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1、 2023 Boston Consulting Group1Over the course of just a few months,generative AI(genAI)has produced unprecedented interestworldwide,particularly with OpenAI and Googles conversational AI solutions,ChatGPT and Bard.Therapid adoption of these technologies,with ChatGPT amassing more than a million user
2、s in under aweek,has set new benchmarks in the tech landscape.New genAI solutions are now being rolled outweekly as businesses rush to take advantage of an unavoidable tech revolution.Mastering the Generative AI Revolution:Keeping the Focus on the UserJULY 19,2023 By Giuseppe Bonaccorsi,Chantal Chal
3、ouhi,Alf Lim,Prashant Rao,and Mark Zaleski 2023 Boston Consulting Group2GenAIs potential in areas such as conversational shopping,customer support,search,personalization,and knowledge synthesis is undeniable.However,the excitement generated by thesenew opportunities should not drown out an important
4、 fact:businesses must not abandon thefundamentals of great product design.At the end of the day,whether an organization is B2C or a B2B,humans are the ultimate end-users of its generative AI solution.And these solutions need to work forpeople to use them repeatedly.Retaining a focus on building holi
5、stic,user-centric genAI solutions is,therefore,critical to unlocking its value to customers.Pillar#1:Emphasize user centricityIn BCGs study of numerous genAI solutions,we have observed that while powerful,these solutionsoen lack user-centric design.Initial genAI solutions to book hotel rooms,order g
6、roceries or maketable reservations,require users to install plug-ins or add keys to chat-based AI systems,creating anadditional layer of complexity to the new way of doing things.If genAI solutions are not easy to use,users will default to the solutions they know,such as search engines or service ap
7、ps.To develop aproduct that stands the test of time,it must deliver value to users,solving their problems efficiently andintuitively.2023 Boston Consulting Group3Key points to remember when building genAI applications and services are to start with a strongstrategy,incorporate human-centric design,b
8、uild iteratively,and make solutions easy to access andreturn to.Set a strategy:Begin by defining the organizational objectives for your genAI solutions.Whether yourgoals are centered around marketing value,experience improvement,data generation,or financialmetrics,it is vital to connect these object
9、ives to the aspirations and pain points of your users.Getting tothe core of your opportunity areas lies in active listening and user research to define requirements.Your genAI solution is only as successful as its ability to solve real problems.Testing and feedback:Establish tight feedback loops and
10、 conduct user tests to gather insights foriteration and optimization.Ethnography and prototype testing can provide valuable insights on userperspectives,such as:User lens:Ethnographic research offers the ability to look at a product from the point of view of auser,and not just as a technology soluti
11、on.User experience:Collect feedback on UX,and in the case of conversational AI,how to strike theright conversational tone,number of questions to response ratio,chat lengths,and use of mediaformats.2023 Boston Consulting Group4Build fast and adapt:Adopt an iterative approach to building and scaling g
12、enAI solutions,enablingrapid evaluation and the ability to course-correct.Given the rapid evolution of this nascent technology,organizing work into short sprints with lean teams ensures agility and adaptability.Pillar#2:Rethink solution development in the GenAI eraTraditional approaches to solution
13、design need to evolve from linear to open design principles whenworking with genAI solutions.In traditional digital solutions,the user experience and customer journeyare defined by the product builders in a linear fashion.This logic has been applied to traditionalchatbots and makes for a frustrating
14、 and limiting experience where the bot cannot handleunstructured requests.However,common to many generative AI solutions is that their relationship to the user is non-linear.For human interactions(even with a bot)to feel natural,conversations need to be open and free,whichchallenges the traditional
15、approach to building digital products.This is what conversational AI modelslike ChatGPT and Bard have succeeded at;they excel at natural interactions by mimicking humanconversations and creating a sense of freedom.However,although this newfound freedom posesdesign challenges for building application
16、s around genAI,genAI systems are still soware systems:youstill need build an integration and deployment pipeline for the engineering team,you still need to doQA and deploy services to a production environment.GenAI systems still need to be maintained oncethey are running live in production.Based on
17、our experience in developing,testing and building genAI-based solutions,here are some keyrecommendations:Demonstrate value:Users may not be aware of the full capabilities of your genAI solution.Allow theAI to demonstrate its value by showcasing additional features beyond the users initial request.Th
18、esecapabilities can be communicated in different formats,such as on the landing pages of the solution(e.g.,ChatGPT in OpenAI),through disclaimers around the chat window,or throughout the chat withthe AI highlighting,where relevant,its capabilities(as well as its limitations).Time to value:Maintain u
19、ser interest by delivering value early in an interaction.Traditional solutionsrely on gathering detailed information through user inputs.For instance,when ordering food,an appneeds data on location,cuisine,restaurant,specific food items to be ordered,delivery instructions,user details,credit card in
20、formation etc.In contrast,genAI allows for more natural dialogue.OfferHooks:A deeper understanding of what would get users to return to the solution,and doubledown on these value-adding features.Edge-cases:Identifying edge-cases and scenarios that have not been accounted for in the designprocess,whi
21、ch also provide the opportunity to troubleshoot new areas to set up guardrailsaround.2023 Boston Consulting Group5recommendations or useful information upfront and incrementally answer the final request throughan interactive conversation.This concept of earning the right to ask for information estab
22、lishes a give-and-take dynamic between the user and the AI,creating a balance in the amount of informationshared by and with the user.Doing so will help improve a crucially overlooked statistic;approximately40%of users drop out of conversations with chatbots aer the first text,with a further 25%leav
23、ingaer the second.AI-led interaction:GenAI holds the power to shi the interaction dynamic from being simply questionand response based to be more proactive,by being AI-driven.Conversational AI models can ask follow-up questions based on predicted behavior patterns or the context of the conversation.
