10 Ways AI will Improve Customer Experience in 2024 (Real-World Examples)

9 min readFeb 28, 2024

Explore real-world use cases of how AI is transforming Customer Experience in 2024

Today, AI is winning every possible industry. But does it help businesses to win their customers and improve customer experience?

When it comes to customers, high-end personalization, speed, and highly responsive services are the only way to their heart. Thus, businesses are leveraging AI to improve and shape the entire customer experience throughout their journey.

Do you know,

Companies that reoriented their approach to customer services, experienced a remarkable 3.5 times increase in revenue growth.
As per PWC, 86% of customers pay more for a great experience with a premium price of up to 13–18% for luxury.

In this AI-dominant era, AI is changing the landscape of how customers and brands interact to ensure consistent and better experiences. From small-scale to large enterprises all are acknowledging the importance of AI as a key differentiator of customer experience.

So, if you are missing this element, you must work on your strategy to stay ahead of your competitors and drive potential customers. Let’s see how AI can improve customer experience.

Explore The Era of Generative AI: ChatGPT vs. Bard

Let’s get started.

What do you mean by AI Customer Experience?

AI Customer Experience means using the latest artificial intelligence (AI) to improve the interactions between businesses and their customers across different touchpoints for a better AI-powered customer journey.

AI-driven customer experience also leverages machine learning algorithms, Natural language processing in CX, and other AI-driven tools to analyze data, understand preferences and behavior, to deliver more personalized solutions.

Adoption of AI in Customer Experience- Interesting Stats

AI is revolutionizing customer service, empowering companies to understand and address customer concerns swiftly. By automating mundane tasks, AI enables service teams to prioritize Enhancing CX with artificial intelligence.

This results in improved customer service quality and reduced repetitive tasks for teams.

A substantial 43% of companies are either in the process of implementing or have already integrated AI into their customer service operations, underscoring its pivotal role in contemporary customer care strategies.
A majority, 68%, of employees express confidence that Generative AI will enhance their ability to serve customers more effectively.
A notable 57% of business leaders perceive conversational chatbots as delivering considerable returns on investment (ROI) with minimal initial costs.
As reported by 44% of support professionals, AI adeptly resolves customer inquiries, particularly routine ones. It excels in addressing frequently asked questions, order tracking, and appointment scheduling swiftly and accurately, ensuring customers obtain information promptly.
A significant portion, 26%, of support professionals value AI for its capacity to handle routine tasks, while 22% appreciate its ability to anticipate customer needs effectively.

Top 10 Ways AI Can Improve Customer Experience

1. Personalized recommendations

Getting personalized recommendations! What else a customer will want?

And Spotify has taken personalization to another level by harnessing the power of AI. It has developed a personalized AI DJ to deliver music tailored to each user’s preferences.

It combines Spotify’s personalization technology with OpenAI’s generative AI, offering precise music recommendations and insightful information about artists and genres.

Source- Spotify

The DJ also incorporates realistic voice technology acquired from Sonantic, ensuring an engaging and personalized listening experience for users, with ongoing efforts to enhance and innovate the DJ’s capabilities.

Through the seamless integration of AI recommendations for improved CX, Spotify enhances the overall customer’s music experience, fostering stronger connections with users.

2. Chatbots and virtual assistants

Today, businesses focus on enhancing customer service, automating tasks, and driving lead generation, thus raising the popularity of artificial intelligence (AI) chatbots.

Do you know, that 62% of respondents prefer customer service chatbots over human agents? Giving rise to the global chatbot market.

Making the most of it, HCLTech also leveraging Gen-AI into digitalCOLLEAGUE to streamline the workflow and improve collaboration. It has helped contact centers achieve more for customers in less time as AI continues to evolve.

HCLTech is improving customer experience by combining human expertise and AI capabilities. It is using AI chatbots for customer support, Virtual assistants for CX improvement, and the 3R ecosystem, to transform customer journeys, restructuring front-line support, and redefining customer interactions with meaningful and personalized engagements.

