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Enhancing Customer Experience with AI: Personalization at a Whole New Level

## AI Enhancing Customer Experience

In today’s digital age, customers have high expectations when it comes to the quality of digital services provided by companies. In fact, their judgment of a company is often based on their experiences with its digital offerings. With this in mind, enterprises are increasingly adopting generative AI tools to enhance customer experience (CX). According to Adrian McDermott, CTO of Zendesk, there will be a significant change in the dynamic of the CX industry as AI becomes more prevalent.

## Personalization at a Whole New Level

Fiona Tan, CTO of Wayfair, highlighted the emotional and personal nature of the home decor category. Customers often struggle to articulate or describe their preferences when it comes to decorating their living spaces. To address this, Wayfair has introduced a gen-AI powered tool called Decorify. By uploading photos of their rooms, users can visualize different decor styles and explore options they may not have considered before. Wayfair’s AI technology then suggests real-life items from their catalog based on the user’s preferences. This personalized approach has proven to be highly effective, with the app already generating 150,000 images and leading to better conversion rates.

## The Importance of Empathy in the Age of AI

While AI can automate certain processes, human empathy remains crucial, especially when it comes to returns and exchanges in the retail industry. Wayfair leverages human-in-the-loop AI to analyze photos of damaged products and determine the appropriate course of action. Tan emphasized the need for enterprises to offer consumers a choice between self-serve options and human interaction. Danny Tomsett, CEO of UneeQ, echoed this sentiment and stressed that not all consumers are the same. Providing personalized and empathetic experiences is key, especially in industries like telecom where customers often feel intimidated. Incorporating digital humans like UneeQ’s Sophie can significantly improve conversion rates and make customers feel more comfortable expressing their concerns.

## Amplifying Human Skills with AI

While AI can automate some conversations in customer service, it should also be used to amplify human skills. McDermott noted that the skill package for customer service agents will change in the coming years, focusing less on efficiency and more on empathy and problem-solving. Large language models (LLMs) have the ability to reason and predict, but the industry is still in the early stages of trusting applications that leverage this reasoning. As AI continues to evolve, the focus of CX will shift from throughput and speed to quality and sentiment. McDermott believes that the next significant transition in customer experience will be the integration of AI applications that provide scaffolding, governance, and leverage reasoning.

In conclusion, it is essential for retailers and brands to meet their consumers’ expectations and serve them in the way they prefer. By adopting AI technologies that enhance personalization, amplify human skills, and prioritize empathy, companies can provide exceptional customer experiences in the digital realm.

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