KPMG - Ai & CX - 2024

Artificial Intelligence
and the orchestrated

customer experience
Global Customer Experience Excellence 2023-24
KPMG. Make the Difference.
Enter
kpmg.com/cee
Contents
Introduction 3
About Customer Experience Excellence 5

1 Report findings 6
The Six Pillars 10
The Six Pillar trends 12
Preparing for AI 18
2 Organizing for AI 19
Focusing on creating value 20
Connecting around the customer 23
Trusted 26
Orchestrated experiences with AI 31

3 AI from the outside: The customer perspective 33
AI from the inside: The enterprise perspective 34
AI use cases 35
The 12 principles of successful AI implementation 37
Hall of Fame brands 44

4
Conclusions 54
About the research 58
How KPMG can help 59
© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Global CEE 2023-24 2
Introduction About CEE Preparing for AI Orchestrated experiences Hall of Fame brands Conclusions
Introduction
The Customer Experience Excellence (CEE) annual AI has the potential to transform such experiences and
report identifies those companies that perform best radically re-write the rules of the game. The leading
in delivering strong customer experiences. This year’s companies in this year’s index, which this report calls the
leaders are front and center in orchestrating experiences. Hall of Fame, see AI as potentially more profound than any
These experiences are not just the haphazard outcomes previous technology. While AI has been with us for years,
of a series of departmental initiatives. They are a Generative AI is harnessing the power of Large Language We are at the beginning
result of conscious attempts to design intentional Models and has the potential to dramatically improve of a cultural and technical
interactions for customers that help them achieve their customer experiences and the underlying interactions. phenomenon. Artificial
objectives while delighting them along the journey and Additionally, it will allow companies to reduce operating Intelligence, including generative
enabling the organization to execute accordingly. costs and improve employee experiences. AI, has the power to effect
massive change across the
Artificial Intelligence (AI) is taking the world by storm. In the not-too-distant future, further advances promise us end-to-end customer journey.
As it does, it is opening up new opportunities to deeply systems that can continuously improve their capabilities and It can redefine the customer
personalize orchestration along journeys, enabling companies behaviors. With future iterations re-writing their own code, experience and how it is
the potential we are now experiencing is just the start of delivered. But this is more than
to scale individual customer personalization like never before.
GenAI’s impact on engagement with prospects, customers, just a new technology, it requires
This can transform customer journeys, and at the same time,
other businesses and the marketplace. creative thinking as to how it can
help businesses improve costs to serve, reduce friction and be deployed to create value for
improve customer satisfaction. Globally, CEOs are responding to this. In the KPMG 2023 customers. It will bring the need
CEO Report, 70 percent of CEOs agree that despite for a set of new roles and ways
This year, however, customer satisfaction saw a global
economic uncertainty, generative AI (GenAI) is their top of working, including the trusted
decline in customer perceptions of their experiences. Only
investment priority, with most (52%) expecting to see a use of this powerful technology.”
two countries, out of the 21 countries and territories included
in this year’s study, saw a rise in customer satisfaction. The return on their investment in three to five years. But GenAI
Julio
remainder all witnessed declines and, in some jurisdictions, is not just a long-term focus – among leading companies Hernandez
a significant decline. 68 percent believe that AI has now become essential to
Global Customer
achieving their short-term business goals. and Operations Lead,
Customers attribute this decline to an overall failure of brands KPMG International
to meet their expectations. Technology also contributed
to the fall, specifically in the way companies implemented
technology that shepherded customers into low cost and low
satisfaction channels. Often these channels still generate
friction and they lack empathy and the human touch.
Learning from first adopters

Fourteen of the top companies listed in this year’s index
were also ranked as the top three companies in their country
last year. Eight of them sat in the number one spot in 2022,
proving that excellence, once acquired, can be habitual.
The actions and mindsets of these companies can be self-
reinforcing and the effects can compound year over year.
These leading organizations sit at the forefront of technology,
using AI in everyday applications. Critically, they have done
so in a way that increases efficiency, but also preserves
customer value. By applying The Six Pillars of Customer
Experience Excellence, they consistently design and deliver
brilliant human connections within their organization.
As these early adopters hone their AI prowess, we are
reaching a tipping point and those that have forged ahead will
need stay cognizant of not losing the “human touch” while
embracing evolving AI technologies and capabilities.
In this report on Customer Experience Excellence, we
examine emerging best practices in AI implementation. We
focus on what we can glean from these early adopters and
how we might learn from their experiences.
Taking a cue from these leading brands, we provide an
early view of what CEOs and other business leaders need
to do to deliver real customer value, more effectively,
efficiently and as safely as possible.
1
Global Customer
Experience
Excellence
Cost-of-living concerns and customer deflection
to low cost, low satisfaction technology channels
are diminishing customer perceptions of the
experiences that they receive.
Report findings
As companies respond to the shifting economic decline. Two others resisted the general downward trend: Global Customer Experience
landscape, technology has become a lower cost Excellence Study 2023-24
Japan (+1%) reported small improvements across the majority
substitute - and often a poor one - for human interaction. of The Six Pillars and Hong Kong (SAR), China (+3%) saw the
However, deflecting customers into these low-cost
channels, whether emotionally they require human
contact or not, has put a barrier between the customer
greatest improvement in Time and Effort.
KPMG’s Six Pillars of Customer Experience Excellence
21
countries
and the help they are seeking. Consequently, the initial offer the essential dimensions that come together to build
implementations of such cost-efficient options, like bots strong experiences. While it is important to be good at all six
characteristics, not all pillars will likely have an equal impact
81,725
equipped with machine learning, have left customers
feeling underwhelmed and frustrated. There has been in a given year. In 2023, Personalization has risen to become
a general downward trend across many markets when the most important driver of advocacy and loyalty.
customers interviewed
looking at the overall market Customer Experience Economic impact on value and values
Excellence (CEE) metric (-3%). Companies’ ability to
meet Expectations (-4%) and respond to customer Macroeconomics continues to play a part in shaping customer
interactions with Empathy (-4%) represent the
largest declines.
opinions of their experience with companies. For most
countries, the cost-of-living crisis weighs heavily on customers’
decision making and impacts how they perceive value.
821,824
brand evaluations
This is a function, perhaps, of poor technology use. Ever
Customer views on value are formed by several factors:
escalating customer expectations should be considered,
how they perceive they are served and supported, and how
especially after customers enjoyed the extra care provided
to them by companies during the pandemic that has now
returned to pre-pandemic “business as usual” practices.
companies demonstrate their purpose and relevance, as
well as their ability to positively impact the environment and
society for the long term.
2,726
brands
Thailand (-7%), France (-5%) and the US (-5%) experienced the
biggest year-over-year declines. For each of these countries,
setting and managing expectations showed a significant
Nationally
representative
samples
Rising inflation has also had a big impact on customers achieve its goals in the short term, but longer term these
globally. Survey results show 97 percent of consumers have low-cost channels will diminish customer lifetime value. As
been impacted by inflation and cost-of-living increases at a result, customers may drift away to suppliers they feel will
some level, with one in four extremely impacted. Türkiye for better meet their needs as individuals.
example, has seen inflation at 80 percent in 2022 and 60
For technology to help enhance the emotional connection,
percent in 2023.1,2
Consumers are it is critical for companies to see customer experience as a
becoming hyper aware Inflation and the cost-of-living crisis has also impacted two-way street: a shared moment or co-created encounter
spending power, however, to varying degrees between which happens at a given touchpoint. Whether physical
of price and want to
customers. A significant number of people remain willing or digital, each touchpoint should reflect the company’s
stretch their dollars, to pay more to brands whose values align with their own. DNA and their values in every way, so they connect at a
making them more Nearly half (48%) say they are willing to pay more to ethical human level even when technology is involved. This single
conscious of the value companies versus 7 percent who said they were not at all encounter happens again and again, creating a series of
willing to do so. This rapidly rising trend in favor of consumer interactions over the lifetime of the customer relationship.
for spend. Consumers
values for sustainability has remained relatively unchanged
are also seeking a high- since the KPMG Me, My Life and My Wallet (MMLMW)
quality experience – report was published in 2022 (49%). Values also continue to
including in-person – that be a significant determinant of customer purchasing decisions.
goes beyond product Technology is only one part of the answer
quality, range, and price. It is a time of unprecedented competition. Share of wallet is
97%
of consumers say they
In essence, they want harder to maintain. While there is a lot of focus on integrating have been impacted by
the best companies emerging technologies to enhance customer experience and inflation and cost-of-living
take costs out, the reasons why customers come to a brand
can deliver.” increases at some level,
remain true. with over a quarter
Jeff Mango The MMLMW research shows that customers want an extremely impacted.
Managing Director, emotional connection – they want to feel that the brands
US Customer Experience they choose reflect their personality, their lifestyle and
Practice, KPMG in the US their values. The technology needs to reflect this. When 1
technology is applied with the aim to reduce costs, it may
Hall of Fame
The leading brand in each country
This year’s Hall of Fame brings together a wide mix of
brands. Some can trace their heritage back nearly 100
Australia Italy Slovakia
Brand: Bunnings Warehouse Brand: E-commerce retailer Brand: Martinus
years, such as Keurslager in the Netherlands and KBank
in Thailand, whereas others are new businesses that are
still in their infancy like Air Bank in the Czech Republic Austria Japan Thailand
and Spusu in Austria. Brand: Spusu Brand: Tokyo Disney Resort Brand: Kbank
The Hall of Fame is also comprised of a cross section of
sectors – from retailers, banks, theme parks, opticians, fast Czech Republic Malaysia Türkiye
food retailers and telecoms – all of which illustrates that Brand: Air Bank Brand: Maybank Brand: Dyson Store
excellence can be found within most sectors.
To read more about each brand go to the Hall of Fame France Mexico UAE
brands section.
Brand: MAIF Brand: Nike Brand: Emirates
Germany Netherlands UK
Brand: Fielmann Brand: Keurslager Brand: first direct
Hong Kong (SAR), China Philippines USA

Many of the leading organizations have Brand: Apple Store Brand: Jollibee Brand: H-E-B
already found practical use cases for AI in
everyday applications. Critically, they have Indonesia Singapore Vietnam
done this in a way that increases efficiency, Brand: Adidas Brand: Apple Store Brand: Nike
but also preserves human value.”
Tim Knight
Head of Customer & Operations, KPMG in the UK
© 2023
2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved. Global CEE 2023-24 8
AI and the Hall of Fame brands

AI use is widespread among the 2023 Hall of Fame. With has enabled AI in its autonomous robots that complete
the technology, these leading companies are testing new a stock check after stores close to better understand
ways of improving the quality of customer experiences customers preferences, more efficiently replenish inventory
and the service they provide, while also introducing and improve customer service by staff.
efficiencies and procedures to get ahead of the perceived
Similarly, AI is helping Fielmann in Germany to redefine the
downsides of AI.
Organizations are role of opticians by providing very early detection of serious
having to target the For example, first direct in the UK has implemented AI to eye disease and bringing the latest optical technology to
support autonomous banking where many of the usual millions of customers across Europe.
right moments in the
worries of making and receiving payments are taken care of
customer experience by AI technology.
In France, MAIF has implemented AI across a range of use
cases. The insurer has also defined a structural approach to
to infuse AI – so it is
Other technology-first banks, including Air Bank and reduce bias in its decision-making and prevent AI drift – the
invisible and just works. Maybank, are joining traditional institutions, such as Kbank, tendency of AI to drift away from its original objectives as it
It requires a scalpel not in delivering AI-based experiences that humanize banking learns and adapts.
an axe approach.” for customers. In their own ways, these banks are using the
Retailers, such as Martinus, Nike and Apple Store, have used
technology to personalize offerings, and equip and enable
technologies to create online experiences that complement
customers to take more control of their financial outcomes,
Carl Marrelli while ensuring their digital assistants reflect their individual
and embody their quintessential in-store brand experiences.
Managing Director, In turn, retailers have upped their game in store. Dyson Store,
brand and values.
Advisory, Apple Store and Nike have transformed their stores into
KPMG in the US Nike and Adidas, globally, have harnessed AI to improve experiential shopping environments, where they showcase
the customer experience by presenting customers with a new products and have customers try them out before
curated list of individually relevant clothing or shoes options offering them the option to purchase online, if they choose.
available in their size. Others are linking AI to other advanced
technologies. Bunnings Warehouse in Australia, for example,
Introducing the KPMG