This holistic approach delivers real-time insights, understands customer needs, and exceeds industry standards. Through genAI labs, they harness advanced machine learning, natural language processing, and data analytics to create intelligent solutions that adapt, learn, and evolve consistently.

3. Voice Assistants

AI-driven voice assistants enhance accessibility and convenience for customers, allowing hands-free interaction and personalized assistance.

For example- Cerence Car Knowledge is poised to harness generative AI, enhancing assistant intelligence and delivering real-time information and support to drivers. With a strong emphasis on user experience and extensive experience in developing in-car assistants, Cerence stands out in utilizing advanced AI technologies such as large language models (LLMs) and deep learning.

This enables Cerence to craft a more intelligent and intuitive interaction for drivers, enriching the in-car assistant with a vast repository of digital knowledge. Cerence Car Knowledge not only benefits drivers but also provides automakers with a self-service portal.

This portal automatically integrates OEM data into large language models (LLMs), facilitating seamless maintenance and real-time content updates. In this way, drivers will get a more controlled, customized, and personalized generative AI-based experience.

At CES in Jan 2024, Volkswagen said that they would integrate ChatGPT into specific models in collaboration with auto software company Cerence.

Additionally, Amazon showcased LLM-powered Alexa capabilities in partnership with BMW, offering a conversational car manual experience. Before the event, TomTom announced a collaboration with Microsoft to develop its generative AI system for vehicles.

4. Predictive Customer Service

Predictive customer service uses data analytics and AI algorithms to understand customer needs and preferences beforehand. By analyzing historical customer data, such as their purchase history, and browsing behavior, businesses can predict future Customer behavior analytics with AI and proactively address potential issues.

For example, Walmart is using advanced AI technology to monitor store conditions, optimize product placement, and predict customer demand. It has helped them increase revenue by 5–10% through personalized recommendations and reduce costs by 3–5%.

In March 2024, Walmart is going to transition its consumer goods partners to its Walmart Luminate data platform. It will help them get unprecedented insights into customer behavior and offer brands valuable reporting capabilities. AI and predictive analytics will simplify and interpret complex data within the platform, facilitating actionable insights for brands.

Also, Suresh Kumar, Walmart’s Global CTO, highlighted how AI provides personalized customer experience with AI, and supply chain, focusing on the growing need for intelligent forecasting and inventory management.

5. Sentiment analysis in customer experience

Today, businesses are focusing on understanding customer emotions to understand if their customers feel positively, negatively, or neutrally toward their brand, product, or service. Business uses sentiment analysis to analyze customer sentiments using text data across various platforms like social media, surveys, and reviews.

Your job as a brand is to understand these emotions, describe the customer experience accurately, and use this knowledge to make future experiences better.

Taking this approach seriously, Disney has launched Disney’s Magic Words a groundbreaking advertising solution leveraging AI and machine learning technologies to analyze scenes in movies and TV shows. This innovative tool empowers advertisers to pinpoint specific scenes or moods within content, enabling personalized messaging tailored to audience preferences.

This valuable insight obtained through sentiment analysis enables companies to make Data-driven CX optimization, improve customer experience, and enhance brand perception in the marketplace.

6. Real-time Hyper-Personalization

Hyper-personalized marketing has overcome traditional personalization real-time data, AI, machine learning, and predictive analytics to tailor customers’ experiences at a granular level.

Unlike personalized experiences, hyper-personalization works on Real-time customer experience insights with AI to deliver personalized content. Today, hyper-personalization helps brands to engage with their consumers in multi-languages, for better reach.

According to Shashank Srivastava, Senior Executive Director at Maruti Suzuki, they will focus on hyper-personalization for marketing in 2024 to tailor marketing efforts that align with individual preferences and cultural backgrounds.

7. Seamless Omnichannel customer experience with AI

In a single day, 98% of Americans use different devices. People no longer accept single-channel interactions. Today, customers demand a seamless experience across all touchpoints, such as websites, mobile apps, social media, chat, email, or physical stores. An 80% majority of customers prefer this omnichannel approach. This change has brought about the concept of omnichannel CX.

