1、State of Customer Conversations 2024Bridging the AI GapTable of contents0104The state of customer conversations in 2024Key takeawaysMethodologyAbout LivePersonThe Conversational FlywheelTM0326020503280304Understand0601Assist1603Connect1202Automate21042State of Customer Conversations 2024:Bridging th

2、e AI GapState of Customer Conversations 2024:Bridging the AI GapThe state of customer conversations in 2024AI,particularly conversational AI,isnt a new concept;the first chatbot,ELIZA,was introduced in 1966.But since the explosive launch of ChatGPT,businesses have been racing their competitors to fu

3、lly operationalize AI across the organization.CIOs,leading the charge on digital transformation and consolidation,are tasked with finding opportunities for AI to have lasting impact and ROI.Integrating AI in customer conversations influences more than just the contact center conversation data holds

4、insights that fuel operational improvements and growth across the enterprise.And as more organizations shift from voice-first support to digital customer service,AI has become mission-critical for any enterprise-level consumer-facing business.But our research this year made one thing clear:its not a

5、bout the AI,its about the conversation.In our surveys of consumers and business leaders,we found both sides agree that convenient,accurate,and personalized conversations drive positive customer experiences but there are significant differences in opinion when it comes to using AI to provide them.In

6、fact,only half of consumers said they feel positive about using AI to engage with a business.Nearly a quarter into the 21st century,weve seen digital shifts that at one time could only be imagined in science fiction.Within the past few years,weve seen artificial intelligence(AI)accelerate this shift

7、 even more.Thats why it comes as no surprise to see AI transform one of the most important skills humans have conversation.Digging a little deeper led us to a conclusion we werent exactly searching for The AI Gap.Theres a clear divide between consumers and business leaders when it comes to adoption,

8、enthusiasm,and education around AI.Its time for businesses to institute serious improvements to how AI-powered experiences work for consumers or risk turning them against this promising tech.Our research shows that business leaders are barrelling full steam ahead with AI adoption and deployment,mean

9、ing we are at a critical moment for ensuring those investments pay off.Survey results confirm that conversational AI is helping businesses better understand their customers,connect to more efficient and consumer-friendly channels,assist agents,and automate more processes and resolutions.Its ultimate

10、ly raising the bar for customer experience but will consumers end up seeing it that way?Keep reading to learn more about the state of customer conversations in 2024 and what it will take to bridge the AI gap.MethodologyIn November 2023,LivePerson commissioned a PureSpectrum online survey of 1,505 co

11、nsumers ages 18 and up,as well as 504 executives at companies with more than 500 employees.The consumer audience was based across the US,UK,and Australia.The executive audience was composed of US business leaders who recommend,purchase,implement,or sign off on customer service and marketing technolo

12、gies.Approximately 50%of this audience was at the C-suite level(including CEOs,CIOs,COOs,CMOs),with the remainder including vice president,director,and manager-level roles.The goal of this research was to understand the attitudes of consumers toward customer engagement,digital experiences,chatbots,a

13、nd AI,as well as the attitudes and plans of customer experience leaders across the enterprise.The results are summarized in this report.3State of Customer Conversations 2024:Bridging the AI GapPropelling change through The Conversational FlywheelThe ongoing shift away from the legacy call center to

14、a conversational,digital customer service approach can be understood in terms of a flywheel that powers improvement over time.To get a holistic view of the state of customer conversations in 2024,weve placed our survey results in this context which shows how data feeds into customer conversations,wh

15、ich provides better data,which results in better conversations,and so on.State of Customer Conversations 2024:Bridging the AI Gap4State of Customer Conversations 2024:Bridging the AI GapThe Conversational Flywheel is comprised of four phases for improving engagement and operational efficiency:Before

16、 businesses can begin creating a conversational AI program,they need to understand the wants and needs of their customers.At this stage,businesses analyze conversation data across analog and digital channels to identify top customer intents,gaps in the customer experience,and opportunities for impro

17、vement.Creating positive customer experiences starts by providing customers with convenient ways to connect.This includes legacy channels like phone and email,but increasingly means moving conversations to the channels their customers prefer,like messaging,apps,and social media.The contact center is

