Zendesk has released its Future of AI-powered CX report, forecasting a radical overhaul of customer experience. In the next three years, a complete revamp is anticipated, with nearly 90% of industry leaders expecting an end to traditional CX, paving the way for new practices.

“Australian CX leaders have told us that they believe traditional CX as we know it will be dead by 2027. Over 90% of them think that the old ways will give way to radically different industry dynamics. These are trends we’ve been seeing – and engineering for a while now. It affirms growing customer expectations as well as the impetus for businesses to embrace AI to meet those rising demands,” Zendesk country lead for Australia, Kellie Hackney said.

Zendesk envisions a future where CX organisations become leaner, faster, and more effective, with AI at the helm to streamline processes, personalise engagement, and handle a higher volume of customer interactions. The evolution will likely lead to smaller CX teams, as 82% of industry experts predict a downsizing due to AI’s ability to simplify operations while delivering high quality service to customers.

“In the near future, AI will play a role in all customer interactions, moving us beyond traditional, manual service to more advanced, technological-driven experiences,” Zendesk chief information officer, Craig Flower said.

“That’s why leaders are proactively adjusting their strategies now to navigate the anticipated changes and leverage AI to its fullest potential. A transformation won’t happen overnight, but there will be a steady progression that develops over time. It’s going to redefine roles and improve experiences for CX teams and their customers.”

AI will play a pivotal role in every customer interaction to handle initial inquiries and maintain consistency across all service platforms. It will also track the performance of both human and AI agents to deliver exceptional service. With AI projected to resolve 80% of interactions, human agents will turn their focus to more complex tasks.

A fivefold increase in customer service interactions is also anticipated, with leaders confident in AI’s ability to maintain quality service. This shift will make operations smoother, decisions sharper, and boost market competitiveness. Almost three-quarters (73%) of CX leaders surveyed expect to see their workflows streamlined by AI.

In three years, agents will only handle complex escalations that involve in-depth troubleshooting and support, according to 74% of Australian CX leaders. Agents will see their roles expand to include enhanced technical skills and a deeper understanding of technology:

Proficiency with AI tools, advanced problem-solving, and continuous learning will be crucial for agents. This change will help them provide superior customer experiences, boosting productivity and quality of service. Teams will be focused on providing custom solutions for high-value customers as automation takes care of the lower tiers of support. Over three quarters of respondents believe this.

“A large majority of Australian CX leaders we spoke with believe, as we do, that the CX department will finally become a revenue driver. Businesses that have kept pace with the trend towards automation in CX are unlocking incredible opportunities to drive productivity, exceed customer expectations, and ultimately, achieve growth in our rapidly evolving market,” Hackney added.