home Artificial Intelligence - AI, Customer Experience Zendesk forecasts a radical overhaul of the customer experience industry

Zendesk forecasts a radical overhaul of the customer experience industry

Zendesk released its Future of AI-powered CX report, predicting a seismic shift in the customer experience industry within the next three years. Nearly 90% of industry leaders anticipate the demise of traditional CX, paving the way for innovative practices.

Kellie Hackney, Country Lead for Australia, stated, “Australian CX leaders have expressed a strong belief that traditional CX will become obsolete by 2027. Over 90% of them foresee a radical transformation of industry dynamics. These trends align with growing customer expectations and the imperative for businesses to embrace AI to meet those demands.”

The Future of CX Organizations

Zendesk envisions a future where CX organizations become leaner, faster, and more effective, with AI at the forefront of streamlining processes, personalizing engagement, and handling a higher volume of customer interactions. This evolution is expected to lead to smaller CX teams, as 82% of industry experts predict a downsizing due to AI’s ability to simplify operations while delivering high-quality service.

Craig Flower, Chief Information Officer at Zendesk, emphasized the pivotal role of AI in all customer interactions, moving beyond traditional, manual service to more advanced, technology-driven experiences. He stressed the importance of leaders proactively adjusting their strategies to navigate these anticipated changes and leverage AI to its fullest potential.

AI’s Impact on Customer Interactions

AI will play a central role in every customer interaction, handling initial inquiries and ensuring consistency across all service platforms. It will also track the performance of both human and AI agents to deliver exceptional service. With AI projected to resolve 80% of interactions, human agents will focus on more complex tasks, while AI utilizes data to tailor and improve each customer’s experience.

The report also forecasts a fivefold increase in customer service interactions, with leaders confident in AI’s ability to maintain quality service. This shift will streamline operations, sharpen decision-making, and enhance market competitiveness. As AI takes over routine tasks, it will enable teams to be more efficient and control costs, allowing for effective scaling of business operations even as customer interactions increase.

Tech-Savvy Agents: The New Norm

AI’s impact on CX organizations will reshape the roles of agents, admins, and leaders, prioritizing specialized skills. 74% of Australian CX leaders believe that within three years, agents will primarily handle complex escalations requiring in-depth troubleshooting and support. Agents will need to develop enhanced technical skills and a deeper understanding of technology, including proficiency with AI tools, advanced problem-solving, and continuous learning.

Admins as Strategic Guardians

Admin roles are poised for a significant transformation, becoming proactive guardians of business operations. They will increasingly rely on AI copilots and smart tools to manage automated interactions and drive AI-driven improvements. Admins will need to master using AI to enhance team performance, employ no/low-code tools for automation, make data-driven decisions, and balance workload between humans and AI to meet customer needs.

CX Leaders as AI Integrators

Industry leaders will evolve into customer-centric visionaries, equipped with a deep understanding of customer needs. They will proactively apply AI, leveraging real-time data for enhanced customer experiences and collaborating across departments to safeguard customers and innovate based on AI insights. This transition will empower CX leaders to deploy AI strategically, make smarter decisions, and guide their teams through emerging tech trends and evolving customer behaviors.

The Rapid Pace of Change

Staying agile and ready for future shifts in the CX landscape is vital for sustained success. As the industry progresses, keeping pace with rapid advancements in AI technology will be crucial.

Kellie Hackney commented, “A large majority of Australian CX leaders believe, as we do, that the CX department will finally become a revenue driver. Businesses that have embraced automation in CX are unlocking incredible opportunities to drive productivity, exceed customer expectations, and achieve growth in our rapidly evolving market.”

For a detailed analysis and insights into the potential challenges facing CX leaders, download the complete Future of AI-powered CX report.

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