How Machine Learning Improves Customer Experience

In customer experience (CX), the closed-loop feedback (CLF) model has been a cornerstone for over two decades, originally designed to ensure responsiveness and adaptation. It's time for a change. With the advent of artificial intelligence, it's clear that merely adapting this model isn't enough. It's old tapes. It needs to evolve. Here's what's next: Real-time Interaction Management: Traditional CLF reacts to feedback after the fact. And, traditionally, closing the "inner loop" requires a human to follow up. AI turns this on its head. Imagine a system that adjusts the customer journey in real-time based on predictive analytics, reducing friction points before they affect the customer experience. Large Action Models: We all know that AI can dive deep into data lakes to instantly identify patterns and root causes of customer dissatisfaction. This rapid analysis allows companies to not only close the feedback loop faster, but also implement more effective solutions. This will come in the evolution of Large Language Models, or LLMs, to LAMs, or Large Action Models. Continuous Learning Systems: AI transforms CLF from a loop that ends into continuous cycle of improvement. These systems learn from each interaction, constantly updating and refining strategies to enhance the customer experience. This means that the feedback loop is ever-evolving, driven by AI's ability to adapt to new information and complex variables, seamlessly. CX leaders have to embrace AI's potential to redefine our foundational practices. It's time to innovate beyond the traditional CLF and leverage AI to deliver personalized experiences, and at scale. How are you thinking about adaptive, predictive, and personalized CX strategies? Your answer can't be to hire more people to close more loops. #customerexperience #ai #journeymanagement #survey #CLF

🧠 Is Generative AI Just Cool, or Does It Really Have an Impact? That's the big debate in tech circles these days. A study led by researchers from Stanford University, MIT, and the National Bureau of Economic Research (NBER) sheds light on this question by examining the real-world impact of deploying generative AI in a customer support environment. Their analysis offers empirical evidence on how AI tools, specifically those based on OpenAI's GPT models, are transforming customer service operations at a Fortune 500 software company. The researchers employed a mix of methodologies: a randomized control trial (RCT) and a staggered rollout, encompassing around 5,000 agents over several months. By analyzing 3 million customer-agent interactions, the study assessed metrics such as resolutions per hour, handle time, resolution rates, and customer satisfaction (Net Promoter Score). To understand the AI's impact over time, dynamic difference-in-differences regression models were used. Here is what they found: 1. 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐁𝐨𝐨𝐬𝐭 𝐢𝐧 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲: The AI tool led to a 13.8% increase in the number of customer queries resolved per hour, particularly benefiting less experienced agents. 2. 𝐍𝐚𝐫𝐫𝐨𝐰𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐆𝐚𝐩: AI tools accelerated the learning curve for newer agents, allowing them to reach the performance levels of seasoned employees more quickly. 3. 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐒𝐚𝐭𝐢𝐬𝐟𝐚𝐜𝐭𝐢𝐨𝐧: The AI deployment resulted in higher customer satisfaction scores (as shown by improved Net Promoter Scores) while maintaining stable employee sentiment. 4. 𝐋𝐨𝐰𝐞𝐫 𝐀𝐭𝐭𝐫𝐢𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞𝐬: Interestingly, the AI support led to reduced attrition rates, especially among new hires with less than six months of experience. 5. 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐞𝐝 𝐖𝐨𝐫𝐤𝐟𝐥𝐨𝐰𝐬: The AI system reduced the need for escalations to managers, improving vertical efficiency. However, its impact on horizontal workflows, like transfers between agents, showed mixed results, suggesting more refinement is needed in AI integration. 6. 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐞𝐝 𝐀𝐈 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: The software wasn’t off-the-shelf; it was a custom-built solution tailored to the company’s needs using the GPT family of language models. This emphasizes the importance of context-specific AI applications for effective outcomes. For leaders, managers, and AI practitioners, these insights are invaluable—highlighting not just the potential of AI, but also the nuanced ways it reshapes workflows, impacts employee dynamics, and transforms customer experiences.So, does generative AI really make a difference? According to this study, the answer is a resounding yes—but it depends on how thoughtfully it is deployed. Link 🔗 to the paper: https://lnkd.in/ejhUfufz

