AI ushers in era of intelligent CX, fuels massive industry transformation

January 17, 2024

Zendesk annual CX Trends Report shows 70 percent of leaders completely reimagining their customer journey

Zendesk, Inc. today released its annual Customer Experience (CX) Trends Report, the findings of which signal a rapid transition towards intelligent CX. In this era, the shift to AI-driven service will create a big divide between companies who use AI to create the best customer experiences and those that miss the mark on implementing, or worse, don’t embrace AI at all. Those with the ability to bridge this divide will completely transform CX, delivering personalization at scale and elevating service quality while reducing costs.

“We’re on the verge of the most significant inflection point we’ve ever seen in CX with the latest advances in AI,” said Adrian McDermott, chief technology officer, Zendesk. “Businesses will need to rethink the structure of everything, from their tech stacks to their teams to how they deliver support. Companies that thrive will shift to a much more intelligent CX strategy, using AI to manage volume, lower costs, increase quality and ultimately improve customer satisfaction.”

The report reveals 70 percent of CX leaders are reimagining their customer journeys using tools like generative AI. This adoption has real benefits – 83 percent of CX leaders who are using generative AI in CX report positive ROI, proving these changes set a new standard for successful CX. The report also places a spotlight on some defining elements of the era of intelligent CX:

• Chatbots are evolving into advanced digital agents: generative AI and evolved chatbots are revolutionizing consumer interactions by facilitating personalized, instant and interactive experiences.

• Live and immersive interactions will redefine experiences: as consumers expect more engaging and interactive experiences, CX leaders will need to transition to tools like conversational commerce, live streaming and voice.

• CX leaders are the new drivers of data privacy: CX leaders, not IT, are the new drivers of data privacy, integrating security seamlessly into CX for protection and ease.

Chatbots evolve into advanced digital agents
Two-thirds of CX leaders believe chatbots can build a stronger emotional connection with their customers. This is largely due to AI chatbots evolving into skilled digital agents, playing key roles in customer service and the overall customer experience. Their ability to mirror brand styles and evaluate their customers’ feelings and desires enables them to deliver tailored, accurate responses.

The transformation of chatbots into digital agents aligns with escalating expectations – 68 percent of consumers believe chatbots should have the same level of expertise and quality as highly skilled human agents. Furthermore, over half expect to soon interact with advanced bots for quick and immediate responses. Businesses are grasping the importance of upgrading chatbots into digital agents and plan to boost their AI investments to speed up this process.

Live and immersive interactions redefine experiences
Consumers have now come to expect more than just traditional support to truly enhance their experiences. More than half of those surveyed believe the way they interact with a company will completely change within two years.

People are embracing conversational commerce – buying products within chat interactions – and turning to live-streamed sessions for immediate help with shopping. To keep pace with this change, 72 percent of CX leaders are partnering with external vendors and experts to implement conversational commerce. Brands are also turning to social media and in-store influencers for sales – an approach that attracts new consumers and caters to those who prefer shopping at home. Sixty-five percent of CX leaders believe failure to leverage tools like live streaming that provide real time support will lead to lost opportunities.

CX leaders are the new drivers of data privacy
Amidst escalating privacy concerns and rising demands for AI-enhanced personalized experiences, data privacy is becoming a central responsibility for CX leaders. In fact, 77 percent of CX leaders see themselves as responsible for making sure their customers’ data is safe. Another 83 percent say data protection and cybersecurity are top priorities in their customer service strategy.

With CX leaders now active drivers of data privacy decision-making processes, they’re focused on delivering solutions that protect data while facilitating personalized experiences and deploying AI. More than half of consumers feel they’re constantly under the threat of being scammed. When they see that a company is proactive about data security, they’re more likely to feel comfortable providing personal information, leading to stronger trust and loyalty.

The future outlook for CX
Leaders are confidently preparing for the future of CX, not just waiting to see what happens. They’re betting big on smart customer experiences for 2024, signaling a landmark year for CX due to new technology. To learn more, download the Zendesk CX Trends Report and access all 10 key trends shaping the era of intelligent CX.

Methodology
Data from CX Trends comes from two survey sources. Zendesk surveyed 2,818 consumers and 4,441 customer service and experience leaders, agents, and technology buyers from 20 countries and organizations ranging from small business to enterprise during July and August 2023. Results from each survey were weighted to remove bias from the survey samples.

About Zendesk
Zendesk is on a mission to simplify the complexity of business and make it easy for companies and customers to create connections. Our customer experience software unlocks the power of billions of interactions, enabling businesses to build rich, meaningful relationships with their customers. The company was conceived in Copenhagen, Denmark and today operates in more than 20 countries around the world.

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