AI to Transform Customer Service, Predicts APAC Report
The study reveals that 74% of industry experts across the APAC region anticipate downsizing due to AI's ability to simplify customer service operations.
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With the rapid acceleration of genAI and the growing sophistication of large language models (LLMs), the future of customer service is poised for significant transformation.
Zendesk has published its Future of AI-powered CX report, which anticipates a radical overhaul of the customer experience (CX) industry over the next three years. The report underscores that AI will play a critical role, with 82% of industry leaders predicting it will either make or break businesses.
The report draws insights from a survey conducted amongst over 1,300 senior CX leaders worldwide, with a notable sample size of 343 leaders from the Asia-Pacific (APAC) region, including Australia, India, and Singapore. The findings are unequivocal: 90% of industry leaders in Singapore foresee unprecedented changes to CX driven by AI.
Craig Flower, Chief Information Officer at Zendesk, commented on the transformative potential of AI in customer interactions. “In the near future, AI will play a role in all customer interactions, moving us beyond traditional, manual service to more advanced, technological-driven experiences. This transformation won’t happen overnight, but there will be a steady progression that develops over time. It’s going to redefine roles and improve experiences for CX teams and their customers,” said Flower.
Despite the enthusiasm for AI, only 25% of leaders in the APAC region consider their AI adoption to be advanced. There remains a gap between recognising AI’s potential and effectively integrating it within business operations. Maureen Chong, Zendesk’s Regional Vice President for Asia, highlighted this disparity: “Consumers today have been clear about the imperatives in their interactions with businesses—an AI-assisted, personalised experience that’s consistent across all platforms. With only a quarter of leaders in the region describing their AI adoption as advanced, industry leaders are recognising the gaps and taking steps to strengthen their CX.”
The report finds that industry leaders are addressing several key areas over the next three years to fortify their CX capabilities. These priorities include improving data security (30%), investing in new CX technologies (28%), enhancing AI and automation in service delivery (28%), optimising self-service support (27%), and incorporating genAI into customer experience (26%).
Zendesk envisions a future where AI streamlines processes, personalises engagement, and manages a higher volume of customer interactions. This advancement is expected to result in leaner CX teams, with technology taking over routine tasks and human agents focusing on more complex issues. Interestingly, 74% of industry experts across the APAC region anticipate downsizing due to AI’s ability to simplify operations, though Singapore recorded the most muted response with 63% expecting a reduction in team sizes compared to their counterparts in Australia (84%) and India (73%).
The report also asserts that AI is anticipated to resolve 80% of customer interactions globally, suggesting that human agents will be reserved for more intricate problems. In Singapore, 70% of leaders believe that AI will power all customer communication channels within three years, providing real-time diagnostics and support. Additionally, leaders are preparing for a future where CX solutions integrate multiple modes of communication into a single experience and leverage genAI for enhanced service delivery.
As CX roles evolve, agents and administrators are expected to develop more specialised and technical skills. Agents, for instance, will need to become proficient in AI tools, possess advanced problem-solving capabilities, and adapt to a unified workspace. Administrators will increasingly rely on AI to manage interactions, refine automation, and predict staffing needs.
The pace of technological change means that CX leaders must remain agile and prepared for future shifts. The detailed insights and forecasts presented in the Future of AI-powered CX report offer a roadmap for navigating these impending transformations and ensuring businesses are well-equipped to meet the evolving demands of customer service.
