Insight
4 key innovative ways AI is transforming customer experience (CX)
March 9, 2025
James Carr
Artificial Intelligence (AI) has emerged as a pivotal force in transforming customer experience (CX), reshaping how brands engage with their audiences.
As businesses increasingly recognise the importance of delivering exceptional customer experiences, AI offers innovative solutions that make interactions more personalised, efficient, and satisfying.
In this blog post, we will explore four key ways AI is revolutionising customer experience. We’ll provide actionable insights, examples, and opportunities for brands like you to leverage these advancements to stay ahead of the curve.
Let’s dive in!
In a rapidly evolving digital landscape, the role of a customer experience agency is crucial in supporting the power of AI to enhance CX. As experts in design and innovation, we understand that AI’s potential goes beyond automation - it’s about creating meaningful connections between brands and their customers. By integrating AI into customer experience strategies, we can help brands anticipate customer needs, deliver personalised content, and optimise interactions in real-time. Our direct experience in deploying AI-driven solutions has enabled us to create bespoke strategies that not only meet but exceed customer expectations.
One of the most significant ways AI is transforming customer experience is through personalisation at scale. AI-driven data analytics allows brands to analyse vast amounts of customer data, uncovering insights that were previously unattainable. This enables the creation of highly personalised experiences tailored to individual preferences, behaviours, and needs.
94% of business leaders feel their organisation should be getting more value out of its data according to a survey conducted by Salesforce. AI can help businesses get more from their data by, for example, segmenting customers based on their purchase history, browsing behaviour, and even social media activity, allowing brands to deliver targeted marketing messages that resonate on a personal level.
The following types of tools have been instrumental in helping brands achieve this level of personalisation, driving engagement and conversion rates:
In addition to scaling personalisation, AI enables real-time adjustments based on customer interactions. This means that as customers navigate a website or interact with a brand, AI algorithms can dynamically alter content, product recommendations, and offers to suit their immediate needs and preferences.
If you’ve ever been browsing Netflix, or looking for your next Amazon buy, or scrolling on TikTok, you might have come across the ‘For You’ section. This is a great example of real-time personalisation, recommending movies, products, and content which is based on your previous interactions.
The benefits of real-time personalisation are profound. It not only improves customer satisfaction by delivering relevant content but also increases the likelihood of conversion by responding to customer intent instantly.
Brands that leverage AI for real-time personalisation can stay ahead of the competition by offering a more engaging and tailored customer journey.
AI-driven chatbots and virtual assistants are revolutionising customer support by providing instant, accurate, and round-the-clock assistance. These tools can handle a wide range of customer queries, from answering frequently asked questions (FAQs) to processing orders and troubleshooting issues, all without any form of human intervention.
The implementation of AI chatbots has been particularly effective for leading brands, enabling them to reduce response times and improve customer satisfaction. According to Hubspot, 78% of customer support specialists agree that AI tools and automation can help them be more efficient.
By automating routine tasks, these brands can also free up human agents to focus on more complex issues, which in-turn can improve the overall service quality.
Beyond reactive support, AI is enabling predictive customer support, where potential issues are identified and addressed before they escalate. By analysing patterns in customer data, AI can predict when a customer might encounter a problem and proactively offer solutions, reducing frustration and improving customer loyalty.
For example, AI can monitor customer usage patterns of a product or service and send reminders or troubleshooting tips if it detects unusual activity (used often by banks to identify potentially fraudulent behaviour!). This proactive approach not only enhances the customer experience but also reduces the likelihood of churn.
Humana, an insurance giant, used AI to streamline calls from customers. 1+ million customers called in before they rolled out their AI tool, most of whom bypassed the Interactive Voice Response (IVR) system so they could speak with real people about their eligibility and health plan’s benefits. Humana decided to address this issue by using an AI voice agent to deliver faster, friendlier support about pre-service, verification, eligibility, referral, and authorisation information without the need for a live agent.
Understanding customer emotions is key to delivering a superior customer experience, and AI-powered sentiment analysis is making this easier than ever. By analysing customer feedback, social media mentions, and other forms of communication, AI can gauge the sentiment (whether positive, neutral, or negative) behind customer interactions, allowing brands to respond more effectively.
