What's Happening?
Code and Theory's co-founder Dan Gardner has criticized the current use of AI in B2B customer experience, stating that many companies are misusing AI by automating existing mistakes rather than innovating.
According to recent research from Wall Street Journal Intelligence and Code and Theory, 93% of US executives admit to failing in providing effective customer experiences. Gardner argues that companies are bolting AI onto broken customer journeys instead of reimagining customer engagement. The research highlights that 76% of executives are behind on AI transformation, with only 28% leveraging new technologies for innovative digital customer experiences. Gardner emphasizes the need for companies to use AI to connect platforms and create new modes of interaction, rather than just optimizing back-end processes.
Why It's Important?
The criticism from Code and Theory highlights a significant issue in the B2B sector where AI investments are not translating into improved customer experiences. This has broader implications for the industry as companies may be missing out on potential revenue and growth opportunities by not fully utilizing AI's capabilities. The research suggests that companies focusing on efficiency rather than customer experience are neglecting a crucial aspect of business success. This could lead to a competitive disadvantage as customer experience leaders generate significantly more revenue than laggards. The findings call for a shift in how AI budgets are allocated, emphasizing the importance of customer-first strategies to drive engagement and retention.
What's Next?
To address these challenges, B2B companies are encouraged to get their tech infrastructure in order, ensuring unified data and interoperable platforms. They should also identify customer-first experience gaps and invest more in AI-driven customer experience improvements. By doing so, companies can unlock richer, more personal customer experiences and achieve real returns. The industry may see a shift towards treating customer experience as an organizational mandate, with dedicated budgets and teams focused on innovation rather than efficiency alone.
Beyond the Headlines
The discussion around AI in B2B customer experience also touches on cultural and organizational barriers, such as leadership misalignment and creative talent shortages. These issues highlight the need for a holistic approach to AI implementation that goes beyond technology and addresses organizational culture and structure. The emphasis on creativity and innovation suggests a potential shift in how companies approach AI, moving away from traditional efficiency metrics towards more qualitative measures of success.