Six Pillars of Customer
Experience Excellence
Even in a world fueled by technology, the KPMG Customers evaluate their interaction with brands across The Six Pillars
Six Pillars of Customer Experience Excellence still
define the elements of great experiences. They act
as design principles providing guidance on how to
incorporate best practice into creating world-class Integrity Resolution Expectations
customer journeys.
Being Turning a poor Managing, meeting
The Six Pillars, when applied together, have trustworthy and experience into and exceeding
consistently helped organizations understand how engendering trust a great one customer expectations
well their customer experience is delivered across
channels, industries and company types. While each
pillar is important, excellent customer experiences
are created when leading companies excel across its Time & Effort Personalization
combination. Now, at the dawn of AI, The Six Pillars
Empathy
Minimizing Using individualized
are proving once again to be relevant and essential customer effort and Achieving an
attention to drive an
considerations for companies keen to maximize creating frictionless understanding of
emotional connection
the opportunities, and minimize the risks of these processes the customer’s
advanced technologies as they elevate their circumstances to
customer experiences. drive deep rapport
Inside out: Outside in:

The company perspective The customer perspective
• Human and empathetic cues • I want a human touch – when I need it

Empathy • Solve a life problem
• AI-augmented human interactions
• I want to feel heard and be understood –
I don’t think a machine can do that
• AI-tailored experiences • I want AI to anticipate my needs and proactively help

• Real-time personalization and decision making (e.g., suggest relevant products or services, and even
Personalization • Predictive recommendations predict potential issues before they arise)
• Streamlined customer journeys, faster, more • When AI is incorporated into various products, such
efficient operations as autonomous vehicles, security systems and smart
Time & Effort • Order processing, tacking and delivery appliances, I want to be assured about safety, efficiency
• Automated onboarding – error reduction and usability
• Predict needs and preferences • I want companies to accurately set my expectations –

• AI-driven recommendation engines – surprise and delight when I interact digitally I want to know if I’m dealing with
Expectations • AI-managed interfaces and journey orchestration a machine or a human
• AI identification of trends and patterns to support • When using AI-powered chatbots and virtual assistants I
problem solving want to receive at least the equivalent of a human interaction
Resolution • 24/7 query responses, answer customer queries and
streamline interactions, leading to faster issue resolution
• I want certainty that my problem has been resolved
• I fear the loss of human touch in emotional interactions
and improved customer service
• Predictive resolution – before the customer has a problem
• Transparency, data privacy and ethical use • I worry about the potential for job displacement and have
• Eradication of bias concerns about job security and unemployment
Integrity • Ongoing governance and inspection • I worry about AI, especially when it comes to privacy and data
security, and how my information is being used
• I want to trust the outcomes of machine-made decisions
KPMG Six Pillar trends -2% overall

score
Key theme:
The ethics of AI
This year, globally, customer experience has Integrity
declined. Each pillar saw a fall in average
global scores. This opens companies to the Trust is the essential quality of every Integrity may also demand companies to
risk of losing the good works of previous years relationship. Overall, the score for Integrity fell address bias in AI systems. AI algorithms
unless they actively respond to changing by 2 percent with noticeable falls in Thailand trained on limited datasets can produce
customer needs. (-6%) and the US (-5%). inaccurate results and inadvertently perpetuate
biases. This can lead to unfair or discriminatory
New technology brings with it a whole set of
outcomes. Companies should get ahead of
new considerations around how to build and
potential bias in AI systems to better enable
maintain trust. It requires a responsible and
fairness and inclusivity in their applications.
thoughtful approach to implementing AI with
a high focus on transparency, data privacy and The ethics of AI and how it is used has
ethical use. become a hot topic in the media. Customers,
consequently, are paying attention to how
Data privacy is a critical concern with AI.
Data transparency is critical. companies ethically and responsibly use AI.
Customers may be hesitant to share their
As a result, businesses that prioritize ethical
Companies need to be clear on which personal information if they fear that it could
considerations – that is, avoid harmful uses of
customer data they need and why be misused or compromised. To address
AI or are transparent about their AI practices –
this concern, companies must prioritize data
they need it. They must be clear are likely to earn and maintain customer trust.
security and transparency to build and maintain
on the value for the customer and customer trust.
answer the question “what is possible Actions:
Such transparency will be required as
if I provide you with data and what is companies more deeply embed AI-powered
1. Analyze customer journeys to understand
not possible if I don’t.” systems into their organizations. As these
where trust is built or eroded.
systems make decisions and predictive
recommendations, businesses should strive to 2. Develop an AI ethics framework that
Tom Lurtz sufficiently considers the downside risks of
ensure their AI models and its reasonings can
Partner, Consulting,
be easily explained and understood by their AI alongside its opportunities.
Value Chain Transformation,
customers to better protect their reputation 3. Adopt a “zero trust” approach to all
KPMG in Germany
and the integrity of their brand. interactions to minimize opportunities for
fraud and privacy issues.
overall Key theme:

-3% score AI-powered customer service
Resolution
Resolution scores fell by a global average of 3 percent – led Human oversight is another challenge. AI-powered customer
by Thailand (-7%) and The US (-5%) – as companies failed to service solutions are not perfect and will need human
deal proactively and effectively with customer issues. monitoring to ensure customers receive the best possible
service. This, too, can be a time-consuming and costly
AI can be a transformative force for good as it relates to
process for businesses to bring these resources into place.
customer query resolution and problem solving, improving
efficiency and enhancing the overall customer experience. Finally, there is the challenge of customer acceptance,
With the power to process vast amounts of data and especially by customers who may be wary of AI-powered
information quickly and accurately, AI systems are less likely customer service solutions. To address such concerns,
to make mistakes or provide incorrect information, leading to businesses should effectively and repeatedly communicate
more precise query resolution. the benefits of the technology to their customers, while also
properly training their AI-powered customer service solutions
In addition, AI can help human customer service agents by
to handle customer inquiries and complaints in a professional
suggesting solutions based on previous interactions and
and efficient manner.
customer data. This speeds up the problem-solving process
and reduces the back-and-forth between customers and
support teams.
Actions:
However, the process of implementing AI in customer
1. Consider using AI on employee and customer feedback
service query or complaint management, and harnessing its
to identify patterns and surface hidden issues.
problem-solving benefits is not without its challenges. Cost
of implementation is a primary concern. 2. Extend root cause analysis to build a picture of linked
pain points and the causal relationship between them
AI-powered customer service solutions can be expensive,
to develop predictive models that drive proactive
and businesses need to weigh the cost of implementation
customer support.
against the potential benefits. Additionally, AI-powered
customer service solutions require a significant amount of 3. Look to the next generation of conversational chatbots to
data to be effective that require businesses to invest in the avoid channel deflection to a lower satisfaction technology
infrastructure to collect and store the data. that can have short-term benefits, but long-term losses.
Expectations
With the rise of advancing technologies, businesses will
likely need to manage customer expectations within the
realities of their business. This is especially important as -4% overall
score
Key theme:
Managing customer expectations with AI
Actions:
customer expectations have already seen an overall decline 1. Leverage low code or no code AI
by 4 percent in 2023, with significant falls in Thailand (-8%) applications to explore AI in simple
AI can help companies meet – and even exceed – customer
and Germany (-7%) in particular. and safe ways.
expectations. AI’s predictive analytics can anticipate
To reverse the trend, companies will likely need to better customer needs and preferences. It can also spot customer 2. Develop a messaging framework
meet their customers’ communications needs and behavior patterns that companies can proactively use to and communications strategy about
wants. Consumers expect transparent and consistent offer relevant support and advice before customers even the role of AI in your business
communication across the board – be it when they are ask for them. The trick, however, will be putting in place – aimed at both employees and
dealing with a customer service robot or a human agent. communication protocols that accurately and consistently customers.
They also want to be reassured their problem will be keep customers informed.
3. Test supply chain AI applications as
efficiently solved by a technology and not disappear into a an easy entry to improved inventory
black hole. They want to be informed in a timely manner management.
when things change, and they want companies to accurately,
continually reset their expectations as changes take place.
-2% overall
score
Key theme:
Streamlining processes with AI
Time and Effort
Organizations are struggling to make their customers’ lives As companies consider where to bring in AI to improve Time
easier. Time and Effort scores fell by 2 percent globally with and Effort for customers, they will want to be sure they
the largest decline in Thailand (-8%). Hong Kong (SAR), are integrating their systems to create a continuous and
China, on the other hand, achieved a reverse effect with cohesive experience for customers. They may also want to
organizations contributing to a rise of 6 percent. look for points when and where the human touch would best
serve customers.
To follow Hong Kong (SAR), China’s lead, AI can help.
Applying AI to streamline processes, automate tasks and
provide personalized assistance can help reduce the amount
Actions:
of time and effort customers spend with companies.
1. Analyze the customer lifecycle to identify where AI will
For example, AI’s ability to index and analyze vast amounts
have the most beneficial impact both commercially and for
of information can make it easier and quicker for customers
the customer.
to find specific details or solutions on the company’s website
or in other documents. Order processing, tracking and 2. Use customer journey and value stream mapping to
delivery is another area that can benefit from AI, offering identify specific value enhancing use cases.
automatic and frequent updates to customers without
3. Focus on the onboarding journey – not only do first
them having to contact customer support. AI can also help
impressions count, but many downstream issues are
automate the customer onboarding process – a point in the
seeded in the onboarding journey.
journey where problems often occur-guiding them through
account setup and providing relevant and prompt information
for a quick and accurate set up.
Using conversational AI and other advanced technologies
can enable companies to engage with customers across a
greater number of channels, including chat, social media or
messaging apps (i.e., Facebook Messenger, WhatsApp). This
gives consumers greater choice to find an option that is most
convenient to them at any given time.
-2% overall
score
Key theme:
Tailoring experiences with AI
Personalization
Despite the huge investment companies have made in Such AI cases demonstrate the power of AI to help
personalization technologies, the Personalization score companies personalize the customer experience. However,
dropped by an average of 2 percent globally, with Thailand th investment will be of little value if the emotional
(-6%) and France (-5%) seeing the greatest fall. dimension of the Personalization pillar is missed.
Personalization is more than just tailoring content or products
to customers – a point many companies need to better
Actions:
understand. The psychology of personalization is rooted in a
customer feeling valued, important and unique. They want 1. Evaluate Generative Pre-trained Transformer (GPT) models
to feel a greater sense of self-worth, more in control, more for their unique advantages when it comes to developing
educated and better equipped to make the right next choice. exciting, relevant and personalized copy for customers.
AI can certainly augment personalization strategies by 2. Make data a board level issue, defining and evaluating a
leveraging customer data and behavior patterns to create Customer Data Platform (CDP) as a means of aggregating
tailored experiences. For example, AI personalization can and synchronizing customer data.
sift and curate information, delivering the right information
3. Focus on data quality not quantity – AI is fueled by data,
to customers at the point in time that they need it. In the
but it has to be the right data.
same vein, AI’s ability to process data in real-time can allow
companies to customize website content in the moment
based on a customer’s browsing behavior or location.
Further, AI-powered recommendation systems can
suggest products, services or content. Not only are these
recommendations based on a customer’s past behavior
and preferences, they are delivered on the channels
of their choice: websites, mobile apps or in marketing
communications, increasing the likelihood of customer
engagement and conversion.
-4% overall
score
Key theme:
AI-powered empathy
Empathy
Empathy is down 4 percent, tying for the largest year-over- Even with such promising examples of AI-powered
year decline with Expectations. The US (-8%) and Thailand empathy, companies will need to remember that technology
(-7%) experienced the greatest falls in this pillar. is a complement, not a replacement, to genuine human
interactions. Companies must strike the right balance
So far, technology has struggled to replicate human
between AI-driven automation and maintaining a human
empathy. However, AI has the potential to promote empathy
touch, training employees to leverage AI tools responsibly
in companies and their people by assisting in ways that
and in line with their emotional intelligence, to create
foster understanding, connection and emotional intelligence.
empathetic and compassionate experience for customers
Companies can use AI to analyze vast amounts of and employees, alike.
customer data and feedback to gain deeper insights into
customer needs, pain points and emotions. In addition,
AI-powered sentiment analysis can gauge the emotional Actions:
tone in customer interactions, reviews and feedback.
1. Map out the points in a customer journey where a
Taken together, these AI use cases allow companies to
human touch will make a real difference to the customer
understand individual preferences and histories, as well as
experience.
their emotional state, so they can respond appropriately
with empathy and compassion as they address concerns or 2. Use sentiment analysis to understand the emotional state
celebrate positive experiences. of customers as they progress along journeys.
Inside the company, AI can personalize coaching and 3. Identify where AI can augment and empower employees,
feedback to employees, helping them improve their and help them deliver a superior experience in partnership
communication and emotional intelligence skills, and their with technology.
ability to empathize with customers and colleagues. AI can
also be used to enhance virtual reality training simulations so
employees can be exposed to different scenarios, including
challenging and emotional situations, and boost their ability
to deliver empathetic customer service.
2
Preparing for
the AI revolution
Our leading organizations have discovered that
successful implementation of AI requires an enterprise-
wide approach – one rooted in the continuous creation
of value. Value can come in the form of reduced friction
for customers, more efficient costs for companies,
improved customer engagement and increased
sales. Leaders also connect AI to their company’s
core operations and have carefully navigated its
implementation, enhancing their culture, preserving
trust and minimizing risk throughout the process.
Organizing for AI
AI has wide-ranging uses and practices that requires intentional
management and oversight. Our leading companies have been very
careful about how they approach AI management because they know
putting management in the wrong place will constrain their results.
As AI is a technology, there is a tendency for implementation to be IT or

