APN31 - I2 - Using AI Conversational Platforms for Customer Exp - 336801

Gartner Application Strategies & Solutions SummitSummit 2017 4 – 6 December 2017 / Las Vegas, NV Using AI Conversational Platforms for Customer Experience — Better, Faster and Cheaper Magnus Revang CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.  AI can extract insight from unstructured data but there is a huge difference between knowing and understanding  Hence AI needs human guidance to apply critical thinking and judgment to what it discovers — "synthetic intelligence"  "Narrow" AI is becoming better than humans at defined tasks  "General" AI is still a long way off (except in the movies!) 1 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. 1. What is a conversational platform? 2. How will it enhance the customer experience? 3. How do I get started? 2 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. What is a conversational platform? 3 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Conversational Platforms Underpin VPAs, VCAs, EVAs and Bots Virtual Virtual Personal Customer Assistant Assistant Conversational Platform: Conversational  A natural-language processing (NLP) engine. Platforms  A user interface (UI) that receives the request and delivers the response via speech or text.  A search and knowledge engine that can traverse big data repositories of knowledge and content.  A context engine to analyze the intent of an individual and deliver personalized answers and other actions. Virtual Employee Assistant 4 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. There Are Five Classes of Conversational Agents Virtual Personal Assistant. Working for users brokering first-, second- and third-party services and VPA knowledge. Available on consumer devices. interaction Human Virtual Customer Assistant. VCAs act on behalf of the enterprise to simulate a conversation that can VCA deliver information and potentially take action on behalf of a customer to perform transactions. Virtual Employee Assistant. VEAs support employees in simplifying engagement with the enterprise VEA and enterprise systems. Narrowly focused chat agent — typically for a specific use case. Can be for users, customers Chatbot or employees. interaction No human Talks to other bots and assistants using natural or structured language. Often dealing with subtasks Bots or narrowly focused conversations. 5 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Where Do Bots Fit? VPA Chatbot VCA Chatbot Chatbot Chatbot Chatbot Bots are narrowly focused conversational entities. The specialists — outsourced to Chatbot Chatbot Chatbot Chatbot by the generalists. Chatbot Chatbot Chatbot VEA 6 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Three Axes VCA Audience Chatbot Bots EVA VPA Consumers Employees EVA VCA Scope Chatbot Bots VPA Specific Purpose General Purpose Chatbot Purpose VCA Bots EVA VPA Automate Empower 7 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. An Interesting Vendor Landscape Facebook (M) Apple (Siri) Tencent VCA VPA Google Assistant Microsoft (Cortana) Clara x.ai IBM Watson Rapid Consolidation Illustrative vendors of market not complete view VEA 8 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Use Cases Vary but the Underlying Technology Is the Same Analytics/Supervision 9 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Logical Architecture With Capabilities 10 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. How Will It Enhance the Customer Experience? 11 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Over the Next Three Years, Machine Learning and Conversational Agents Will Be the Technologies to Watch Plans for emerging technologies for customer experience projects Implemented or plan to 55% 47% 40% 32% 28% 7% 7% 3% 3% Have implemented 10% 8% 12% 14% Will implement within next 12 months 24% 14% 17% 17% Will implement in next 3 years 20% 22% No current plans to implement 23% 68% 72% 60% 53% 45% Machine Learning Virtual Customer VPA for Customers Augmented Reality VPA for Staff Assistants or Chatbot Base: n = 150/Excludes "unsure" Gartner Research Circle Members Q. And finally, what are your organization's plans for implementing emerging technologies for customer experience-related projects? 12 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. We Will Talk With Them to Buy, Sell, Negotiate, Complain and Make Deals Popular Conversations Modes Today VPA API Company User Company Employee Enterprise VPA Chatbot EVA APIs Systems Scenario 1: User requests Scenario 3: Support employee service/support/information via VPA e.g., coordinating sales program, BI reporting user-driven customer service Chatbot Chatbot VPA Chatbot User Company User Company A Company B VCA Scenario 4: VPA collaboration with multiple bots. Service Scenario 2: Company provides service orchestration e.g., calendar and email VPA functions engaging with (narrow — bot, broad — VCA) hotel and car booking. Context passes from VPA to chatbot to chatbot. 14 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Five Use Cases That Will Influence the CX Lead generation and Payment Targeted upsell improved conversions services and cross-sell Customer Personalized media service queries and news 15 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Leading experience: IP Australia IP Australia "Alex" Helps Website Visitors to Apply for Patents with Nuance Nina Virtual Assistant "With approximately 99.6% of our Of customer inquiries resolved by the virtual assistant customers now transacting with us online we are reimagining the digital service experience. […] The latest • Through Nuance's sophisticated technology, IP Australia advancements from Nuance enable us eliminates the need to sift through menus, ensuring that every interaction begins and ends with an effortless, natural to take our 24/7 customer experience to experience the next level through the implementation of advanced artificial • IP Australia is the first organization across the Asia Pacific intelligence and machine learning". region to add next generation automated machine learning and human-assisted AI capabilities to its virtual assistant Director General of IP Australia, Patricia Kelly 16 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Leading experience: KLM