The evolution of Conversational and Generative AI: what to expect in 2024
In 2023, GenAI technologies experienced unprecedented growth, as we witnessed huge developments in human-computer interactions. OpenAI’s ChatGPT and Google’s recently re-named Gemini have brought every day interactions with AI to the masses.
According to research by Bloomberg Intelligence last year, the GenAI market is poised to grow exponentially, reaching $1.3 trillion over the next 10 years, from a market size of $40 billion in 2022. And it’s hard to argue with that prediction, having personally seen a real acceleration in the use of GenAI across various verticals, including retail, travel, financial services and hospitality
I’ve worked in the AI industry for quite some time now and the past year has possibly been the most exciting yet. I’m seeing more customers wanting to implement new and advanced use cases, while organisations new to AI are understanding that they need to be using and investing in AI technologies now, in fear of being left behind.
In particular, businesses across various industries look to enhance customer experiences and streamline operations, the adoption of Conversational AI (CAI) has become increasingly popular.
So in a year set to be full of more global economic uncertainties, how can we expect the use of CAI powered by GenAI to evolve in 2024 and beyond?
More complex use cases will arise with hyper-personalisation
Advancements in natural language processing (NLP) and machine learning algorithms have fuelled the development of more sophisticated conversational agents capable of understanding context, sentiment and user intent with increased accuracy. This is in comparison to more traditional and simple FAQ-based chatbots, where predetermined keywords dictated responses to customer queries.
In today’s dynamic business environment, this means leaders are shifting their focus towards leveraging CAI powered Intelligent Virtual Assistants (IVAs) for more strategic purposes such as cross-selling, upselling, and personalised interactions. This shift is driven by a desire to bridge the gap between businesses and customers and unlock valuable insights to enhance experiences at an accelerated pace.
For example, airlines that use IVAs can support a customer throughout their booking journey, suggesting an airport lounge or aisle seat, based on live access to historical customer data, or presenting an exclusive offer on airport parking. And according to research by McKinsey, 71% of consumers expect personalisation and 76% get frustrated when they don’t find it.
Clearly, hyper-personalisation and customisation like this is key to the evolution of more complex use cases. And it’s something I expect we’ll see increasingly being used by organisations looking to level up in order to retain customers.
Alongside this, it’s likely we’ll see CRM platforms and contact centre’s working together more collaboratively this year too.
By integrating consumer data stored in CRM platforms, businesses can achieve more cohesive and insightful interactions with their customers. This collaborative approach not only enhances operational efficiency but also ensures that customers feel valued and understood throughout their journey. After all, data is king. It’s now up to businesses to use the data they collect, in the most valuable way possible.
LLM search capabilities will evolve drastically
For contact centre agents, there is a growing desire to use automated technologies like GenAI and CAI to help them in better supporting customers. In Kore.ai’s 2023 AX Benchmark report, the majority of contact centre agents (78%) said that they see IVAs as a means to improve their customer interactions by delivering more accurate and personalised information.
Cognitive Search capabilities will play a significant role in enhancing the experience
for contact centre agents and customers as large language models (LLMs) advance further. For example, when agents ask questions in order to gather the best advice for their customer, retrieval augmented generation (RAG) based cognitive search can offer contextual, personalised and very relevant answers, not just search results, to help agents serve their customers better. And these answers could involve multimodal responses including relevant information videos or product options presented in a carousel format.
But we’re only just scratching the surface when it comes to large multimodal models (an extended version of LLMs that will revolutionise the way people access AI) for search assistants and supporting agents with the best next action advice. Organisations will invest heavily into large multimodal searches over the course of the next year as they gain more insights from unprecedented access to enterprise-wide data for greater consumer insights.
Governments will play regulatory catch-up
With more AI-driven interactions taking place, regulating AI has been a hot topic for governments around the world.
By 2025, when talking to a contact centre agent, the technology will be so advanced that a customer would find it difficult to decipher whether they’re talking to a person or a virtual assistant.
In fact, new EU legislation launched at the end of 2023 means organisations have to tell a customer if they are speaking to a chatbot over a live agent at the start of their conversation. And by 2028, Gartner predicts that the EU will mandate “the right to talk to a human” in customer service.
With technology getting to a level of artificial cognitive equivalence, governments are clearly seeking to put legislation into place so consumers know what kind of interaction they are having. And that’s important because protecting the most vulnerable customers in society is key.
Moving forward, we can expect more stringent regulations, to ensure consumers using AI are being kept safe. However, governments globally must ensure that these regulations allow for a pro-innovation approach, as under the right conditions, AI has the ability to positively transform all areas of our lives.
Shaping the future
Now AI is firmly embedded into the minds of business leaders, senior leaders must ensure they work with trusted providers to make the most of its benefits, not just adopt it in fear of missing out.
The year ahead will be full of challenges and changes – from elections to regulations, but one thing is certain, customers expect high-level, personalised experiences where they feel valued. If not, they’ll happily take their business elsewhere.
Boundaries are breaking and horizons are expanding, all thanks to the power of GenAI in driving industries forward. The future is now. Let’s embrace it, adapt to it, and explore how GenAI can transform operations and experiences today.