engineering led. However, this restricts growth and local flexibility. It also
establishes AI as just a technology, diminishing its role in meeting functional
needs, and supporting a company’s growth and strategy agenda.
Similarly, decentralizing management to the functions can produce fragmented
results where individual projects do not necessarily connect. So, while it
may enable functional and departmental teams to prosper, it can limit cross-
enterprise improvements and value.
To avoid either scenario, research shows that AI implementation must be
performed using a holistic enterprise-wide approach.3 In doing so, the initiative
will need to align to and enable the organization’s strategy, and aim to reduce
costs and create value to the company and its customers.
CEOs confirm the strategic impact of AI. Seventy percent of CEOs included in
the 2023 KPMG CEO Outlook specified generative AI as one of their top priority
70%
investment areas. This means CEOs will likely need to consider how to lead and
sponsor AI implementation through their leadership team.
of CEOs included in the 2023

KPMG CEO Outlook specified
generative AI as one of their top
priority investment areas
3
Companies have realized

that they can’t afford
to do everything. They
can’t afford to not be
Focus on clear about who they

are and what they are
creating value trying to deliver for

customers. So, they
have had to orchestrate
clearly around the things
Industry best practice suggests that identifying the value Layering the customer journey atop the value stream
streams in the organization is an essential prerequisite can help companies better understand how a customer that are meaningful to
before an AI implementation. experiences the value for a specific product or service at them and to their brands
a specific point in their journey. In financial services, for and to their customers,
Value streams are the sequence of activities that cut across example, the value stream for mortgages and other related
departments and functions needed to maximize value to and make sure that
products aligns with the customer’s personal journey in
a customer. From a customer’s initial request through to buying a home. their front office, their
delivery, every product or service has an operational value middle office, and their
stream. Value streams are persistent, enduring for as long This exercise also helps companies consider each point
of contact between the customer and the company, the back office is lined up to
as customers purchase a company’s products or services.
They also help organizations center around the customer in role the product or service plays in the customer’s personal deliver that.”
mapping workflows where each value stream can identify life as well as the customer’s subjective perceptions of
the experience.
waste or redundant activities, and offer insights into Jenny Roche
throughput times and relevant costs. Such information can Connected Enterprise Lead,
be used to identify AI use cases that can help reduce costs. KPMG Australia
Value streams, customer

journeys and Al use cases
From buying a home to providing a mortgage: A customer journey
Value created:
Operational Attract Decision in Loan Eligibility/
Offer loan
Provide Set up Collect
Close new customer and
value stream customer principle application risk loan payments repayments Interest payments
Deliver mortgage: Value stream mapping and analysis: Remove cost, reduce time, bottle necks, pain points and improve risk management and quality
Customer Decide Learn Choose Purchase Complete

Apply
to buy property and about mortgages, property and negotiate price / mortgage and
ID / financials
journey location budget, affordability mortgage survey move in
Buy a home: Customer journey mapping and analysis
Al use case
Al-driven Al-driven Al-driven Al automated Al algorithms Al-powered Al models
predictive personalized ‘robo’ extraction analyze credit automated identify
analytics and content advisors analysis of history underwriting application
lead generation information anomalies
Al support Al-powered chatbots / virtual assistants can generate appropriate content, interact with customers, answer their queries and guide them through the mortgage application process
Return on AI For
$1 $3.5
investment
every
in return
companies and 5% of
invest in organizations
AI, they are worldwide are
The economics of AI are IDC conducted a global realizing an realizing an
transformational in a way industry study that provides average of average of $8
has not seen for decades. unique insights into the in return
Business cases for transformation business value of AI:
are effectively ‘self funding’, paying
for themselves many times over in
a fraction of the normal time. For
enterprises that have struggled to
transform due to cost pressures, there
has never been a better time. 92%
of AI deployments
40%
of organizations had
implementation times
are taking 12 of less than 6 months
months or less
Organizations are realizing a return

on their AI investments within
14 months
of deployments on average
Source: IDC Business Value of AI Survey,

commissioned by Microsoft, September 2023
Connecting around
the customer
Implementing AI requires an enterprise-wide view Dissect points of disconnection Today marketing, sales and
of how it will be deployed, and critically, how it will
The first step to harnessing new technologies and service still operate mostly
connect to the way the business works.
connecting the organization around them is to identify and as independent functions.
Connections are critical to the next generation of AI- remove any sources of disconnection. The following are Despite there being much
driven orchestrated customer experiences. Customers common areas for disconnection:
written about how they
want connected channels, so they have a more seamless • Disconnected performance management: Is performance
experience across every touchpoint. They want to feel should operate in a more
measured by individual functional KPIs?
connected to the company and expect communications • Disconnected systems: Do functional systems sit in
cohesive manner, this is
to be directly relevant to them and their circumstances. isolation with their individual databases that hold different frequently not happening in
This requires integration across each of the major functions. customer insights? any meaningful way. If new
The more connected the organization, the more connected • Disconnected priorities: Does each function follow a
the customer. technologies are to be used
different, and often conflicting, path toward targets and
incentives, reinforcing disconnection?
effectively to create value
However, most companies are unsure how to progress to such
a connected state, especially if their businesses and systems • Disconnected processes: Do the functions have different and lower costs of sales,
across marketing, sales and service are still silo based. technologies, tools and processes to manage and track and deliver an excellent
their activities and interactions with prospects and experience, these barriers
customers?
• Disconnected data: Is data collected and managed by
will need to be overcome.”
multiple legacy systems?
• Disconnected people: Are employees on each team Bret Sanford-Chung
focused on the objectives of their individual departments Managing Director, US Customer
and functions? Advisory, KPMG in the US
For AI to drive value, companies need to have the right skills, knowledge and
resources in place to execute its strategy and deliver value to its customers. KPMG
has defined the following eight capabilities to create a connected enterprise:
Connected enterprise capability How can AI transform this capability?
Insight driven strategies and actions AI can provide real-time customer sentiment analysis, enabling businesses to swiftly
Harness data, advanced analytics and actionable insights with respond to customer concerns, and improve their products or services. For instance, a
real-time understanding of the customer and the business to retail business could use AI to analyze online shopping patterns and adjust their product
shape integrated business decisions. recommendations in real-time to maximize sales, which could reduce customer acquisition
costs by up to 25 percent.4
Innovative products and services AI can use market data and consumer preferences to assist organizations in creating
Develop compelling customer value propositions on price, innovative, personalized product offerings. For instance, an AI-powered e-commerce
products and services to engage the most attractive platform could recommend unique product bundles based on individual customer browsing
customers and drive profitable growth. and purchase histories, boosting customer engagement and sales, and increasing new
customers by 15 percent.5
Experience centricity by design AI can analyze user interactions and feedback to help organizations optimize their digital
Design seamless, intentional experiences for customers, interfaces and create user-friendly experiences. For example, a mobile app developer
colleagues and partners, supporting the customer value could use AI to identify and improve user interface elements to design a more intuitive and
propositions and delivering business objectives. engaging app, which could enhance the user experience and increase customer satisfaction
scores by 20 percent.6
Seamless interactions and commerce AI can automate routine customer interactions, such as answering frequently asked
Interact and transact with customers and prospects questions and processing orders, which can improve efficiency and customer satisfaction.
across marketing, sales and service in a way that achieves For example, an e-commerce organization using AI chatbots to assist customers in finding
measurable results. products and completing purchases can streamline the buying process and thereby reduce
customer service costs by 30 percent.7
Responsive operations and supply chains AI can use predictive analytics to optimize inventory management and production
Operate the business with efficiency and agility to fulfil the schedules, ensuring timely product delivery and reducing operational costs. For example,
customer promise in a consistent and profitable way. a manufacturing organization can leverage AI to forecast demand, adjust inventory
levels and schedule production runs more efficiently, which can improve supply chain
responsiveness and profitability, and reduce manufacturing costs by 25 percent.8
Connected enterprise capability How can AI transform this capability?
Integrated partner and alliance ecosystem AI can facilitate seamless communications and collaboration with external partners
Engage, integrate and manage third parties to increase and suppliers, enabling faster product development and cost savings. For example, an
speed to market, reduce costs, mitigate risk and close electronics manufacturer could use AI to streamline communication with component
capability gaps to deliver the customer promise. suppliers and improve the coordination of production, resulting in quicker time-to-market
and cost reduction by 20 percent.8
Aligned and empowered workforce AI can provide personalized training and insights to colleagues, enhancing their skills
and motivation, and ultimately, improve customer service and business performance.
Build a customer-centric organization and culture that
For instance, a customer support center could use AI to offer tailored training modules
inspires people to deliver on the customer promise and
to agents, improving their problem-solving abilities and increasing overall customer
drive up business performance.
satisfaction scores by 20 percent.
Digitally enabled technology architecture AI can continuously monitor and enhance the efficiency and security of an organization’s
digital infrastructure. For instance, a financial institution can use AI to detect and
Create intelligent and agile services, technologies and
prevent cybersecurity threats in real-time, ensuring a secure, scalable and cost-effective
platforms, enabling the customer agenda with solutions
technology architecture that safeguards sensitive customer data.
that are secure, scalable and cost effective.
Each of the capabilities listed above asset, rethinking the types of data they question: What data do we need to
is fueled by data, making data a capture as well as adopting new ways deliver the required business outcome?
competitive necessity. Gartner of managing its collection, storage and
In the next few years, there is a strong
has identified that 85 percent of AI dissemination.
view that gen AI will be able to identify
implementations fail, in large part due
Historically, companies were focused patterns, gaps and set tasks to collect
to poor data quality.9 Every business must
on collecting great quantities of the right data, changing this process
That is because AI depends on data to data, rather than concentrating on once again. Today, however, generative ensure that the entire
learn and make predictions. The better its usefulness. This overloaded AI applications will depend on receiving organization – front,
the quality and quantity of data, the businesses, which had to spend time the right type and amount of data,
better it will perform. Described as the curating, cataloging and analyzing along with explicit instructions and
middle and back – is
oil of the digital economy – in other large amounts of data. More recently, many examples to demonstrate what aligned to deliver on
words, without useful data, AI cannot organizations have shifted their is needed. its brand promise and
be powered – organizations need to perspective to customer outcomes, customer expectations.”
consider and treat data as a strategic working backwards to answer the
Adrian Clamp
Global Head of Connected
Enterprise, KPMG Internationa
8
Trusted Trust
• Risk to external reputation
(customer and stakeholders)
As companies bring AI into their • Risk of bias, discrimination

businesses, they will likely need to and misinformation
continually build and reinforce their • Risk of opaqueness in AI
customers’ trust that they are using Compliance Value
the technology responsibly.
• Comply to the rising number • Lack of awareness and
AI comes with its own set of risks and of global regulations around training on AI
challenges, and has many wondering if AI and ethics • Risk of data integrity, statistical
AI systems (i.e., their data, algorithms
and applications) can be trusted. These
concerns have been fueled by high-
• Comply with growing number
of internal enterprise policies
AI risks validity, model accuracy
• Lack of technology
profile examples where AI applications and controls assessment tools
demonstrated bias, infringed copyright,
or produced discriminatory or unlawful
results. As gen AI scales, organizations
can compromise the following areas: Security and privacy Speed
• Skyrocketing number of • Growing number of models
security vulnerabilities built with diverse stakeholders
(cyber and adversarial) and complex pipelines
• Greater need for • Exponential increase in data,
transparency and storage and computing
consumer privacy • Shortage of AI/ML talent
Building customer trust