18、 the front line of customer experience.Businesses should ensure their agents have the right tools in place to provide customers with accurate information quickly.Agent-facing generative AI makes this more feasible than ever.Lastly,setting up partial or self-service automation can help streamline cus

19、tomer support.This allows businesses to support more customers in less time all while adding more conversation data to feed back into the Understand phase of the flywheel.Phase 01:UnderstandPhase 02:ConnectPhase 03:AssistPhase 04:Automate5State of Customer Conversations 2024:Bridging the AI GapUNDER

20、STANDThe AI inflection point is here.Businesses are all in.But are they listening to customers?State of Customer Conversations 2024:Bridging the AI Gap6The AI hype is fading.Last year,62%of consumers felt positive about engaging with AI.This setback in consumer sentiment contrasts with business lead

21、ers excitement,and troublingly,is emerging as businesses of all kinds continue to double down on AI and automation.This difference of opinion between businesses and their customers is an important part of the emerging“AI gap”that stems from the average consumers unfamiliarity and lack of clarity abo

22、ut how AI can be used to create better outcomes.Brands have a lot of work to do to make sure their investments in AI pay off.50%91%of consumers feel positive about using AI to engage with a business.of business leaders feel positive about using AI to engage with customers.Conversational intelligence

23、 and AI can enable a step-change for businesses to better serve and understand their customers.Everything from personalized recommendations to tailored digital experiences is fair game.When done right,the technology can deliver a personalized and authentic experience that will delight and win over c

24、ustomers.Dhrumil Patel Manager,Operations Insights&Analytics Chipotle7State of Customer Conversations 2024:Bridging the AI GapAre you more or less comfortable engaging with a company through AI this year compared to last year?No,really How do consumers feel about AI?Businesses need to lean into thei

25、r conversations and uncover the biggest needs and wants of their customers.AI-empowered conversational intelligence tools help businesses mine their conversation data the actual words and intents customers are sharing across communication channels for actionable insights.Once businesses understand w

26、hat customers are asking them they can use these insights to set the flywheel in motion.Beyond customer service interactions,these insights can influence decision-making across the business,from product and marketing to finance and legal,helping businesses identify opportunities and solve problems a

27、t the source.CONSUMERS8State of Customer Conversations 2024:Bridging the AI GapBusinesses overestimate consumer sentiment toward using AI to get what they want When given the choice between interacting with a human being and interacting with an AI chatbot to take care of common tasks,business leader

28、s overestimate the percentage of consumers who would choose chatbots by an average of 19%.This enthusiasm gap persists when asked directly how“excited”they are for AI to make an impact on customer service experiences.Percentage of respondents who would rather message with AI over a human agent.How w

29、ell do brands know consumers?Excitement for AI to make an impact on customer service experiences93%53%Business leadersConsumersTHE AI GAP9State of Customer Conversations 2024:Bridging the AI GapCurrent skepticism aside,consumers agree with brands that the future of AI is brightHeres the good news:2

30、out of every 3 consumers expect the way they work with businesses to improve over the next five years thanks to AI.With their expectations running on a longer timeframe than those of business leaders,brands that put together engaging,helpful AI-powered experiences“ahead of schedule”will have a leg u

31、p over their competition.When do you think AI will improve how customers engage with businesses?10State of Customer Conversations 2024:Bridging the AI GapAs businesses continue to incorporate AI into the customer experience,anticipating and mitigating consumer concerns through responsible AI feature

32、s like prompt abuse or bias and hallucination detection will be critical.In the race to adopt AI,the businesses that can get their customers onboard fastest will win.What do consumers think about interacting with your companys AI?The badThe goodAnd despite what consumers say,many simply dont have a

33、good understanding of AI yet,which may contribute to their mixed feelings:Forrester predicts that over the course of 2024“60%of skeptics will use(and love)generative AI knowing it or not.”1 For many consumers,lack of understanding really comes down to experience.Unlike business leaders,where 92%say

34、they are learning how to work with AI to better do their jobs,64%of consumers are not.So its not uncommon for a consumers first experience with AI to be through customer service channels.AI is unsafe to useAI provides inaccurate/irrelevant informationAI makes the experience feel less engagingWhos le

