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

generative AI

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. 

Generative AI is not just a theoretical concept; it’s a practical tool revolutionizing technology and helping companies scale. One of its most significant applications is enhancing the customer experience, a crucial aspect for any business. 

As depicted in the graph below, Generative AI is laser-focused on customer experience, underscoring its commitment to putting the customer at the heart of its operations. 

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.

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

What is Generative AI?

Generative AI or 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. 

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 learn more, let’s examine how big brands use Generative 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. 
  • You get product recommendations and ads on different apps when shopping on platforms like Amazon, Flipkart, and Myntra. Generative AI is all the credit for this.

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 provide unique outputs. This will help you understand customer interactions and provide valuable insights into how the user reacts to a product or service, whether it’s good or bad. Ultimately, 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 when offering 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.
  • It helps create targeted messages that justify 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

Did you know 89% of consumers make repeat purchases after a positive user experience? Generative AI can help you offer more individualized attention, fostering customer loyalty. With this technology, brands can cater to customers’ needs, enhancing the overall 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 and content-based filtering, which use varied techniques. 

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

Virtual retail 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 real-time fraudulent activities. 


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

Related posts:

  1. ChatGPT Complete Guide: What it is and How To Use?
  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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