Get the innovation of AI without the risk

Artificial intelligence (AI) offers the potential to transform the customer experience (CX). But it’s also an area that should warrant thorough consideration. CX executives must balance innovation with risk management to ensure that their AI initiatives are effective, valuable and ethical.  

For organizations eager to capitalize on AI’s benefits while limiting risk, here are seven proactive strategies that can help achieve both. 

1. Start small and scale gradually 

A "crawl, walk, run" approach to AI adoption is essential. Start with basic AI capabilities, such as virtual agents for simple tasks or predictive analytics to understand customer patterns. These foundational steps could allow you to see tangible results, build confidence and refine processes before moving to more advanced applications like hyper-personalization and predictive routing. 

By taking incremental steps, organizations can adapt at their own pace, avoid overwhelming the employees whose processes or roles might shift as a result, and fine-tune the AI systems for broader rollouts. Testing in controlled environments also provides invaluable insights into any potential pitfalls, which can be addressed before full implementation. 

2. Prioritize data privacy and security 

Data privacy concerns are a common barrier to AI adoption. Nearly two-thirds of CX leaders surveyed in a 2024 Genesys study cite data privacy and security as top obstacles to implementing or expanding their organization’s use of AI. But they can overcome this challenge with the right protocols.  

Begin by implementing robust data governance and privacy policies. Ensure data is anonymized where possible and encrypted both in transit and at rest. Work with AI vendors that have stringent privacy protocols and conduct regular third-party audits. And as more regulations emerge globally, proactively align with these standards.  

To help ensure security, look for AI platforms with built-in guardrails, like multilayer encryption and data sovereignty measures that keep customer data safe within geographical boundaries. AI tools with strong access controls, user authentication and permission settings are also essential. 

3. Build an ethical AI framework 

Establishing clear guidelines on ethical AI use is fundamental for responsible AI deployment. Such a framework should outline transparency in AI decision-making, limit biases in algorithm training and ensure fairness across all customer segments. Additionally, partner with vendors that prioritize AI ethics and align with your organization’s values. 

An ethical AI approach is more than just a risk management tool: It can enhance customer loyalty and brand reputation. Customers who know that a company prioritizes ethical AI are more likely to trust and engage with that brand. 

4. Leverage AI to empower (not replace) employees 

AI’s role in customer experience shouldn’t primarily be about replacing human agents; rather, it should focus on enhancing their skills and capabilities. AI-driven tools like sentiment analysis, predictive routing, and knowledge management can help CX employees deliver better service by equipping them with timely insights. Real-time support tools, such as agent copilot systems, are designed to provide answers or suggest next-best actions during what could then become more personalized customer interactions.  

Supporting employees with AI fosters a positive work environment and can enhance overall efficiency. When AI handles routine tasks, employees can focus on high-value interactions that benefit from a human touch — critical for customer satisfaction and loyalty. 

5. Focus on personalization while protecting privacy 

Customers expect personalized experiences, yet many remain cautious about privacy. Yet, three-quarters of CX leaders worldwide that were surveyed in a 2024 Genesys study say they’re using or piloting AI to personalize the customer experience.  

AI can personalize interactions by analyzing customer behavior to suggest relevant content, products and services, or next-best actions; however, it’s important to use data transparently. Be transparent about how customer data is collected and used. And give customers control over their preferences. 

By balancing personalization with privacy, organizations can foster trust and loyalty while delivering tailored experiences. Respect for customer privacy signals that your organization values transparency — a key component in building long-lasting relationships. 

6. Use AI-driven analytics to identify risks and opportunities 

Advanced AI analytics allow CX leaders to monitor customer journeys, sentiment trends and potential friction points in real time. These insights help executives identify emerging risks, such as service gaps or security vulnerabilities, and address them promptly. 

AI-driven analytics also empower organizations to quantify the impact of various CX strategies, helping to ensure that AI investments directly contribute to measurable improvements. This proactive approach allows for agile responses to both opportunities and risks, enabling smoother customer interactions and more robust operations. 

Learn more about building a secure, ethical AI foundation while fully leveraging AI’s potential to enhance CX in “Redefining CX for the age of AI” and, for government agencies, in “Get the innovation of AI without the risk.”