The new report by cloud communications platform Infobip shows that conversational AI (artificial intelligence) is becoming a tool to enhance customer engagement in the Asia-Pacific (APAC) region.
The Infobip report, “Driving Meaningful Customer Engagement with Conversational AI,” features research from the analyst firm International Data Corp. (IDC) and offers insights into how businesses can leverage these technologies to meet evolving customer expectations.
Infobip said customers demand authenticity and personalized interactions from brands. However, many organizations struggle to deliver such unique experiences. The IDC Future of Customer Experience Survey 2023 found that a significant number of companies in Apac lack the capability to maintain consistent customer context across various touchpoints. Specifically, 37% of organizations in China, 40% in Malaysia, and a striking 60% in Indonesia and India reported deficiencies in this area.
The survey also highlights a shift in corporate priorities toward improving customer experience (CX). In Malaysia, 87% of businesses focus on enhancing customer satisfaction and trust, while 58% of Chinese companies prioritize these areas. In Indonesia and India, customer service and support are the top investment areas, emphasized by 97% and 83% of businesses, respectively.
This pivot toward better CX is a natural progression from traditional customer service models, where customers often had to wait for a human agent. Now, Apac businesses are increasingly adopting omnichannel solutions powered by conversational AI, allowing customers to access information, request services, and complete transactions independently.
The role of conversational AI
Conversational AI chatbots are revolutionizing customer interactions by providing instant responses to common queries. These chatbots not only handle simple questions but also offer advanced functionalities such as automated data collection, promotional activities, and guidance through the purchase process.
“Generative AI has reshaped conversational experiences,” said Lavanya Jindal, senior research analyst for Asia/Pacific Customer Experience and Value Streams at IDC. “Having a unified source of truth across interactions and channels enables more relevant and intelligent conversations, raising the bar for personalization.”
Messaging apps have become a preferred mode of communication across Asia, with platforms like WhatsApp, Viber, and others seeing substantial growth. Infobip’s latest messaging trends report reveals significant increases in message traffic across Apac: a 509% surge in WhatsApp messages in Indonesia, a 226% increase in chat apps in Vietnam, and a 34% rise in Viber messages in the Philippines.
While WhatsApp remains dominant globally with over 2.8 billion users, regional preferences vary. Platforms like Line in Taiwan and Thailand, KakaoTalk in South Korea, and Zalo in Vietnam have secured substantial market shares. WeChat, with 1.3 billion active users, dominates in China.
Investment in conversational AI
The importance of conversational AI is increasingly recognized across the Apac region. According to the IDC Business Value Engineering 2023 Survey, 39% of businesses consider it a critical investment priority in the coming years. The primary motivators include improving customer success, loyalty, and developing products and services that align with customer needs.
Chatbots are identified as one of the top areas for integrating Generative AI (GenAI), with the ability to pull contextual data to provide relevant and personalized customer interactions.
“(Communications Platform as a Service) CPaaS empowers businesses to seamlessly orchestrate customer engagement throughout the entire journey, enhancing operational efficiency and fostering long-term customer relationships,” said Velid Begovic, VP Revenue at Infobip.
As businesses continue to integrate conversational AI into their customer engagement strategies, Infobip positions itself as a key partner in this transformative journey, ready to support organizations in harnessing the full potential of these technologies.