Wayfair and Zendesk CTOs Share Insights on the Impact of Generative AI on Customer Experience (CX) Transformation

Meeting Customer Demand with Innovative Digital Solutions

Customers increasingly expect high-quality digital services, frequently assessing companies based on their online interactions. As enterprises embrace generative AI tools, Adrian McDermott, CTO of Zendesk, emphasizes the need to prioritize customer experience (CX) enhancements.

Speaking at this year's VB Transform, alongside Wayfair CTO Fiona Tan and moderated by UneeQ CEO Danny Tomsett, McDermott predicted significant shifts within the CX industry.

Generative AI: A New Era of Personalization

Fiona Tan highlighted the emotional nature of home decor shopping, where customers often struggle to articulate their preferences. To assist consumers in visualizing their ideal living spaces, Wayfair launched the generative AI tool, Decorify. Users can upload photos of their rooms and experiment with various virtual styles.

“You can see your living room transformed in ways you may not have previously considered,” Tan explained. This technology helps customers discover their preferences, such as whether they favor mid-century modern over glam styles.

Wayfair utilizes its product knowledge to recommend actual items from its catalog, with the app generating over 150,000 images and improving user engagement significantly. “It’s a high-converting capability,” Tan noted, and efforts are underway to integrate it into the main website, allowing for real-time personalized content generation.

Danny Tomsett remarked that generative AI offers “personalization at a whole new level,” providing a fresh perspective on enhancing customer experiences.

The Importance of Empathy in the AI Age

Returns and exchanges remain a crucial aspect of retail. Tan explained how Wayfair employs a human-in-the-loop AI system for these processes. For instance, when customers submit photos of damaged items, AI can aid in determining the necessary return actions.

Recognizing the complexity of returns, Tan pointed out that customers often seek human empathy, particularly in frustrating situations. “For critical applications, having a human involved is essential,” she asserted, emphasizing the need for companies to offer both self-service and human interaction options.

Tomsett echoed this sentiment, noting that not all consumers have the same comfort levels with technology. He highlighted that over 40% of consumers feel intimidated by telecom customer service interactions. To address this, UneeQ implemented their digital human, Sophie, on a telecom website, providing compassionate support and encouraging users to articulate their issues in their preferred language.

Tomsett noted that some customers prefer engaging with a digital human to avoid feeling judged. Telecom customers who incorporated Sophie experienced a fivefold increase in conversions.

“Empathy and sentiment detection will become increasingly vital,” McDermott stated. While automation will enhance some CX interactions, it is crucial to leverage AI to support human skills.

“Certain consumers will always seek direct communication with operators,” McDermott continued, highlighting a shift in CX measurement from speed and volume to quality and sentiment.

As the skill set for customer service agents evolves, it will emphasize empathy and problem-solving skills rather than mere efficiency. McDermott remarked that large language models (LLMs) provide exceptional reasoning abilities, but trust in these applications will require robust scaffolding and governance.

Ultimately, McDermott concluded, “You can only move as fast as your consumers allow.” Businesses must ensure they meet customers' evolving expectations for service delivery.