STRATEGIC IMPLICATION OF AI ADOPTION IN ENHANCING CUSTOMER EXPERIENCE

Abstract

The strategic ramifications of using artificial intelligence (AI) to improve customer experience (CX) across industries are examined in this study. Businesses are using AI technologies like chatbots, recommendation engines, voice assistants, and predictive analytics more and more as digital transformation picks up speed in order to satisfy customers' growing demands for ease, customisation, and round-the-clock support. The study examines how AI is changing customer experience (CX), emphasizing both the advantages and disadvantages it brings, such as privacy issues, ethical dilemmas, and the possibility of depersonalization. The report uses a mixed-method approach, integrating primary data gathered through surveys, real-world case studies, and a review of the literature. It looks at how public opinions are changing, how psychographics affect the adoption of AI, and how AI is used in important CX touchpoints like social media, voice, and chat. One-way ANOVA and other statistical studies show no discernible change in overall happiness based only on prior exposure to AI, indicating that implementation quality and customer needs alignment are more directly related to the usefulness of AI in CX. Results point to the necessity of a hybrid approach that strikes a balance between automation and human empathy as well as open, moral AI procedures. In addition to outlining wider ramifications for companies, legislators, and technologists, the report ends with strategic advice for organizations. When carefully included, AI has the capacity to revolutionize consumer satisfaction, trust, and loyalty.