A recent study commissioned by Genesys and conducted by YouGov has revealed 78% of Australian businesses are concerned about diminishing customer loyalty, with 66% citing customer churn as their primary business concern. Which is why 97% are looking at AI to solve the problem.

The study, which interviewed 351 board-level business decision-makers and senior managers involved in customer experience in businesses with 100+ employees, also found that a significant 97% of surveyed businesses said they had or would adopt AI to enhance customer experience.

The study further revealed AI investment is set to hit 15.1% of annual budgets, on average, in the next financial year, a rise from the current average investment of 11.1%. A total of 31% of respondents said their organisations were applying or planning to apply AI to conversational chatbots, and another 31% for predictive analytics and digital engagement.

Despite the interest in AI, 95% of senior business decision-makers expressed some concern about implementing AI in their company. Cybersecurity risks from using AI programs were cited as a top concern by 46% of those surveyed, followed by legal and regulatory issues (42%), a lack of AI skills internally among employees (40%), and the cost of investing in and implementing AI (40%).

However, the potential benefits of AI implementation appear to outweigh these concerns. A significant 91% of senior business decision-makers said their company had seen or expected to see an increase in customer satisfaction as a result of implementing AI technology.

Furthermore, 94% of respondents from businesses actively using or considering AI for customer experience enhancements said their organisation had improved or expected to improve on first contact resolution, campaign ROI, and a reduction of cost to serve.

"The business benefits of AI technology are clear, and the latest research from Genesys showcases just how AI can change the face of customer experience and engagement," said Genesys Vice President, Australia and New Zealand, Mark Buckley. "While some concerns remain about implementing AI technology, the opportunity is ripe for businesses to tap AI and the solutions that draw upon its power to transform customer experience for the better."

The study also found 32% of respondents cited the automation and streamlining of repetitive processes to improve business efficiencies as being among their top three drivers for implementing AI to enhance customer experience. Additionally, 28% of those surveyed noted the desire to improve quality and consistency across the end-to-end customer journey as a reason for implementing AI, and 27% cited the improvement of personalisation as a reason for AI uptake.