monitor and evaluate agent interactions more efficiently. This process has led to a 47% increase in appointments set and a 129% improvement in agents accurately assessing caller needs. The AI-powered insights facilitate targeted coaching, enabling agents to deliver superior customer service. For a comprehensive overview, refer to their case study.

7. Intercom 

Intercom took one look at the AI revolution and said, "Hold my funding round." After ChatGPT made waves, the customer relationship software company wasted no time launching its own AI-powered customer service agent, Fin, which has already answered a casual 13 million questions (probably more patiently than a human ever could). Not stopping there, they threw down $100 million to supercharge their AI ambitions, birthing Fin X and setting their sights on building one of Europe’s largest AI labs. Because if you’re going to do AI, you might as well go big.

8. Wendy’s 

Wendy’s decided that fast food just isn’t fast enough, so they brought in AI to shave a whopping 22 seconds off drive-thru wait times. Their AI-powered initiative, FreshAI, was rolled out after successful tests in Columbus, Ohio, and is now charming customers at nearly 100 locations across 17 states. Wendy’s swears the AI isn’t here to steal jobs—just to take orders with a near-perfect success rate, in multiple languages, no less. So next time you chat with the drive-thru, there’s a good chance it’s not a person, just a highly trained algorithm that knows your Bacon-ator cravings better than you do.

9. L’Oréal  

L'Oréal took "Because you're worth it" to new heights by bringing AI into the beauty game. From hyper-personalised recommendations to marketing strategies so precise they might as well read your mind, L'Oréal’s AI-driven tools are redefining how we interact with beauty brands. Sure, data privacy and high costs might make things tricky, but the company remains confident that AI will enhance—rather than replace—the human touch. After all, a chatbot can suggest the perfect foundation shade, but it still can’t tell you if that contour looks right in natural light.

10. Delta Air Lines 

Delta Air Lines decided the friendly skies weren't quite friendly enough, so they enlisted AI to elevate the passenger experience. By integrating AI-driven solutions, Delta aims to optimise baggage handling and streamline operations, ensuring your luggage arrives at your destination almost as promptly as you do. Their commitment to using AI for a seamless journey means fewer lost bags and more satisfied travelers. So, next time you're waiting at the carousel, rest assured that Delta's AI is on the case, making sure your suitcase doesn't take an unplanned vacation. We’ll see…

Additional Resources

Want to learn more about how leading customer care teams use Invoca’s AI to deliver better experiences at the contact centre? Check out these resources:

Subscribe to the Invoca Blog

Get the latest on AI and conversation intelligence delivered to your inbox.

Get expert tips on marketing, call tracking, and conversation intelligence AI delivered straight to your inbox every two weeks.
Join thousands of marketing and contact center professionals and subscribe today!
Invoca Webinar: 6 Killer Strategies To Transform Your Social Ad Campaigns
Calling all digital marketers!
Join us on September 24 for an exclusive webinar to discover how AI-driven first-party data can transform your social ad campaigns into a revenue-generating machine.
Register Now!
white arrow
Close