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Zendesk report: AI to revolutionise Australian CX by 2027

Wed, 7th Aug 2024

Zendesk has released its "Future of AI-powered CX" report, which forecasts a significant transformation in the customer experience (CX) industry over the next three years. The report suggests that traditional CX practices could become obsolete, driven by advancements in artificial intelligence (AI).

The survey, which included over 1,300 senior CX leaders globally with a sample size of 343 from the Asia-Pacific region, reveals a clear consensus among Australian CX leaders. A majority, 92%, predict that traditional CX will be replaced by AI-driven processes. Additionally, 90% believe that AI will fundamentally change the way CX operates.

Kellie Hackney, Zendesk's Director for Australia and New Zealand, commented on the findings: "Australian CX leaders have told us that they believe traditional CX as we know it will be dead by 2027. Over 90% of them think that the old ways will give way to radically different industry dynamics. These are trends we've been seeing and engineering for a while now. It affirms growing customer expectations as well as the impetus for businesses to embrace AI to meet those rising demands."

The report outlines several key areas of focus for Australian businesses as they adapt to the anticipated AI-driven future. Despite enthusiasm for AI, only 11% of Australian CX leaders identify improving data security or cybersecurity as a top priority. Meanwhile, 20% are investing in new customer experience technology, yet a mere 13% are incorporating Generative AI into their operations. Additionally, 17% aim to optimise self-service support, an area expected to transform the roles of service agents.

With the shift towards AI, the structure of CX organisations is projected to change significantly. Zendesk envisions leaner, faster, and more efficient teams, with AI handling the bulk of customer interactions. According to the report, 82% of experts predict a reduction in team sizes due to AI's capabilities in streamlining processes and personalising engagement.

"In the near future, AI will play a role in all customer interactions, moving us beyond traditional, manual service to more advanced, technologically-driven experiences," said Craig Flower, Chief Information Officer at Zendesk. "That's why leaders are proactively adjusting their strategies now to navigate the anticipated changes and leverage AI to its fullest potential. A transformation won't happen overnight, but there will be a steady progression over time. It's going to redefine roles and improve experiences for CX teams and their customers."

AI is expected to manage 80% of customer interactions, allowing human agents to focus on more complex tasks. The report foresees a fivefold increase in customer service interactions, driven by AI's ability to maintain quality service while simplifying operations. As routine tasks are automated, CX teams are anticipated to become more efficient, enabling businesses to scale effectively even with increased interaction volumes. This aligns with the expectations of 73% of surveyed leaders, who foresee streamlined workflows due to AI integration.

Australian CX leaders predict that agents will increasingly handle escalated, complex issues requiring specialised skills. The report indicates that 74% of respondents expect agents' roles to evolve, incorporating enhanced technical proficiency, in-depth knowledge, and refined soft skills. This shift is seen as crucial for delivering superior customer experiences and improving productivity.

Administrators are also expected to undergo a transformation, becoming more strategic in their roles. AI copilot tools will assist admins in managing interactions and making AI-driven improvements. They will need to master skills such as real-time monitoring of agent performance, automating workflows, and making data-driven decisions. This evolution will enable admins to lead strategic advancements while maintaining operational efficiency.

Leaders in the CX industry will likely focus on embedding AI into customer service strategies, using real-time data to enhance customer experiences and drive innovation. Although 92% of Australian leaders recognise the importance of AI integration, only 25% view their current AI adoption as advanced.

Kellie Hackney highlighted the importance of keeping pace with AI advancements: "A large majority of Australian CX leaders we spoke with believe, as we do, that the CX department will finally become a revenue driver. Businesses that have kept pace with the trend towards automation in CX are unlocking incredible opportunities to drive productivity, exceed customer expectations, and ultimately, achieve growth in our rapidly evolving market."

The report's global survey included senior CX leaders from countries such as Australia, Brazil, India, Mexico, Singapore, Spain, the UK, and the US. This diverse sampling provides a comprehensive view of perspectives and predictions for the future of CX.

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