AI comes with its own set of risks and challenges. As companies bring AI into their
organizations, they should remain aware of the potential risks that could open them
up to additional challenges that can further compromise customer trust:
Job displacement: AI has to the potential Transparency, traceability and accountability: As

1 to displace jobs that can have significant 4 regulation standards evolve and AI systems become
implications for employees. Organizations need more advance, organizations will need to build
to address this emerging ethical concern by integrity and accountability into their systems – from
implementing plans to upskill existing employees design and programming to updating and learning.
and identify where augmentation, rather This may require organizations to clearly and simply
than replacement is the best decision for the explain systems so employees understand how they
employee and the customer. operate and can easily trace and correct issues.
Privacy concerns: Using AI to monitor employee

2 activity is raising concerns among AI ethicists.
Data protection needs to be considered across
any AI system. In terms of GDPR, organizations
must have the express consent of all parties
involved, ensuring they clearly understand how
data will be handled.
Biased data: Flawed data can create and

3 reinforce biases and become immensely
problematic. Organizations need to actively
design processes to test and validate data to
ensure AI systems remain fair and unbiased as
it learns new information, and categorizes and
applies existing information.
Responsible AI frameworks
Organizations should develop a “Responsible AI Framework” to mitigate potential risks
and challenges. The framework can also help companies uphold high standards when
deploying AI systems as well as effectively manage any potential risks. The following are
the eight core principles KPMG uses to guide responsible AI across the AI and machine
learning (ML) lifecycle.
1 Fairness 2 Explainability 3 Accountability

Help enable models to be free from Help enable the transparent Help establish mechanisms to drive
bias and remain equitable understanding and documentation of ownership and responsibility across
AI algorithms the AI/ML lifecycle
4 Security 5 Privacy 6 Safety

Safeguard against unauthorized Help drive compliance with data Safeguard against a negative impact
access, corruption and attacks privacy regulations and consumer data to humans, property and environment
7 Data integrity 8 Reliability

Help embed trust with data quality, Help ensure the performance of
governance and enrichment steps AI systems at the desired level of
precision and consistency
Developing such a framework begins responsible AI practices at all times.

with organizations defining a clear AI should also be incorporated into
approach to data and AI governance. well-established risk management
This can only be done when taxonomies, supported by auditing,
business leaders identify the benefits to allow for ongoing oversight of
and opportunities AI offers their systems. Customer concerns will also
organizations as well as the potential need to be given due consideration
risks and ethical setbacks that may by all stakeholders involved in each
need to be addressed along the way. application of the technology.
Tackling any potential risks will Microsoft, Lush and UNESCO are
require organizations to think in among many organizations that have
fundamentally new ways. Unlike published ethical frameworks that
previous technologies, ML and AI guide how they use AI.
are designed to learn and evolve. As
such, organizations will need to define
Embedding governance
their guidelines and standards for into the technology
governance, including provision for For self-learning, autonomous AI
internal and external AI assurance and systems, governance is needed from
validation, to ensure these systems are two perspectives. Externally hard
developed and deployed in a way that and fast guidelines are needed for
promotes fairness, transparency and those who program and work with AI
accountability. systems to ensure the systems are
Further, ethical AI may call on built with fairness and ethics in mind.
organizations to consider multiple Governance, in terms of parameters
perspectives to sufficiently address and moral boundaries, also needs to be
potential concerns. This includes built within the system to stop it from
regular check-ins with a diverse set overextending itself or straying into
of stakeholders from across the questionable territory. Microsoft, Lush and
organization and beyond, to maintain UNESCO are among
many organizations
that have published
ethical frameworks
that guide how
they use AI.
3
Orchestrated
experiences
with AI
The trend for companies to create intentional
customer experiences by well-meaning teams
across several different departments, did not always
translate to great experiences for customers.
To enhance the experience for customers, leading This research reaffirms what KPMG has believed for some
companies are now focused on deliberately time: the future of customer experience is orchestrating
orchestrating customer experiences – that is, managing the enterprise. This is only made better with the advances
and developing capabilities and processes across the in generative AI, making enterprise orchestration easier
front, middle and back office to deliver customer and to achieve and more prevalent. Case in point: the leading
cost outcomes – and they are doing so with the help of companies in this research are using AI-enabled orchestrating
Organizations should
AI. The efforts are starting to pay off. According to the to capture competitive advantage.
KPMG Global Tech Report 2023, 72 percent of leading think deeply about the
companies have experienced substantial increases in
Orchestration drives seamless experiences orchestration layer,
employee productivity, improved customer engagement, Customer journey orchestration bridges the gaps between how they harness new
lower costs and greater efficiencies. front, middle and back office teams and systems. The aim technology, and be clear
is to manage the customer journey, not to just let it happen.
Companies topping this year’s brand list, including Emirates,
Through orchestration, previously ad-hoc interactions are
on how humans and
Maybank, Kbank and Fielmann, have been carefully
linked into a series of compelling, intentional interactions. machines can work in
orchestrating the end-to-end customer journey using AI
and machine learning to help their customers achieve their
Orchestration is about influencing the journey as it occurs. partnership to deliver an
No matter when and where customers interact with emotional connection
objectives quickly, easily and in a more orchestrated manner.
your brand, journey orchestration helps build customer
For example, Fielmann’s approach to orchestrate online
engagement and loyalty
with the customer.”
optical assessments and prescriptions means customers
can easily upgrade their glasses as their eyesight changes To be successful, orchestration requires real-time decisioning
without adding extra time to be seen by an optician. – a technique that blends data, rules and predictive
Carmen Bekker
ASPAC Customer Partner
analytics to make smart decisions about what to talk to
Orchestration, especially when augmented with AI, machine KPMG Australia
customers about and on what channel. Essentially, allowing
learning and attribution models, is a powerful approach that
organizations to maximize every customer interaction. Data
can create the types of experiences that delight customers,
is key to decisioning, but it needs to be used in very specific
improve brand reputation, increase customer loyalty and
ways that pinpoint the most relevant, next-best experience
drive revenue.
for customers by connecting the dots between historical and
live customer data, operational data and business data.
Accelerate fully orchestrated experiences products based on their browsing history and previous
purchases. At the purchase phase, AI can help manage
AI-powered real-time decisioning has the potential to
inventory and delivery effectively. Then, post purchase, AI
enhance customer experiences with such accuracy that they
can help drive better customer service through personalized
feel intuitive. It begins with training AI and machine learning
advice and relevant content.
algorithms with data, such as words, log data, time series
data or images, to create a model and subsequent variants AI is the pathway to “hyper personalization”
that can be used to test for the very right compilation of data
Before AI, customer journeys were mapped in straight lines
to achieve business goals across different scenarios.
using simple rules to push customers from one stage to the
Adding logic, such as the customer’s age or real-time next. Now, with AI capabilities to manage a larger number
behavioral data, can further refine decisioning and create of customer options, orchestration can be personalized to
a more connected and relevant experience that better an individual customer, allowing for each experience to be
meets today’s consumer demands and expectations. Other fresh, relevant and tailored to meet a unique set of needs
technology advances, such as the cloud, new and more and wants.
sophisticated analytical techniques, and the ability to access
To get here, organizations need to orchestrate processes
data held in legacy systems through API interfaces, will
and technologies across marketing, sales, service and
further increase the impact of real-time decisioning.
commerce, and define new operating models. Most of all,
For example, as customers discover a brand, these however, companies need to apply creativity and imagination
technologies can help point them toward the products they as they consider how these new technologies can be
are most interested in and intrigue them with additional harnessed in service of the customer.
In the future, any company who intends to compete in the

digital economy will have to enable its customers to shop,
buy and be supported when, where and how they want. This
means paths to purchase and support will be inspired by and
for the individual customers they serve, offering frictionless
experiences across the customer-to-cash value chain.”
David Martin
Principal, Advisory, Management Consulting,
KPMG in the US
AI from the outside in:

The customer
perspective
Companies are used to thinking perspective, and develop strategies to Consumers want transparency from
about technologies from the inside build consumer trust. The following are companies, especially in terms of
out: What can it do for us? How key insights from the report: how they are mitigating AI risks. This
can we use it to increase revenue, includes revealing the principles and
Consumers are wary about trusting
reduce costs to serve and streamline related practices guiding organizations
AI systems and have low to moderate
processes? With AI, these questions as they deploy AI systems as well
acceptance of AI, depending on Automation is happening
remain valid areas to consider, but as the standards they uphold in
they need to be balanced against an
its application. When it comes to
terms of data privacy, security and quickly and end-to-end
producing accurate and reliable output
outside-in view — that is, taking into governance; technical performance, customer journeys are
and providing helpful services, people
account the customers’ preferences
have more faith in AI. Alternatively,
accuracy and robustness; fairness, non- being fully automated
in using these new technologies and discrimination and diversity; human
consumers are more skeptical about AI – but companies may
to what extent. agency and oversight; transparency and
in terms of the safety, security, privacy
explainability of systems; accountability want to maintain
As discussed above, maintaining trust and fairness of its systems.
and contestability; risk and impact white space to allow
is a primary challenge for organizations
using AI. Customers, employees and
Consumer are both excited and mitigation. customers to choose
worried about AI, partly due to their
other stakeholders want to be confident Consumers want to learn about if they want to interact
mixed views of the benefits and risks
AI is being developed and used in a
of AI. Most people (85%) see the
AI. Currently, 82 percent of people with a human or a
responsible and trustworthy manner. are aware of AI, but one in two report
process benefits AI provides, such machine.”
feeling they do not understand AI, or
A recent KPMG global report, Trust in as improved efficiency, innovation,
when and how it is used.
Artificial Intelligence, which surveyed effectiveness, resource use and Jason D. Galloway
over 17,000 people from 17 countries reduced costs. Fewer (50%) see Building understanding and Principal, Customer
leading in AI activity and readiness the people benefits of AI in terms addressing the other findings from Advisory Lead,
offers insights that companies can of enhancing decision-making and the report can help companies KPMG in the US
use to better capture this outside-in improving outcomes for people. build a firmer foundation for trust
in AI among their customers.
AI from the inside out:

The enterprise
perspective
It may be perfectly possible for
AI has the power to fundamentally transform the way an AI-managed sales channel
businesses engage with and serve their customers.
to deliver an end-to-end high-
Equally, it will likely impact employees and teams who
will leverage AI technologies and its required processes. quality experience without
recourse to a human, but this
To bring people along for the journey, companies will need to
assess their internal environments and cultures. Education requires people to be clear
and training around AI will also be necessary. As it will be for on the role of the underlying
organizations to transparently and frequently communicate the technologies of Customer
value, benefits and uses of AI while underscoring their aims to
Data Platforms (where device
maintain responsible and trustworthy AI practices.
data lives) and Customer
Relationship Management
(where relationship metrics
are managed) and Enterprise
Resource Planning (where
workflows are managed) to work
effectively together with a single
source of the right data.”
Aditya Rath
Principal, TMT Lead, Customer Advisory,
KPMG in the US
AI use cases
AI is a catch all phrase that covers a multitude of different technologies
with different capabilities. Currently, there is much excitement around
generative AI, and its ability to create content.
Going beyond simply analyzing or acting on existing data, generative AI models

have been built and trained on a collated set of data that is used to produce
content that directly responds to certain human-directed requests. Some
models, for example, can predict the next word in a sentence based on learned
phrases or the next image in a series based on previous image descriptions.
Generative AI applications can be roughly divided into five categories:
• Content generators: Generates content, such as blogs, emails, social media
posts, images, web copy and ads based on specific instructions.
• Information extractors: Creates short- and long-form summaries of news
articles, blogs, legal documents and more by analyzing inputted documents.
• Smart chatbots: Interacts with customers in a conversational way and is
equipped to answer follow-up questions, admit mistakes, challenge incorrect
ideas and reject inappropriate requests.
• Language translators: Translates many languages and has the potential to
build entire website interfaces, including translation sites.
• Code generators: Converts natural text inputs into code snippets or
applications in various programming languages, and can identify and fix bugs.
Across these five categories, AI can be applied in a variety of ways across the customer lifecycle:
Reach Engage Activate Nurture Retain
Marketing: Pricing and revenue: Onboarding: Fraud and cybercrime analyst: Churn prediction:
AI-powered data analytics AI algorithms optimize pricing AI automates verification and AI algorithms identify AI allows businesses to take
improve lead generation and strategies. personalizes onboarding. potentially fraudulent activities. proactive measures to retain
conversion rates. customers.
Content generation: Inventory control Service support:
Customer service: Create and deliver personalized and supply chain: AI chatbots and virtual assistants Personalized offers:
AI-driven chatbots and virtual content that address customer AI technologies provide instant customer support AI delivers personalized loyalty
assistants. needs in the moment. optimize inventory management. and automate query routing to rewards and offers.
the most appropriate agent.
User-generated
Predictive support: content analysis:
AI tools anticipate potential AI analyzes and identifies brand
issues and offer solutions. advocates.
Customer feedback:
AI identifies previously unseen
patterns in data.
CEE leaders
Hilton Hotels use Connie, A leading ecommerce Nike uses AI to predict first direct uses AI to enable Hilton Hotels uses AI to
an AI bot, that answers provider uses advanced customer preferences for autonomous banking whereas support Hhonors loyalty and
customer queries recommendation engines sneaker and clothing designs, Dot the Bot responds to promotional activity
to manufacture appropriate customer queries
Maybank uses AI for Emirates has Sara, the AI Tokyo Disney uses
quantities.
gamification to attract users bot, to automate customer KBank uses AI for risk technology to bring customers
to its digital banking check ins Adidas uses AI for cross management, evaluating back to specific attractions
selling via its Findmine app. customers’ ability and
willingness to repay
10
The 12 principles of successful

AI implementation
As early adopters of AI, the leading 2. Focus on trust. Examine every 4. Maintain human connection. 6. Measure customer acceptance.
companies topping this year’s aspect of the AI implementation Add people into AI-powered Monitor customer satisfaction
rankings have discovered that to determine where employee journeys – what is called a human with AI, alongside its human
applying old rules to a new reality is trust is being built or where it may in the loop (HITL) – to humanize AI equivalent to make sure customers
not a recipe for success. be eroding. If employees do not systems and strengthen customer do not have a low satisfaction
trust how AI is being used in the experiences. Learn how KBank experience with the channel. Learn
1. Start small. Seek to understand
company, neither will customers. and Maybank are adding a human how first direct manages to keep
the implications of operating AI
Learn about Bunnings’ extensive element to the latest technology. customer service satisfaction with
within the real context of the
trialing of new technology, and technology-enabled journeys as
business by carefully selecting 5. Clarify the economics. Clearly
how MAIF focused on ethical and high as human customer service
the right use case to test within communicate the business
responsible usage of AI. experiences.
existing systems and data case for AI, demonstrating both
structures. This can allow time to 3. Hire AI as a virtual employee. significant cost savings and value
perfect the system before it can be Name AI systems and give them enhancement to employees,
operationalized and scaled. Learn human characteristics to help customers and other stakeholders.
how Fielmann focused on its optical drive internal adoption. Further, Learn how Adidas used Findmine to
technology. clarify AI’s job in comparison to drive higher sales values.
employees. Learn about Sara, the
AI bot at Emirates Airlines.
7. Position data as a strategic to prepare for future jobs. This 10. Plan a way forward. Establish 12. Create an AI friendly culture.
asset. Add data to the board tactic can help employees see AI as a clear plan that evolves along Help employees think in new ways
agenda, focusing on quality not an exciting opportunity rather than with the company’s maturity in by bringing to life a culture that
quantity. Understanding the specific a threat. Learn about MayBank’s AI. Such a phased and outcomes- integrates the AI world of data
data required to drive specific AI employee technology upskilling based approach can help drive the algorithms and iterating models.
models and algorithms is the first program to get them future ready. company’s AI vision and improve Such a culture will enable teams
stage of analysis. Read how Nike customer outcomes in stages. to design experiences and develop
9. Set the vision for AI. Define a
continually collected and analyzed Learn about first direct’s five-step supporting processes that can be
clear end state vision for AI and
data to improve products, predict plan toward autonomous banking. executed by machines. Learn how
other advanced technologies,
demand and improve the customer both Nike and Adidas manage their
communicating its future benefits 11. Stay on top of emerging
experience. supply chains.
to the organization and its people. risks. Remain deeply aware
8. Manage job displacement. This can help establish a cohesive of the potential, and at times
Address the realities of job enterprise-wide approach and keep unintentional, risks arising from
impacts due to AI from the start. everyone working toward the same AI implementations. Keeping an
Transparently talk about the jobs end goal. Learn how Fielmann eye out for risks and having an
that will likely be lost and the new uses its end point vision for a truly approach to mitigate them can help
ones that may be created. Further, omnichannel experience to drive companies stay ahead of issues
announce new roles as they arise the development of digital optical before they progress too far. Learn
and offer existing employees the assessments. about MAIF’s approach to manage
training and development they need AI drift.
Understanding how customers behave across

omnichannel customer journeys and what is really
key among real moments of truth is a critical input
to the technology investment case for customer
experience improvement initiatives.”
Massimo Curcio
Partner, Head of Customer Advisory Practice,
KPMG in Italy
AI leadership
AI success depends on effective leadership within
organizations, but where should AI be led?
For some businesses, AI is a C-suite responsibility or it

is placed within the organization’s growth and strategy
functions. Others keen to achieve success from the outset,
however, have created AI centers of excellence with the ChatGPT has been
following responsibilities: pivotal in accelerating
• Define and develop the organization’s AI strategy, the adoption and
aligning it with the business’ goals and objectives. understanding of
This involves understanding how AI can drive value generative AI, giving
and competitive advantage.
people quick and
• Establish governance frameworks to ensure ethical
and responsible AI development, deployment and use. easy use cases –
This includes compliance with data protection and transforming the
privacy regulations. perception of AI
• Oversee AI projects from start to finish, keeping them on
from being a clever
time and within budget. This involves project planning,
resource allocation, risk management and quality control. technology to being one
• Manage the organization’s data, monitoring that it is that can be understood
collected, stored and managed effectively. High-quality and used.”
data is essential for AI model training and performance.
• Identify skill gaps in the organization and work to fill them
by developing training programs for employees or hiring Carmen Bekker
talent to build AI capabilities. ASPAC Customer Partner,
• Innovate and improve AI applications by staying up to KPMG Australia
date with the latest advancements in AI.
• Share best practices, insights and lessons learned
across the organization to foster a culture of AI adoption
and innovation.
The talent imperative

Jobs will undoubtedly be impacted by AI. Some will be fully replaced and a whole
set of new opportunities will likely open up across marketing, sales and service
and beyond. The World Economic Forum predicts AI will create 97 million new
jobs by 2025.11
Initially, these new jobs may focus on developing and maintaining AI and
automation systems across multiple industries. For example, data detectives
or scientists, prompt engineers, robotics engineers, machine managers and
programmers, particularly those who can code in Python, which is key for
AI development. AI trainers and those with capabilities related to modelling,
computational intelligence, machine learning, mathematics, psychology, linguistics
and neuroscience will also be in demand.
There may also be a need for design engineers that understand the end-to-
end processes of marketing, commerce, sales and service and can integrate
technology into these processes across the customer journey.
Leading companies are already taking steps to prepare their people with skills and
competence training ahead of these new roles being created so that employees
can move into new jobs as they become available.
The World Economic Forum

predicts AI will create 97
million new jobs by 2025.
11
Leaders checklist for optimizing

cost and value through AI
Enterprise-led Valuable
Establishing the right Identify where value lies.
enterprise model Put down roots for growth
Establish responsible Identify & Create the

1 AI framework & CoE 2 agree on key 3 business &
benefit drivers economic case
• Create momentum with colleagues across the organization with educational campaigns • Revenue growth • Conduct top-to-bottom analysis to determine where value
• Form cross-functional governance and representation • Cost reduction drivers create the greatest impact
• Define and establish framework for responsible AI, risk and governance • Customer experience • Define the capabilities, skills, competences and
• Colleague engagement technologies required
• Develop AI training and accreditation as prerequisite before any AI activity commences
• Innovation • Align value streams to journeys and capabilities
• Establish ‘air traffic control’ and a clear governance model to aid with prioritization and
• Technology • Prioritize areas to transform enterprise
co-ordination of use cases and resources
• Brand strength • Identify AI colleague roles and use cases, delivering
• Create a knowledge library for key and re‑usable assets to accelerate progress
• Risk management greatest value and enterprise-wide applicability
• Capital allocation • Confirm alignment with the organization’s purpose
To develop AI strategy and approach and values
Connected Trusted
Create a strong core. Connect value Branch out safely
streams, journeys and capabilities
Develop AI strategy Mobilize & Scale

4 & approach 5 experiment 6 safely
Scale
Test for feasible, desirable, viable and compliant
• Develop AI strategy (create, consume, customize), ensuring • Create momentum and an experimentation culture with • Develop the proof points needed through discovery
alignment with the organization’s overall strategy and mission the early use cases that can be delivered well within and exploration to scale AI upwards and onwards
• Develop an approach and operating model for connecting existing existing value streams • Lead by action – showing and coaching the
capabilities to deliver AI across the organization • Conduct change and business readiness assessments, organization through change
• Prepare technology infrastructure, such as data and data platforms, covering people, technology, data, risk and regulations • Develop a robust communications and adoption
landing zones, and test environments for teams to safely experiment • Define the points within value streams and journeys strategy with clear ‘what’s in it for me?’ messaging
• Define leadership roles and teams required to successfully where ‘Human-in-the-Loop’ (HITL) interactions for AI use
get started are required • Scale up and rollout GenAI Academies to all
• Define partnerships and enterprise-wide delivery model • Ensure governance and testing of GenAI models is colleagues across the organization
functioning and within risk appetite (testing/ • Test and learn internally through pilots and
grounding/vector models) experimentation before rolling out any
• Incorporate security architecture into AI design customer-facing initiatives
4
Hall of Fame
brands
The Hall of Fame represent the brands ranked as the
best in their country for providing excellent customer
experiences. Based on this year‘s survey of 81,725
customers of 2,726 brands, these 21 brands stand tall
in their markets, achieving the strongest cumulative
scores across The Six Pillars.
Hall of Fame brands
Australia: Austria:
Bunnings Spusu
Bunnings Warehouses tops the list scanning store aisles and shelves for Spusu is a young business and a new Spusu has grown rapidly and offers
in Australia this year. Their success out-of-stock items to optimize space entrant to the CEE Index. Launched its customers 5G networks, free EU
is due, in large part, from creating and stock inventory. The saves team in Austria in 2015, and later in Italy in roaming and free international calls
experiential stores that offer regularly members from spending hours to 2020 and the UK in 2023, the Mobile across the EU. However, what sets
changing stock profiles and an manually doing these tasks, which they Virtual Network Operator (MVNO) Spusu apart is its focus on customer
ongoing schedule of events that keep can use to attend to more value-adding started as a monthly mobile plan service, giving customers greater
customers coming back. activities. provider and has evolved to include choice and more flexibility, and putting
broadband, mobile phones, and most the customer back in control.
For example, special events for The company has also adopted
recently, e-bikes.
seasonal holidays like Halloween; an AI-managed recruitment tool, As a result of its efforts, Spusu was
fun days with jumping castles and PredictiveHire. As Australia’s largest The company is very focused on its recognized as the best mobile provider
petting zoos to entertain children; DIY hardware retailer with over 300 stores, employees, fostering its talent with in 2022 in Austria. It was also named
workshops to learn new skills from Bunnings receives thousands of in-house development opportunities. best customer support in 2021.13
knowledgeable trades staff. There applications for customer service roles Externally, Spusu is recognized as
is also the ever-present and popular every year. Many applicants are from a customer experience leader by
‘Sausage Sizzle’ on weekends that consumers who love the Bunnings prioritizing simplicity and transparency.
raises money for local clubs and brand and want to be part of their story.
They offer customers clear pricing,
organizations. PredictiveHire has reduced time in the
no hidden fees and straight-forward
hiring process by 90 percent, giving
These events have made a trip to contract terms, which resonates with
back valuable time to store managers.
Bunnings an entertaining day out for consumers seeking an honest and
The tool also helps Bunnings recruit
Australian families. From a business hassle-free experience. The family-
employees who share their values and
perspective, it draws in both loyal owned company recognizes the impact
can deliver exactly the right Bunnings
customers and potential newcomers to of the current cost-of-living crisis to
service.
an elevated buying experiences. consumers and has committed to
In both instances, the AI trials aim to a price freeze until 2024. Further,
Behind the scenes, Bunnings is an
enable staff to spend more of their consumers can bank and carry forward
early adopter of new technologies.
time delighting customers. So far, unused data.
They are testing out a robot to do
Bunnings has redeployed over 2.4
a product stock check overnight,
million hours of task time since 2020.12 12
13
Hall of Fame brands
Czech Republic: France:

Air Bank MAIF
Air Bank retains its number one seeking and acting upon customer MAIF is, as they say in France, a MAIF stays focused on doing the right
position in the Czech Republic. feedback, Air Bank seeks to earn “société à mission” (a company with thing for its customers and society as it
Routinely introducing services and its customers’ trust and loyalty and a mission). Since 2020, MAIF has implements AI into its operations. Very
solutions to the Czech market, Air set a high standard for customer placed its search for positive impacts aware of the potential downsides of
Bank leads the way in customer experience in the financial industry. on society and the environment at advanced technologies and conscious
centricity. As a result, it continues the heart of its strategy. Pledging to of AI’s tendency to drift away from
Sustainability is a priority for Air Bank.
to attract new clients, increase donate 10 percent of its profits to its original objectives as it learns and
It committed to be an environmentally
its volume of lending and record tackling climate change, the mutual develops, MAIF has actively become
and socially responsible business by
growing income from regular retail insurance company had begun involved in AI governance and works
subscribing to the Czech Banking
banking services. reducing greenhouse gas emissions with open source AI providers.
Association’s Memorandum on
linked to its activities, notably by
Air Bank’s ascent as a customer Sustainable Finance. Both Air Bank The insurer has also adopted a
selling its last fossil fuel-based
experience leader can be attributed and its subsidiary, Zonky, are regularly controlled approach that manages
financial investments under direct
to its strategic investments in named among the most responsible the lifecycle of an AI model through
management in 2022. It also switched
people, products and technology. consumer lenders in the People in Need specific phases: learning, deployment
to geothermal energy to power its
They prioritized employee training to Responsible Lending Index.14 and monitoring. By closely monitoring
head office and uses recycled parts to
foster customer-centric culture and their models in production, MAIF is able
Acquired in 2021, Zonky is a peer- repair its members’ cars.
empower their workforce. The bank also to detect as early as possible when
to-peer fintech platform that allows
revamped its mobile app, introduced MAIF’s DNA revolves around its client models are likely to provide less suitable
customers to digitally manage the whole
chatbots, and invested in AI-powered obsession. It carries this forward by recommendations and pinpoint the right
borrowing process from submitting an
customer support systems – all of which training employees on emotional time to retrain the model.
application to signing a contract within
streamlined processes and improved customer management to create
minutes and at a lower interest rate than
response times. experiences that are effective, easy
traditional lenders.
and emotional. As a result, when asked
Their loyalty program caters to
about their insurance provider, members
customer demands while seeking to
and employees say, “I am MAIF,” not
foster financial well-being. By actively
“I am with MAIF” to describe that
they feel part of a family, rather than a
customer to a business.
14
Hall of Fame brands
Germany: Hong Kong (SAR), China:

Fielmann Apple Store
Fielmann, a technology-enabled Its most significant investment in recent Apple Store retains its number one The Hong Kong (SAR), China stores
optician, retains its number one years has been developing an AI-based position in Hong Kong (SAR), China. are equipped with a new team – the
position in Germany. The Fielmann online eye test and connecting it to its Apple Stores are experience centers, Creative Pros – who are employed for
Group is a German family business digital eyeglasses ordering process. rather than retail shops, where the sole purpose of teaching customers
that serves more than 27 million Now, customers can go from eye test to communities can gather. At the key creative skills, such as how to take
customers through its omnichannel ordering their personalized prescription new flagship branch, for example, better pictures with their iPhone camera
platform that consists of digital sales glasses entirely online. entrepreneurs may use the space to or how to use photography apps. They
channels and about 1,000 retail stores. meet up and discuss ideas. The new are also on-hand to help Apple users
Fielmann continues to seek out ways
The family business employs more stores also hold coding classes – download Apple Music and other apps,
to remove impediments to great
than 23,000 people worldwide. called Hour of Code workshops – for and aid users with any other technical
customer experiences. For example, its
kids, teaching Apple’s programming questions or challenges. In addition,
Founded in 1972, Fielmann makes 3D virtual application to try on glasses
language, Swift. Hour of Code there’s the Genius Grove – a customer
fashionable eyewear and has fitted required customers to remove their
embodies the vision for Apple stores service stand where customers can fix
more than 170 million pairs of individual glasses before it could digitally overlay
as a place for the community to and triage computer issues.
prescription glasses. It does this while the new ones. Unable to see without
gather, learn and be entertained.
remaining focused on customer-centric their prescription lenses, customers
values, which it believes has enabled were unable to use the feature. The stores also host Teacher Tuesdays,
the company to consistently achieve Now, customers can virtually try on which are designed to help educate
customer satisfaction and retention any glasses available online without working teachers on how they can
rates of more than 90 percent. removing their existing ones. better incorporate technology into their
classrooms.
Hall of Fame brands
Indonesia: Italy:
Adidas E-commerce retailer
Rapid economic growth in Indonesia Since fully rolling out Findmine, Adidas For the second year running this It has also developed a GenAI
has created a growing awareness reports a 95 percent decrease in the global e-retailer tops the index in Italy. application that can generate text,
of lifestyle brands, such as Adidas. time retailers spend on selecting items Customers appreciate the retailer’s images, audio and synthetic data in
Ranked as the top brand in the for “Complete the look,” while at the diverse selection of products and response to specific user requests.
country, Adidas is viewed not just a same time, increasing the number of quick delivery options. They also
From a logistics perspective, the retailer
supplier of sporting goods, but also items included in the online feature by trust the authenticity of products and
has been on the forefront of several
an employer. Adding to its attraction 960 percent.15 appreciate its competitive pricing.
innovations that can make getting
is the company’s eco-friendly Further, its customer service, which
Adidas, like many sportswear suppliers, products from their warehouse to the
commitment, that seeks to end plastic is both responsive and helpful, makes
is evaluating the metaverse for doorstep with minimal effort on the
waste and improve the lives of its shopping easy for customers.
potential opportunities. It is starting user’s part.
customers and the planet.
with a personality-based avatar In 2023, as in the previous year,
For each innovation, the primary aim has
Adidas is an advanced user of AI and creation platform. Based on a range of the retailer continues its significant
been to remove sources of friction in
is partnering with platform provider, personality-based questions, the tool will investments in GenAI research and
buying or returning a product, and create
Findmine, to automatically recommend create an AI-generated avatar people development across all its businesses.
an effortless experience - something
outfits to customers as they browse can use as they explore other virtual The company aims to elevate customer
Italian customers are more than willing
products online. The AI tool has led to worlds in the metaverse or download to experiences, optimize operational
to give their loyalty for in exchange.
a significant increase in order size as use as stickers or GIFs on social media. efficiency and provide a wide range of
personalized curated recommendations Customers can use their avatar to try on advanced services and solutions with As an early adopter of AI and
are well-received by customers and and purchase sneakers from Adidas. the help of AI. automation, the retailer has built a
merchandisers, who are unable to competitive edge over others – both
For example, it is focused on
distinguish AI-generated outfits over in terms of boosting efficiency in
revolutionizing its search system so that
those curated by humans. its business operations, and more
it is more proactive and conversational.
importantly, improving the customer
As part of this effort, the company is
experience.
developing an auxiliary and optional tool,
potentially in the form of a chatbot, to
provide users with a more intuitive and
interactive search experience.
15
Hall of Fame brands
Japan:
Tokyo Disney Resort
Tokyo Disney Resort (TDR) has been the top brand in 1. Regularly reviewing attractions and shows to provide
Japan for four consecutive years since 2020, with top- fresh customer experiences. For example, at Tokyo
ranked scores across The Six Pillars, except for Empathy. Disneysea the new show “Believe! ~Sea of Dreams~”
TDR is one of the few brands in Japan with a positive was introduced.
NPS score.
2. Acquiring more fans by converting negative events of the
TDR consists of both Tokyo Disneyland, Tokyo Disneysea, park experience into positive ones. They have rainy day
and the surrounding Disney hotels and facilities. Combining a only shows, so that customers feel very special, even if
focus on providing high levels of customer satisfaction with they come on a rainy day.
signature customer service and hospitality, TDR continues to
3. Improve service quality by reducing the difference
be the brand most favored by consumers.
between busy and slow periods by introducing a dynamic
Although the prices of one-day tickets for Tokyo Disneyland pricing system for tickets.
and Tokyo Disneysea continue to rise, they have had little
4. Responding to various needs through the reservation
impact on the satisfaction level of the customer experience in
system, expanding attractions covered by “Disney
this survey. Many customers indicated that their time at these
Premier Access,” introduced in 2022 that provides
theme parks are worth more than cost.
guests with the convenience of reserving particular park
TDR is working to improve customer experience, and before attractions.
and after the park experience by implementing the following
5. Improving the customer experience across multiple touch
initiatives:
points, before and after the visit, such as being able to buy
most of the souvenirs online until midnight of park visit
day, which is then delivered to the customers’ home. Also,
access to exclusive Disney hotels programs where guests
can enter the park 15 minutes earlier than general guests.
Hall of Fame brands
Malaysia:
Maybank
Maybank is a traditional bank that has become customer • Maybank QRPay 2.0: Malaysia’s first QR payments
obsessed, and as a result, has moved up four places to mobile wallet application with direct Casa and cards
become Malaysia’s number one brand. The bank has integration. This enables customers to pay by simply
placed great emphasis on digitally innovating its services scanning the supplier’s QR code.
and products and has actively engaged its customers • M2U Digital Financial Planner: The first of its kind
from design, and development through to testing new in Malaysia, the application offers a goal savings plan,
services before launching them into the market. By doing spending tracker and insurance dashboard to help
so, Maybank aims to achieve its tagline: “Humanizing customers plan, monitor and keep up-to-date on their
financial services”. financial goals.
• MAE: The first-of-its-kind e-wallet allows new or existing
Over the last four years, the bank’s digital channels have
users to open an account using their smartphones within
experienced a 96 percent growth in monetary transactions
five minutes and ready to transact instantly.
and 78 percent increase in active users. Further, it has seen a
233 percent rise in mobile transactions and reports the highest In addition to its innovations, Maybank has been
engagement levels among mobile banking apps in Malaysia acknowledged for its outstanding efforts in sustainable
(31.7 sessions/month per user).16 financing and transparency in promoting a more sustainable
future. For example, the bank positively impacted 871,200
This has been the result of several market-leading
households throughout ASEAN by offering affordable and
innovations:
accessible insurance options to lower-income individuals,
• MyM2U Challenge: Maybank’s annual gamification event providing financial inclusion solutions to vulnerable
to entice and migrate more customers to its internet and communities, small and micro businesses, conducting
mobile banking platforms. financial literacy programs, and implementing initiatives
• Reimagined Maybank2u: Maybank’s internet banking through the Maybank Foundation.17
service, which has over 10.69 million registered users
and over 50 percent market share of internet banking
transactions in Malaysia, has been updated with an all-
new simplified, personalized and optimized user interface 16

