Around 60% of brands struggle with ineffective AI for customer service

Teddy Cambosa - March 17, 2023

  • Equip yourself with the latest insights and strategies that can future-proof your brand for what's next in the marketing industry. Join our 'What's NEXT 2023: Marketing in Malaysia' hybrid conference on 5 December 2023. Register HERE!

Singapore – A new global study from customer experience management platform Sprinklr notes that around 60% of brands struggle with ineffective AI for their customer service, with only 22% of the respondents reporting having a complete unified customer data to be leveraged for their customer service efforts.

According to the research, 62% of brands acknowledge the inconsistencies in their digital customer communication. This includes not being able to communicate the same information and unable to stay true to their brand voice. The majority of companies are also struggling with ineffective AI solutions (60%) and insufficient resourcing (54%).

Meanwhile, 11% of the respondents admitted that they make no effort whatsoever to personalise interactions. Another 36%, meanwhile, limit personalisation efforts to referencing ‘basic profile details’ in some or all communication. 

The remaining 53% of the respondents are making strides toward personalisation, but only 12% of them are predicting customer needs and proactively tailoring interactions based on specific needs, intentions, or sentiments.

The data also notes that many global brands also suffer from insufficient insights, with 51% of them finding it hard to even capture meaningful data about customers. Furthermore, 67% of companies face difficulty analysing customer data, 64% struggle to unify data, and 63% report challenges in using data to improve customer experience operations.

Lastly, the global research also stated that several leading companies are taking a number of actions to tackle these challenges, with 53% see AI being able to power chatbots and improve customer data as a paramount focus for 2023, and more than 69% planning to invest in technology that reduces agent effort.

For Ragy Thomas, founder and CEO at Sprinklr, providing digital, personalised service is essential for companies to meet consumer expectations, adding that making these interactions more cost efficient and easier for agents is equally as important.

“The challenges uncovered go beyond customer experience and contact centre teams. Insufficient intelligence hurts the entire business. Unified insight about what customers need and how they behave, can dramatically improve how every customer-facing function– from service, to sales and marketing, to product development operates. We’d like to help brands deliver the kind of customer experiences we all deserve,” Thomas said.

He added, “While challenges persist, it’s encouraging to see how many organisations are prioritising investing in the right technology to unify customer service operations and help make their customers and agents happier.” 

The research’s respondents were composed of more than 300 global leaders in the customer contact and customer experience spaces.