"Learning to walk again, I believe I've waited long enough"  🎤 "Walk" by Foo Fighters Had a fascinating conversation with a group of CS leaders last week about AI. The dialogue reminded me of how we learn to ride a bike - wobbly at first, but gradually our brain forms new patterns until it becomes second nature. AI learns similarly, and it's transforming how we think about #CustomerSuccess. Here's what's blowing my mind: 🔎 Pattern Recognition: Just like how great CSMs spot customer health issues before they become problems, AI is identifying patterns humans miss. At Gainsight, we recently saw this firsthand when Staircase AI detected brewing sentiment issues in email threads that weren't even copied to our CS team. It caught subtle tone changes that signaled future churn risk. 🎯 Learning from Mistakes: Remember your first customer call? AI also improves through trial and error. One thing we've learned from implementing Staircase is that relationship patterns often hide in unexpected places - casual Slack messages sometimes reveal more about customer health than formal QBRs. 🌱 Unexpected Discoveries: The most exciting part? AI is finding patterns we never knew existed. Last week, our system identified a customer at risk not from negative sentiment, but from a sudden shift to overly formal communication - a pattern that often precedes vendor reevaluation. 🤝 Human + Machine Partnership: The future isn't about AI vs humans. It's about how we work together. Our best CSMs are using AI to analyze thousands of customer interactions instantly, freeing them to focus on building deeper relationships. One CSM told me last week: "AI handles the patterns, I handle the people."But here's what keeps me up at night: Are we moving fast enough? While we debate whether to embrace AI, our customers are already experiencing AI-powered experiences everywhere else. What unexpected patterns has AI helped you discover in your customer relationships?

There’s been a lot of discussion about how Large Language Models (LLMs) power customer-facing features like chatbots. But their impact goes beyond that—LLMs can also enhance the backend of machine learning systems in significant ways. In this tech blog, Coupang’s machine learning engineers share how the team leverages LLMs to advance existing ML products. They first categorized Coupang’s ML models into three key areas: recommendation models that personalize shopping experiences and optimize recommendation surfaces, content understanding models that enhance product, customer, and merchant representation to improve shopping interactions, and forecasting models that support pricing, logistics, and delivery operations. With these existing ML models in place, the team integrates LLMs and multimodal models to develop Foundation Models, which can handle multiple tasks rather than being trained for specific use cases. These models improve customer experience in several ways. Vision-language models enhance product embeddings by jointly modeling image and text data; weak labels generated by LLMs serve as weak supervision signals to train other models. Additionally, LLMs also enable a deeper understanding of product data, including titles, descriptions, reviews, and seller information, resulting in a single LLM-powered categorizer that classifies all product categories with greater precision. The blog also dives into best practices for integrating LLMs, covering technical challenges, development patterns, and optimization strategies. For those looking to elevate ML performance with LLMs, this serves as a valuable reference. #MachineLearning #DataScience #LLM #LargeLanguageModel #AI #SnacksWeeklyonDataScience – – –  Check out the "Snacks Weekly on Data Science" podcast and subscribe, where I explain in more detail the concepts discussed in this and future posts:    -- Spotify: https://lnkd.in/gKgaMvbh   -- Apple Podcast: https://lnkd.in/gj6aPBBY    -- Youtube: https://lnkd.in/gcwPeBmR https://lnkd.in/gvaUuF4G

The rapid development of artificial intelligence (AI) is outpacing the awareness of many companies, yet the potential these AI tools hold is enormous. The nexus of AI and emotional intelligence (EQ) is emerging as a revolutionary game-changer. Here’s why this intersection is crucial and how you can leverage it: 🔍 AI can handle data analysis and repetitive tasks, allowing humans to focus on empathetic, creative, and strategic work. This synergy enhances both productivity and the quality of interactions. Imagine a retail company struggling with high customer churn due to poor customer service experiences. By integrating AI tools like IBM Watson's Tone Analyzer into their customer service process, they could identify emotional triggers and tailor responses accordingly. This proactive approach could transform dissatisfied customers into loyal advocates. Practical Application: AI-driven sentiment analysis tools can help businesses understand customer emotions in real-time, tailoring responses to improve customer satisfaction. For example, using AI chatbots for initial customer service interactions can free up human agents to handle more complex, emotionally charged issues. Strategy Tip: Integrate AI tools that provide real-time sentiment analysis into your customer service processes. This allows your team to quickly identify and address customer emotions, leading to more personalized and effective interactions. By integrating AI with EQ, businesses can create a more responsive and human-centric experience, driving both loyalty and innovation. Embracing the combination of AI and EQ is not just a trend but a strategic move towards future-proofing your business. We’d love to hear from you: How is your organization leveraging AI to enhance emotional intelligence? Share your thoughts and experiences in the comments below! #AI #EmotionalIntelligence #CustomerExperience #Innovation #ImpactLab

