Findings from Coveo's latest CX Relevance Report indicate significant challenges and opportunities in the realm of AI-powered customer experiences.
The report highlights a concerning trend with nearly half (49%) of customers encountering AI hallucinations when seeking help online. This issue has led to widespread scepticism towards AI tools, with 42% of consumers reportedly fact-checking AI-generated answers before accepting them as credible.
Coveo's report examines the disconnect between AI's potential and its current ability to meet user expectations, emphasising both the advantages and shortcomings of current technologies.
A key finding is the AI accuracy crisis, where improving AI training and validation is imperative, given the prevalence of hallucinations experienced by users.
In what has been described as a 'Customer Effort Crisis', the report reveals that 84% of customers face difficulties in finding relevant information online. This struggle calls for a major reassessment of customer experience (CX) strategies to better serve users.
Patrick Martin, Executive Vice President of Global Customer Experience at Coveo, commented, "In an era of instant gratification, minimizing customer effort is paramount. Every interaction must minimize friction and maximise relevance." He further noted the vital need for a comprehensive, united approach to the customer journey, employing AI-Search and generative capabilities alongside strategic content solutions.
The report signals a strong demand for innovative solutions in the digital space, with 69% of customers expressing a desire for AI-driven methods to address sophisticated service issues. Key types of preferred solutions include educational tools (48%) and AI-powered virtual assistants (44%).
Despite challenges, customers, particularly from younger demographics such as Generation Z and Millennials, show a willingness to give platforms a second chance. The report indicates that 62% of dissatisfied users might retry services by refining searches or exploring site features, showing a potential for recovery from initially negative experiences.
Moreover, the report details that frustrations with digital experiences lead to 72% of customers abandoning websites after negative interactions.
However, the inclination to re-engage remains prominent among younger generations, suggesting a path to redemption through enhanced digital offerings.
Another significant finding is the readiness of Gen Z and Millennials to share personal data for more tailored experiences, with 60% and 62% respectively open to providing additional information, compared to 53% overall.
The report by Coveo, conducted in partnership with Arlington Research, surveyed 4,000 US and UK customers with the aim of identifying trends that are crucial to shaping customer experiences.
The findings underscore the rising cost of customer effort, the paradox present in generative AI solutions, and the strategic importance of search.
These insights highlight the need for companies to concentrate on delivering relevant, coherent, and trustworthy AI-powered digital experiences.
As articulated by Patrick Martin, "This report demonstrates the importance of building a unified and connected customer experience. AI-Search, advanced generative AI capabilities, and robust content strategies are critical to achieving this, empowering customers to effortlessly find the information they need, regardless of channel."
