The Impact of AI on Customer Experience in 2024: A Forrester Report Summary

Discover Forrester's 2024 insights on AI in customer service. Generative AI will boost CX metrics, transform skeptic views, and face regulatory challenges.
Emel Dogrusoz

Emel Dogrusoz

October 16, 2024

min read

CUSTOMER SUPPORT

As a leading provider of AI-integrated customer service solutions, we are keenly following trends and predictions in the industry. The Forrester Planning Guide for 2024 offers invaluable insights, and we are excited to share a summary of these findings, along with our own perspectives, in this blog.

The Rise of Generative AI in Customer Experience

Forrester's 2024 predictions highlight a transformative shift in customer experience (CX) driven by the integration of generative AI (genAI). This year, CX leaders are poised to harness the power of genAI to significantly enhance customer interactions and operational efficiency. However, the successful deployment of AI will depend on identifying and leveraging the right drivers of CX performance​ (Forrester)​​ (Forrester)​.

Key Insights and Statistics

  1. Improvement in CX Metrics: For the first time in three years, the global average customer experience is expected to improve, largely due to genAI. Customer service agents, empowered by AI, will resolve issues more efficiently, leading to quicker and more satisfactory resolutions​ (Forrester)​​ (Forrester)​.

  2. Adoption Among Skeptics: By the end of 2024, 60% of genAI skeptics will be using and valuing the technology, whether they realize it or not. This includes applications in enhancing creativity and productivity, such as conversational assistants and content summarization​ (Forrester)​.

  3. Investments in Custom AI Solutions: Major advertising agencies will invest a combined $50 million in partnerships to develop custom AI solutions. These solutions aim to scale personalized marketing campaigns and enhance brand experiences​ (Forrester)​.

  4. Regulatory Focus: As genAI continues to grow, it will attract regulatory scrutiny, especially concerning the handling of personally identifiable information (PII). Companies will need to bolster their risk management practices to mitigate potential regulatory challenges​ (Datanami)​.

Challenges and Considerations

  • Linking CX Metrics to Financial Outcomes: Although many organizations will report CX metrics, only a small fraction will successfully link these metrics to financial outcomes. This gap underscores the need for CX leaders to tell compelling financial stories and demonstrate the business value of their CX initiatives​ (Forrester)​.

  • Balancing AI with Human Capabilities: Effective CX strategies will require blending the analytical power of AI with uniquely human capabilities such as empathy and emotional intelligence. This approach will help build trust and loyalty among customers​ (Forrester Research, Inc)​.

Conclusion

Generative AI is set to revolutionize customer experience in 2024, offering significant benefits in terms of efficiency and customer satisfaction. However, to fully realize these benefits, CX leaders must focus on strategic implementation, linking CX initiatives to financial outcomes, and balancing AI capabilities with human touch.

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