What CTOs in Banking Should Do with AI for Customer Experience A few months ago, I sat with the CTO of a major bank who shared a familiar frustration: “We’ve invested millions in AI, but our customer experience hasn’t improved the way we expected.” I asked a simple question: “Are you using AI to solve real customer pain points, or are you using it because it’s expected?” That conversation led us down a path that many banking leaders are navigating today—leveraging AI not just for efficiency, but to truly enhance customer relationships. AI and the Future of Banking Customer Experience The global AI in banking market is expected to reach $130 billion by 2030, growing at a CAGR of 32% (Allied Market Research). This isn’t just about chatbots or fraud detection anymore; AI is redefining how banks engage with customers at every touchpoint. McKinsey reports that banks effectively using AI can increase customer satisfaction by 35% while reducing operational costs by up to 25%. The challenge, however, is execution—CTOs must ensure AI is seamlessly integrated into both digital and human interactions. How Leading CTOs Use AI for Customer Experience 1- Hyper-Personalization Example: JPMorgan Chase uses AI to analyze customer behavior and provide real-time loan and investment suggestions, increasing engagement by 40%. 2- AI-Powered Virtual Assistants Example: Bank of America’s Erica, an AI-powered assistant, has handled over 1.5 billion interactions, offering personalized financial insights. 3- Predictive Analytics for Proactive Engagement Example: A European bank using AI-driven insights reduced customer churn by 22% by proactively addressing financial concerns. 4- AI-Enhanced Fraud Detection Example: Mastercard’s AI-based fraud prevention has reduced false declines by 50%, improving trust and security. A Real-World Impact: AI in Action One of our banking clients struggled with high customer complaints about slow loan approvals. By integrating AI-driven document verification and risk assessment, approval times dropped from 5 days to 5 minutes. The result? A 30% increase in loan applications and a significant boost in customer satisfaction. The Human-AI Balance in Banking Despite AI’s capabilities, customers still value human interaction. 88% of banking customers want a mix of AI-powered convenience and human support when dealing with financial decisions (PwC). The key for CTOs is to balance automation with empathy—ensuring AI enhances, rather than replaces, the personal touch. The Road Ahead AI is no longer a futuristic concept in banking—it’s a strategic necessity. CTOs who embrace AI for customer experience, not just efficiency, will lead the industry forward. At Devsinc, we believe the future of banking isn’t just digital—it’s intelligent, personalized, and deeply customer-centric. The question is, are we using AI to replace transactions, or to build trust? Because in banking, trust isn’t just a feature—it’s the foundation.

AI + HI = Improved CX In today’s digital world, businesses strive to deliver exceptional customer experiences (CX) to stand out. While artificial intelligence (AI) has revolutionized CX by enabling automation, personalization, and efficiency, it cannot fully replace the human touch. AI enhances CX by processing vast amounts of data in real time, predicting customer preferences, and providing instant responses through chatbots, recommendation engines, and self-service options. It reduces wait times, offers 24/7 support, and ensures consistency across interactions. However, AI alone has limitations—it lacks emotional intelligence, creativity, and the ability to handle complex, nuanced customer concerns. Human agents bring empathy, critical thinking, and problem-solving skills that AI cannot replicate. When combined with AI, human agents become more efficient, as AI handles routine tasks, provides insights, and allows them to focus on high-value interactions. Impact on BPO KPIs 1. First Call Resolution (FCR) Improvement: • AI-driven knowledge bases and predictive analytics equip human agents with real-time solutions, reducing repeat calls. • Virtual assistants handle routine inquiries, allowing human agents to focus on complex issues. 2. Reduction in Average Handling Time (AHT): • AI-powered tools like speech analytics and automated summaries minimize the time agents spend on after-call work (ACW). • Virtual assistants can gather customer information before handing over to a live agent, speeding up resolutions. 3. Increased Customer Satisfaction (CSAT): • AI ensures faster response times and personalized interactions based on past behavior. • Human agents, equipped with AI-driven insights, can provide more empathetic and accurate solutions, improving overall satisfaction. 4. Enhanced Agent Productivity and Utilization: • AI automates repetitive tasks such as data entry, ticket classification, and FAQs, freeing up agents for complex interactions. • Sentiment analysis tools help agents adjust their approach in real time for better engagement. 5. Lower Cost Per Contact: • AI-driven self-service options reduce the volume of inbound calls and chats, lowering operational costs. • Intelligent routing ensures the right agent handles the right query, optimizing workforce efficiency. 6. Improved Net Promoter Score (NPS): • Personalized AI-driven recommendations and proactive outreach enhance customer engagement. • The combination of AI efficiency and human empathy fosters long-term customer loyalty. The synergy of AI and HI leads to an improved CX by ensuring speed, accuracy, and emotional connection. AI-driven insights empower human agents to offer proactive solutions, while human empathy ensures customers feel valued. AI and HI are not competitors but collaborators. Businesses that successfully integrate both will deliver superior CX, optimize BPO performance, and achieve sustainable growth in an increasingly digital world.

