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Why AI Has Become Essential for Customer Experience: Insights from Industry Leaders
Monday 23rd of June 2025
Artificial intelligence has shifted from being a competitive advantage to becoming an essential business capability. Yet many organizations struggle to determine where to begin their AI journey, particularly when it comes to enhancing customer experience.
To address this challenge, we recently recorded a comprehensive podcast episode featuring a conversation between Marco Pionbo, Group CEO at Customer Collective, and Taki Taklanos, an AI practitioner at Bose. Their discussion explores how generative AI is fundamentally transforming customer experience and provides actionable guidance for organizations ready to embrace this transformation.
AI in Customer Experience: No Longer Optional
The evidence is clear: AI has become non-negotiable for customer experience leaders. As Taklanos explains in our podcast, this shift is driven by three critical factors that organizations can no longer ignore.
The Technology Evolution is Unprecedented
The pace of technological evolution has reached unprecedented levels. The speed at which AI capabilities are advancing—and being adopted—has never been seen before in any previous technological revolution. This rapid development creates both opportunities and pressures that organizations must address immediately.
Industry Leaders Are Setting New Standards
Major companies are actively reshaping customer expectations:
- Amazon’s Rufus: Even the company that pioneered personalization 20 years ago is doubling down on AI-driven shopping experiences
- Google’s AI Overview: A completely disruptive search experience that users are rapidly adopting
- Consumer brands: Spotify and Sephora are launching immersive, AI-powered experiences that set new interaction standards
AI is Going Mainstream at Every Level
Perhaps most significantly, AI is infiltrating experiences everywhere—from global tech giants to local businesses. Pionbo shares a compelling example of a local photo printing store offering AI-generated personalized children’s stories, while theme parks are installing AI booths for unique photo experiences. These touchpoints reach millions of customers who then carry these elevated expectations to every other brand interaction.
The bottom line: The convergence of these factors points to a critical tipping point expected within the next 12 months. As customers experience AI-powered interactions across various touchpoints, their expectations for all brands will fundamentally shift.
Getting Started: Treating AI as a Practice, Not a Project
Successfully implementing AI for customer experience requires a fundamental mindset shift. As our podcast discussion reveals, AI should be approached as a practice rather than a one-time project or simple tool implementation.
” AI is a practice. It’s not a project, it’s not a tool, it’s not tech, it’s a practice.”
The most effective approach begins with adopting a “North Star” mindset—thinking big about ultimate goals while starting small with focused experiments. Leading organizations follow an experiment-driven, incremental approach that prioritizes learning and validation over immediate large-scale deployment.
Understanding the Success Formula
One of the most critical insights from successful AI implementations concerns resource allocation:
- 30% Technology and Data: The technical infrastructure and data quality components
- 70% Change Management: Culture transformation, user adoption, and human elements
This ratio highlights why many technically sound AI initiatives fail—they underestimate the human element required for success.
Embrace Experimentation and Learning
Organizations need to create environments where:
- Experimentation is encouraged
- Risks are managed appropriately
- Teams feel safe to iterate and learn from unsuccessful attempts
- Failure is viewed as part of the learning process
This approach requires patience and a long-term perspective, but it builds the foundation for sustainable AI integration.
Overcoming Cultural and Organizational Barriers
The path to AI adoption inevitably encounters cultural and organizational resistance. Our podcast discussion identifies several key barriers and strategies for overcoming them.
Embracing Discomfort as the New Normal
Resistance to change is natural but potentially dangerous in the current business environment. Organizations must recognize that discomfort isn’t a sign of failure—it’s the new reality of operating in an AI-driven business landscape.
“Everyone needs to get comfortable with the uncomfortable. That’s the important and painful truth.”
Leadership Commitment: Top-down support proves essential for successful AI initiatives. Leadership must not only approve AI projects but actively stimulate and support the cultural changes required for adoption.
Cross-Functional Collaboration: Unlike previous technological implementations that could be isolated within specific departments, AI requires coordination across:
- Teams and departments
- Data sources and systems
- Business processes and workflows
Breaking Down Silos: Organizations must foster collaborative working relationships and eliminate departmental barriers that hinder AI integration.
The Agility Advantage
Interestingly, organizational agility may provide smaller companies with significant advantages over larger competitors. While established corporations struggle with rigid processes and structures, agile organizations can:
- Experiment more quickly
- Iterate and adapt faster
- Make decisions without extensive bureaucracy
- Pivot strategies based on learnings
This dynamic suggests that company size alone won’t determine AI success—organizational culture and adaptability will be the deciding factors.
Key Takeaways for Your AI Journey
The transformation of customer experience through AI represents both an unprecedented opportunity and an urgent necessity. Organizations that approach AI as a practice, invest in change management, and foster cultures of experimentation will be best positioned to succeed in this new landscape.
Our podcast episode explores these topics in much greater depth, covering additional crucial areas including data strategy, the buy-versus-build decision, cybersecurity considerations, and ethical implications of AI deployment. The full conversation provides detailed insights and practical guidance for organizations at any stage of their AI journey.
Ready to explore how AI can transform your customer experience strategy? Our team specializes in helping organizations navigate AI implementation with practical, results-driven approaches. Contact us to discuss your AI enablement needs and discover how we can accelerate your journey toward AI-powered customer experience excellence.
Watch more materials on the topic:
Webinar 1: How AI fuels awareness & lead generation
Webinar 2: How AI is revolutionizing CX
Webinar 3: The impact of AI on loyalty & retention