How generative AI is disrupting the customer experience

Content-generating tools such as ChatGPT threaten to drive a wedge between companies and their customers. To keep these relationships intact, firms must implement frameworks to leverage AI’s potential – and protect creativity.

Irina Hayward is executive director, digital and direct strategy at BMF

The year is 1999 and millions are terrified that the switch to “2000” will wreak extensive havoc. Crashing computer systems on a global scale, taking much of our civilisation with it.

It’s the dawn of the internet age and the Y2K scare has caused widespread concern over its potential to affect critical systems – such as banking infrastructure, airline bookings and government operations.

In the very same year, the Wachowskis release The Matrix where humans are enslaved by machines and are used as power sources. All prompting the question, will artificial intelligence (AI) dominate humanity or will we maintain some control.

Fast forward 23 years and generative AI has become the latest buzzword. But its deep-rooted origins often go unnoticed. Once quietly integrated into our lives, the rapid rise of ChatGPT has made AI a ubiquitous term.

In its infancy, AI performed simple predictive modelling tasks. These early systems could analyse data, identify patterns and make predictions about future events. In the 1950s, IBM could forecast airline ticket sales, allowing airlines to optimise their pricing and improve profitability.

In those early AI years, rule-based systems emerged, solving specific problems while changing our interaction with tech. Amazon was one of the first to pioneer personalised shopping recommendations based on buying behaviour, creating more targeted consumer-centric experiences. And brands like MasterCard and Pizza Hut were early adopters of AI chatbots addressing simple customer concerns.

In the decades that followed, we saw the emergence of machine learning algorithms which not only self-learned, but also improved their performance over time. The financial sector harnessed the power to identify potential fraud, customise product recommendations and predict customers’ financial needs.

These generative AI systems laid the foundation and revolutionised the marketing industry and customer experience alike. From understanding consumer behaviour, segmenting audiences into targeted personalised campaigns, providing immediate customer-support, optimising content and maximising advertising spend … the benefits have been endless. AI in customer experience has empowered marketers to leverage data at record speed, automate processes, personalise experience, improve customer engagement and drive business growth.

We’ve used Google to automatically categorise photos. Amazon’s Alexa to engage with customers in a more interactive way. And Sony Flow Machines to compose original music by analysing existing songs. Enter the rise of deep-fake videos. Superimposing politicians and actors as celebrity endorsements in advertising campaigns.

Today, ChatGPT is one of the most advanced chatbots. It set new records reaching 100 million users in just two months. To put it in perspective, TikTok took nine months and Instagram two and a half years to reach the same outcome.

Microsoft’s Bing was one of the early adopters in the AI arms race, investing in ChatGPT while laying off its ethical AI team in the process (ouch). And with the most recent launch of Bard, the AI wars are just heating up.

Google can help draft emails, summarise threads and create entire presentations. US-based education company Khan Academy has powered virtual tours to enhance students learning. Meanwhile South Park creators used ChatGPT to co-write an episode, which subsequently inspired students to use the tool to rewrite their homework (simple irony).

Locally, corporations are weaving generative AI into daily work practices across computer coding, supply chain planning, analytics and research. But what does this all mean to your customers and their experience with your brand?

In the ever-evolving realm of customer experience, AI has thrown businesses a curveball. Consumers are now getting more information from AI systems instead of traditional websites or customer-support, and businesses are finding themselves at crossroads.

So how do we navigate this AI-infused landscape without losing control?

Focus on your customers, not the tech. Begin by identifying their pain points, then see how AI can help. Use AI algorithms to interpret data, identify patterns and trends. Then invest in chatbots and virtual assistants to provide efficient self-service options.

Then use AI to complement your capabilities, not substitute them. Rather than completely replacing human beings, AI can enhance efficiencies with recommended responses and support. Then tailor offers and content at an individual level to improve customer engagement and net promoter scores.

Remember to prioritise data privacy and security. The key is embedding robust security measures. Be clear about data collection and obtain customer consent to establish trust.

And finally monitor and improve. Regularly assess the accuracy, relevance and performance of your systems to ensure optimal customer interaction. By continuously analysing feedback and performance metrics, businesses can identify areas for enhancement and make necessary updates to their AI systems.

Just remember when it comes to customer experience, AI is not a one-stop, set-and-forget solution.

Unlike the dystopian portrayal in The Matrix, AI in the customer experience space still relies on the collaboration and interaction between humans and tech. Humans bring their expertise, empathy and understanding to enhance AI capabilities; ensuring that customer interactions are still meaningful experiences that align with brand values.

Fortunately in this space, we’re still seeing a symbiotic relationship between people and AI.

Irina Hayward is executive director, digital and direct strategy at BMF.