and user experience (UI/UX) to provide a seamless 17

experience across all mobile devices.
Hall of Fame brands
Mexico: Netherlands:
Nike Keurslager
Nike moves up one place into the Nikeland is Nike’s purpose-built Keurslager tops the brand index in the Keurslager also defies the trend for a
number one spot in Mexico. Despite metaverse space that allows its fans to Netherlands for the third consecutive digital experience that is common in
being a global brand, Nike holds meet, socialize, participate in promotions year. The 115-year-old deli and meat almost all sectors. Instead, the meat
high the ideals of a “sense of place” and engage with a whole range of virtual chain continues to provide exceptional provider offers customers a physical and
by promoting the culture and the brand experiences, such as celebrity customer service and has become an human-centered experience within local
heritage of the environment it appearances from the likes of LeBron communities (shops are often located
essential supplier to its long-standing
sits within. James, as an example. Virtual visitors centrally, especially in villages). Kind
customers, many of whom have been
can also buy exclusive digital products for staff also bring a human and personal
For example, its shoe designs reflect loyal for upwards of 30 years.
their avatars, which can be brought into touch to the brand, which seems to
celebrated Mexican artist Frida Kahlo.
other virtual environments, turning fans Keurslager’s success may seem continue to win the hearts and minds of
Nike has also collaborated with ARTO
into digital brand ambassadors. contrary to the findings that Dutch Dutch consumers.
and Mexican artists Lourdes Villagómez
consumers are getting more conscious
and Paola Delfín to launch its project Nike uses AI and big data in other ways, Each of the 167 stores in the Keurslager
about the amount of meat they
Casa Nike Women Mexico, a space too. Its virtual assistants use customer chain are meticulously designed and
consume and the impact of cost
created to encourage sports among preferences and past behaviors to help committed to the highest standards of
inflation. However, consumers continue
women. It is visited by thousands of improve customer interactions, and preparation and customer care. Products
to show a strong appreciation for
people every year who come to enjoy supports better sales forecasting and are showcased, rather than simply
Keurslager’s overall proposition.
the experience as well as the artworks segmentation. Nike Fit, which uses a displayed, and everything is fresh,
inside the building. cluster of computer vision, scientific data, including its 50 different kinds of cold
AI and recommendation algorithms, can cuts, various hamburgers and meatballs,
Nike has always been at the forefront of
scan user’s feet and find the right shoe and 60 different meal offerings. Each
digital transformation. AI, e-commerce
for them by using their smartphone. store also sells locally sourced produce.
and in-store experiential technology have
been integral to the brand’s strategy for
many years. More recently, it has moved
to capitalize on the excitement around
new concepts, such as the metaverse,
NFTs and Web 3.0.
Hall of Fame brands
Philippines: Singapore:
Jollibee Foods Corporate (JFC) Apple Store
Jollibee, a Filipino fast food restaurant Jollibee also serves rice with each The Apple Store exemplifies its This Apple Store is not selling products,
chain, moves up two spots to meal. A staple in Filipino local dedication to the in-store customer it is inviting its customers to step
become the number one brand in the markets, rice has strong cultural and experience with its megashop within into a lifestyle and become part of an
Philippines. A franchising company historical ties to Filipino society and Marina Bay Sands that has been open intimate family. Employees, which
with 686 shops in the Philippines sits at the heart of the Philippines since September 2020. are trained to promote an inclusive
and 57 stores in the international market and culinary culture – without and welcoming environment for
Architecturally stunning, the 2,575m2
market, JFC has established itself rice, a meal is never complete. everyone, encourages visitors to
store is an all-glass spherical dome
as a family-oriented restaurant play and collaborate in its stores.
Jollibee’s food is exactly how Filipinos structure that is entirely surrounded
that serves to the Filipino palate
expect it to smell and taste - too sweet by water, and offers uninterrupted, Apple’s commitment to constantly
– two things that resonates and
for non-Filipinos, but a great reminder of 360-degree panoramic views of the improve the customer experience has
connects with many Filipinos.
children’s birthdays, family gatherings city and its skyline. Among its many resulted in high Personalization and
The restaurant also embodies Filipino and home. highlights, the store has an oculus – Time & Effort scores (above 8 for both).
identity and culture. Filipino culture is inspired by the Pantheon in Rome – at the
JFC values every Filipino family and
very family-oriented. Traditionally, large apex of the dome that provides a flooding
concentrates their efforts around their
families would gather at the dinner ray of light throughout the space.
customers. It creates a fun atmosphere
table, sharing spicy and crispy fried
for every group and family enjoying a In addition to its beauty, the store is
chicken - Jollibee has been designed to
meal in their restaurants and is seen as outfitted with a 148-person team ready
reflect that culture.
a place of comfort and happy memories to assist customers as they explore
for many Filipinos. Apple’s products and accessories, receive
personal technical support from Apple
Geniuses (employees), or simply take in
the stunning views of Marina Bay.
Hall of Fame brands
Slovakia: Thailand:
Martinus Kbank
Martinus is the leading and biggest More recently, Martinus has embraced Kasikorn Bank (Kbank), originally KBTG implemented a modern platform
bookseller in Slovakia, founded in digital platforms as it works to create known as Thai Farmers Bank, is one for machine learning and analytics
1990. The book chain has been listed an integrated omnichannel environment of the leading banks in the country that helps improve customer service
number one on the index in Slovakia for customers. Conscious that many and the top brand on the country’s and fraud detection, and enables
for six years in a row. The reason companies struggle to match the in- index. Founded in 1945, it has since innovative services such as automated
for their success lies in its ability store and online experience, Martinus expanded beyond its roots to offers lending. With automated lending, the
to create great user experiences took a structure and unique approach to a range of services to its customers, bank can send a targeted loan offer
across all channels, while offering a redesigning its online capabilities. including personal and corporate to a customer’s mobile app. Once the
wide range of products and superior banking, foreign exchange and customer accepts the offer, new funds
It was also sure to design its online
customer care. Customers describe trade banking. can be transferred into their account
store to reflect the very values and
the inspirational ambiance, and within minutes.
enthusiastic staff that customers holds Kbank has over 800 branches across
knowledgeable and enthusiastic staff
dear in-store – like a good librarian that Thailand and an extensive network of KBTG currently stores and analyzes
as being differentiators.
leads customers to the right books, ATMs in rural and urban areas, alike. more than 12 years of transaction data
One of their recent major projects, products and information, and does so The bank also provides digital services, in its new platform with plans to expand
called “Knihovrátok,” buys and sells with empathy and expertise. To add a such as online and mobile banking for its their database to nearly 35 years of
used books. The program addresses personal touch, Martinus has curated customers. transactions. In addition, about 7 million
sustainability as well as the impact book collections by real librarians, who transactions are added to the platform
The KASIKORN Business-Technology
from cost inflation, while at the same personally sign their name under each daily, including external data from social
Group (KBTG), the IT arm for KBank,
time, bringing long sold-out books back collection. media as well as other sources. This
delivers a range of technology services to
into the market and supporting the rich dataset will allow the bank to see
help drive service efficiency and enhance
company’s mission to connect readers beyond their own transaction information
competitiveness. Its mission is to help
with books. and gain a more complete view of each
KBank create the digital bank of the
customer’s financial needs.
future, providing customers with fast,
easy and safe access to financial services
from anywhere and at any time.
Hall of Fame brands
Türkiye: UAE:
Dyson Emirates Airlines
The British premium brand Dyson As the aviation sector rebounds Emirates also focuses on streamlining
offers its growing suite of high-quality post pandemic, Emirates Airlines the customer journey with initiatives,
products in 84 countries, covering continues to dominate in customer such as multilingual mobile check-in
appliances such as hair stylers, vacuum experience, topping the UAE’s index ports at Dubai International Airport
cleaners, air purifiers, lights and more. for the third consecutive year. The and biometric partnerships for smooth
airline excels in all Six Pillars of transitions. It also allows customers to
Dyson boutique stores are well-designed
customer experience, earning high pre-order their in-flight meals between 14
high-tech retail stores, complemented by
praise for its exceptional service, days to 24 hours in advance.
subdued lighting, spotlights and an elegant
professional staff and customer-
showroom atmosphere. Customers marvel Emirates is an early adopter of new
centric approach.
at the technology. Each item is presented technologies, always seeking to
similar to the crown jewels in a museum. The airline has partnered with EHL understand and apply technology to
Hospitality Business School, a world- improve the customer experience. It
Dyson’s first demo stores opened in
leading hotel school, to craft the Emirates has launched a new innovation platform
Istanbul’s Istinye Park and Akasya Mall
hospitality strategy and inspire a culture at its headquarters, featuring products
in June 2021, and has since expanded
of elevated customer experiences. powered by AI as well as virtual reality
to other key Turkish cities. These new
and 3D exhibits. Called the Innovation
spaces offer customers a true hands-on Cabin crew have already begun engaging
Majlis, the platform also brings partners,
experiences with Dyson’s latest machines. in intensive training programs focused
top tech companies and entities together
on delivering the four service pillars:
These new Dyson demo stores also in one space to address key challenges
excellence, attentiveness, innovation
feature interactive demonstrations that affecting the airline industry today.
and passion. Both in-flight and customer
bring to life the science and engineering
service staff have been lauded by
at the core of Dyson technology. Plus,
customers for their friendliness and
in-store experts help customers explore
willingness to go the extra mile by
how Dyson technologies can help them
focusing on micro moments that makes
create a healthier home and support their
the difference – like comforting a crying
well-being.
child with toys and chocolates, or
offering family pictures during the flight.
Hall of Fame brands
UK: USA:
first direct H-E-B
By embracing the rapid advances in The bank has outlined five steps to Texan supermarket chain, H-E-B, has Internally, H-E-B is focused on improving
technology, first direct continues to achieve this vision:18 performed well in the index for many workplace efficiency by building high-
evolve faster than its competitors. years, and this year takes the number performing teams around lean and agile
1. Offer customers basic reminders
Topping this year’s UK index, the one spot for the first time. methodologies. In the first instance,
and prompts to make a payment
online bank uses data to anticipate lean best practices and principles offer
or take another action. H-E-B has been recognized as a leader in
and respond to customer needs, a framework to help decision-making.
curating an effective and efficient online
and provide customers with a 2. Check available balances to Agile, on the other hand, helps the
grocery experience, outpacing many
personalized, intelligent experience. proactively suggest payments to grocer achieve scalable and sustainable
other ecommerce competitors in the US.
cover upcoming debits. growth. Taken together, H-E-B can make
AI-enabled banking, through Autopilot, Much of this has been a function of its
faster decisions and build products for
brings a number of intelligent features 3. Monitor bills and expenditures and deliberate approach to designing digital
customers while avoiding wasted effort
to the banking app. For example, make automatic payments through experiences that reflect The Six Pillars of
along the way.
first direct’s chatbot, Dot the Bot, the customer’s current account, customer experience.
has rapidly caught up with its human escalating issues to the customer H-E-B has also mastered its Texas
The experience has been augmented
co-workers in terms of positive as appropriate. branding. Many of its house-brand
with the help of machine learning models
customer feedback. Further features products emphasize a Texas connection,
4. Offer full “self-driving” banking that analyze shopper and cart data
will enable and support customers at from coffee blends dubbed “San
under certain conditions – for to inform decisions around inventory
a level they prefer, for example, by Antonio” and “Austin” to Texas-shaped
example, AI makes budgeting and pricing, including less obvious
making personalized recommendations cheese chunks and tortilla chips. Walk
decisions and moves money product substitutes. The data also helps
and automating activities, such as into any H-E-B store and the Texas
between accounts to automatically customers enjoy frictionless interactions
topping up savings accounts. theme is instantly and continuously
make payments. while in-store shopping and when
apparent. This strategy reflects and
With AI, first direct is better able to scheduling pickups.
5. Deliver fully autonomous banking celebrates its customers’ identities –
anticipate and respond to customer
in all conditions, managing the Texas isn’t just a place where they live, it
needs in real-time, progressing the
customer’s finances to an optimized is who they are.
bank closer to achieving its long-term
position based on behavioral and
aspiration to deliver truly autonomous
attitudinal profiling.
banking to its customers – that is,
where technology leads the customer 18