35、arning how to work with AI to better do their job?92%36%Business leadersConsumersAI can respond to me quicklyAI is convenient to useAI is easy to useTHE AI GAP11State of Customer Conversations 2024:Bridging the AI GapCONNECTShift to digital channels or leave ROI on the table.Its that simple.State of

36、 Customer Conversations 2024:Bridging the AI Gap12Liz Ferriter Global Lead of Channel Partnerships Googles Business MessagesTodays consumers say they are more likely to purchase from businesses that connect their interactions across phone,email,and messaging platforms(text messages,WhatsApp,Facebook

37、 Messenger),on websites,or in-app messaging.Through 2026,Gartner,Inc.predicts,“50%of large organizations will fail to unify engagement channels,resulting in a disjointed and siloed CX that lacks context”.28 out of 10consumers are more likely to purchase from businesses that connect their interaction

38、s across phone,email,and messaging.88%of internet users say they prefer to connect with brands via messaging over other contact channels.We expect significant session growth in the messaging channel in 2024.13State of Customer Conversations 2024:Bridging the AI GapConsumers are more likely to purcha

39、se from a company that lets them.The more options the betterof consumers say theyre more likely to purchase from a company that lets them message as opposed to only having the option to call.of consumers want the option to seamlessly switch between calling and messaging depending on their preference

40、 at the moment.of consumers say theyre more likely to purchase from a company that lets them browse,buy,and get answers over messaging.74%76%67%Unfortunately,70%of customer conversations are trapped in traditional call centers.Its time for businesses to reduce costs and meet customer needs and expec

41、tations by routing voice calls to messaging and other digital channels.14State of Customer Conversations 2024:Bridging the AI GapAuthentic personalization should start with a conversationConsumers prefer conversations to cookiesBrands rely on third-party cookies to deliver personalized experiences b

42、ut half of consumers say they do not want companies to track their online behavior.Yet,62%of consumers say they are willing to share information in a conversation when asked.of consumers want brands to create personalized connections with them.The more digital channels businesses hold conversations

43、on,the more opportunities they have to personalize the experience.Brands that integrate their CRM,CMS,or other systems with their digital conversation channels can build a 360-degree view of each contact providing agents(or AI)with everything they need to deliver truly personalized conversations.85%

44、15State of Customer Conversations 2024:Bridging the AI GapASSISTCustomers want solutions now.AI can help agents deliver.State of Customer Conversations 2024:Bridging the AI Gap16Getting accurate information to consumers pronto needs to be a top priority for businesses.Consumers are more critical of

45、brands than ever even when reminded that businesses are facing labor challenges and seeking to cut costs.of consumers say they are more critical of how businesses interact with them than they were just a year ago.of consumers say they wont wait on hold past 15 minutes.consumers say long hold times m

46、atter more to them this year than they did a year ago.of consumers say they wont wait on hold under any circumstances.73%77%2 in 35%If a business put you on hold,how long would it take before you hung up the phone?CONSUMERS10minon hold.Thats when half your customers have already considered going to

47、a competitor.17State of Customer Conversations 2024:Bridging the AI GapBrands turn to AI-powered assistants to meet demandTo meet demands for timely service,brands are using both customer-facing AI-powered assistants(to help customers self-serve)and agent-facing AI tools(to get their people the info

48、rmation,context,and even suggested language to help customers faster).Even so,the AI gap persists.73%of consumers agree with business leaders that AI-powered assistants can help reduce wait times,but only 29%of consumers think it can provide more accurate information.18%think AI can provide more per

49、sonalization.And 37%think AI can help them from having to repeat themselves.What consumers may not know is that agents are already using AI behind the scenes to see customer history,provide recommended answers,and help resolve customer issues faster.What problems do you think AI-powered assistants c

50、an help solve for you as a company?BUSINESS LEADERS18State of Customer Conversations 2024:Bridging the AI GapOne thing everyone can agree on dont pretend your AI is human.95%97%of consumers believe its important for a business to disclose whether a human agent or AI is behind the conversation.of bus

