As Australian businesses continue to grapple with data security and privacy concerns, they remain on the back foot when it comes to navigating data management amidst the rise of AI.
A recent poll conducted at a Melbourne event by customer engagement platform Twilio finds that over a third of businesses (34%) say data security is the key issue preventing them from fully leveraging AI. Furthermore, one in two (51%) Australian businesses do not have a clear strategy in managing data in the age of AI.
“In an era where brands need to move beyond personalisation to individualising the customer experience across multiple channels, they need to be transparent about how they use AI, balancing privacy with enhancing the quality of interactions between brands and consumers,” said Nicholas Kontopoulos, Vice President of Marketing, Asia Pacific & Japan at Twilio.
The poll also highlighted the battle to win over customers today weighed down by current cost pressures. The top concerns include the struggle to stay relevant and keep up with changing needs (35%), responding to price sensitivity (34%) and cost of operating customer experience (CX) (22%).
In his presentations to the audience of customer experience (CX) and marketing professionals, Kontopoulos shared that AI has significantly improved customer interactions for clients like Trade Me and Marks & Spencer.
New Zealand’s largest online website Trade Me’s use of AI for predictive modelling in marketing campaigns resulted in a 20% increase in campaign open rates and a 10% boost in click-through rates. This improvement translated into 2-3 times better ad campaign performance, showcasing AI’s power in transforming customer engagement and marketing effectiveness.
Kontopoulos said, “The interest in and investment in AI for CX are creating new opportunities for brands to enhance customer experiences and drive brand advocacy. As businesses face growing pressures to address data security and operational costs, AI, when used within the confines of a robust privacy framework, can optimise human interactions and reduce redundant manual processes, resulting in better resource utilisation and increased cost efficiency.”