Enhancing Business Value with Generative AI-led Digital Experiences

It is well established that companies that actively implement new technologies and innovations, are better placed to stay ahead in today’s fiercely competitive marketplace. Forward thinking marketing professionals have recognized the game-changing potential of generative AI (GenAI). As per a 2023 BCG report, 70 percent of CMOs have already integrated GenAI into their practices, and an additional 19 percent were in the testing phase. IDC forecasts India will be the third fastest AI-adopting country in Asia Pacific by 2026!

Use cases vary from automating complex processes to using this new deep learning technology in marketing functions such as market segmentation, personalization, content, and insight generation. GenAI is at work across multiple industries in the business value chain, within all customer digital touchpoints.

The transformative potential of GenAI

Generative AI employs deep learning and machine learning algorithms to create new content from given inputs. It uses unsupervised and self-supervised learning to produce novel data, like images, videos, music, speech, text, code, and designs, based on training data characteristics.

GenAI, exists at the cross-roads between AI and natural language processing, where a machine can analyze and generate different content, such as text, images, software code, product designs, and more. Essentially, AI is based on pattern recognition and GenAI, is on pattern creation. With GenAI, technology progresses through different generations of large language models (LLMs) to generate an output based on the data sets it accesses, to create newer data, similar to the training data set. For instance, generative pretrained transformer or GPT-3 had 175 billion parameters to generate text, but GPT-4 used 170 trillion parameters, demonstrating the ability of the machine to learn from set parameters to generate new content across multiple spaces.

The practical implications of GenAI are wide-ranging. It supports hyper-personalization, and furthers customer loyalty by molding tailor-made, immersive experiences using behavioral and real-time data to give the user a contextual and engaging interaction. In retail, customer interactions and troubleshooting with chatbots in real time enhances customer service. Virtual try-outs are another popular retail use. Retailers can also generate SEO friendly product descriptions and images based on historical image data. In creative fields such as design and entertainment, GenAI can significantly bring down ideation time by creating countless, realistic prototypes within minutes, and even write song lyrics. However, challenges such as model bias, where algorithms are based on prejudiced data, could result in unfair or inaccurate outcomes. Data privacy is also a massive concern, and it is imperative that regulatory standards ensure responsible AI.

Realizing tangible business value with GenAI

Leveraging GenAI to craft digital experiences is pivotal to enhancing business value. Organizations in India are using GenAI to personalize customer interactions, streamline operations, and foster innovation. For example, Myntra leverages MyFashionGPT to ease shopping, using conversational AI for targeted product recommendations. Zomato and Blinkint are incorporating GenAI to improve customer service and operational efficiency, focusing on search enhancements, notifications, and product imagery.

By harnessing GenAI technologies, businesses can create personalized and immersive digital experiences that resonate with the diverse and evolving expectations of the Indian consumer base. Gauging the usage metrics of GenAI can be achieved by measuring its efficacy. This can be arrived at by looking at frequency of use, session length, adoption rate, query length, abandonment rate, and user satisfaction.

McKinsey studies show that GenAI can enhance efficiency of customer care functions by 30 to 45 percent of current costs and estimates its potential value at $2.6 to $4.4 trillion across sectors. Companies are using GenAI to offer virtual try-on capabilities, empowering customers to self-serve themselves through bots, generating contextual and coherent customer-facing content, and even exciting auditory experiences. When implementing these use cases, they must measure the business value generated through its direct impact on their bottom line.

Key applications include automating content, GenAI-powered chatbots for generating designs, refining supply chain operations, and more. By creating model prototypes with GenAI, organizations can accelerate the time taken for product launches, reducing time taken for R&D, and innovation. Employee productivity due to automation can also be calculated.

Conclusion

Integrating GenAI boosts an organization's digital journey by enhancing customer engagement with personalized guidance, thereby strengthening brand trust and loyalty. Embracing generative AI-led digital experiences is not just a technological upgrade, it is a strategic imperative for businesses aiming to thrive and succeed in India's burgeoning economy.

The article has been written by Nivedita Prabhakar Dixit, Associate Vice President, Chief Architect of DX Commerce, Infosys