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Adobe-2024-Digital-Trends-Report-v3

The Adobe 2024 Digital Trends report highlights the importance of personalization, unified data, and generative AI in enhancing customer experiences. It reveals that consumer expectations are not being met, with many feeling that brands do not effectively utilize their data to provide seamless interactions. The report emphasizes the need for organizations to adopt sophisticated data strategies and generative AI to improve digital customer experiences and meet evolving consumer preferences.

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Bhawana Bhargava
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0% found this document useful (0 votes)
33 views

Adobe-2024-Digital-Trends-Report-v3

The Adobe 2024 Digital Trends report highlights the importance of personalization, unified data, and generative AI in enhancing customer experiences. It reveals that consumer expectations are not being met, with many feeling that brands do not effectively utilize their data to provide seamless interactions. The report emphasizes the need for organizations to adopt sophisticated data strategies and generative AI to improve digital customer experiences and meet evolving consumer preferences.

Uploaded by

Bhawana Bhargava
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 20

2024

Digital
Trends

1
Adobe 2024 Digital Trends
Table of contents

Executive Summary 3

Section 1
Personalization and customer journey expectations. 4

Why are we still talking about personalization? 4


What personalization means in 2024. 5

Section 2
Unified data and insights are foundational for personalization. 8

Connect your data for seamless, personalized journeys. 8


From compliance to competitive edge. 10
Market leaders exemplify responsible data practices. 11

Section 3
Clear starting points and future goals for generative AI. 12

Generative AI’s first use case is content. 13


Internal strategies for adopting generative AI. 16
From pilots to powerhouse. 16

Recommendations
Exceptional digital CX through personalization, generative AI, and unified data. 18

Methodology 19

Executive survey.
Consumer survey.

2
Executive Summary
Adobe Digital Trends has, over the past 14 years, brought readers up to date with
executives’ views on how their organizations perform in the face of change. For the first
time, we have added an extensive consumer survey to uncover what customers really
think about innovations in digital experiences.

In this report, we’ll define what personalization means in 2024 and how unified data lays
the foundation for organizations not only to effectively personalize but also leverage
generative AI to its fullest potential. Lastly, we’ll explore the actual impact of generative AI
on customer experience (CX) today, and how organizations can deliver on its promise.

Key Learnings:
■ Consumer experiences are still not meeting expectations. Consumers feel companies have the potential to
address their needs more closely, but many digital experiences have yet to live up to expectations. Consumers
point to the fact that businesses hold enough of their data to provide better products and services but aren’t
making the most of it.

■ Personalization is often based on assumptions, not evidence. Organizations often focus on personalizing
individual contact points rather than creating what customers want—consistent, seamless interactions across
different channels and throughout the entire customer journey. These assumptions are based on outdated
information and habits.

■ Companies still aren’t connecting the data dots. Unifying data is just one piece of the puzzle to deliver
exceptional digital CX, but organizations still struggle to get it right. Once properly implemented, unified data
will be the foundation for organizations to build next-generation experiences, including AI-powered ones.

■ Generative AI strategy needs more attention. The perception is that generative AI will quickly scale a newly
efficient business. The reality is that while success is within reach, businesses must improve underlying data to
make the most of AI.

■ Market-leading organizations have done the work on data, goals, and strategy. Market Leaders can
accelerate their ability to use generative AI because they are more likely to have sophisticated data strategies.
Early Adopters—those who already have generative AI solutions in place—are six times more likely than those
without generative AI solutions to have exceptional digital CX.

■ AI’s potential is unrealized but achievable. As firms integrate generative AI into their business workflows,
its potential for far-reaching business impact is becoming clearer. However, the fact that so many have yet to
establish business goals or KPIs shows a lack of focus and means that generative AI’s potential is still far from
being reached.

3
Section 1

Personalization and customer


journey expectations.
Why are we still talking about personalization?
Personalization continues to be a top business priority—and organizations still struggle to get it right.
According to this year’s consumer survey, just 26% of consumers described their digital experience with
a brand they have an existing relationship with as “excellent.”