24、This shi ininteraction dynamic opens possibilities for deeper customer relationships and engagement,deepercustomer understanding enabling businesses to align their offerings with customer objectives.A studyof chatbots in the banking industry found that genAI-powered bots had 55%better engagement rat
25、esand that 72%of customers rated personalization as highly important.Relationship and retention:GenAI has the potential to transform the way users interact withbusinesses and their solutions.Each chat session can be seen as a building block in a relationship,with every new session building upon prev
26、ious ones to deepen the understanding of a users needs.This understanding is a key requirement to enable personalization which builds loyalty and retention inways that were previously reserved only for personalization-focused tech solutions,such as Spotify andNetflix.Leveraging generative AIs memory
27、 capabilities,such as those seen in LangChain,creates apersonalized experience,and strengthens information relevance and user loyalty.Increased usageenhances the recommendation engine,creating a higher switching cost for users who do not want tolose benefits accumulated as a result of having a conve
28、rsation history.Modular blocks:Conversational chat can be organized around modules and combined in variouspermutations to create unique user journeys.These conversational blocks may include(but are notlimited to):User request:This request oen initiates the relationship and opens a dialogue with your
29、 genAIsolution.With this request,a user can take a conversation in any direction.Contextual analysis:Once your users request has been submitted,it is key for your genAI engineto understand the context and provide an appropriate response,while simultaneously identifyingpotential information gaps that
30、 need to be closed to optimize the response.AI-driven response/follow-up:This is your opportunity to showcase your genAI solutions value.Ifthe user has not provided enough context or information in their request,it is important todemonstrate value and balance the number of follow-ups with the time t
31、o value principle.This isalso an opportunity to end each message with a call to action or an open-ended question toinitiate a new conversation into an adjacent topic.2023 Boston Consulting Group6The flexibility of modular design allows various permutations,creating a unique journey for everyindividu
32、al user,depending on context,conversation initiation,and topic of interest.Touchpoints and access:GenAI solutions require a behavioral shi from users,similar to the earlydays of search engines when people had to adopt new habits to benefit from their potential.To ensureadoption and accessibility,bus
33、inesses should consider leveraging existing touchpoints where theirUser response and/or follow-up:This is where you receive proof that your AI-driven response hasdelivered(or shown promise to deliver)value to the user,and that the user is interested incontinuing to engage with your solution.AI-drive
34、n unprompted chat initiation:Once you have established a relationship between the userand your conversational AI solution,make the most of your AIs memory to follow-up and re-engage the user in a meaningful way.The importance is to strike the right balance betweenusefulness and spam.AI-driven closin
35、g:When the conversation comes to a natural end,your genAI solution can close theconversation by reminding the user that it is always available and ready to provide support,thereby conditioning the user to return.2023 Boston Consulting Group7brand already exists,such as websites,apps,and social media
36、 channels,while also exploring newchannels,such as virtual avatars,holograms,and robots,to expand reach and engagement.Byexploiting the unique advantages of existing touchpoints,businesses and organizations can maximizethe success of a genAI solution roll-out.Pillar#3:Setting appropriate guardrailsT
37、he use of conversational AI solutions introduces new challenges in terms of user behavior and ethicalconsiderations.Unlike traditional digital products with defined boundaries,generative AI empowersusers to make requests that may not align with planned scenarios.This openness brings forth potentialr
38、isks,both financial and reputational,that businesses must address.Ensuring safe and responsible implementation of genAI is not just a product decision,but anorganization-wide decision.Setting up appropriate guardrails is therefore a strategic decision.At BCGX we have developed a responsible AI philo
39、sophy,which our team is ready to help you with to set upthe appropriate organizational structures,processes,tools and guardrails,starting from the leadershipsuite all the way down to the product solution.Generative AI is a rapidly evolving technology that holds immense potential for businesses acros
40、sindustries.As a business leader,it is not a question of whether to adopt genAI but rather how to applyit effectively.By prioritizing user centricity,rethinking solutions development principles,and settingappropriate guardrails,businesses can harness the power of generative AI to create lasting valu
41、e forboth their organizations and users.At BCG X,we have a proven track record of building and scaling more than 1000+AI solutions and200+successful ventures.Our focus on user-centric design,strategic thinking,and responsibleimplementation ensures that our clients rapidly unlock the true potential o
42、f genAI.Together we canshape a future where AI solutions deliver tangible results and value to users and businesses.2023 Boston Consulting Group8AuthorsGiuseppe BonaccorsiMANAGING DIRECTOR&PARTNERDubaiChantal ChalouhiPARTNERDubaiAlf LimLEAD VENTURE ARCHITECTDubaiPrashant RaoSENIOR STRATEGIC DESIGNER
43、DubaiMark ZaleskiMANAGING DIRECTOR AND PARTNER,BCG XDubaiABOUT BOSTON CONSULTING GROUPBoston Consulting Group partners with leaders in business and society to tackle their most importantchallenges and capture their greatest opportunities.BCG was the pioneer in business strategy when it wasfounded in
44、 1963.Today,we work closely with clients to embrace a transformational approach aimed atbenefiting all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,global teams bring deep industry and functional expertise and a r
45、ange of perspectives thatquestion the status quo and spark change.BCG delivers solutions through leading-edge managementconsulting,technology and design,and corporate and digital ventures.We work in a uniquely collaborative 2023 Boston Consulting Group9model across the firm and throughout all levels
46、 of the client organization,fueled by the goal of helping ourclients thrive and enabling them to make the world a better place.Boston Consulting Group 2023.All rights reserved.For information or permission to reprint,please contact BCG at .To find the latestBCG content and register to receive e-alerts on this topic or others,please visit .Follow BostonConsulting Group on Facebook and Twitter.