Will Agentic AI Help or Hinder the Customer Experience?

A new concept has started popping up in the world of artificial intelligence: agentic AI. According to Forbes, "This innovative technology is not just another industry buzzword; it's a paradigm shift that's poised to redefine the boundaries of AI capabilities."

As reported by CMSWire, this emerging application involves intelligent systems, commonly known as AI agents, that function autonomously, executing tasks, making decisions, and achieving goals without ongoing human supervision. These agents can analyze data, learn from experiences, and adjust to new scenarios, making them "highly versatile tools in various business applications."

The outlet went on to explain that agentic AI will pave the way for a better customer experience by "introducing a level of personalization, efficiency, and responsiveness that was previously unattainable." It also predicts that the tech will become mainstream by the end of the year and help set the stage for artificial general intelligence (AGI).

Agentic AI surpasses typical artificial intelligence by introducing a "chaining" ability, allowing it to perform a series of actions in response to a single request. This enables it to break down "complex tasks into smaller, manageable steps," per Forbes. "Think of agentic AI as a digital assistant on steroids," Forbes explained. "Instead of just answering your questions or performing simple tasks, it can take initiative, solve complex problems, and adapt its approach based on changing circumstances."

The New York Times stated that the term "agentic AI" is just a more sophisticated way of saying that "something acts like an agent." Agentic AI can operate autonomously compared to chatbots that need humans to input prompts to generate a response. A user could set a complex goal, such as designing a website, booking a trip, or predicting which factory machines require maintenance, and the AI would handle all the necessary tasks on its own.

This technology could further benefit industries where AI has already seen prevalent deployment, such as in call centers. According to CX Today, the excitement surrounding AI in these centers has been building for years, with many businesses acknowledging its potential to improve everyday operations. In a survey completed in late 2023 by 8x8, "94% of respondents report productivity improvements, while 93% agree that adopting or increasing contact center automation in the next 12 months is important."

Furthermore, NVIDIA recently released an article about how AI is transforming retail customer service by enhancing both efficiency and personalization.

Retailers are increasingly deploying conversational AI and AI-based call routing to manage high call volumes and complex customer inquiries. For instance, CP All, operator of Thailand's 7-Eleven locations, utilizes AI chatbots that handle over 250,000 calls daily, reducing call center load by 60%. This technology improves response times and accuracy, leading to higher customer satisfaction and allowing human agents to focus on more intricate issues.

Generative AI and natural language processing (NLP) are pivotal in this shift. These tools enable chatbots and virtual assistants to understand and respond to customer needs more effectively. By analyzing data from past interactions, AI systems provide personalized service and product recommendations, which helps retailers meet the evolving expectations of their customers.

The return on investment (ROI) for AI in retail is also notable. AI reduces operational costs by automating routine tasks and managing customer interactions more efficiently than traditional methods. Retailers can measure success through key indicators such as reduced response times, lower call center costs, and improved customer satisfaction scores.

Per a recent Cogito survey, customers are increasingly embracing the personalized shopping experience provided by AI, though they still place high importance on human interaction. Specifically, it found that "over half (53%) of respondents welcome an agent using AI to suggest relevant upgrades or deals tailored to their needs and purchase history."

The advent of agentic AI promises a transformative shift in retail by enhancing efficiency and personalization even further, yet it also underscores the ongoing need for human touch. As AI evolves to handle complex tasks autonomously, the challenge will be balancing technological advancements with the irreplaceable value of human connection in customer service.