Artificial intelligence is the branch of computer science concerned with making computers behave like humans.
As much freaky as it sounds, Artificial Intelligence (AI) is no longer a work of science fiction where machines would take over the world a la The Matrix. AI has been around for decades, and it has proved its superiority over human intelligence several times. For instance, when IBM’s supercomputer Deep Blue beat the world chess champion Garry Kasparov in 1997. And, that was almost 20 years ago!
One of the most significant developments in AI on the Indian map has been the recent investment made by Ratan Tata in Techbin Solutions Pvt. Ltd.’s Niki.ai, an AI-fueled chatbot that conducts conversations with customers to assist them to order a wide range of services using a chat interface.
HOW DOES AI FIT INTO CUSTOMER EXPERIENCE AND ENGAGEMENT?
In the last 5 years, organizations have been struggling to build superior customer experiences and strong engagement into their marketing efforts. Here are some interesting statistics to highlight.
A Gartner study indicates that 89 per cent of companies expect to compete mostly on the basis of customer experience from 2016 onwards.
Gartner also predicts that by 2020, the customer will manage 85 per cent of the relationship with an enterprise without interacting with a human.
An American Express report states that more than 50 per cent of customers are willing to spend more in the companies that provide excellent customer service. Indians are ready to spend 22 per cent more (highest across 10 markets under the scope of the study). In fact, 80 per cent of Indians have spent more in a company on the basis of a history of positive customer experience! Customers are drawn towards experiences and it is these experiences that make them loyal to the organizations. Hence, it becomes crucial for the organizations to understand what creates unique & positive experiences and how to create such ones for customers.
The prime potency of AI lies in its ability to collect large volumes of data at a very high speed, recognize patterns, learn from them and enable better decision-making. Everyday, we create 2.5 quintillion bytes of data — so much that 90% of the data in the world today has been created in the last 2 years alone, says an IBM estimate! Social media itself generates petabytes of data!
AI is the next big thing in the world. Both customers and businesses are set to gain immense benefits. However, businesses must ensure that they use AI intelligently to offer personalized experiences. Experiences can be engineered through AI, but ultimately it is the customers who own the experiences. So, it is important to strike the right balance. As Paul Greenberg, the author of the best-selling CRM at the Speed of Light, defines customer experience aptly.
If a customer likes you and continues to like you, they will do business with you. If they don’t, they won’t”.