Wednesday, June 29, 2022

AI-Powered Personalization is Transforming Customer Service

According to Deloitte’s 2021 Global Contact Center Survey, companies are increasingly viewing contact centers as revenue generators rather than mere cost centers, which is driving investment strategies for many businesses. In fact, the number of respondents who have revenue generation as their No. 1 strategic priority is projected to double over the next 24 months. Furthermore, nearly 80% of service leaders say they plan to invest in AI technologies over the next two years, the survey finds. 1

Introduction: AI-powered Personalization in Customer Service

Customer Service is being transformed by AI-powered personalization. Personalized customer insights enable businesses to provide their customers with targeted or contextualized service, content, and recommendations at the right time and via the right channel, with the goal of improving the Customer Experience and specific performance measures. Customer Service is greatly improved with AI-powered applications that can predict service inquiries, prescribe specific resolutions, and help guide customers via preferred channels (e.g. proactive notifications vs. phone calls). 

Trends like digital transformation are focused on technology that improves the Customer Experience, often focused on Service Experience via the Contact Center. But there are numerous other use cases for AI-powered personalization across the enterprise in areas like Sales, Customer Engagement, and Operations. 

Gartner’s report Predicts 2022: Customer Service and Support states, by 2027, 45% of agent-assisted interactions will use real-time analytics to improve business and customer outcomes. Also, a clear majority (91%) anticipate high or very high return on investment within the use cases assisting agent interactions with customers. Furthermore, the report highlights that by 2025, customer service organizations that use AI-enabled knowledge automation will achieve 90% first contact resolution, up from 50% in 2021. 2

AI-Powered Personalization in Customer Service: Use Cases

AI-powered Personalization use cases in Customer Service include using personalized insights to deliver a more targeted Service Experience (SX) via Customer Service applications such as:

  • Predict customer service or contact center inquiries, prescribe personalized inquiry resolutions, and help prevent calls with proactive reach-out
  • Personalized service notifications: the right message, at the right time, via the right channel (e.g. customer communication preferences most likely to elicit the desired action or response)
  • Improve digital transformation strategies: increase digital touch, improve inquiry success and customer satisfaction via digital channels
  • Enhance self-service applications like chatbots with more personalized, contextualized insights
  • “Hybrid,” Enterprise-wide, Omni-channel Insights through the Contact Center: Allow organizations to deliver personalized insights through the Contact Center that include sales interventions and other personalized customer engagement insights, for example: showing a call center agent additional insights on a customer that enable cross-selling or up-selling

Challenges with Personalization in Customer Service

Organizations looking to leverage personalization solutions in Customer Service are challenged in a number of ways:

  1. Data Collection in Support of Personalized Insights
  2. Turning customer data into personalized insights
  3. Personalized insights that deliver the “next best actions” that can change customer journeys
  4. Productionalize and operationalize personalized insights as AI-powered applications 
  5. Delivering value from personalized insights


More and more, customer relationships are the key competitive battleground, and poor customer experience (CX) can quickly damage the reputation of your brand. According to Forrester, once customers are disappointed with a brand, only 18% will keep their business with the brand, and only 15% will recommend the brand to friends and family. 3

Solution: CognitiveScale’s Cortex Enterprise AI Platform & Profile-of-One Technology

The key to valuable AI-powered Personalization in Customer Service is to create a rich profile of Customers powered by AI that includes personalized insights. These insights then drive actions across all systems of engagement or customer service channels.

The next horizon of customer service will be built on individual customer profiles, enabling companies to quickly resolve issues and even prevent them from occurring. Individual customer profiles enable companies to take a needs-based approach to selling, replacing the standard one-size-fits-all approach with tailored outreach with higher acceptance rates. According to McKinsey, some organizations have seen a revenue increase of 30% or more from adoption of a needs-based approach and proactively reaching out to customers at the right time with the right offering. 4

CognitiveScale’s Cortex Enterprise AI platform accelerates the AI application development life cycle for personalization use cases in Customer Experience:

  1. Connect and curate data and models that leverage existing data and data science investments
  2. Orchestrate the components and compose AI applications from models, algorithms and rules engines (or a combination of multiple of these)
  3. Drive personalized insights via proprietary skills and capabilities like our Profile-of-One technology
  4. Learn via feedback loops that improve model and application performance
  5. Govern AI applications to ensure trusted, responsible use of AI

Key Technology: CognitiveScale’s Profile-of-One Powers Personalization in Customer Experience

Cortex’s Profile-of-One technology is a core capability that:

  • Provides a 360° view of an entity
  • Includes declared and observed data as well as inferences about an entity
  • Temporal in nature
  • Provides personalized insights through learning and interactions
  • Stores important attributes about an entity to effectively deliver the right insights at the right time (context) and at the right place (channels)
  • Enables key business outcomes & KPIs using metrics

See reference to our AI-powered Personalization white paper below for a deeper understanding of Profile-of-One.

CognitiveScale AI-powered Personalization Deep Dives & Additional Resources 

To learn more about CognitiveScale’s experience with AI-powered Personalization, we have numerous resources available:

Learn More

Contact us to explore how we can help your organization to transform Customer Experience with AI-Powered Personalization.

Email: sales@cognitivescale.com

Phone: 1-855-505-5001


1 Deloitte





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