Imagine you’re a business leader who just invested millions in the latest AI technology for your customer service department. The promise? Reduced costs, increased efficiency, and happier customers. Six months later, you evaluate whether this investment has truly delivered on those promises.

This scenario isn’t hypothetical. It’s happening in companies around the world. However, according to new research, AI delivers tangible returns for those who implement it thoughtfully and strategically, particularly in enhancing employee (EX) and customer experiences (CX).

Let’s explore what the latest data tells us about the return on investment (ROI of AI) in these critical areas and how it can be maximized by focusing on doing experience management right.

The Current State of AI Investment

Recent research featured in a RingCentral report reveals that businesses are heavily investing in AI to enhance both customer and employee experiences.

“IT, CX, and business unit leaders that participated in Metrigy’s study spend about $3.3M a year on AI technology. This figure is set to increase in 2024, and companies plan on increasing AI spend for both customer experience and employee experience initiatives.”

These figures highlight the significant financial commitment companies are making to AI, reflecting its perceived potential to transform business operations.

Realizing The ROI of AI

The encouraging news is that many businesses already see the benefits of their AI investments. The RingCentral report indicates that “nearly half of the companies participating in the study are already seeing a return on their AI investments, and another 23.6% expect to realize ROI in 2024.”

This data underscores that AI when implemented effectively, can indeed drive measurable returns. But what do these returns look like in practice?

Tangible Benefits of AI in Customer and Employee Experience

Enhancing Customer Self-Service

One of the most impactful applications of AI in customer experience is in enhancing self-service capabilities. The research shows that

“AI is resolving an average of 41% of customer interactions without live agent support for all study participants. That figure jumps to 51.5% for the study’s ‘success group,’ or those companies that realized higher-than-average improvements in business success metrics through the use of AI.”

This not only reduces operational costs but also improves customer satisfaction by providing faster resolutions to common inquiries.

Boosting Customer Service Agent Efficiency

AI is also proving invaluable in augmenting contact center efficiency. The research found that “agents are saving 5.8 minutes per call, for an average time savings of 35%. The improvements vary by industry, with hospitality realizing the biggest gain, of 54.1%, in time saved.” 

There’s also tremendous value in using AI simulation in training agents and front line staff as explained in my LinkedIn Learning course.

These efficiency gains translate into better resource management and improved service delivery, contributing directly to a stronger ROI.

Maximizing ROI of AI: Key Considerations

Actionable AI

For AI to truly drive ROI, it must be actionable—delivering insights and efficiencies that can be immediately applied to improve CX and EX. It’s not just about implementing AI tools; it’s about integrating them into your processes in a way that adds real value.  

Cautious Implementation

While the benefits of AI are clear, companies must approach implementation thoughtfully. The report emphasizes that “companies are being particularly careful about generative AI, and their concerns include data privacy, wrong answers/hallucination, and bias, among others.”

Moreover, “81% [of companies] say either all or some generated content must have human oversight before they’ll use it, even when generative AI is pulling from their own managed and accurate knowledge base.”

This caution ensures that AI enhances, rather than undermines, trust and quality in customer interactions.

Tailoring AI Solutions to Real Needs

AI’s ROI is maximized when solutions are personalized to specific business needs and challenges. The focus needs to be in helping to address everyday challenges, enhance operational efficiency, and gain deeper insights into customer behaviors and preferences. 

A thoughtful approach to AI implementation—one that aligns with company’s unique CX goals—will ensure that AI drives not just efficiency but also meaningful improvements in customer satisfaction and loyalty.

The Future of AI in CX and EX

As AI evolves, its role in transforming customer and employee experiences will continue to grow. Businesses that invest in AI now, with a focus on thoughtful, human-centric implementation, will not only see immediate returns but also build a foundation for long-term success.

AI isn’t just a tool for cutting costs; it enables better, more efficient, and more personalized customer and employee interactions. The key to realizing its full potential—and maximizing ROI—lies in Doing Experience Management Right, by integrating AI in ways that complement and enhance human efforts.

Conclusion: Embracing AI for Real ROI

The real ROI of AI comes from its ability to enhance the human side of business. By augmenting—not replacing—human capabilities, AI can drive significant improvements in both customer and employee experiences. The companies seeing the best returns have approached AI with a clear strategy, a focus on actionable insights, and a commitment to transparency and quality.

As you consider your next AI investment, remember: The goal isn’t just to cut costs or automate processes. It’s to create better experiences, for both your customers and your employees. That’s where the true value and the real ROI of AI lies.

Read more about the ROI of AI. And, listen to Doing CX Right Podcast episode 141 below, with Stacy Sherman and Jim Payne, about how “AI is shaping the future of customer interactions.”

For more insights and to explore the full report on how AI is changing employee and customer experiences, visit RingCentral’s blog.