51、iness leaders believe its important for a business to disclose whether a human agent or AI is behind the conversation.19State of Customer Conversations 2024:Bridging the AI GapOur survey revealed that 77%of business leaders say AI should be monitored by humans,and consumers agree:73%say theyre more

52、likely to purchase from a company whose AI is monitored by human agents they can transfer to if needed.With the rise of generative AI,AI-powered experiences for agents and customers are getting even more powerful.Yet a gap in perceptions arises here too:96%of business leaders believe generative AI w

53、ill improve interactions with customers,but only 55%of consumers say the same.Many enterprises are embracing generative AI tools internally,helping agents boost efficiency,serve customers quicker,and test the generative AI waters before turning large language models loose on customer conversations d

54、irectly.While consumers may not be as aware of the AI tools agents are using to respond,these tools are helping agents deliver a better customer experience at scale while keeping the business in control of the conversation.Agent-facing AI will help build the foundation for automation that can suppor

55、t self-serve customers scaling operations and cutting costs while growing conversation data and feeding back into the Understand phase of the Conversational Flywheel.THE AI GAPWill generative AI improve interactions with customers?96%55%Business leadersConsumersCustomer service is one of the biggest

56、 contributors to increased customer loyalty and the key to getting customer service right is empowering agents to resolve customer issues.By integrating LLMs into the agent ecosystem,organizations stand to benefit from improved agent productivity and improved customer outcomes.Generative AI:What It

57、Means For Customer Service Forrester Research Inc.July 202320State of Customer Conversations 2024:Bridging the AI GapAUTOMATEEase customers into AI.Build intuitive,no-nonsense automation.State of Customer Conversations 2024:Bridging the AI Gap21Business leaders feel confident about using AI to engag

58、e with customers,with 88%saying if their customers could communicate with an automated system to get issues resolved quicker,it would increase their brand loyalty.But to close the AI gap,they have to make their automated processes as intuitive as possible.This starts by automating the most common in

59、tents:the things customers come back for over and over again.84%of business leaders say they are currently using AI to engage with customers and were at a tipping point:just over half say theyre now prioritizing messaging with AI over channels like phone,email,and ticketing systems.Which of the foll

60、owing experiences does your company prioritize for customer service?BUSINESS LEADERS22State of Customer Conversations 2024:Bridging the AI GapScaling automation:Look to your top intentsConsumer BankingTelecommunicationsBilling questionsTroubleshootingActivate deviceSwitch providersSchedule appointme

61、ntUnderstanding the most common customer intents is an important first step to take before implementing automation.For example,consumer banking intents are focused on transaction-related queries,while intents in the automotive space center around product inventory.Building automation for the top int

62、ents allows customers to self serve and reduces agent load.Agents can then focus their attention on more personalized intents and interactions or those that simply require a human touch.Based on our analysis of conversations between brands and millions of consumers taking place on LivePersons platfo

63、rm,here are the top intents customers are trying to resolve every day across industries.Transaction queriesOpen accountPayment planReport fraudReplacement cardRetailOrder statusLocationsPromosCancellationProduct informationTravel&HospitalityAutomotiveChange flight/reservationChange nameUpgrade seatR

64、efund requestBaggage missingVehicle availabilityPricingLeasingSeating optionsPurchase process23State of Customer Conversations 2024:Bridging the AI GapBuild conversational AI experiences consumers wantWhen implementing conversational AI programs,organizations need to keep in mind that consumers are

65、looking for functional and responsible AI experiences.They are not looking for AI to replace what humans are best at building connections.At least not yet.For now,consumers simply want AI thats convenient,fast,and easy to use.The brands that take the time to understand consumer expectations around A

66、I will be the ones that see their investment in AI pay off.Consumers say theyd be more likely to purchase from a company whose AI24State of Customer Conversations 2024:Bridging the AI GapCarlos Moodley Head of Group Conversational Banking CapitecMost businesses do not have the AI or customer engagem

67、ent expertise to build full conversational programs in-house.When it comes to choosing AI partners,business leaders say they are more likely to work with an AI partner that can:Finding the right partner to co-create AI-powered conversationsimplement and manage their entire conversational AI program,