About half of the consumers surveyed agree that “the more brands know about me, the better service
they can give.” At the same time, nearly two-thirds express frustration “with brands that know a lot about
me but don’t take my preferences into account” (Figure 1).

Organizations continue to demand more and more data, but consumers are wary, in part because of the
limited personalization they have received after sharing their data in the past, along with general privacy
concerns. This suggests consumers would rather brands get their core interactions right across website,
email, app, and social before expanding to interactions such as automated chat or virtual try-ons.

Figure 1: To what extent do you agree with each of the following statements? (Consumer)

It’s important to me to know if I am talking to a human or a bot 80%

I expect my experience with brands to be seamless across their website,


app, and call center
71%

I would be more open to granting permission to use my data if brands


were more transparent about how they were using and securing it 67%

I am worried about how much data brands hold about me 65%

I get frustrated with brands that know a lot about me but don't take
my preferences into account 60%

The more brands know about me, the better service they can give me 49%
Sample size: 6,793

4
What personalization means in 2024.
In 2024, world-class digital experiences require a personalized end-to-end customer journey across
all channels, delivered seamlessly and consistently. It is not a series of customized touchpoints. Four-
fifths (80%) of consumers consider consistent experiences across different online channels “important”
or “critical” to meeting their CX expectations, and 70% assign similar ratings to “personalized product
recommendations” (Figure 2).

However, above all else, consumers want their data used responsibly, with 91% insisting it is either
“important” (28%) or “critically important” (63%). Respondents were significantly more likely to rate this as
critical to meeting their CX expectations than any other option.

Figure 2: When interacting with brands generally, how important are each of the following to meeting your customer
experience expectations? (Consumer)

26% 28%
34% 36%
63%
44% 44%
46% 41%

21% 28%
16% 19%
15%
9% 7% 8% 7%
Personalized product Consistent and seamless Quick and efficient Tools and features to make Assurance that my
recommendations interactions across different customer support my online experience personal data is being
based on my interests online channels (website, through automated better, like virtual try-ons used responsibly and
and past purchases social media, email) systems like chatbots or interactive product securely by the brand
demonstrations

Not at all important Somewhat important Important Critically important


Sample size: 6,489

When asked what consumers value more when


interacting with brands, results revealed most prefer Real-time personalization is what our customers
communications on their own schedule. Almost expect every single time, every single interaction.
two-thirds (60%) said they would prefer to receive We must get that right and do it so you’re not
coming across as creepy or trying to sell something
an email on top offers over a personalized text
the customer doesn’t need. You’re coming across as
message (40%). Similarly, consumers preferred a partner who genuinely cares for their customers
recommendations via website and in-app (62%) to and wants the best for them.”
tailored emails and texts (38%). Cross comparisons
on app versus website, chat versus forms, and other Parthiv Sheth
Vice President of Marketing, AT&T
preferences were almost equally split, suggesting
there is no one right path for most customers
(Figure 3).

5
Figure 3: When choosing between different brands to do business with, which of the following are more important to
you? (Consumer)

Marketing emails and texts with offers Text messages with offers
38% 40%
tailored for me personalized for me
62% 60%
Great product recommendations in-app Emails with top offers of the day
or on the website

Recommendations based on my profile, A well-designed app


44% e.g. age and gender 49% 51%
56% A comprehensive website
Recommendations based on recent purchases

Online chat with an agent


49% Online chat with a virtual assistant
51% 49% 51%
A form for questions and inquiries A number to call

Sample size: 6,793

Drilling further into the data, we uncovered preferences by consumer age groups, revealing some
interesting generational differences. For example, most consumers under 45 prefer online chat to calling
or completing a form, while most consumers over 65 prefer websites to apps (Figure 4). Brands need to
realize that, as some segments “age out,” the preferences of today’s younger consumers will then become
the dominant expectation.

