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Revolutionizing the CX Industry: The Rise and Impact of Generative AI

Published on July 7, 2023

Authored by Harry Folloder Alorica’s Chief Digital Officer Reposted from CustomerThink

The world has been spellbound by the near-magical capabilities of generative AI, marveling at its ability to reproduce human-like interactions. This revolutionary technology has not only stirred unprecedented excitement in the business sphere but has also transitioned almost instantaneously from the depths of specialized tech to a broad consumer and enterprise fascination. Generative AI is democratizing the use of artificial intelligence by making it more approachable, as exemplified by powerful tools such as OpenAI’s ChatGPT and Google’s Bard.

ChatGPT has rapidly become a commonplace term. Since its launch in November 2022, it amassed a staggering 100 million users within just two months, setting a new record for the fastest-growing consumer app in internet history. It’s clear that generative AI is well on its course to solidifying a significant place in the world of customer experience (CX) as well. Generative AI transcends being a fleeting business trend or marketing jargon; it is set to be a catalyst for transformation in the CX industry.

Synergies with Contact Centers

The CX industry, already accustomed to AI technologies with one of the highest adoption rates, now welcomes generative AI, which extends far beyond the capabilities of traditional customer service methods, like automated chat responses or performing rudimentary tasks. As a Large Learning Model (LLM) used for Natural Language Processing (NLP), generative AI’s unique ability to be trained on massive datasets makes it an invaluable asset to CX centers.

Its versatility allows it to power self-service bots, automate email responses, and create comprehensive report summaries. Companies that have successfully integrated generative AI leverage it to handle unstructured data like conversations, chat interactions, and operating manuals. By doing so, they can extract meaningful insights from this formerly inaccessible “dark data,” offering businesses an unprecedented level of valuable intelligence.

As generative AI continues to accurately automate tasks at a rapid pace, CX centers are quickly realizing its potential to cut costs without compromising on the quality of service delivery.

Strategies for Success

Bloomberg Intelligence predicts that generative AI tools could generate revenues exceeding $1.3 trillion in the next decade, growing from the $40 billion achieved in 2022. This anticipated exponential growth solidifies generative AI’s place in many enterprise tech budgets. In a competitive business environment where every interaction counts, brands can’t afford to overlook or carelessly implement AI in their digital strategy.

Companies should begin by familiarizing themselves with generative AI technologies and testing them to meet specific needs. After gaining a solid understanding and allowing the LLMs more time and data to learn from, leaders should then train and support their employees in using these tools. In doing so, they will better understand the technology’s capabilities and limitations, and then apply that knowledge to optimize the customer experience in the most impactful ways.

Navigating Potential Challenges

However, as the deployment of generative AI grows, so do the associated concerns. To leverage the true value of generative AI and avoid hindering digital transformation, it’s crucial to understand when and how to deploy it effectively. While generative AI excels in analyzing and synthesizing vast datasets, there’s always the risk of an interaction failure between a customer and the brand, necessitating a human backup. Balancing human and AI involvement is key to delivering successful customer experiences and maintaining enduring brand relationships.

Given the rapid application and expansion of generative AI, establishing governance to keep pace with its development is critical. Comprehensive guidelines, set by tech providers, consumers, and regulators, will protect generative AI from misuse and ensure it continues to enhance the lives of organizations and consumers alike.


Alorica Inc. (“Alorica”) is the holding company of various direct and indirect subsidiaries, including Systems & Services Technologies, Inc. (SST). Many of Alorica Inc.’s subsidiaries operate under the brand, Alorica, but all remain separate legal entities.