Sentiment analysis tools can identify trends in customer satisfaction, highlight areas of concern, and even predict how customers are likely to feel about future interactions. This insight is invaluable for brands looking to refine their CX strategies and address issues before they impact customer loyalty.
Some of our favourite sentiment analysis tools include Brandwatch, SEMRush, Social Searcher, and Lexalytics, to name a few.
AI is also transforming the way brands map and optimise the customer journey. By analysing data from multiple touchpoints, AI can create detailed customer journey maps that reveal how customers move through the sales funnel and where they encounter friction.
Predictive analytics plays a crucial role here, allowing brands to anticipate customer needs at various stages of the journey and deliver relevant content or offers. According to a Deloitte report, 80% of customers are more likely to purchase from a company that offers personalised experiences. Customer journey mapping and a thorough understanding of touchpoints allows a company to create these hyper-personalised experiences.
Not only does customer journey mapping with AI enhance the customer experience, but it also improves conversion rates by guiding customers towards desired actions.
Content remains a critical component of customer experience, and AI is changing the way it is created and delivered. AI can personalise content for individual customers based on their preferences, behaviours, and previous interactions with the brand.
This could mean altering the content on a webpage, suggesting relevant articles, or tailoring email marketing campaigns to reflect individual interests (similar to the example we mentioned earlier with Netflix, Amazon and TikTok!).
AI-powered tools such as those mentioned throughout this article have shown significant results in increasing customer engagement and satisfaction by making sure that the content delivered is always relevant and timely.
However, it’s important to consider a balanced approach when using AI. Daniel Nieh, Founder of SPARQ, an AI-powered auto repair service said “over-reliance on automation can lead to impersonal experiences. Therefore, businesses must strike a balance between AI-driven personalization and human interaction”.
Beyond personalisation, AI also plays a vital role in content optimisation. By analysing how content performs, AI can provide insights into what works and what doesn’t, allowing brands to continuously refine their content strategies. Not only is this a huge step in the right direction for brands to easily collect data, but it also provides business leaders with an understanding of what that data actually means - something which 76% of business leaders said they struggle with.
Examples of content optimisation could include enhancing headlines for better click-through rates (CTRs), adjusting the tone of messaging to align with customer sentiment, or even automating the creation of content that resonates with the target audience.
Case studies have shown that AI-enhanced content can lead to improved customer interaction and higher conversion rates. However, it’s important to remember that AI can make mistakes, so always proofread and fact-check content before it goes live.
AI is undeniably transforming customer experience, offering brands new and innovative ways to connect with their audiences.
From personalisation at scale to predictive support, AI is enabling brands to create more engaging, efficient, and satisfying customer interactions. As these technologies continue to evolve, the role of a customer experience agency becomes increasingly important in helping brands navigate this complex landscape and implement AI-driven strategies effectively.
At EM Code, we are committed to helping our clients engage with the power of AI to create breakthrough experiences that drive growth and customer loyalty. If you’re ready to explore how AI can transform your customer experience strategy, we would love to invite you to connect with us for a chat.
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EM Code is a customer experience, digital innovation and AI agency.
We’re a strategic digital partner that delivers breakthrough growth throughout the customer experience (CX).
We achieve this through our industry-renowned services in digital transformation, web development, brand strategy, conversion rate optimisation (CRO) and UX (user experience).
Our human centric approach underpins every aspect of our work.
A collective of experts in multiple disciplines, we collaborate to distil the complex needs of organisations and end users to engineer solutions that make an impact.
From fast scaling start ups to global brands, we can help you to transform your organisation.
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Disrupting models of media, EssenceMediacom North accelerates creative and business transformation for its clients roster, including Hillarys, Absolute Collagen, Webuyanycar.com and United Utilities.
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Equipped with access to the richest data, robust benchmarking and advanced technologies, EssenceMediacom North unlocks new opportunities to deliver truly integrated media solutions for scaling and global brands.
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