Figure 4: When choosing between different brands to do business with, which of the following are more important
to you? (Consumer)
a) Online chat with agent versus b) Online chat with a virtual assistant c) A well-designed app versus
a number to call versus a form for questions a comprehensive website

57% 60% 58% 57% 64%


52% 61% 62% 61% 58% 69% 60% 58%
51% 56% 51% 51% 64%
48% 49% 49%
43% 40% 42% 43% 36% 39% 39% 49% 42% 31% 42% 36%
38% 40% 44%
18-24 25-34 35-44 45-54 55-64 65 and 18-24 25-34 35-44 45-54 55-64 65 and 18-24 25-34 35-44 45-54 55-64 65 and
older older older
Online chat with an agent Online chat with a virtual assistant A well-designed app
A number to call A form for questions and inquiries A comprehensive website

Sample size: 6,793

Only consumer segmentation with detailed insight behind it is going to get businesses closer to meeting
expectations. For instance, consumers valued tailored messages that are timely and relevant among their
top three priorities in personalization (Figure 5). At the same time, only 20% of consumers valued being
addressed by name. Having their information and preferences recognized when reaching out for support
or customer services is more important (23%), as is being recognized when they log in on different
devices (25%).
6
Figure 5: Personalization that consumers value the most from brands (top 3). (Consumer)

Sends timely reminders by text or email about products or services I might


31%
be interested in

Sends messages and offers that feel tailored to me 30%

Sends me offers and messages that seem to fit my age, gender, and lifestyle 28%

Recognizes me on all my devices when I log onto its website or app 25%

Gives recommendations based on my latest browsing history and/or purchases 24%


Recognizes my information and preferences when I'm making a return or
reaching out for support or customer service 23%
Addresses me by name in all digital communications 20%
Recognizes and responds to my most recent purchases or browsing history in
their communications 19%

Shows ads on social media that are relevant to my interests and needs 16%

Sample size: 6,556

There is evidence brands need to pay closer attention to what consumers are telling them. While 40%
of practitioners align with consumers in prioritizing recommendations, they also prioritize addressing
customers by name (40%, Figure 6), which as we’ve seen was significantly less a priority for consumers
(20%, Figure 5).

Positively, practitioners routinely use data and analytics to predict consumer needs by segment (47%),
which indicates they are able to take different approaches to communication preferences. By interpreting
buying behaviors and browsing habits, practitioners can focus on their audience’s true needs and
preferences with the goal of enhancing the customer journey rather than chasing after every data point.

Figure 6: The ways that practitioners say they routinely personalize digital content for customers.

We use data and analytics to predict customer needs by segment 47%

We make recommendations based on previous purchase and browsing behavior 40%

Customers are addressed by name 40%

We use data and algorithms to personalize the website experience 36%

Offers are updated in real time to reflect most recent browsing and purchase behavior 27%
We use generative AI to craft emails, messages, and other copy 25%

We use generative AI to personalize images, infographics, or video content 23%

Sample size: 3,197

7
Indeed, the link between strong data practices and routine personalization efforts is demonstrated in
our research. As illustrated in Figure 7, practitioners rating their customer data system (CDS) as “highly
effective” are more likely to routinely personalize across channels—with recommendations, in real
time, using generative AI crafted content—compared to those rating their CDS as “moderately/ineffective.”

