EY flags AI track that won't fix customer service

Simply adopting artificial intelligence (AI) tools will not be enough for companies to transform their customer service operations, as businesses need to redesign their operating models, technology systems and workforce capabilities to achieve meaningful results, according to a report by EY.

The report said companies must move beyond deploying individual AI applications and focus on integrating the technology into their existing business systems to improve customer experience, productivity and operational efficiency.

"The path to higher value realization from AI in customer service is not the same for every organization," the report said.

It added that while AI agents and generative AI technologies are prompting companies to revisit their transformation priorities, operating models, technology choices and governance structures, successful organisations share a common approach.

"The most successful organizations share a common characteristic: operating customer service atop integrated business systems rather than isolated AI use cases," the report said.

EY outlined a five-step roadmap for companies looking to transform customer service through AI. The approach begins with assessing existing operations and identifying gaps in business processes, technology, workforce skills and AI capabilities.

The first step involves evaluating the current customer service environment, including business and operating models, technology infrastructure, process readiness, workforce skills and performance measurement systems.

The second step focuses on building the foundations required for AI-led transformation. This includes strengthening customer and interaction data, improving knowledge repositories, establishing governance and risk management systems, and preparing employees for changes in their roles.

The report said companies should also focus on scaling AI applications that deliver measurable improvements rather than expanding technology deployment without clear business outcomes.

"Once foundations are established, focusing on scaling AI across high-impact customer service processes rather than connecting with isolated pilots can lead to better results," it said.

The third step involves identifying priority use cases that can improve customer experience, increase efficiency, reduce service costs and improve productivity.

The fourth step focuses on connecting AI capabilities with existing operating systems. EY said companies need to move beyond standalone AI deployments and integrate the technology into interconnected operating systems that bring together customer service, analytics, people and business platforms.

The fifth step is to measure actual business outcomes rather than simply tracking AI adoption or the number of tasks handled through the technology.

"Organizations reaching the highest levels of value realization measure business transformation outcomes rather than AI activity," the report said.

It added that companies should focus on improvements in cost, efficiency, customer experience, productivity and revenue.

EY also highlighted the importance of continuous investment in data, knowledge, governance and employee readiness to ensure that AI-led transformation delivers sustainable business value.

The report said organisations making progress towards higher value creation need to align their technology investments with customer service operations, workforce capabilities and business performance goals.