Today, Generative AI surpasses the limitations of rules-based systems that hindered earlier omnichannel endeavors, moving closer to achieving an omnichannel reality characterized by personalized responses, content, and product recommendations.

With a well-integrated Large Language Model (LLM) enriched by diverse data sources, AI can be deployed across channels to provide contextual information, granting customers greater autonomy in their preferred communication channel.

Walmart is expanding its wings by leveraging Gen AI throughout its customer journey and the omnichannel experience is one of them.

8. AI-Powered CRM

For every business, connecting with customers and understanding their pain points is always on the top. With AI tools, businesses can improve customer relationship management. It helps them identify patterns, predict customer behavior, personalize interactions, and build effective marketing messages.

Today, most AI-based CRMs use Chatbots to offer instant customer support, answer common questions, and suggest products. This speeds up response time and lets human agents focus on more complex issues.

AI-powered CRMs provide support across multiple channels like email, social media, and chat, so that your customers can connect with you on their preferred platforms.

9. Customer Segmentation with AI

Any business might have different segments of customers, showing different preferences. So business segment their customers based on their specific choice of products.

AI can speed up segmenting the customer base more effectively by identifying common characteristics, behaviors, and preferences.

Based on the same approach, Netflix categorizes its users into different segments based on their viewing habits and preferences. It helps tailor their content recommendations and marketing efforts to better meet the needs of each segment, improving engagement and retention.

10. Augmented Reality (AR) and Virtual Reality (VR) technologies

AI has transformed the way customers interact and view products and services. Using immersive experiences, users can visualize items in real-world environments before making a purchase, so they can be sure of their purchase. It has not only improved engagement but also increased purchases.

Walmart has implemented AR and VR technologies through its Optical Virtual Try-On feature that allows customers to virtually test frames and buy prescription eyewear online. Walmart leverages 3D data and sophisticated algorithms to develop digital replicas of eyewear frames, for a more authentic virtual try-on experience.

Future of AI in Customer Experience

Undoubtedly, 2024 is the year of AI. AI is now considered a crucial tool in shaping customer experience now and beyond 2024. With the advancement in AI, several trends are surfacing that will witness a new era of customer interaction.

The evolution of AI towards ‘Emotional AI’ holds immense promise. Yes, AI systems will innovate enough to be able to respond to human emotions through facial expressions or tone of voice, paving the way for more empathetic customer interactions.
AI systems will leverage Neural Networks and Deep Learning algorithms to deliver next-level personalization. AI will analyze unstructured data, and user activity across social media activity, to uniquely tailor experiences.
Quantum Computing, overcoming traditional computing will revolutionize the speed and accuracy of AI-driven predictions, facilitating real-time personalization and quick responses to customer actions.
With the advancement in AI, comes greater risk and scope for fraud. Businesses are emphasizing ethics and transparency to make AI processes ethical and transparent, improving trust between businesses and customers.

Know more about- Ethical AI- Discussing AI Framework, Privacy, and regulations.

Furthermore, autonomous AI systems will assume more significant roles in managing customer experiences, acting as both support for human agents and independent decision-makers for Customer journey optimization with AI.

The future of AI in customer experience not only brings efficiency gains but also fosters immersive and emotionally intelligent interactions that match individual customer preferences and autonomy.

Leverage OnGraph’s AI solutions for CX personalization

OnGraph with its in-house expertise can revolutionize the customer experience landscape with its cutting-edge AI-driven solutions. By harnessing the power of artificial intelligence, We help businesses unlock new realms of personalization, efficiency, and engagement.

From advanced sentiment analysis to immersive augmented reality experiences, OnGraph empowers businesses to fulfill customer needs.

With a steadfast commitment to ethical AI practices and transparent customer interactions, OnGraph paves the way for a future where every customer journey is seamless, immersive, and deeply personalized. Embrace the future of customer experience with OnGraph and embark on a transformative journey toward unparalleled success.

Also read- The Ultimate Guide to Cloud-Managed Services for Scaling Business