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Conversational AI investments in APAC driven by CX and business expansions: report 

by Brandon Yulolo

-

July 31, 2023

Conversational AI Investments in APAC driven by CX and business expansions: report

Kuala Lumpur – The shift in customer communication preferences has been found to lean noticeably towards conversational interactions, making more companies expand and invest towards conversational commerce. This was according to the latest data from an InfoBrief provided by global cloud communications platform Infobip, and IT market research and advisory firm IDC. 

The InfoBrief by Infobip and IDC suggested that the potential of conversational commerce is now being employed and recognized, with tools such as CPaaS and SaaS enabling businesses to provide a seamless, customer journey that’s visible across multiple touchpoints.

The increasing popularity of customer-centric business strategies among brands in the Asia Pacific region reflects consumers’ present attitudes and expectations. 70% of organisations in the region plan to increase communication platform spending in 2023–2024, despite the fact that only a few countries use CPaaS on average at 50%–59%, in order to offer distinctive customer experiences to the region’s expanding social media users, who are primarily young, active, and conscious of the power of their own influence.

All nations intend to spend money on CPaaS and SaaS solutions in the near future, but their reasons are claimed to be very different. Businesses in Indonesia and Singapore strive to improve customer experiences and develop new revenue streams, while those in China, Thailand, and the Philippines are driven to expand their domestic and global markets as well as improve and mobilise their business operations. This is probably owing to the latter countries’ booming retail and e-commerce sectors and overall greater adoption rate of CPaaS solutions, which is around 60% and above.

Nikhil Batra, research director of telecommunication for IDC Asia/Pacific, said that CPaaS solutions are increasingly recognized as crucial catalysts for enabling conversational commerce experiences.

“In fact, 27% of businesses in Asia Pacific are actively partnering with CPaaS platform providers to deliver contextualised customer interactions that not only boost profitability but also foster emotionally fulfilling engagements. This trend highlights the increasing importance of leveraging these technologies to meet customer demands and achieve business success,” he added.

Meanwhile, Velid Begovic, vice president of revenue at Infobip, commented, “Businesses position themselves to forge ahead, leveraging AI technology to create connections and unlock new growth opportunities, whilst organisations need an actionable, customer-centric strategy and the ability to invest in the right tools to grow the business and keep customers happy. By aligning their strategies with conversational commerce, businesses can proactively meet customer expectations, enhance engagement, and establish long-lasting relationships.”

Related Tags Technology Artificial Intelligence Asia Pacific IDC CX Infobip
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