IT Brief Australia - Technology news for CIOs & IT decision-makers
Story image

Zendesk report reveals CX benefits of adopting AI in APAC

Fri, 22nd Nov 2024

A new report from Zendesk highlights key trends in customer experience (CX), focusing on the increasing role of artificial intelligence (AI) in shaping consumer interactions and organisational success.

The report, titled "2025 CX Trends Report," identifies organisations adopting AI technologies as "CX Trendsetters." These organisations reportedly experience significant advantages in customer acquisition, retention, and revenue compared to those relying on traditional methods. Notably, in the Asia Pacific (APAC) region, CX Trendsetters benefit from 56% higher customer acquisition rates, 45% higher retention rates, and a 63% increase in cross-selling revenue.

The concept of human-centric AI is emphasised within the report, particularly with APAC consumers. These consumers place a high value on AI's human-likeness, with a notable 80% expressing that a discernible gap is emerging between companies effectively utilising AI in customer service and those that do not.

The embrace of AI continues to grow, as 79% of APAC consumers now hold favourable views towards AI, marking a 6% increase from the previous year. Furthermore, 83% believe AI enhances the quality of customer service, representing a 7% rise.

Zendesk CEO Tom Eggemeier commented, "AI should be more than just another technology we use—it's a way to bring companies and customers closer, and it's redefining the relationships we can build. At Zendesk, we believe that AI should be in service to humans and help companies understand and better connect to their customers as individuals. When brands focus on creating genuine, human-centred AI interactions, they don't just make things run more smoothly—they create trust, loyalty, and a lasting connection. This report shows that putting customers at the heart of AI is more than a smart strategy; it's becoming the new standard for building loyalty in a rapidly changing world."

Additionally, Maureen Chong, Regional Vice President, Asia, Zendesk, noted, "Consumers in Asia Pacific have spoken—they now view AI as essential to CX, and want it to be more human-like, friendly and personalised. Organisations that have embraced AI—CX Trendsetters—say adopting AI at scale is crucial to surviving the competitive pressures that lie ahead. Those investing in AI to meet these emerging needs will be pleased to know that consumers are seeing the difference—80% of APAC consumers believe a clear gap is forming between companies that leverage AI effectively in customer service and those that don't. A company's customer service is now a key battleground for customer loyalty, and those that focus on human-centric AI will create a competitive differentiation that builds lasting customer loyalty."

The report outlines five key trends expected to shape the future of customer service. The first trend involves the rise of AI copilots, which are tools assisting agents by automating routine tasks. A significant 82% of APAC agents believe AI copilots enhance their work efficiency, thus allowing them to focus on more complex issues.

Secondly, the demand for human-like AI agents is rising, with 82% of APAC consumers valuing AI's human-like traits, such as friendliness, which is crucial for a positive experience. Companies investing in human-like AI report increased customer satisfaction and loyalty.

Personal AI assistants are the third trend, as consumers increasingly expect AI-driven experiences to assist with tasks like order tracking and personalised recommendations. Companies are preparing for these assistant-first interactions, aiming to deliver more responsive services.

The fourth trend involves Voice AI technology, which is gaining popularity for handling complex customer issues. The technology allows customers to feel "heard" and understood, with 73% of APAC consumers willing to use Voice AI for its conversational benefits.

Finally, the importance of personalised service in customer loyalty is highlighted, with 72% of APAC consumers demanding more personalised experiences from AI. This demand is coupled with a low tolerance for poor service, as 70% are inclined to switch to competitors after just one bad experience.

Shabib Sheikh, Vice President of Customer Support and Success at Vagaro, shared the impact of AI on their operations: "AI is an integral part of who we are and it's allowing us to do more with less. By leveraging Zendesk's AI, we've resolved 44% of incoming requests, reduced resolution time by 87%, and most importantly increased CSAT to 92%—setting a new standard for the beauty and wellness industry."

Follow us on:
Follow us on LinkedIn Follow us on X
Share on:
Share on LinkedIn Share on X