In one of its most recent AI reports, KPMG explored the integration of AI into customer interactions, the implications that this will have for businesses, and the key principles for successful AI implementation.  

Amongst the leading figures of the report were predictions that AI will create 97 million new jobs by 2025​​, and that global uncertainty has affected customer experience significantly in the previous year, with a 4% decline in global organisations meeting customer expectations.  

The result is a 3% reduction in Customer Experience Excellence across most markets.  

Could AI resolve this growing customer experience issue?  

The KPMG 2023-24 Customer Experience Excellence (CEE) report provides key insights into how AI is transforming customer journeys, plus the broader implications for procurement. 

In today's rapidly evolving business landscape, the integration of AI into customer interactions has become a pivotal strategy. Now, it represents one of the most efficient and effective ways to enhance customer experience and drive operational efficiency.  

🦾  AI’s Growing Role in Customer Interactions 

AI is reshaping how businesses interact with customers.  

By leveraging AI, companies are creating deeply personalised experiences, as they have the opportunity to scale individual customer personalisation like never before.  

As the KPMG report highlights, in a marketplace where customer expectations are higher than ever, this ability is crucial.  

For instance, the report detailed how some of the world’s largest brands - including Apple, Nike and Adidas - are integrating robotics, extended reality, Web 3.0 and other such technologies, to create online shopping experiences that more closely parallel the experience of shopping in their retail stores.  

💡 How can AI Transform Customer Experience?  

Striving to combat the global downward trend for customer satisfaction, businesses are investing heavily in meeting heightened customer expectations.  

Improving the implementation of AI technologies will be imperative to creating improved, more advanced customer experiences. In fact, 68% of leading companies believe that AI is now essential to achieving their short-term business goals. 

Leading companies are adopting AI in ways that genuinely enhance customer interactions. 

Approaches outlined in the report include: 

• Using AI data analytics within marketing, to improve lead generation and conversion rates 

• AI chatbots and virtual assistants 

• Predictive customer support 

• AI algorithms to optimise pricing strategies  

• Personalised content generation 

• Automated verification and personalised onboarding  

• Optimised inventory control and supply chain management  

• More effective and efficient identification of fraud and cybercrime  

• Churn prediction  

• Suggesting personalised offers 

• Analysing user-generated content  

• Identifies patterns in customer feedback 

🔮 What are the Implications for Procurement? 

As the rise of AI facilitates enhanced customer experiences, procurement will also see some significant benefits.  

 The key advantages for procurement include: 

• Improved operational efficiency 

• Automation of routine procurement tasks 

• Faster processing times 

• Improved supplier selection  

• More seamless supplier collaboration  

• More sophisticated risk management 

• Cost savings 

However, the report calls for ethical and responsible AI use. As procurement integrates AI in these ways, it is essential that they assess the ethical considerations (such as data privacy, algorithmic biases, fairness and transparency).  

At the same time, the successful implementation of AI requires companies to build trust amongst their customers and internal teams.  

Internally, this means upskilling and reskilling procurement professionals, so that they are equipped to adapt to new AI technologies. 

For customers, the report recommends establishing the highest data security and transparency standards (particularly with customer data), prioritising ethical considerations for AI, and being transparent about your AI practices. This will ensure improved customer experiences don't come at the cost of customer trust.