AI and customer experience – what’s the connection?

APR 02, 2021

It is fair to say that the insurance industry has lagged in innovating and improving on customer service, experience, and satisfaction; the digital customer finds the experience justifiably frustrating. Customers are disappointed and dissatisfied after interacting with insurance agents due to delayed responses, unsatisfactory answers, or poor service to queries. A recent study by IBM suggested that 64% of consumers want their insurers to understand them well. Additionally, 60% of insurance executives agree their organization is lacking in CX strategy. However, fast-growing technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Predictive Analytics have the power to disrupt the insurance sector. AI is playing a vital role in changing customer experience and perceptions.

Customers expect instant communication, seamless interactions, efficient service and personalized offerings, all while believing that they are the ‘focus’ of the insurer. Hence, customer service has become a new combat zone and a source of competitive edge for all insurance players. AI chatbots have already been deployed to many websites that interact with customers. According to a Gartner report, companies will manage 85% of consumers’ relationships using AI chatbots without communicating to a human being. The digital battle has given new business opportunities, and thus, 85% of insurance executives are deploying CX to at least a moderate extent.

How is AI helping in adopting a customer-centric approach?

AI enables faster understanding customer requirements, and with greater accuracy. Humans take a considerable amount of time to analyze numbers and extract structures, patterns, and meaningful information from available data. AI algorithms self-learn through observations and experience through multidimensional data sources - previous communications, purchase behaviors, geo-specific events, referral sources, on-site interactions, psychographic factors, and survey image sources, to build customer personas systematically.