The Guide to AI in Customer Experience - SmartKarrot Blog

The Guide to AI in Customer Experience

AI can enhance the customer experience in almost every way. Here we’ll explain why companies invest in AI and its uses in customer experience.

Guide to AI in Customer Experience

Over the last few years, the digital revolution has changed the way businesses relate to customers. With the increasing expectations of customers, companies need to look out for new ways to interact and improve their processes and service quality. In this context, many organizations are leveraging AI to boost their customer experience (CX) with more innovative techniques.

As per a prediction made by Gartner, in 2019, 25% of all customer interactions were automated through AI and machine learning. Furthermore, with 90% of companies now planning to deploy AI within three years, this number is expected to grow to 40% by 2023. 

AI is potentially in demand because it can analyze and process a large amount of data from multiple sources, including human behaviors and emotions, thus helping create a superior customer experience (CX). Therefore, you need to think about how AI can help you enhance CX for the longer run.

In this blog, we’ll explain why companies invest in AI and its uses in customer experience.

How is AI Being Applied to Improve Customer Experience?

AI has become a keystone of customer service, but it’s also mixed with consumer sentiment. For example,  37% of customers would prefer getting instant help from virtual assistants and chatbots rather than waiting for a human agent. AI might be growing at an unparalleled pace, but that growth will only last as long as tools enhance the customer experience.

Progressive companies understand that AI is only worth its abilities if it adds value to customer experience. So here are some CX-friendly ways you can implement AI.

Virtual Assistants and Chatbots for enhanced CX

AI can significantly impact customer experience by making it automated, fast, and hassle-free. Chatbots, for example, are precisely programmed for various customer-engagement scenarios like simulating human communications and provide instant, personalized responses.

This process will eradicate any needless delays and loopholes in customer service, specifically while managing grievances. Besides, automated responses to customer queries will help companies reduce training time for support teams and save revenue in handling repetitive questions.

In addition, AI-powered virtual assistants can help you distribute content more effectively in various digital channels to target the right audience.

For instance, many e-commerce platforms use Facebook’s Messenger Bot to communicate with shoppers and help them find what they are looking for. Combined with machine learning, AI isn’t just about chats but can also help include lead-generation marketing to increase productivity and brand awareness. In addition, it can identify quality leads by ensuring that sales teams target potential customers for the right platforms.

Predictive personalization to understand customers

AI uses effective predictive personalization to enhance CX by aligning it with customers’ everyday lives. The AI-powered personalization will make customers feel as if every product and brand experience is tailored for them.

Predictive personalization comes in handy for online shopping, where you can analyze the data collected from consumer behavior during online sessions.

You can quickly assess individual shopper records and user behaviors to predict and deliver the right items to their home. Also, AI-infused procedures will make customer experience interaction smoother and streamlined.

AI-enabled analytics for vital customer insights

You can offer an optimal CX when you remember your customers and treat them with dedication, respect, and attention throughout their journey. AI can play a pivotal role in your CX journey by providing actionable insights by feeding intelligence into marketing automation, CRM, and other critical operational tools.

AI-enabled analytics can sift through a more extensive and complex data space, thus covering multiple business opportunities. As a result, you can spend your time arranging these insights rather than working on underlying data.

Customer Engagement through voice, visual, and text 

Voice and text-based sentiment analysis, plus visual engagement, will help you measure user emotions in different types of communications. For example, the AI-based face recognition technology observes and examines facial expressions in video conferences and face-to-face conversations.

This enhanced processing will also use different vocal attributes and modulations in phone calls to understand emotions. Using these algorithms, you can determine how to process communications and identify satisfaction. Moreover, it will help you bring positive sentiments to increase lifetime values to achieve more business and profitability.

A tremendous shift in decision making

You can measure the success of AI in more practical ways like ROI, new market opportunities, etc. All these accomplishments can be made through a dramatic shift in terms of decision-making.

The power of AI, ML, and big data has facilitated a decision-making metric. As a matter of fact, decisions can’t be entirely made on intuition and guts. In contrast, decisions should depend on data. So, whether it’s customer services processes or product reviews, AI lets you make smarter decisions. It leads to an enormous change in the decision-making strategies of the health, financial services, and automotive sectors.

Let’s take an example of the automotive industry, and this sector has developed numerous AI applications, from vehicle design to sales and marketing decision-making support. AI modeling and simulation offer an excellent grasp of varying customer behavior, which is the key to making the best marketing decisions in the longer run. 

Adding more value to customer experiences with AI

Forward-thinking organizations are regularly trying to determine the best ways to implement AI to boost customer experience. These businesses have different customer data sources, used machine learning algorithms, and analyzed extensive customer journeys to identify pain points and predict impending customer behavior. Consequently, they leverage the benefits through assessable enhancements in customer experience, reduced churn, and increased customer lifetime, loyalty, and value. AI opens the doors for enterprises to augment their understanding of customer goals and their journeys to achieve those goals.


The future possibilities of Artificial Intelligence are intractable, and it’s here to stay. It’s important to understand that AI-driven customer analysis will be essential to deliver an impeccable customer experience quickly and efficiently.

It’s time to start recognizing AI as a significant competitive advantage. In all sorts, AI can and will improve every aspect of customer experience.

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