IDC Shares Generative AI Implications on Customer Experience in Asia/Pacific

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In the recent IDC report, Applications of Generative AI in Customer Experience, IDC discusses the generative AI (Gen AI) landscape and its implications on customer experience (CX). IDC's FERS 2023 Survey Wave 2 APJ results show 70% of Asia/Pacific C-suite executives are either exploring generative AI use cases or already investing in them.

"Gen AI holds immense potential for CX. Experimenting with this technology will also help determine which use cases – customer facing or employee facing constitute the greatest value for a specific business model. Those technology vendors who identify and iteratively test these factors early with the right metrics will become the game changers." says Lavanya Jindal, market analyst, customer experience and enterprise applications, IDC Asia Pacific.

While the top 5 use cases in Asia/Pacific of Gen AI are knowledge management, code generation, marketing, conversational, and design, the ones that hold the most value in enhancing CX are knowledge management, marketing, and conversational applications. 

Gen AI has multiple benefits when it comes to CX:

• Ability to offer hyper personalized CX through customized insights;
• Enhance employee productivity and efficiency;
• Enable collaborative intelligence – by helping identify the optimal task mix of human and AI.

Despite economic downturns, Asia/Pacific organizations press on with CX investments There are several players in the market which have targeted their generative AI efforts towards conversational applications like Zendesk, Freshworks, Intercom, Salesforce, Baidu, and so on. This highlights the need for technology vendors to accurately identify untapped areas in the customer journey that can be augmented with AI to enhance the overall experiential value for the customer. Through its abilities of text summarization, sentiment detection, manual task automation to name a few, generative AI can help technology buyers deliver elevated experiences to their customers that can translate to improved customer engagement and retention. IDC predicts that by 2025, 45% of the Asia-based 1000 organizations will use AI/ML to elevate context and nudge customers into unfamiliar and novel experiences that simultaneously improve sentiment metrics and brand upsell potential.