68、end-to-end.provide AI strategy and implementation expertise.predict what kinds of products and services customers want.hire,train,and manage the agents and AI talent that run customer-facing conversations for the brand.87%74%76%79%limit bias to create more equal experiences for everyone.76%With mess

69、aging and automation,you can safely talk to your clients in their channel of choice and in the language of their heart.Thats how you gain true client intimacy.25State of Customer Conversations 2024:Bridging the AI GapNirali Amin SVP of Global Solutions and Success LivePersonKey takeawaysConversation

70、s build connections between brands and consumers,and when you put them at the center of your business,they build brand loyalty,improve operations across the enterprise,and ultimately drive revenue.This is why conversations are at the top of the list for many enterprises looking to operationalize AI.

71、Despite consumer skepticism,we dont expect brands to slow down when it comes to using AI to transform conversations and they shouldnt.AI is already helping them reduce wait times,assist agents,and reduce costs.However,brands will only truly gain the full ROI on AI if they find ways to bridge the AI

72、gap with their customers.This line should be every organizations mantra in 2024.73%of consumers say they are more critical of how businesses interact with them compared to a year ago.No matter how well-invested your company is in AI,if youre not facilitating meaningful conversations and learning fro

73、m them the AI doesnt matter.This is especially important for brands that are still early on in their contact center transformation journey.Understanding your customer needs,shifting conversations to more digital channels,and improving the overall customer experience should be the priority of every o

74、rganization regardless of AI maturity.Its not about the AI.Its about the conversation.01Were at a pivotal moment where brands need to start bridging the gap between todays costly,call-driven contact center and the digital-first,AI-empowered contact center of the future.A future with conversations at

75、 the center of your business,and people your agents and your customers at the center of those conversations.26State of Customer Conversations 2024:Bridging the AI GapState of Customer Conversations 2024:Bridging the AI GapThe AI hype has faded and consumers are cautious about interacting with AI.Onl

76、y 1 in 2 consumers feel positive about using AI to engage with a business this hesitation from consumers presents brands with opportunity.Opportunity to get ahead of consumer AI expectations.Opportunity to fine-tune AI and automation tools.Opportunity to set the standard for AI-powered customer enga

77、gement.With every new technology comes a learning curve.Similar to the digital transformation of online shopping,appointment scheduling,or even navigating a website working with AI and automation to get what we need will eventually become standard practice.Brands who use this time to get ahead of th

78、e curve and support their customers as they learn how to best use AI in their daily lives will find more long-term success in their AI investments.The only way to bridge the AI gap is to build trust with your customers.Building no-nonsense AI that provides fast,accurate,and reliable solutions for yo

79、ur customers biggest pain points is the key to easing customers into AI.Our survey found that consumers are looking for AI that is monitored by humans,is built on the same standards the business uses to ensure quality for all activities,limits bias,and can take directions.This report should serve as

80、 a guide for creating conversational customer journeys that bridge the AI gap between businesses and consumers.Your customers caution is your organizations opportunity.Bridge the gap by building trust.020327State of Customer Conversations 2024:Bridging the AI GapAbout LivePersonLivePerson(NASDAQ:LPS

81、N)is the global leader in enterprise conversations.Hundreds of the worlds leading brands including HSBC,Chipotle,and Virgin Media use our award-winning Conversational Cloud platform to connect with millions of consumers.We power nearly a billion conversational interactions every month,providing a un

82、iquely rich data set and safety tools to unlock the power of Conversational AI for better business outcomes.Fast Company named us the#1 Most Innovative AI Company in the world.To talk with us or our AI,please visit .LivePerson,Inc.Proprietary Information.2024 LivePerson,Inc.All Rights Reserved.Ready

83、 to make the most of your customer conversations?See how LivePerson can help.Sources:1.Predictions 2024:Exploration Generates Progress,Forrester Research Inc.,20232.Gartner,Market Guide for Digital Customer Service and Support,18 September,2023 GARTNER is a registered trademark and service mark of Gartner,Inc.and/or its affiliates in the U.S.and internationally and is used herein with permission.All rights reserved