Conversational AI Is Ushering in Huge Contact Center Advances

Conversational artificial intelligence (CAI) solutions are more than just enhanced self-service. They include capabilities that elevate the customer and employee experience (CX/EX), increase productivity, and deliver the intelligence to support a continuous improvement process. The timing could not be better for these applications, as self-service is increasingly becoming the preferred service method for consumers around the world. The challenge facing contact centers is that customers have high expectations for service experiences, and while generative AI (genAI)-enabled CAI solutions already outperform prior generations of self-service, these applications are relatively “new” and have few well-established best practices.

The pace of innovation in the CAI market has been very rapid over the past two years, and it is expected to pick up additional momentum as more businesses purchase and implement these solutions. This IT sector is attracting billions in investment dollars, enabling both established and emerging vendors to deliver a new generation of intelligent self-service tools that perform tasks and address customer inquiries that could not be automated in the past. As important, many CAI solutions also augment agent performance, further increasing their contributions to organizations. CAI solutions are ushering in a large wave of high-quality productivity improvements in contact centers and service operations, and they are starting to be rolled out in other enterprise departments.

Following ChatGPT’s introduction to the market in November 2022, CAI systems began delivering capabilities and performing functions that previously could only be achieved by live agents. Major enhancements to self-service tools are changing the way these solutions are being delivered to the market. A feature-rich CAI solution will come with a low-code/no-code development environment to allow business users to build new intents and applications on their own, as well as a pro-code option for enterprises with internal data science teams or other specialized technology resources.

Omnichannel and multimodal CAI solutions allow companies to build once and deploy across multiple channels and touchpoints. Adaptable CAI systems using an open architecture enable contact centers to use the genAI and LLM of choice, and swap these technologies out when something better comes along. Much more innovation is anticipated in CAI solutions as vendors enhance their offerings and create additional guardrails to further reduce the risk of hallucinations and inaccurate answers.

Although CAI system design and development capabilities are good and getting better, most new deployments are done by vendors or implementation partners who have expertise in this area. While there are some commonalities in CAI solution development environments and implementation, there are no standards. In addition, enterprise resources need to be trained to use the solutions. Building these applications is time-intensive, and it’s typical for a CAI deployment to take at least 6 to 12 months, but DMG expects time frames to shorten as standards and best practices emerge.

Final Thoughts

The full potential and use cases for CAI solutions are just being identified, but they have already demonstrated their ability to improve CX, EX, productivity, and the bottom line. DMG expects the self-service market to undergo a major replacement cycle as CAI solutions become easier to implement and expertise and resources are more accessible. With more than 100 competitors in the market, companies should select a vendor with the technology, resources, experience, and road map that aligns with their organization’s needs. The benefits of CAI solutions for customers and employees exceed their challenges and risks, and more innovation will be delivered during the next few years. Buyers must realize that it takes significant effort and more time than expected to succeed in building a customer-facing CAI solution. But when it’s done right, it’s worth it. 

Donna Fluss, founder and president of DMG Consulting, provides a unique and unparalleled understanding of the people, processes, and technology that drive the strategic direction of the dynamic and rapidly transforming contact center and back-office markets. Fluss can be reached at donna.fluss@dmgconsult.com.