toward their financial objectives.
Hall of Fame brands
Vietnam:
Nike
Over the last two decades, Nike and Nike has implemented a wide range of
Vietnam have become inextricably technologies to improve efficiencies
linked. Vietnam is now a key and uplevel the customer experience.
manufacturing hub for Nike goods, For example, radio frequency
supplying over 50 percent of Nike identification (RFID) tags have been
sneakers and 30 percent of apparel. placed into hundreds of millions of
More than 530,000 Vietnamese are products to precisely track inventory.
employed by factories supplying the Robots have been added to distribution
sportswear giant, many of which centers to speed up delivery, and
have undergone Nike-led training and machine learning and AI are being used
experiences. to predict consumer trends.
Unsurprisingly, then, Nike tops this Nike is also introducing a new
year’s index in Vietnam. Its flagship enterprise resource planning (ERP)
store in Ho Chi Min City, which at the tool to tie together all of these new
time of opening was the biggest store capabilities.
in Vietnam, is a big draw for customers.
The number of factory outlets across
Vietnam also makes Nike accessible to
those on lower incomes.
Conclusions
Companies are implementing a range of new technologies Value and values
to improve the quality of the customer experience. Much
Technology is only part of the answer. The values of
of which has missed the mark as customers around Technology is only
the organization – what it stands for, its purpose, and
the world report they are less satisfied with experience part of the answer.
environmental and societal commitments – all need to be
delivery than they were a year ago.
communicated across the full spectrum of a company’s The values of the
The current economic cycle had many companies turning to channels. To deepen the emotional connection between a organization –
technology to reduce costs, not drive customer experience. brand and its customers, companies will need to express
what it stands for,
As a result, customers have been deflected into lower cost, its brand personality through each digital interaction.
less emotionally engaging and less empathetic channels. Humanizing the technology will also be important to sustain its purpose, and
the emotional connection for customers as their brands environmental and
However, leading companies are raising the bar, combining
implement AI across its customer journeys. societal commitments
new technologies with a humanized experience. These
companies start with the customer experience first and Leading companies show the way – all need to be
design backwards, working from the outside in. They
This year’s Hall of Fame showcases the companies at the communicated across
understand customer needs and circumstances, and use this
leading edge of the AI transformation. They are carefully the full spectrum of a
information to drive compelling experiences. For them, it is
less about immediate margin improvements and more about
and studiously selecting areas of their business to use company’s channels.
AI to test and understand its opportunities as well as its
customer lifetime value.
challenges. When satisfied with their use cases, they then
Be it Fielmann’s full omnichannel sight evaluation or first determine how to scale and operationalize this revolutionary
direct’s vision for autonomous banking, these leaders technology, blending in the human touch to emotionally
incorporate technology to help resolve real-world customer satisfy customers.
problems. In return, customers reward them for their
Attuned to the impacts on employees, these companies
emotionally engaging experiences with greater loyalty
are already equipping their people with skills training and
and advocacy.
development, and opening up new job roles so they are
Further, customers expect the same level of experience prepared to be effective and successful in the new AI world.
from other brands. This places new demands on businesses
The advances made by these leading companies creates
to carefully consider how to leverage AI in running their
a very real danger for others not progressing along the AI
businesses, prioritizing their projects and developing their
learning curve, becoming less relevant to their customers,
cultures to fit for the future.
and sacrificing loyalty and lifetime value.
Staying ahead
For many organizations, continuous For companies to succeed in this new Harnessing these technology
disruption is the new normal. It is not reality, they should understand the
trends and applying them to
enough to get ahead of the digitally economic and social impacts shaping
connected customer. The more the new customer. They should also what matters most will likely
profound challenge is to stay ahead be open to reinvent, innovate and be key to winning customers.
with new technologies, processes transform their organization, their It requires a complex
and organizational changes. offerings and their experiences.
ecosystem of suppliers and
Taking this long view, KPMG believes Our team of customer specialists can implementation partners,
leaders will need journey partners that help you understand the changing
each ensuring the right level
are capable of meeting them at any customer shifts that are emerging
level of customer experience maturity. and how your business will need to of competence at every stage
These partners can help companies evolve to deliver a customer-centric of the company’s operations.”
leverage existing advantages within the experience that is more connected,
enterprise, and are ready to deploy at digital and efficient than ever before.
Julio Hernandez
scale and speed, as needed.
Global Customer and Operations Lead,
KPMG International
About the research

For 14 years, KPMG professionals have been asking a query, or even browsing their website or store – so not all
consumers about their individual experiences with respondents will have been existing customers of the brand
brands. Over that time, more than 600,000 consumers they evaluated. In order to be included in the final rankings
have been interviewed, providing more than 6 million for each country, each brand must have achieved a minimum
individual evaluations across 40 countries, regions number of consumer responses. This report analyzes the
and jurisdictions to support our expertise in customer results of a consumer survey undertaken in May through
experience best practice. July 2023.
This year, alone, we have taken in the views of more than As such, all companies, including audit clients, are
81,000 consumers across 21 markets. Our analysis spans representative of consumer opinion and ranking. Mentions
nearly 3,000 brands. Customers evaluate their interaction with of individual companies should not be interpreted as an
those brands across The Six Pillars of Customer Experience. endorsement by KPMG International or its member firms.
The scores for each of these forms a compound metric The rankings for each country are determined by the CEE
called Customer Experience Excellence (CEE) Score for each Scores of the brands surveyed. The CEE Score is derived for
company which is used to create individual country league each brand via a weighted average of the brand’s score for
tables. The leading brand in each country joins our customer each of The Six Pillars. The weighting is calculated through
experience Hall of Fame. regression analysis to understand the relative importance
The research for this report was conducted via an online of each pillar in driving the two commercial outcomes
survey. A nationally representative consumer sample was measured in the analysis: advocacy and loyalty. The CEE
targeted for each market, to be comparable in terms of age Score for each company is then rank ordered to create
and gender, while also targeting regional representation. individual country league tables. The leading brand in each
To participate in the research and to be able to respond country joins our customer experience Hall of Fame.
to questions on a specific company, respondents must
have interacted with that company in the last 6 months.
An interaction is defined as making a purchase, using the
company’s products or services, contacting a company with This year, alone, we have taken
in the views of more than 81,000
consumers across 21 markets. Our
analysis spans nearly 3,000 brands.
Transformation never stops.

Neither do we.
At KPMG, we believe that business transformation is too good an KPMG professionals work shoulder to shoulder with clients, using a portfolio of
opportunity to miss. In our view, combining the right tech and leading regularly evolving tech-driven services to help deliver lasting change and consistent
processes with people whose insight is as broad as it is deep are essential opportunity. KPMG’s digital transformation suite can help engineer a different
ingredients to a successful transformation. future – of new opportunities that and designed to create and protect value.
KPMG professionals have worked at the heart of global businesses for
many decades, helping clients realize the full potential of their people and KPMG digital transformation suite
technology, and working together to achieve real-world outcomes. Because
when people and technology are in harmony, great things can happen. sformation Journey
Tran
Making a world of difference:
El
KPMG people can make all the difference on your transaction or
eva
transformation journey. Whether it’s growth through mergers and acquisitions
te
Connected Powered Trusted
Unlock financial
quickly and con value
or transformational change, together we can help you to orient your
business around the customer, enhance functions for a new era, support Rebuild your business, Drive outcome- Build and sustain
end to end, around driven functional the trust of your
enterprise risks and regulations for a safer future, rise to a new level of your customers. transformation. stakeholders.
fid
en
value creation, and create an environment for managing ongoing change.
tly
.
Through the richness of their digital transformation capabilities,

KPMG firms are helping clients build modern, intelligent, and resilient
businesses that can deliver leading results for people and the planet. Scalable Managed Services
To learn more go to kpmg.com/cee
Contacts
Julio Hernandez Carmen Bekker Werner Girth Lukáš Cingr
Global Customer and ASPAC Customer Partner, Partner, Advisory Director, Management Consulting,
Operations Lead, KPMG Australia KPMG in Austria Customer & Digital,
KPMG International E: cbekker@kpmg.com.au E: wgirth@kpmg.at KPMG in Czech Republic
E: juliojhernandez@kpmg.com E: lcingr@kpmg.com
François-Xavier Leroux Tom Lurtz Jessica Hong Susanto

Partner Customer & Digital, Partner, Consulting, Director, Strategy & Operations Partner, Head of Clients
KPMG in France Value Chain Transformation, KPMG in Hong Kong and Markets,
E: fxleroux@kpmg.fr KPMG in Germany E: jessica.hong@kpmg.com KPMG in Indonesia
E: tlurtz@kpmg.com E: susanto@kpmg.co.id
Pasquale Ambrosio Hiroaki Ijima Alvin Gan Manuel Hinojosa

Partner, Management Consulting, Partner, Head of Customer, Executive Director, Head of Customer Solutions
Customer & Growth Center of Experience Strategy, Management Consulting, and CRM Partner,
Excellence, Fintech Lead, KPMG in Japan KPMG in Malaysia KPMG in Mexico
KPMG in Italy E: hiroaki.ijima@jp.kpmg.com E: alvingan@kpmg.com.my E: manuelhinojosa@kpmg.com.mx
E: pambrosio@kpmg.it
Contacts
Imelda Horario Corros Edgar Molenaars Guillaume Sachet Quentin Crossley
Partner, Management Consulting, Customer & Brand Advisory Head of Customer Practice, Managing Partner,
KPMG in the Philippines Leading Partner, KPMG in Singapore KPMG in Slovakia
E: icorros@kpmg.com KPMG in the Netherlands E: gsachet@kpmg.com.sg E: qcrossley@kpmg.sk
E: molenaars.edgar@kpmg.nl
Christopher Saunders Aysegül Eser Goncalo Traquina Tim Knight

Partner, Head of Advisory, Director, Strategy & Operations, Partner, Head of Head of Customer & Operations,
KPMG in Thailand KPMG in Türkiye Customer Advisory, KPMG in the UK
E: csaunders2@kpmg.co.th E: aeser@kpmg.com KPMG in the United Arab Emirates E: tim.knight@kpmg.co.uk
E: gtraquina@kpmg.com
Jeff Mango Tuan Hong Phuc Nguyen

US Customer Experience Partner, Head of Customer &
Practice Lead, Operations Consulting,
KPMG in the US KPMG in Vietnam
E: jmango@kpmg.com E: phuctnguyen@kpmg.com.vn
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.
kpmg.com
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no
guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of
the particular situation.
© 2024 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company
limited by guarantee and does not provide services to clients. For more details about our structure please visit kpmg.com/governance.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization.
Throughout this document, “we”, “KPMG”, “us” and “our” refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity.
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Publication name: Global CEE Report 2023-24 | Publication number: CRT151616A | Publication date: January 2024

KPMG - Ai & CX - 2024

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KPMG - Ai & CX - 2024

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Artificial Intelligence

and the orchestrated

KPMG. Make the Difference.

About Customer Experience Excellence 5

Orchestrated experiences with AI 31

Hall of Fame brands 44

Learning from first adopters

technology is applied with the aim to reduce costs, it may

Hong Kong (SAR), China Philippines USA

AI and the Hall of Fame brands

Introducing the KPMG

Inside out: Outside in:

• Human and empathetic cues • I want a human touch – when I need it

• AI-tailored experiences • I want AI to anticipate my needs and proactively help

• Predict needs and preferences • I want companies to accurately set my expectations –

KPMG Six Pillar trends -2% overall

overall Key theme:

As AI is a technology, there is a tendency for implementation to be IT or

of CEOs included in the 2023

Companies have realized

Focus on clear about who they

creating value trying to deliver for

Value streams, customer

Customer Decide Learn Choose Purchase Complete

Buy a home: Customer journey mapping and analysis

Organizations are realizing a return

Source: IDC Business Value of AI Survey,

Connected enterprise capability How can AI transform this capability?

Connected enterprise capability How can AI transform this capability?

As companies bring AI into their • Risk of bias, discrimination

Building customer trust

Job displacement: AI has to the potential Transparency, traceability and accountability: As

Privacy concerns: Using AI to monitor employee

Biased data: Flawed data can create and

1 Fairness 2 Explainability 3 Accountability

4 Security 5 Privacy 6 Safety

7 Data integrity 8 Reliability

Developing such a framework begins responsible AI practices at all times.

In the future, any company who intends to compete in the

AI from the outside in:

AI from the inside out:

Going beyond simply analyzing or acting on existing data, generative AI models

Reach Engage Activate Nurture Retain

The 12 principles of successful

Understanding how customers behave across

For some businesses, AI is a C-suite responsibility or it

The talent imperative

The World Economic Forum

Leaders checklist for optimizing

Establish responsible Identify & Create the

Develop AI strategy Mobilize & Scale

Test for feasible, desirable, viable and compliant

Hall of Fame brands

Hall of Fame brands

Czech Republic: France:

Hall of Fame brands

Germany: Hong Kong (SAR), China:

Hall of Fame brands

Hall of Fame brands

Hall of Fame brands

and user experience (UI/UX) to provide a seamless 17

Hall of Fame brands

Hall of Fame brands