Zendesk Report Says AI Will Overhaul the Customer Experience Industry

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Zendesk has released its Future of AI-Powered CX report, forecasting a radical overhaul of the customer experience industry. In the next three years, a complete revamp is anticipated, with nearly 90% of industry leaders expecting an end to traditional customer experiences (CX), paving the way for new practices.

“Australian CX leaders have told us that they believe traditional CX as we know it will be dead by 2027,” said Zendesk’s Australian Country Lead Kellie Hackney. “Over 90% of them thin old ways will give way to radically different industry dynamics. These are trends we’ve been seeing, and engineering for, for a while now. It affirms growing customer expectations as well as the impetus for businesses to embrace AI to meet those rising demands.”

Zendesk sees a future where CX organisations become leaner, faster, and more effective, with AI helping to streamline processes, personalise engagement, and handle a higher volume of customer interactions. The evolution will likely lead to smaller CX teams, as 82% of industry experts predict a downsizing due to AI’s ability to simplify operations while delivering high-quality service to customers.

“In the near future, AI will play a role in all customer interactions, moving us beyond traditional, manual service to more advanced, technological-driven experiences,” said Zendesk Chief Information Officer Craig Flower. “That’s why leaders are proactively adjusting their strategies now to navigate the anticipated changes and leverage AI to its fullest potential. A transformation won’t happen overnight, but there will be a steady progression that develops over time. It’s going to redefine roles and improve experiences for CX teams and their customers.”

Zendesk thinks AI will play a pivotal role in every customer interaction, stepping in to handle initial inquiries and maintain consistency across all service platforms. It will also track the performance of both human and AI agents to deliver exceptional service. With AI projected to resolve 80% of interactions, human agents will turn their focus to more complex tasks while AI uses data to tailor and improve each customer’s experience.

A fivefold increase in customer service interactions is also anticipated, with leaders confident in AI’s ability to maintain quality service. This shift will make operations smoother, decisions sharper, and boost market competitiveness. As AI takes over routine tasks, it will enable teams to be more efficient and control costs, allowing for effective scaling of business operations even as customer interactions increase. 73% of CX leaders surveyed here expect to see their workflows streamlined by AI.

AI’s impact on CX organisations promises to be significant, reshaping the roles of agents, admins, and leaders to prioritise specialised skills. 74% of Australian CX leaders believe that within three years, agents will only handle complex escalations that involve in-depth troubleshooting and support. Agents will see their roles expand to include enhanced technical skills and a deeper understanding of technology, including growing more adept at using AI, gaining technical skills, developing in-depth, specialised knowledge, and refining soft skills.

Agents will need to be proficient with AI tools, advanced problem-solving, and continuous learning. This change will help them provide superior customer experiences, boosting their productivity and service quality. Teams will be focused on providing custom solutions for high-value customers as automation takes care of the lower tiers of support. Over three-quarters of respondents believe this.

Admin roles are on the cusp of a big change. They will become proactive guardians of business operations. They will increasingly rely on AI copilots and smart tools to manage automated interactions and make AI-driven improvements.

In their daily work, admins will monitor the quality of agent interactions in real time, refine automation, predict staffing needs, and implement AI-suggested workflows. They will also need to master using AI to enhance team performance, employ no/low-code automation tools, make data-driven decisions, and balance workload between humans and AI to meet customer needs. This evolution will empower admins to spearhead strategic advancements and maintain efficient, effective operations.

Industry leaders will transform into customer-centric visionaries equipped with a deep understanding of the solutions that truly resonate with customers. They will proactively apply AI, using real-time data for better customer experiences, and collaborate across departments to safeguard customers and swiftly innovate based on AI insights. This transition will empower CX leaders to deploy AI strategically, make smarter decisions, and effectively guide their teams through emerging tech trends and evolving customer behaviours. A gap does exist in Australia, though, where 92% of CX leaders think it’s very important to adopt/update AI for the customer service experience. However, only 25% of those same leaders view their AI adoption as advanced. As the industry progresses, keeping pace with rapid advancements in AI technology will be crucial. Staying agile and ready for future shifts in the CX landscape is vital for sustained success.

“A large majority of Australian CX leaders we spoke with believe, as we do, that the CX department will finally become a revenue driver,” added Hackney. “Businesses that have kept pace with the trend towards automation in CX are unlocking incredible opportunities to drive productivity, exceed customer expectations, and ultimately, achieve growth in our rapidly evolving market.”

You can read the full report here.

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