Figure 7: Aspects of digital content that practitioners say they are routinely personalizing versus the effectiveness of
their organization’s customer data systems.
We use data and analytics to predict customer needs by segment
65%
60%
We use data and algorithms to personalize the website experience 54%
41%
We make recommendations based on previous purchase and browsing behavior
54%
53%
Offers are updated in real time to reflect most recent browsing behavior 47%
27%

We use generative AI to personalize images, infographics, or video content 41%


23%
We use generative AI to craft emails, messages and other copy 40%
29%

Highly Effective Moderately/Ineffective


Sample size: 1,700

CASE STUDY

Henkel AG & Co., the German multinational chemical and consumer goods company, has enhanced its operations with the new
digital platform "RAQN," powered by Adobe Experience Platform. This technology is transforming how the company manages its
30+ brands, enabling tailored experiences across channels. With cloud-based tools for content, customer data, and assets, Henkel
has streamlined 300 web domains, facilitating personalized engagement for B2B, B2C, and B2B2C interactions. Learn More >

Section 2

Unified data and insights are foundational


for personalization.
Connect your data for seamless, personalized journeys.
Data sophistication is vital to effective personalization. Without the data capabilities to make intelligent
product recommendations or route the customer to the most effective customer service journey, digital
touchpoints cannot fulfill their promise.

Take the chatbot experience, for example. Chatbots are dependent on intelligent data and mostly used
for service or to help the customer self-direct their purchasing journey. Yet, they are also the most likely
to disappoint. About half of consumers (49%) rate their experiences with chatbots as either “very poor,”
“poor,” or just plain “adequate.”

8
When asked what improvements a brand could make to provide a better digital experience, consumers
named improving customer service transfers (52%) or making self-service support easier (44%) as the top
two. To achieve this, a smooth flow of data between departments and systems is critical.

An organization’s data-related capability also correlates with market performance. Figure 8 shows that
Market Leaders (those who outperformed their sector peers in 2023) are more likely to rate their data-
related capabilities as “best-in-class" or “above average” across all five measures of functionality versus
Market Followers (those who merely kept pace or underperformed their sector in 2023).

Figure 8: Senior executives rating their data-related capabilities as “best in class” or “above average.”
Market Leaders vs. Market Followers

75% 75% 71% 71% 72%

45% 48% 46%


42% 43%

Real-time data capture Insight generation and Omnichannel content Customer journey Measuring CX
and consolidation predictive analysis personalization orchestration impact and ROI

Market Leaders Market Followers

Sample size: 1,243

Many organizations recognize that their data strategies are still very much “in development.” This is
echoed by practitioners, who rated their customer data systems as merely “average” to “ineffective” in
providing consistent data across all touchpoints (52%) and enabling a holistic customer view (57%).

CASE STUDY
More than half of senior executives (55%)
identified “customer data management”
as the top technology area they prioritize
Understanding customers is a challenge for consumer packaged for investment in 2024. Such tools they’ve
goods companies (CPGs) because they rarely sell directly to the prioritized on unifying data into a single
customer. As a result, they have to make the most of the data they source of truth that can be accessed—
can acquire. Coca-Cola does this by bringing together its regional
CDPs to create a single view that gives real-time insights into global
subject to the right permissions—for
customers. In just the first phase of deploying Adobe Real-Time a number of purposes, including data
Customer Data Platform and Adobe Journey Optimizer, Coca-Cola security and compliance, customer service,
brought together 98 million customer profiles from more than 100 marketing, and product development.
countries, with plans for billions of profiles in the future, allowing the
company to target consumers by drink preference, lifestyle, location,
and more. Learn More >
Increasingly, analysts suggest the most
popular format for unifying data is the
customer data platform, or CDP.* These
data platforms unify, segment, and activate data for all the necessary systems and stakeholders
required, giving the organization a single source of truth for customer data to help create seamless,
personalized journeys.
9
*Forrester, The Customer Data Platforms For B2C Landscape, Q1 2024, 2024
From compliance to competitive edge.
Confidence in data compliance underpins organizations’ willingness to explore new technology solutions
and digital strategies to keep innovating. Technology will inevitably encourage that exploratory thinking,
and data will fuel that technology. To make the most of the data and technology equation, organizations
must be confident they are protecting both themselves and their customers’ data.

Perhaps surprisingly, despite their concerns over data privacy, consumers are broadly comfortable with
brands using AI, particularly if it would lead to brands making better recommendations and improving
communications (Figure 9).

