Two out of five customers (43%) are concerned about the ethical use of artificial intelligence, according to a report by CX Network, a customer experience expert.
29% of CX professionals report a positive impact on customer loyalty as a result of using generative AI, but with customers flattening their understanding of how AI works and uses company data, 55% of CX professionals agree that privacy and data security are becoming increasingly important to customers. As a result, customers demand stricter security regarding data privacy and desire greater transparency in how companies implement AI.
The findings, highlighted in CX Network’s flagship report, “The Global State of CX 2024,” outline the latest trends in CX and customer behavior.
The report, based on survey responses from 282 CX professionals, service leaders, experience designers, analysts, and consultants, covers CX trends, technological developments, and customer behaviors from the past year.
The report found that automation is the top investment priority for CX in 2024, with 42% of professionals citing it as their main focus. Other investment priorities included data knowledge and analysis (38%) and chatbots and AI virtual assistants (28%).
While investments in AI technologies are becoming necessary, 42% of professionals cited proving return on investment as the most common barrier to implementing these investments. CX professionals will face pressure to demonstrate the value of their spending plans, experts reveal.
Jaakko Lempinen, head of customer experience at YLE Finland, stated: “Transparency is crucial. Companies should be open about how AI technologies are used in their operations, especially regarding how data is collected, analyzed, and utilized to enhance CX. This includes clearly disclosing the purposes of data collection and the benefits for the customer, ensuring an understanding of the value exchange.”
He emphasized, “Organizations should actively engage customers in the development of AI solutions through feedback loops, allowing them to express their concerns and preferences. Engaging in dialogue about AI and its role in CX helps demystify the technology for customers and builds a foundation of trust.”
“Collaborating with regulators, industry groups, and other stakeholders to shape the future of ethical AI use not only positions the organization as a leader in this space but also helps ensure that the development of AI technologies benefits all stakeholders in the CX ecosystem,” he added.
Anna Noakes Schulze, head of community experience at The NTWK, said: “CX often adopts technology after other functions, such as marketing, where cutting-edge technologies are needed to capture customer attention in new and inventive ways. Customer experience is tasked with nurturing and maintaining the customer relationship, which naturally lends itself to more conventional approaches with lower risk that already have a proven track record. These conservative trends work against experimenting with cutting-edge technology, except for rare cases like generative AI, where efficiency gains almost guarantee a positive return on investment.”
She concluded: “If these technologies are not yet significant to your customers, then pay attention to what the more future-oriented brands are doing and see what you can learn from their initiatives.”
