There can be no doubt that artificial intelligence (AI) is gaining significant traction in the world of CX. Simply put, it’s revolutionizing the way businesses interact with customers.

For evidence, you need look no further than the latest CX Network report on the global state of CX, in which it is revealed that conversational AI and other AI-powered technologies were among the 10 trends that are changing the role of the CX practitioner in 2023.

To stay ahead of the curve in the highly competitive business landscape of the Asia-Pacific region, many APAC businesses are turning to AI-powered solutions to elevate their CX offerings and meet ever-rising expectations among consumers.

Why are CX teams in APAC using AI?

There are plenty of other good reasons for CX teams in APAC to add AI to their armory. The technology offers the potential to drive efficiencies and reduce costs in CX operations. AI platforms designed for CX purposes bring a range of capabilities to the table, combining natural language processing (NLP), machine learning and automation to provide seamless customer interactions. AI tools can analyze vast volumes of data, gauge customer sentiment and deliver personalized experiences at scale.

The list of use cases for AI in CX is long. According to an Economic Times India report, insurance and healthcare companies in Asia are leveraging AI power image analysis across digital customer journeys in underwriting, risk analysis, onboarding and claims processes. Another example from the report includes the launch via WhatsApp of Miss Pepper, an AI powered chatbot, by Indian budget airline SpiceJet to automate its check-in process and provide enhanced customer experience.

Moreover, CX teams in APAC are seeing clear results from their AI implementations. In CX Network's Contact Centers APAC Expert Insights eBook, Christopher Douglas, director of member services for the Pacific at Accor Plus, reveals that combining AI-assisted chat with agent interactions and self-service has coincided with a rise in customer satisfaction by 23 basis points.

Challenges and risks of AI

It’s evident that the integration of AI within CX brings numerous benefits. APAC CX teams should, however, note that there are significant challenges and risks.

One key concern among customers is the usage and security of their personal data. As AI platforms rely on data analysis to deliver personalized experiences, customers might be wary of potential misuse or mishandling of their information. These concerns are not always unfounded.

The case of ScatterLab of South Korea serves as a cautionary tale. Data from 10 billion conversation logs, originally collected for a dating counseling service, were used by ScatterLab to develop and operate an AI chatbot called Lee-Luda. Within weeks of the chatbot’s launch in December 2020, it became clear that the dataset included personal and sensitive information, which Lee-Luda exposed. It also included abusive and sexually explicit comments which the chatbot used in customer interactions.

ScatterLab was fined approximately US$93,000 by the South Korean government for violating the Personal Information Protection Act (PIPA).

To address any privacy concerns, organizations should prioritize transparency and data privacy, as well as implementing stringent data protection measures and adhering to the regulations of the relevant APAC territories.

Another challenge is meeting customer expectations. According to a Computer Weekly report citing a survey by Zendesk, 73 percent of consumers in APAC want chatbots to provide the same level of service as humans.

A potential solution is regularly monitoring and analyzing customer interactions to identify areas where AI could struggle and make necessary adjustments. Additionally, human oversight and human-AI hybrid models can help to ensure a seamless customer experience, providing the necessary human intervention when AI encounters difficulties.

Companies using AI for CX

In spite of the challenges, there are plenty of APAC companies successfully leveraging AI in their CX operations.

For example, tech manufacturer OPPO India teamed up with Skit.ai, a voice AI software-as-a-service (SaaS) firm, to introduce a 24×7 AI-powered customer support solution. The augmented voice intelligence platform was designed to provide instant and efficient responses to all customer queries, even after business hours, eliminating any waiting time by leveraging complete end-to-end automation.

Similarly, Woolworths of Australia, serving around 14 million online shoppers a week, found many of its customer inquiries were related to transactional tasks, simple questions about store hours or marketing promotions. In response, the company built a smart IVR by integrating the Genesys Engage on-premises solution with Google Cloud Dialogflow. The result was Olive, a voicebot powered by conversational AI.

Alex Colorado, engineering manager – conversational AI at Woolworths, explains: “Leveraging the open APIs of Genesys, we created a smart search feature that recognized more than 30,000 products in just three months. The customer simply says ‘the oranges are missing from my order’. Olive then cross-checks, processes a refund and sends a text confirmation to the customer – all without human intervention.”

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Preparation for the implementation of AI

For APAC CX teams looking to harness the power of AI, there are several steps they can take to increase their chances of success.

Writing for Harvard Business Review, David C. Edelman and Mark Abraham suggested that companies looking to build an AI engine should think about the end-to-end customer experience – considering how to “design the flow of a given moment, the information needed to support it and the cross channel or cross-party connections (for instance, between in-store and online or in mid- or post-experience) required to successfully complete the interaction”.

They should also think about the experiences that they want to revolutionize. Once they’ve decided on the answers, Edelman and Abraham recommend researching a few customer records in the CRM and marketing automation platforms to determine whether the relevant data has been captured.

Conclusion: When it comes to AI, be proactive but remain cautious

By taking such proactive steps, addressing the challenges and mitigating the risks, companies across the Asia-Pacific region can harness the power of AI to transform their CX strategies and stay ahead in the competitive market landscape.