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Changes in CX trends drive demand for advanced digital support

Artificial intelligence (AI) is not smart enough to satisfy consumers.

Nevertheless, CRM software with AI capabilities is more expensive to develop and maintain for organizations due to the disconnect from customers. Although companies are investing in AI, consumers want to feel human.

Customers expect a smooth, consistent experience from companies, whether they are shopping online, calling customer service, or using chatbots. AI-powered customer relationship management (CRM) is getting a lot of attention, which means AI will become a more common part of the daily lives of both consumers and company reps.

Recent research by Qualtrics XM Institute The hype surrounding (formerly known by the name Tempkin Group), is not justified. Customers place a greater value on the human connection, and reward brands who deliver exceptional digital support by their dollars and loyalty.

The 2024 Consumer Experience Trends Report by Qualtrics reveals that expectations of consumers are on the rise. The study surveyed 28,000 consumers across 26 countries on their expectations going into the next year. 60% of customer experience executives expect AI to give them a competitive edge. But less than half the consumers are comfortable when a brand uses AI.

“The challenge brands face in 2024 is identifying which tasks AI excels at and which it does not, and matching those capabilities to consumer preferences,” Sid Banerjee said. He was the chief XM strategist for Qualtrics XM Institute.

Divided Duties

Banerjee said that AI can make the lives of frontline employees easier by quickly analysing different data and situations, and then surfacing insights which can improve customer experiences research. They can make shopping easier, more efficient and bring out negative emotions.

AI can in some cases provide real time recommendations. This allows staff to create a better customer journey and coaches frontline staff so that they are able to connect more purposefully with customers when there is a human touchpoint.


Researchers say that digital support is still the weakest link in the customer experience. Despite the fact that companies are investing in digital support, customers are less satisfied when they make an online purchase than when they do it in person.

Customer Relationship Impediments

Retail settings are becoming more complex. The goal of making meaningful connections with people is also getting more complicated. Banerjee believes that it happens for four reasons.

  • Retail employees are less likely to interact with customers in the same way, which is a key factor for building relationships and understanding customer needs.
  • Customers are now moving away from a one-touchpoint experience, like going into a retail store, looking for an item and buying it. The omnichannel journeys are now more sophisticated and include multiple touchpoints such as online shopping, digital chat with an agent or phone calls, and picking up a product in a store.
  • Retailers who are digital-first tend to have fewer interactions with humans. The ordering, configuration and shopping processes, as well as the supporting touchpoints, are increasingly automated.
  • Chatbots, voice assistants that interact with users, and other automated platforms have been taking over functions like telephone support, conversational chats, and customer support.

“Our research showed that 73% consumers feel comfortable using the automated system of a brand for simple transactional tasks, like checking order status. However, they are averse to using it when the stakes are high — for example, only 19% of consumers would prefer to engage with a chatbot or self-service channel for advice on a medical issue,” Banerjee said.

Failed AI expectations

Qualtrics executives noted that, despite the hype about AI, customers aren’t certain they’re prepared for AI-driven customer service.

Consumers’ top three concerns when interacting with an AI-powered company include:

  • Lack of human contact (48%)
  • Poor quality of interaction (45%)
  • Employees who lose their jobs (45%).

CX professionals think AI will enhance their ability to do their jobs, giving them a competitive edge. AI can deliver a service that is similar to the human experience with the right data.

Moira Dosey, Principal XM Catalyst at Qualtrics XM Institute, said that organizations are excited by the potential of AI but must also take into consideration their customers’ concerns.


AI-powered services can make human teams more efficient if they are done right. Dorsey also said that customers can get what is needed quickly and efficiently through self-service or automated tasks.

Some of the internal problems can be attributed to a lackluster morale and a lacklustre enthusiasm among employees on the frontline. These problems are significant barriers to delivering the kind of customer experience that will create loyal customers.

Dorsey stated that “great customer service begins with the people who are directly involved with the customers,” Dorsey. Customer service interactions are usually where people feel strongly, and they influence future purchases more than other interactions.

CX to Face High Challenges in 2024

The most important challenges that organizations face is adjusting to the CX trends.

Banerjee noted that staffing shortages and inflation are increasing pressure on companies to improve their situation before customer service suffers. Integration of new technology, and improving frontline employee satisfaction will be the biggest challenge for 2024.

Money is often the biggest challenge. He noted that delivering a better experience to customers requires some investment.

He explained that business leaders, facing their own headwinds will have to make difficult, but calculated decisions about where to spend, where to save, and how best to provide a great experience to their most valued customers.

Investing in the re-connection of the dots between fragmented customer behaviors caused by the channel hopping behavior of modern consumers is essential for organizations. It is important to have a complete picture of the customer experience in order to predict the negative outcomes, such as complaints or customer churn.

“That is a big part of what excites people about some of these new AI technologies.” AI can find patterns, connect dots, and provide qualitative and quantitative insights, he said.

AI Integration is all about timing and planning

It is important to consider how and when organizations introduce new tools to their customers. Banerjee said that not all AI integrations need to be customer facing, but you should still make it simple for customers to contact a human in case they have any questions.

“AI technology has arguably reached the pinnacle of corporate expectations in terms of value creation. It is also at a peak of mistrust and unease among customers. It could be argued that corporate and customer expectations are not in alignment. “AI technologies will get better over time. They’ll be more empathic, more trustworthy, and qualitatively superior.” he said.


Finally, AI technology should not be restricted to direct interactions between companies and customers. Banerjee suggested that companies can use AI agents and bots to improve their customer service frontline teams.

He said that AI-driven insights could now help managers improve their service to their teams, boost employee wellbeing, and provide more accurate coaching to frontline staff to better serve their customers.

Banerjee concluded that by deploying AI at the right places, such as automating administrative tasks, frontline service staff can spend more time on human interactions with customers and create a better experience for them.