Figure 9: How comfortable are you with the brands you deal with using AI for each of the following purposes?
(Consumer)

Making better suggestions for products and services I might be interested in 16% 48% 37%

Making better recommendations in-app 17% 47% 36%

Improving relevance of emails and marketing messages they send to me 17% 47% 36%

Making chatbots more helpful 23% 42% 35%


Giving customer service employees access to my purchase history without
having to go through security checks 34% 38% 28%

Using AI-generated images to make marketing messages more engaging 32% 41% 27%

Not comfortable Fairly comfortable Very comfortable


Sample size: 6,532

However, consumers do still have some concerns. Around one-third are uncomfortable giving customer
service employees access to their data (34%), which could impact organizations’ efforts to improve
automated self-service, a noted priority for brands and consumers.

Moving forward, brands will need to be diligent in adopting more transparency around data policies. That
means providing clear consent options and explaining how and where data is used, particularly when it
comes to AI.

Organizations recognize this is easier said than done. More than half (57%) of practitioners say
ensuring quality and customer trust in AI-generated content will be a top challenge in 2024, while 38%
of organizations with generative AI solutions in place also agree that “building trust by embedding
responsible data and AI practices” will have a big impact on their businesses.

10
Market leaders exemplify responsible data practices.
When it comes to using customer data to power new technology like generative AI, Market Leaders are
pulling ahead of Market Followers in terms of having effective customer data systems to ensure data
privacy, develop content responsibly,
and meet security standards and
Figure 10: Senior executives rating their progress in “Ensuring data
privacy and security standards as they pertain to AI.”
brand requirements.
Market Leaders vs. Market Followers
In fact, Leaders are twice as likely to
agree their progress in guaranteeing
17%
data privacy and security standards
37%
Already done/fine tuning is already done (37% vs. 17%).
Work in progress 41%
Conversely, 41% of Followers say
they have either “not started/have
Planning
44% no plans to start” or are just at the
Yet to start/no plans 26%
“planning stage,” compared to only
19% of Leaders (Figure 10).
13%
15%
6% When using generative AI for
Market Market
Leaders content creation and distribution,
Followers
Sample size: 1,196 Market Leaders are ahead of Market
Followers in ensuring brand safety
and legal compliance (78% vs. 63%).
There is an even bigger gap between Market Leaders and Followers when it comes to having the data
needed to develop AI content responsibly (75% vs. 50%) (Figure 11).  

By getting their data house in order first, Market Leaders are laying the critical groundwork to
leverage generative AI capabilities for content creation, customer support, and more in a secure,
responsible manner.

Figure 11: Practitioners’ agreement with statements related to their plans to use generative AI for content creation
and distribution. Market Leaders vs. Market Followers

78% 80%
73% 75% 75% 75%
63% 62%
52% 49% 50%
47%

We have the tools to We are confident We’ll be able to ensure We have the right Our organization sees We have the data we
create high-quality AI customers will be brand safety and legal organizational culture clear benefits in using need to develop AI
content happy to engage with compliance to work on cross- AI for content creation content
AI content functional AI initiatives

Market Leaders Market Followers

Sample size: 1,589

11
CASE STUDY

Qualcomm, a multinational company with expertise in telecom and semiconductors, has developed an integrated approach
to engaging its business customers. They connected customer data across channels and experiences so marketers may
personalize at every point of the journey for complex B2B needs. Whether a journey begins at a website and ends in a trade
show, or whether the customer is from the automotive or mobile sectors, Qualcomm can use AI and advanced data sharing
capabilities to tailor real-time personalization to each lead. Learn More >

Section 3

Clear starting points and future goals for


generative AI.
Generative AI presents many ways to improve CX and drive business transformation. However, our survey
shows that most organizations haven’t yet connected generative AI to larger transformation or CX goals.
Only about one-quarter of senior executives have done so, but encouragingly, 45% are working
toward it (Figure 12).

