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AI personalisation key for UK firms, says Zendesk report

Thu, 21st Nov 2024

Zendesk has released its 2025 Customer Experience (CX) Trends Report, highlighting the increasing importance of human-centric artificial intelligence (AI) in customer interactions.

The report, based on insights from over 10,000 global consumers and business leaders, emphasises a shift in customer expectations which indicates that modern consumers now desire AI interactions that are personalised and engaging. These findings suggest that AI-driven personalisation and the creation of human-like interactions are key to building customer loyalty and gaining a competitive edge. According to Zendesk, the adoption of human-centric AI is vital for the survival of UK-based companies under the current competitive pressures.

The report highlights a divide between companies termed "CX Trendsetters," who are embracing AI, and those adhering to traditional methods. It underscores that those integrating AI with a focus on empathy and personalisation report higher customer acquisition and retention rates. "CX Trendsetters" also experience 33% higher customer acquisition rates, 22% higher retention rates, and 49% more cross-sell revenue.

Tom Eggemeier, CEO of Zendesk, stated, "AI should be more than just another technology we use—it's a way to bring companies and customers closer, and it's redefining the relationships we can build. At Zendesk, we believe that AI should be in service to humans and help companies understand and better connect to their customers as individuals. When brands focus on creating genuine, human-centered AI interactions, they don't just make things run more smoothly—they create trust, loyalty, and a lasting connection. This report shows that putting customers at the heart of AI is more than a smart strategy; it's becoming the new standard for building loyalty in a rapidly changing world."

The report identifies five key trends shaping the future of customer experience. The first trend is the adoption of autonomous service models supported by AI copilots. AI copilots manage routine tasks, thereby enhancing efficiency and freeing up human agents for more complex issues, although the rise of shadow AI poses risks to data privacy and security.

Second, the report notes a rising consumer confidence in human-like AI agents. Companies that develop AI with relatable and authentic traits see improvements in customer satisfaction and loyalty, with 64% of surveyed consumers indicating they trust AI that embodies friendliness and empathy.

Shabib Sheikh, Vice President of Customer Support and Success at Vagaro, said, "AI is an integral part of who we are and it's allowing us to do more with less. By leveraging Zendesk's AI, we've resolved 44% of incoming requests, reduced resolution time by 87%, and most importantly increased CSAT to 92%—setting a new standard for the beauty and wellness industry."

The third trend involves the growing integration of personal AI assistants, such as Siri and Alexa, into customer service experiences, with consumers increasingly ready to delegate tasks to AI. This shift signals a movement towards assistant-driven customer interactions that enhance convenience for consumers.

Voice AI is identified as the fourth trend, with its growing preference as the channel for addressing complex issues. The ease with which customers can articulate needs through Voice AI technology is resonating significantly, especially in the UK where 88% of "Trendsetters" acknowledge this trend.

Finally, the fifth trend is the increasing demand for personalisation, with 61% of consumers expecting AI interactions to feel bespoke to them. Companies focusing on AI-driven personalisation are reportedly 128% more likely to achieve high ROI, highlighting its importance in today's business environment.

Zendesk's report suggests that businesses looking to succeed in an AI-driven future must integrate AI with a focus on empathy, personalisation, and transparency to adapt to evolving customer demands. This sentiment is shared by UK consumers, with 71% predicting that the next decades will be fundamentally shaped by advancements in AI.

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