85% of customer service leaders to pilot conversational generative AI in 2025

New research has revealed that 85 percent of customer service and support leaders plan to explore or pilot conversational generative AI solutions in 2025.

The findings come from a survey conducted by Gartner between July and August 2024, and  highlight a major shift in the adoption of customer-facing generative artificial intelligence (AI), reflecting its increasing role in shaping customer experience (CX) strategies. Gartner defines conversational generative AI as customer-facing generative AI applications, such as bots. It differs from other types of generative AI that are designed to assist back-end processes, such as agent knowledge bases.

The consultancy's research found 44 percent of leaders are exploring customer-facing generative AI voicebots, while 11 percent are already piloting this technology and five percent have already deployed it.

The survey, which questioned 187 customer service leaders, also underscored a transformation in how organizations approach AI. Traditionally the domain of IT teams, AI strategy is now being spearheaded by customer service leaders. Nearly half (47 percent) of respondents stated their department is primarily responsible for identifying AI opportunities, compared to just 19 percent who see this as IT’s domain. Also, 40 percent of leaders noted that customer service teams are road mapping AI evolution, with 28 percent citing shared responsibilities with IT.

While AI strategy increasingly lies with customer service, technical implementation remains an IT function. Over half of respondents (55 percent) identified IT teams as responsible for developing AI solutions, while 57 percent said IT handles operational support. However, AI adoption itself is a shared effort, with 53 percent of respondents pointing to a collaborative approach between IT and customer service.

Rising expectations and the need for upskilling

The rise in AI adoption is not without its challenges. According to the survey, 64 percent of customer service leaders plan to spend more time in 2025 upskilling on technology. This comes in response to growing pressure from executive leadership, with more than 75 percent of leaders feeling a mandate to successfully implement generative AI initiatives.

“The customer service function has evolved from a historically people-and-process-driven role into one with significant technological influence,” said Kim Hedlin, senior principal of research in Gartner’s customer service and support practice. “This shift is driven by executive expectations for customer service to lead GenAI initiatives, making upskilling a necessity rather than a choice.”

Addressing barriers to AI implementation

Despite the enthusiasm, organizations face several hurdles. For conversational generative AI to function effectively, robust and up-to-date knowledge libraries are essential. However, 61 percent of survey respondents reported backlogs in editing articles and over one-third admitted to lacking formal processes for revising outdated materials. These gaps could slow AI deployment and compromise its potential.

Real-world applications of AI

Many organizations across industries are already leveraging AI to redefine their customer service experiences:

• HotelPlanner.com has introduced AI booking agents that manage inquiries and reservations. These agents, trained on datasets from real interactions, communicate in multiple languages and handle complex tasks such as hotel recommendations, price quotes and payment processing.
• Reddit is testing a feature called Reddit Answers, powered by generative AI. This tool searches posts on the platform to respond to user queries, offering curated summaries and linking to related communities. Initially available in English to a limited US-based audience, Reddit plans to expand the functionality globally.
• In the financial sector, the Commonwealth Bank of Australia utilizes generative AI to enhance fraud detection and customer interactions. With the aid of generative AI, the Bank flags thousands of transactions that look suspicious every day and sends 20,000 proactive warning alerts per day to retail customers via its app.
• Totaljobs Group leveraged generative AI and large language models (LLMs) to power its AI Job Search Companion to deliver support to job seekers that is empathetic and enthusiastic.

CX implications: The promise of AI-driven personalization

The rise of customer-facing generative AI represents a pivotal opportunity to improve CX. By streamlining interactions and offering faster, more accurate responses, AI can significantly enhance customer satisfaction. However, companies must balance efficiency with empathy – a hallmark of exceptional CX.

For example, personalization is increasingly vital. Customers expect interactions to reflect their unique preferences and histories. AI solutions powered by generative AI can analyze vast amounts of customer data to deliver tailored experiences, but they must be seamlessly integrated with human oversight to avoid pitfalls like miscommunication or bias.

What does the future look like? 

The Gartner survey points to a future where customer service leaders are not just participants but key drivers in AI adoption. To succeed, companies must address barriers such as knowledge management and ensure collaboration between IT and customer service teams. Equally critical is a commitment to training, ensuring that leaders and frontline staff alike are equipped to maximize AI’s potential.

As we move into 2025, conversational AI stands poised to redefine the customer service landscape. For businesses, the challenge will be not only to adopt these technologies but also to align them with a CX strategy that prioritizes human-centric values.

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