How can generative AI help in improving Customer-Centric Business?

generative AI help in improving Customer-Centric Business

The talk of the town, Generative AI, has been on the hit list since its launch, and all for good reasons! Even the tech giants like Microsoft & Google are joining the viral sensation hype. 

The power of Generative AI can’t be neglected; it is revolutionizing almost every aspect of technology and helping companies to scale. Among them, one is enhancing the CX (customer experience). Here’s the proof! 

Table of Contents

In the below graph, it is visible that the primary focus of Gen AI is customer experience. 

 primary focus of Gen AI is customer experience

Positive user experience is a priority for every business, regardless of their niche. And why not? A brand becomes successful because of its consumers. Right? 

To keep them happier, read on to find out how Generative AI can help. 

What is Generative AI?

Generative AI or Generative Artificial Intelligence is a part or subset of artificial intelligence that creates unique content based on existing data, algorithms, and patterns. It is offered in text, images, or other media. 

Let’s understand the concept of Generative AI with an example. 

Probably every individual has used ChatGPT once (or more). Right? 

It is also a type of gen AI that uses deep learning techniques and data sets to produce new ideas and content.

Before we move forward to know more, let’s first have a look at how generative big brands use AI to provide their customers with a better user experience. 

  • Whenever you watch a movie or series on Netflix, you will get recommendations based on that in the future. All of these are done through Generative AI. 
  • When shopping on different platforms like Amazon, Flipkart, and Myntra, you get product recommendations and see ads on different apps. All the credit for this goes to Generative AI.

How Generative AI Can Be Used To Improve Customer Experience

1. Personalized Communication

One size fits all? Not anymore!

If a brand wants to build strong customer relationships, they must understand their pain points and requirements. And Generative AI is a savior! How? 

As mentioned above, it collects and analyzes data to give unique outputs. So this will help you understand customer interactions and give valuable insights into how the user reacts to a product or service, whether it’s good or bad. Utiamley, you can make the required changes and give customers a sense of priority that your business genuinely cares for them. 

2. Targeted Customer Segmentation

Customer segmentation is of utmost priority to offer a personalized customer experience. But what exactly does the term mean? 

It is the process of dividing the users into groups according to their characteristics, which helps companies in several ways, as detailed below. 

  • Identify areas of improvement
  • Find the appropriate communication channel for segmentation.
  • Helps in creating targeted messages that justify the specific needs. 

Generative AI does the targeted customer segmentation by collecting and analyzing data from different sources so you can build segment-specific strategies. 

3. Improved Customer Support

Do you know that 89% of consumers make repeat purchases after a positive user experience? Through Generative AI, you can offer more individualized attention that can be directed towards building customer loyalty. Further, brands can cater to customers’ specific needs, ultimately enhancing customer experience.

Types of Generative AI Used In Customer Experience

1. Chatbots and Virtual Assistants

The use of chatbots and virtual assistants is increasing due to Generative AI. They rely on NLP (Natural Language Processing) to understand and respond to user queries. You can improve your consumers’ overall experience by offering personalized and proactive assistance. 

2. Recommendation Engines

They provide personalized suggestions by predicting user behavior to offer relevant products, services, or content. Also, recommendation engines are of different types, such as collaborative filtering and content-based filtering, which use varied techniques. 

3. Virtual Reality (VR) and Augmented Reality (AR)

In the retail industry, virtual shopping environments allow users to browse products in a simulated 3D space. How? They can virtually try on clothes or visualize products in the living space before making a purchase decision. 

4. Fraud Detection

With the advancements in technology, security vulnerabilities are increasing. Generative AI leverages advanced machine learning algorithms to identify fraudulent activities in real time. 

Also Read: Role of AI in UX Design


In a nutshell, you can use Generative AI to become more future-oriented and interact with customers in a better way. Your business can seek long-term success by creating seamless, personalized experiences that predict customer needs.

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  2. AI-Based Content Vs. Human-Created Content: What To Pick?
  3. Google Bard AI: One of Many Upcoming AI Tools From Alphabet!
  4. Microsoft Unveiled Its ChatGPT AI Feature On Bing!
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