Revolutionizing CXM with Generative AI: Insights from Everest Group’s Enterprise Readiness Report

The integration of generative AI into Customer Experience Management (CXM) is heralding a new era of digital transformation. Everest Group’s extensive report, “Generative AI in CXM: Assessing Enterprise Readiness for this Disruptive Transformation,” led by industry experts Shirley Hung, Sharang Sharma, Divya Baweja, and Mohit Kumar, provides a deep dive into the readiness of enterprises for this shift.

Understanding and Potential of Generative AI in CXM

The report begins by highlighting the rapid development of generative AI technologies, such as OpenAI’s ChatGPT, Google’s AI solution Bard Gemini, and Microsoft’s Copilot. These advancements have piqued the interest of enterprises in their potential to revolutionize CXM operations. The findings show that over 75% of enterprises are well-aware of generative AI’s capabilities in text generation, with code generation and image generation also recognized by a significant margin.

Key Drivers and Deployment Areas

One of the report’s key insights is the identification of major drivers for generative AI adoption in CXM. Enterprises are increasingly leaning on generative AI to enhance customer satisfaction through personalized interactions. Generative AI is also seen as a vital tool for improving operational efficiency in CXM, with applications in areas such as agent assist, language translation, and sentiment analysis.

The report notes a strategic shift towards deploying gen AI in various CXM operations, including internal IT and HR support, customer support on non-voice and voice channels, and data and analytics.

Challenges in Adoption and Enterprise Readiness

Despite the optimism, the report underscores several challenges hindering generative  AI adoption. These include technological infrastructure constraints, data privacy and security concerns, and the lack of adequate talent. Moreover, cultural inertia and regulatory ambiguity further complicate the adoption process.

To assess enterprise readiness, the Everest Group surveyed 200 companies across North America, UK and Europe, and Asia Pacific. The survey reveals a mixed picture of readiness across industries, with telecom & media appearing most prepared for generative  AI adoption, followed by BFSI, healthcare, retail, and technology sectors.

Investment and Deployment Roadmap

Enterprises are strategically investing in generative AI initiatives, engaging in pilot projects, and emphasizing workforce upskilling. The report highlights how leading companies like Morgan Stanley and AT&T are utilizing gen AI for internal operations, while others like Expedia Group and Sephora are leveraging it for customer-centric solutions.

The decision-making process regarding in-house development versus outsourcing gen AI solutions is also discussed. The report indicates that nearly 60% of enterprises seek third-party support for technical and strategic aspects of gen AI implementation.

Data, Technology, and People Preparedness

The report extensively covers readiness in technology, data, and human resources. In terms of technology, concerns like computing power and scalability are highlighted. Data readiness emphasizes the importance of high-quality training data, while concerns about data privacy and security are also raised.

The people aspect underlines the need for skilled AI/ML engineers, data scientists, and software developers. The report notes that less than half of the surveyed enterprises feel prepared in these technical domains, highlighting a significant talent gap.

Concluding Insights

Key insights include the following:

  • At least half of the surveyed enterprises believe they are ready for generative AI implementation.
  • More than 45% of enterprises say a shortage of internal technical expertise is the foremost challenge in the people part of generative AI solution implementation.
  • Approximately 95% of telecom & media, technology & FGT, and retail organizations, along with over 80% of organizations in BFSI, recognize the transformative potential of generative AI’s text generation capabilities for CXM operations.
  • AI adoption readiness varies significantly among industries across technology readiness, data preparedness, people readiness, process readiness, change management, and previous experience with transformative technologies.
  • Telecom & media leads in preparedness for generative AI adoption, with approximately 65% of surveyed enterprises being highly ready across parameters favorable for gen AI implementation.
  • Over 70% of surveyed enterprises from the BFSI and healthcare sectors noted regulatory compliance issues with generative AI as potential challenges to their ability to adopt the technology.

Everest Group’s report concludes by emphasizing the transformative potential of generative AI in CXM. However, it also cautions enterprises to be mindful of the challenges and to invest strategically in technology, talent, and data to harness the full potential of gen AI.

This report serves as a crucial guide for enterprises looking to navigate the complex landscape of gen AI in CXM, offering valuable insights into readiness, challenges, and strategic directions for successful implementation.

We recommend a deep dive into the report to learn more.

The post Revolutionizing CXM with Generative AI: Insights from Everest Group’s Enterprise Readiness Report appeared first on Unite.AI.

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