Figure 12: Senior executives’ readiness for generative AI across specific organizational areas.

24% 25% 25%

Already done/fine tuning

Work in progress
45% 44% 44%
Planning

Yet to start/no plans


20% 21% 21%

11% 10% 10%


Aligning a comprehensive Conducting skill-building Identifying KPIs to
AI roadmap with broader programs centered on AI assess AI impact
business goals
Sample size: 2,175

Around two-thirds of senior executives are optimistic that generative AI will deliver significant
or major business transformation across the board, from data analytics and customer service to
webpage optimization, email marketing, and content workflows (Figure 13). However, given that
less than one-quarter have a roadmap and only one-quarter have identified KPIs (Figure 12),
there’s a risk that their generative AI deployments may not live up to expectations without more
strategic oversight.
12
Figure 13: Senior executives’ assessment of the degree that generative AI will transform their organizations’
current operations.

Data analytics and management (e.g., handling, reporting) 8% 23% 40% 28%

Customer service operations (e.g., support channels, engagement methods) 9% 26% 38% 25%

Email marketing 12% 26% 36% 24%

Content workflows (e.g., creation, editing, distribution, archiving) 9% 27% 39% 24%

Insights gathering and sharing (e.g., market research, customer feedback) 10% 28% 38% 23%

Sales processes (e.g., tactics, CRM usage) 11% 26% 37% 23%

Webpage creation/optimization 11% 28% 38% 22%

Customer journey management 10% 26% 40% 22%

1 - No significant change 2 3 4 5- Major transformation


Sample size: 2,084

Generative AI’s first use case is content.


It’s time to marry executives’ aspirations with pragmatic business cases and consumer needs.

Practitioners who have either already adopted or are in the process of implementing generative AI
capabilities were asked to identify the areas where their organizations will use it in digital marketing
and experience management. The top answer is content. Both automating content creation and
personalizing content are top use cases (Figure 14).

Figure 14: Top areas where practitioners who have either adopted or are implementing generative AI capabilities
plan to use it in digital marketing and experience management.

Automating parts of content creation such as creative, articles, social posts, landing pages 41%
Personalizing content based on customer interests and preferences 41%
Offering automated chatbot or messaging support 39%
Optimizing campaign performance through testing and analysis 36%
Improving content tagging and data quality 32%
Automating audience segmentation and targeting 30%
Automating email and SMS campaigns 28%
Resizing and adapting content for different platforms and devices 27%

Sample size: 1,051

13
To accelerate their customer experience initiatives, practitioners are prioritizing effective use of generative
AI in organizing, streamlining, and improving creative production efficiency (41%, Figure 15). But 38% also
recognize its potential to help customers self-serve—a key consumer request from our survey—and to
understand more about their customers’ journeys (38%).

Figure 15: Practitioners’ intentions to deploy generative AI in 2024 for accelerating and enhancing marketing and
customer experience initiatives.

41%
38% 38%
36%
31%

Streamlining creative Optimizing customer Enhancing self-service Updating content in real Improving campaign
workflows and asset journeys by integrating portals for better customer time to stay relevant iteration with
production new data sources experience continuous testing
Sample size: 2,627

On the other hand, consumers said that beyond data security, their key needs are seamless customer
service (Figure 2) and efficient customer support via chatbots. For example, 77% of consumers said, “quick
and efficient customer support through automated systems like chatbots is important or critical,” and 51%
would rather chat online with an agent than call (Figure 3).

It follows that organizations should focus their efforts on improving the chatbot experience, however, the
foundational work—unifying customer data—must first be in place for automated tools like chatbots to
accurately customize interactions.

