This is the seventh post in our Executive Guide to Cutting-Edge Tech Customer Onboarding blog series. If you have not read our other posts you can find them here.
Leveraging AI to rapidly respond to shifting market and customer demands is now a critical differentiator for businesses aiming to stay competitive. In an era of constant disruption, leaders need to leverage the strategic advantage that AI provides to enhance operational efficiency, ensure compliance, and foster customer trust.
AI can empower strategic and marketing decisions, optimize HR and hiring practices, and enhance customer relations by positioning your company as a proactive listener. By understanding and implementing AI-driven strategies, enterprises can not only keep pace with but also excel in the face of market and technology shifts.
One example of constant evolution that leaders need to be prepared to handle is in the banking industry. The establishment of the Consumer Financial Protection Bureau (CFPB) has led to ongoing initiatives and new regulations by the bureau that financial institutions need to respond to and adapt their processes. Priya Sarathy, Ph.D. states that AI is being integrated in three key ways in the Financial industry:
Internal Operations at Banks: Since 2011, the requirement of independent Model Risk Management Teams (MRM) continue to ensure that AI algorithms are fair, accurate, and performing optimally.
Compliance: As we know, regulatory audit trails can be very intensive. AI-based tools are being used for up-to data documentation, lineage tracking, and alerting changes in market impacting data.
Customer Trust: Being transparent about the proper use of data and the insight development process is essential. AI-managed data security and data quality architecture elevates the trust of customers in the institution.
In 2022, the CFPB intensified its focus on consumer rights, pressuring banks to enhance customer service standards through timely and high-quality responses. To meet these demands, many large banks have adopted artificial intelligence (AI) technologies, such as chatbots and virtual assistants, to streamline customer inquiries, reduce wait times, and improve service delivery. Beyond compliance, AI's ability to analyze real-time customer feedback and service performance is enabling banks to address service gaps, enhance customer satisfaction, and strengthen their competitive edge in a rapidly evolving financial landscape (CFPB Press Release).
Below is our “top list” of recommendations for leveraging AI to stay ahead of your competition:
Strategic Decision-Making: Leveraging AI for strategic decision-making will equip executives with advanced analytics and predictive insights, enabling more informed and timely business choices that will align with market dynamics.
Marketing Decisions: AI enhances marketing by providing advanced sensing and real-time analytics. This allows organizations to fine-tune messaging and enhance campaign effectiveness based on current market trends.
Enhance Your Customer Relations: AI can improve customer relations by anticipating preferences and positioning your organization as a proactive listener to evolving trends.
Tracking Industry Impacts: Be better prepared as an organization. AI allows enterprises to track and evaluate potential industry impacts, providing valuable insights that enhance organizational preparedness and strategic responsiveness to market shifts.
In conclusion, the integration of AI in market sensing and customer experience is not just a technological advancement but a critical strategy for fostering trust and strengthening relationships. Beverly Wright, Ph.D. says that AI enables enterprises to make more informed decisions, optimize various functions, and enhance customer interactions, thereby aligning with evolving market demands and regulatory standards. The emphasis on proactive customer service, driven by AI, demonstrates a commitment to addressing customer concerns effectively and transparently. As Priya Sarathy, Ph.D., points out, standardized AI processes not only ensure compliance and operational excellence but also build stronger customer relationships by making customers feel heard and valued.
In a world where customer trust is paramount, brands that leverage AI to enhance their service delivery and responsiveness will not only navigate market shifts more successfully but will also cultivate lasting customer loyalty, setting themselves apart from the competition (Gartner).
About the Authors:
Kathleen Rouse is an Independent Consultant and has taken her 20+ years of experience maximizing adoption and increasing renewal rates to best-in-class 95%+ and 45%+ growth rates and turned them into playbooks, processes & templates for her clients to increase their customer retention and growth.
Priya Sarathy, Ph.D, CDMP is a data strategy leader and analytics enabler with over 15 years of experience in leading analytics solution design and build, and transformations across various industries, such as financial, telecom, technology, and services. She has a Ph.D. in Econometrics and Quantitative Economics, and multiple certifications in machine learning, programming, and Data management.
Dr. Beverly Wright serves as VP of Data Science & AI, and Executive Director for Data Science & AI at University of Georgia, as well as Past President of INFORMS Analytics Society, and Chair of Data Science & AI Society at Technology Association of Georgia. Beverly is a sought-after professional speaker at established conferences, presenting on topics related to data science, artificial intelligence, consumer insights, and marketing analytics.
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