Why Traditional Call Centers Are Transitioning to AI-First Support Customer expectations have evolved. They now demand instant responses, round-the-clock availability, and consistent experiences across every channel. Traditional call-center models cannot meet these requirements at scale - AI can. Key Drivers Behind the Shift Rising Customer Expectations Customers prefer real-time support over waiting on hold. AI enables instant, accurate responses across chat, voice, and digital channels. Increasing Operational Costs Recruitment, training, and agent attrition create ongoing cost pressures. AI manages repetitive queries at near-zero marginal cost, allowing organizations to scale efficiently. High Volume of Repetitive Queries Up to 70% of support requests are routine (order updates, resets, FAQs). AI resolves these immediately, allowing human agents to focus on complex, high-value interactions. 24×7 Availability Is Now Essential While human agents work in shifts, customers expect continuous support. AI ensures uninterrupted service - even during nights, weekends, and peak times. Faster Resolution, Better CX AI can instantly search knowledge bases, suggest responses, and predict next issues, reducing handling time and minimizing customer frustration. Seamless Omnichannel Experience AI connects conversations across chat, email, voice, WhatsApp, and in-app channels, ensuring context moves with the customer. AI Enhances Human Capability AI is not replacing human agents - it is augmenting them. AI handles scale and speed. Humans handle empathy and complex decision-making. The result: higher customer satisfaction and more empowered support teams.

Post 4: CX at Scale—Why Great Experience Falls Apart in Big Companies (And How AI Can Fix It) 🚨 Scaling CX is HARD—especially when you don’t have a holistic plan that balances experience with financial sustainability. When I led Walmart Health’s go-to-market strategy, we had a clear vision: make high-quality healthcare affordable and accessible to more people. But making that vision a reality across thousands of locations required more than just great intentions—it required a CX strategy that worked operationally and financially at scale. Retail health is ultimately a people business. The challenge wasn’t just about processes or technology—it was about ensuring that every clinic had the right team, the right training, and the right culture to deliver exceptional care. The good news is we were building on a strong cultural foundation at Walmart. 🔹 Enter AI: A Game Changer for CX at Scale Now, in my role as Chief Customer Officer at Dragonfruit AI, I see how AI can bridge the gap between scalability and consistency. Large organizations—whether in retail, healthcare, or beyond—often struggle with fragmented data, labor challenges, and operational inefficiencies. AI-driven tools and insights can transform CX by: Predicting & Preventing Customer Issues – AI can analyze millions of customer interactions across locations, flagging patterns in service failures before they escalate. AI Computer Vision can provide real-time insights on customer journeys, wait times and staff.  Instead of waiting for customer complaints, businesses can proactively fix problems. Optimizing Workforce & Training – AI-powered analytics can help companies forecast staffing needs, identify training gaps, and even personalize coaching for frontline employees. The result? More engaged employees and a better customer experience. Enabling Real-Time, Data-Driven Decisions – AI can synthesize customer journeys, feedback, sales trends, and operational KPIs into actionable insights for CX leaders. Retail and healthcare industries have some of the highest employee turnover rates, making consistency and productivity difficult. 💡 The Fix? People, Process, and Technology—Together. Holistic CX Strategy: Experience and financial success must be planned together, not as competing priorities. Employee Retention & Empowerment: You can’t deliver great CX without engaged employees who feel equipped to do their jobs. AI-Powered Insights: Instead of relying on lagging indicators, organizations can use AI to optimize real-time operations. 📢 Takeaway: Scaling CX isn’t just about consistency— it’s about ensuring every location has what it takes to deliver great service, day in and day out and it’s about leveraging AI to create smarter, more adaptive customer experiences. 💬 How do you see AI transforming CX at scale? Let’s discuss! #CXStrategy #Scalability #AIforCX #Leadership #CustomerExperience

I'm excited to announce the launch of AI Refinery for Sovereign and Agentic AI, a groundbreaking platform that deepens our partnership with NVIDIA. This first-of-its-kind platform champions data sovereignty and operational resilience through physical AI, paving the way for enhanced competitiveness in the journey toward agentic AI.   As I've mentioned before, I firmly believe that AI presents a unique opportunity for Europe to reinvent its economy, drive productivity, resilience, and competitiveness, and support future growth. I'm incredibly proud to see the momentum our clients are gaining, including Public Power Corporation, Roche, Kion Group, Noli, and Nestlé.   Nestlé, for instance, is launching a new AI-powered in-house service that will generate high-quality product content at scale for eCommerce and digital media channels. This initiative exemplifies the transformative potential of AI in driving business efficiency and innovation. The expansion of our AI Refinery platform is particularly significant for European organizations, enabling them to accelerate the deployment of AI agents while addressing their sovereignty concerns. This is especially crucial for the public sector and critical infrastructure industries, such as energy, telecommunications, and defense.   We continue to support our clients in maintaining control over their critical data and leveraging innovative AI solutions through this expanded AI Refinery platform. More details here: https://lnkd.in/dvekqfB6 #Noli #Nestle #PublicPowerCorporation #KionGroup #Roche #AgenticAI #AI #Accenture