It's not as simple as just hooking up to the internet and Organizations’ generative AI objectives
putting whatever comes back in front of customers. It has
must ultimately be set to solve both internal
to be thoughtfully done. But I absolutely think generative
AI can help us in ecommerce, marketing, and software business goals and customer pain points.
development. There's a lot of opportunity, but it's a While it may take significant time and
marathon, not a sprint.” resources to fully achieve those aims, it’s
possible to enjoy some faster success that
Jordan Broggi
Senior Vice President & President – Online, Home Depot
can put the business on the path to greater
efficiency and lay the foundations for deeper
investment going forward.

Based on the survey results from practitioners, streamlining content workflows (41%, Figure 15) and
personalizing content (41%, Figure 14) emerge as pragmatic starting points for many. This approach yields
tangible financial benefits for businesses in a relatively short period and minimizes disruption to their
existing infrastructure.

14
When we asked senior executives about the primary methods they are employing to enhance workflow
efficiency and reduce costs in 2024, 52% identified “automating manual tasks through the use of content
AI and chatbots” as their top selection.

Automating manual tasks can deliver substantial cost savings when inputting standardized information
into a generative AI tool. Examples include adapting existing content for different audiences, products,
and regions, or idea generation or concepting for skilled employees to finalize creative assets (Figure 16).

Figure 16: Current and expected use of generative AI in content production and workflows. (Practitioners’ view)

Idea creation and concepting for skilled employees to finalize 27% 32% 19% 22%

Generative inputs for content components to help complete an employee-designed asset 23% 31% 20% 25%

Adapting existing content for different audiences, products, regions 23% 34% 21% 23%

Auto-updating live content, (e.g., prices, product specs) 21% 29% 20% 30%

End-to-end production, from inception to execution 18% 27% 22% 32%

In use today By end of 2024 2025 or later No current plans Sample size: 2,553

Figure 16 also shows where there is an opportunity for organizations looking for a competitive advantage
to take the lead. Interestingly, 50% of practitioners currently admit implementation for auto-updated
content, such as price information, isn’t in the plan until 2025, if at all. Yet, using generative AI to perform
this task is one of the more reliable and straightforward use cases.

Internal
strategies Figure 17: Rate of adoption of generative AI in content production and workflows
versus "practitioners" perceptions of their digital experience.
for adopting Our digital CX is exceptional and can
6%
surprise and delight the customer
generative AI. Our digital customer experience 36%
meets customers’ needs
41%
We categorized Our digital customer experience
practitioners into two main sometimes lags our customers needs

groups based on their Our digital experience consistently


falls below customer needs 52%
responses: those who are 38%
currently using generative Note: Respondents were asked to state when they planned to
use generative AI in different areas of content production. Using
AI, referred to as Early their responses to this question, we grouped them into three
8%
segments: Currently use (Early Adopters), later in 2024 (Fast
Adopters (Figure 17), and Followers), and 2025 and beyond (Late Movers). We’ve focused
on comparisons between Early Adopters and Late Movers for Early Adopters Late Movers
those who indicated the analysis.
Sample size: 2,551

15
implementation by “2025” or expressed “no current plans,” referred to as Late Movers. Early Adopters are
six times more likely than Late Movers to report that their digital experience is exceptional, demonstrating
that generative AI adoption is correlated with brands delivering superior CX.

Successful businesses boast


Figure 18: Organizations agreement (agree or strongly agree) to having
an organizational culture to work on cross-functional AI initiatives by
another characteristic that allows
level of generative AI adoption. 88%
them to maximize the benefits of
72% 78% this technology—their corporate
59%
culture. As illustrated in Figure 18,
25% organizations currently using AI
solutions are three and a half times
No formal Conducting Identifying Implementing Have solutions
adoption enterprise-wide use cases and initial solutions, in place and more likely than organizations with
strategy assessment of if/ evaluating including pilot evaluating
where to deploy vendors projects effectiveness no formal strategy to agree they
Sample size: Agree (2,323) and Strongly Agree (596)
have a culture fit to work on
cross-functional AI initiatives
(88% versus 25%).

