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AI reduces need for new hires, boosts revenue, improves CSAT, and more…

This is the first of a three-part series examining how companies are transforming their customer experience strategies through the use of technology.

Artificial intelligence is fast becoming must-have technology for any successful customer engagement strategy. As our research shows, the documented improvements derived from the different types of AI (as shown in the following graph) are dramatically transforming how efficiently companies serve their customers.

Already, companies have AI-enabled 28 applications used for customer experience (CX), with plans to reach 72 applications by 2025, according to Metrigy’s Customer Experience Optimization 2023-24 global research study of 641 companies. AI is involved with resolving an average of 44.5% of customer interactions, which Metrigy projects will increase to 60.9% by 2025. Agent assist (software that leverages various types of AI to provide agents in-the-moment advice, information, and context to improve customer service or sales) is the most widely adopted use of AI so far (39.4%)—and with good reason. It reduces Average Handle Time (AHT) by 27.2%.

When used in customer engagement initiatives, the results are clear: AI is driving measurable success across several metrics, according to the study.

General use of AI in CX initiatives improves revenue by 19.6%, increases customer ratings by 20.5%, and boosts agent efficiency by 12.7%. Our research success group—those companies with higher-than-average success in multiple advanced CX technologies—shows even more impressive results, including 38% revenue increase, 45.8% customer ratings improvement, 5.6% operational cost decline, and 36% efficiency boost.

CX Transformation Takes Off

Figures like those are truly transformative. Indeed, in 2023 we have seen a huge jump in the number of companies transforming their customer experience: 82.7% of companies have completed, are in the process of completing, or planning a CX transformation project, up from only 53% in 2022.

By definition, CX transformation is the innovative application of new or existing technologies to improve the customer and/or agent experience to drive measurable business value.

AI is serving as a catalyst for change. Though some projects are foundational, such as platform integration or adding management tools, others involve new applications and channels. For example, 41.2% say their project involves adding or improving virtual assistants and chatbots, and 41.0% cite generative AI as their project. (More on generative AI in the next post in this series.)

AI’s Effect on Staffing

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Robin Gareiss

Robin Gareiss is CEO and Principal Analyst at Metrigy, where she oversees research product development, conducts primary research, and advises leading enterprises, vendors, and carriers focusing on customer experience and engagement, digital transformation, and contact center.