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83% of leaders in India say traditional CX will be dead in 3 years: New Zendesk study

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Zendesk released its Future of AI-powered CX report, forecasting a radical overhaul of the customer experience industry. In the next three years, a complete revamp is anticipated, with 89% of industry leaders in India believing CX will undergo a period of unprecedented change over the next three years, transforming the industry as we know it.

“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.” said Craig Flower, Chief Information Officer, Zendesk. “That’s why leaders are proactively adjusting their strategies now to navigate the anticipated changes and leverage AI to its fullest potential. A 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.”

“AI will change everything we know about CX, from the way CX organisations are structured, to the roles of agents and admins, and the way customer experiences are curated. This will lead to more efficient, personalised and intelligent experiences for both customers and agents,” said Vasudeva Rao Munnaluri, RVP India & SAARC, Zendesk. “Industry leaders in India predict a future where AI seamlessly powers every aspect of the customer experience, leading the region in their enthusiasm and optimism for its potential. Yet, only 25% would describe their AI adoption as advanced. To address this gap, they need to prioritise investments in enhancing security, efficiency and personalisation in customer interactions with the help of AI. Putting the right foundation in place will ensure businesses are set on their path to long term growth.”

The new CX organisation

Zendesk envisions a future where CX organisations become leaner, faster, and more effective, with AI at the helm to streamline processes, personalise engagement, and handle a higher volume of customer interactions. Industry leaders in India lead the region in their optimism for the widespread use of AI, with 83% believing all channels will be powered by AI in just three years. Leaders in Singapore and Australia record more muted responses with just 70% of them agreeing. 92% of industry leaders in India also believe that AI is changing everything they know about CX. The evolution will likely lead to smaller CX teams, as 73% of them predict a downsizing due to AI’s ability to simplify operations while delivering high quality service to customers.

AI will play a pivotal role in every customer interaction, stepping in to handle initial inquiries and maintain consistency across all service platforms. It will also track the performance of both human and AI agents to deliver exceptional service. An overwhelming majority (92%) of industry leaders in India believe that AI agents will be equipped to handle questions of any complexity. With AI projected to resolve 80% of interactions globally, human agents will turn their focus to more complex tasks, while AI uses data to tailor and improve each customer’s experience.

92% of them also believe there will be a fivefold increase in customer service interactions by 2027, with leaders confident in AI’s ability to maintain quality service. This shift will make operations smoother, decisions sharper, and boost market competitiveness. As AI takes over routine tasks, it will enable teams to be more efficient and control costs, allowing for effective scaling of business operations even as customer interactions increase.

Immersive experiences will move in a new direction

AI’s impact on CX will lead to more immersive customer experiences, with 96% of industry leaders in India forecasting a future where every customer interaction becomes an evolving blend of commerce, service, and support, significantly enhancing customer engagement.

Furthermore, agents will become an integral part of this enhanced experience, equipped to leverage real-time data for sophisticated troubleshooting. In India, 97% of leaders believe agents are embedded into the experience, viewing and leveraging events and data in real-time to handle complex troubleshooting. Additionally, 95% of leaders believe self-service will expand beyond websites, extending into apps, SuperApps, IoT devices, and augmented platforms, ensuring that personalised, efficient experiences are always available to customers.

Tech-savvy agents will be the new norm

AI’s impact on CX organisations promises to be significant, reshaping the roles of agents, admins, and leaders to prioritise specialised skills. Agents will see their roles expand to include enhanced technical skills and a deeper understanding of technology:

-Agents will grow more adept at using AI, gaining technical skills, with 86% of industry leaders in India believing that in 3 years, agents will be trained primarily using AI simulated scenarios.

-Agents will develop in-depth, specialised knowledge, and 81% of leaders in India believe that AI-assisted support will augment human agents by providing real-time diagnostic assistance and solution recommendations.

-Soft skills will be refined, and work will be more efficient in an unified workspace.

-Proficiency with AI tools, advanced problem-solving, and continuous learning will be crucial for agents. In fact, 86% of CX leaders in India believe that in 3 years, agent recruitment will focus more on AI and data skills. This change will help them provide superior customer experiences, boosting their productivity and the quality of their service.

Admins to take on more strategic roles

Admin roles are on the cusp of a big change, becoming proactive guardians of business operations. They will increasingly rely on AI copilots and smart tools to manage automated interactions and make AI-driven improvements.

In their day-to-day, admins will keep a real-time pulse on the quality of agent interactions, refine automation, predict staffing needs, and implement workflows suggested by AI. They will need to master using AI to enhance team performance, employ no/low-code tools for automation, make data-driven decisions, and balance workload between humans and AI to meet customer needs. It is perhaps why 86% of CX leaders in India believe that in 3 years, the skillset of the team will look radically different than today. This evolution will empower admins to spearhead strategic advancements and maintain efficient, effective operations.

CX leaders will lead AI integration

Industry leaders will transform into customer-centric visionaries, equipped with a deep understanding of the solutions that truly resonate with customers. They will proactively apply AI, using real-time data for better customer experiences, and collaborate across departments to safeguard customers and swiftly innovate based on AI insights. This transition will empower CX leaders to deploy AI strategically, make smarter decisions, and effectively guide their teams through emerging tech trends and evolving customer behaviors.

The rapid pace of change

As the industry progresses, keeping pace with rapid advancements in AI technology will be crucial. Staying agile and ready for future shifts in the CX landscape is vital for sustained success.

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