Podcast Summary: The Agile Brand with Greg Kihlström®
Episode #660: Enabling and Accelerating Customer Experience Improvements Using AI with Isabelle Zdatny, Qualtrics
Release Date: April 7, 2025
Introduction
In Episode #660 of The Agile Brand with Greg Kihlström®, host Greg Kihlström engages in a compelling discussion with Isabelle Zdatny, Head of Thought Leadership for the XM Institute at Qualtrics. Recorded live at Qualtrics X4 in Salt Lake City, the episode delves into the transformative role of Artificial Intelligence (AI) in enhancing customer and employee experiences (CX & EX).
AI Investment Opportunities
Isabelle Zdatny shares insights from a collaborative research effort between Qualtrics and McKinsey, revealing that strategic AI investments can unlock between $860 billion to $1.3 trillion in annual value across various industries (04:36). This substantial economic potential is categorized into three primary avenues:
- Productivity Gains ($420 billion): Leveraging AI to augment and automate work processes.
- Revenue Growth ($260 billion): Utilizing AI for intelligent targeting, personalized messaging, and transforming customer acquisition strategies.
- Process Improvements ($180 billion): Optimizing operations to reduce costs and enhance service efficiency.
Notable Quote:
"AI enabled customer experience is expected to drive an estimated $860 billion and possibly all the way up to $1.3 trillion in annual value."
— Isabelle Zdatny (04:36)
Common Mistakes in AI Implementation
Isabelle identifies two critical missteps organizations often make when integrating AI:
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Implementing AI for Its Own Sake: Companies adopt AI technologies driven by the allure of innovation or executive pressure without a clear outcome-oriented strategy.
Notable Quote:
"They're just like, we need to stand up these technologies rather than starting with what is the outcome that we are trying to achieve."
— Isabelle Zdatny (04:36) -
Stagnating After Pilot Projects: Organizations initiate costly AI experiments but fail to scale them enterprise-wide, limiting potential value creation.
Notable Quote:
"They start small. They do very expensive experiments and then they don't really scale them more broadly across the organization."
— Isabelle Zdatny (04:36)
Scaling AI Beyond Silos
Transitioning from isolated AI initiatives to a cohesive, organization-wide strategy is essential. Isabelle emphasizes the importance of dismantling silos to maximize AI’s impact.
Key Points:
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Centralized Governance: Establishing an AI governance council to oversee and monitor AI use cases ensures alignment and effective implementation.
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Change Management: Facilitating a cultural shift where employees feel confident and competent in utilizing AI technologies.
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Technical Infrastructure: Investing in robust data management systems, such as an enterprise data warehouse, to support scalable AI applications.
Notable Quote:
"AI compounds the garbage in, garbage out issue. So making sure it's all clean and good for powering your LLMs, it's a big undertaking."
— Isabelle Zdatny (14:46)
Customer Experience and AI Integration
The conversation explores how AI can significantly enhance customer experiences, despite a recent decline in consumer comfort with AI technologies.
Insights:
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Consumer Sentiment: A reported 11-point drop in consumer comfort with AI reflects a "trough of disillusionment" within the current hype cycle (15:29).
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Effective Use Cases:
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Virtual Assistants: Streamlining complex processes, such as claim submissions, reducing processing time from days to minutes.
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Personalized Interactions: Enhancing customer satisfaction by meeting individual needs swiftly and effectively.
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Notable Quote:
"Customers don't care about that [AI]. They care about being able to achieve what they want to achieve, you know, quickly, effectively, enjoyably."
— Isabelle Zdatny (15:29)
Employee Experience and AI
Isabelle highlights the symbiotic relationship between AI implementation in employee workflows and the resulting improvement in customer experiences.
Key Points:
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Productivity Enhancements: AI tools free employees from routine tasks, enabling them to focus on creating genuine human connections with customers (22:13).
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Employee Confidence: Employees exhibit higher confidence in AI applications within their roles compared to overall customer sentiments.
Notable Quote:
"The more you can free employees up and take away some of the routine, repetitive administrative tasks so that they have the bandwidth to make those genuine human connections with customers and do their jobs better, that then you're going to see the customer experience improve as a result of improving the employee experience."
— Isabelle Zdatny (22:13)
Recommendations for Organizations
For organizations eager to harness AI effectively, Isabelle offers strategic advice:
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Outcome-Driven Approach: Begin with clear objectives aligned with business goals rather than pursuing AI for novelty.
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Hands-On Engagement: Encourage teams to actively use AI tools to understand their capabilities and limitations firsthand.
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Develop AI Expertise: Cultivate in-house AI knowledge to lead and support AI initiatives across the organization.
Notable Quote:
"Start with what is your organization’s AI vision and strategy and value. So what are the outcomes you're trying to drive."
— Isabelle Zdatny (20:28)
Future of AI in Branding
Looking ahead, Isabelle anticipates that AI will seamlessly integrate into everyday business operations, potentially becoming so ubiquitous that the term "AI" may become obsolete as its functionalities become standard practice.
Notable Quote:
"I think in five years we may not even use the term AI, it'll just be doing stuff."
— Greg Kihlström (19:00)
Conclusion
The episode underscores the pivotal role of strategic AI investments in driving significant value across customer and employee experiences. By avoiding common pitfalls, fostering a culture of continuous learning, and prioritizing outcome-driven AI applications, organizations can unlock the full potential of AI to achieve long-term business growth and enhanced customer lifetime value.
Final Quote:
"Continuous learning and staying very curious."
— Isabelle Zdatny (24:28)
Highlights
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Economic Impact: AI's potential to generate up to $1.3 trillion annually through productivity, revenue, and process improvements.
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Strategic Implementation: Importance of moving beyond pilot projects to enterprise-wide AI integration.
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Customer and Employee Synergy: Enhancing employee experiences with AI directly benefits customer satisfaction and loyalty.
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Future Outlook: AI poised to become an integral, unobtrusive part of business operations.
For More Information:
To learn more about Isabelle Zdatny and Qualtrics, visit the show notes. For additional episodes and resources, subscribe to The Agile Brand at theagilebrand.com.