KLM Customer Service Reps Avoid Turbulence in Social Media with AI Tool from DigitalGenius • KLM Royal Dutch Airlines uses artificial intelligence to assist 'A personal approach is extremely customer service agents in important to KLM as this is what defines managing the increasing volume of interactions with customers over our social media service. Applying AI, social media channels. KLM can handle a greater volume of • Initially, the application has been questions while still maintaining its trained on 60,000 previous customer-agent interactions and it personal approach and speed.' continues to learn by observing the actions of the agents. Pieter Groeneveld, Senior Vice President Digital Air France KLM 17 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Leading experience: Dell Dell delights their customers and improves the business performance by using AVA from NextIT  Instantaneous access to content Q & A's  Enhanced dell.com navigational tools • Customers using chat +80% • 316K conversations taken in first 3  Advisory experience via natural language conversation months  Improved product differentiation based on customer needs • Reduction in live chat cost by 27% • +600bps improvement to live chat  Increasing customer satisfaction on Dell.com close rate • AVA driving AOV and margin-per-unit  Delivering sales productivity via improvements to Dell.com premiums vs frictionless Dell.com conversion and basket size • +12% total chat (AVA+Live) revenue  Reduction in live chat sales OPEX  Incremental chat demand & mix of total dell.com revenue (when AVA + Live chat considered) 18 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Measurable Benefits for Customers and Your Organization Speed Customer Satisfaction Simplifying Complexity Scalability Cost Savings Increased Revenue 19 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. How Do I Get Started? 20 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Employees plan, drive and deliver the customer experience 21 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Manage the Human Relationship to AI and Conversational Agents Technology Technology as a Technology as a as tool subordinate social peer Customer issues Employee issues:  Trust, safety  New working practices and skills, deskilling of some roles  Attitude to "things" and "intelligence"  Change in field workforce role from "heroes" to "replacers"  Weaker personal relationships  Opaque systems and recommendations CIOs must be sensitive to the huge psychological transition of power and control that is involved. Give people time to come to terms with the new order. 22 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Put Humans in the Loop — For Years to Come Paranoid Level: Escalate  Develop parallel efforts with HR for retraining the machine  Get training data, build a machine-learning model, use it to classify incoming requests, but back off to human judgments whenever the model is confused. 23 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Revive Knowledge Management With the Digital Workplace Capture Structure Reuse Organizational Knowledge Management Knowledge-Centered Service 24 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Determine Your Use Case Interactive Conversation Volume A B C Customer Dialogue Personalized Engagements C Informational Transactional Level of Engagement Task Complexity B A C General Questions/Answers Guided Task Completion C A Explicit Information 25 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Expectations of Conversational Platforms Automated Actions Solve Case Dialogue Translation Smart Advice Routing Smart Ordering Search Insight Actions Form Escalation Completion Update Fixing Knowledge Base 26 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Reality … Automated Actions Solve Case Dialogue Translation Smart Advice Routing Smart Ordering Search Insight Actions Form Escalation Completion Update Fixing Knowledge Base 27 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. How Will the Winners Differentiate?  Show personality in engagements  Differentiate themselves by the kinds of engagements provided  Capture novel, but relevant contexts  Show industry knowledge  Ability to precisely target needs and wants  Capture all the data collected through interactions  Have the ability to "market" to smart machines  Automate knowledge management through machine learning 28 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Recommendations  Vendors are tactical at the moment, don't choose a strategic vendor as the market will change significantly over the next year  Target the highest impact areas and do proofs of concept, where you have good historical data  Don't underestimate time for developing decision trees and maintaining them  Enrich data to ensure best performance, be in control of the training of the machine  Design the conversational agent with the human in the loop — smarter with every interaction 29 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Building Your AI/Automation Action Plan Sweep the competitive Build your knowledge Understand the landscape: What are of AI/automation business strategy — others doing? technologies and humans vs. machines. 1 What is happening in adjacent industries? 2 assess their maturity and potential to 3 Is the time to act now? your organization. Build bots Don't be seduced and reusable by AI, sometimes algorithmic engines. simple robotic process 4 5 automation is sensible or an algorithmic business approach. 30 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. Recommended Gartner Research  Four Use Cases for Chatbots in the Enterprise Now Van L. Baker and Magnus Revang (G00316146)  Architecture of Conversational Platforms Magnus Revang, Brian Manusama and Anthony Mullen (G00323532)  Conversational AI to Shake Up Your Technical and Business Worlds Tom Austin, Mark Hung and Magnus Revang (G00315689)  Market Insight: How to Collaborate and Compete in the Emerging VPA, VCA, VEA and Chatbot Ecosystems Anthony Mullen, Magnus Revang and Brian Manusama (G00319851) For more information, stop by Gartner Research Zone. 31 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved. @Brian Manusama 32 © 2017 Gartner, Inc. and/or its affiliates. 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