What does that look like? Companies have identified their top priority as providing advanced AI skills
to key team members (48%, Figure 19). Of course, eventually all staff within an organization could be
interacting with AI to a greater or lesser extent. Understandably, an almost equal priority is ensuring all
employees have a basic understanding of AI (46%).

It might seem concerning


that just 38% cited Figure 19: Senior executives’ top priorities for preparing for generative AI in 2024.
creating interdisciplinary
Advanced AI skills training for key staff 48%
teams as important.
Basic AI understanding for all employees 46%
We’ve already seen that
Creating policies for ethical AI use and data security 45%
effective generative AI
implementation involves Developing and implementing AI governance frameworks 44%

input from business Modifying existing workflows for AI compatibility 41%

leaders, marketers, Creating interdisciplinary teams for AI projects 38%


customer service Sample size 2,106

operatives, data analysts,


strategists, and more. AI
implementation cannot be stuck in silos. With 24% of senior executives either done with or fine tuning
their AI roadmap around broader business goals and 45% still in progress (Figure 12), interdisciplinary
teams will be essential to delivering on the promise of generative AI. However, there are positive signals
that organizations are moving in the right direction.

From pilots to powerhouse.


Without clear goals, integrated teams, or leadership support, it’s no surprise that most organizations are
still in the pilot phase with generative AI. For example, less than half of practitioners (45%, Figure 16)
currently use or plan to use generative AI in end-to-end content production by the end of 2024 because
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this would require a degree
Figure 20: The timeline senior executives anticipate changes to their of systems and workflow
organizational structure to support the adoption of generative AI. integration to work smoothly.
8% 7% 9% 7% 7%
22% 22% 23% 23% 23% As stated earlier, we shouldn’t
be worried that only 38% of
37% 38% 36% 39% 40% senior executives felt creating
interdisciplinary teams was a
top priority. Put in the context
32% 32% 32% 31% 30%
of Figure 20, it turns out that
Seeking external Upskilling and Introduction of Establishing Reorganizing teams 70% of senior executives are
help to develop hiring new staff in AI leadership cross-functional and functions to
strategy marketing and CX roles teams for rapid accommodate the establishing cross-functional
AI project rollout use of AI
teams for rapid AI project
Middle of 2024 End of 2024 2025 or later Don't anticipate this shift
rollout by the end of this year,
Sample size: 2,142
with 70% also reorganizing
their teams and functions.
With these two elements in place, those organizations will be in a strong position to move from pilots to
long-term generative AI-driven strategies.

Indeed, senior executives at organizations with generative AI solutions already in place (Mainstreamers)
show a path toward broader rollouts more so than those at organizations just starting to implement initial
solutions (Piloters).

■ Leadership. Organizationally, Mainstreamers are making strides compared to Piloters, with the former one and a half
times more likely to introduce AI leadership roles by the middle of 2024 (44% vs. 32%). They are also reorganizing team
functions at a similar rate (40% vs. 29%).

■ Data. Responsible data use is imperative for organizations and consumers. Mainstreamers are twice as likely as Piloters to
state that they have ensured privacy and security standards pertaining to AI are in place or are fine tuning them
(47% vs. 25%).

■ Roadmap. Mainstreaming organizations are more than twice as likely as Piloters to agree they have “done or are
fine-tuning” a comprehensive AI roadmap (42% vs. 22%), showing they have a structured and goal-oriented rather than
piecemeal approach.

■ KPIs. Mainstream organizations are one and a half times more likely than Piloters to claim “best in class” CX measurement
(34% vs. 21%).

This foundational work means that further down in the business, Mainstreamers in organizations using
generative AI in 2024 are much better placed than Piloters to drive growth in adapting content (45%
versus 29%), to use generative AI for ideation (49% versus 32%), and to update content in real time (45%
versus 28%).

Overall, there is still an opportunity for more progress with generative AI. Over three-quarters of senior
executives (76%) are still working on, planning, or have not yet started aligning it to broader business
goals, and 75% are in a similar position when it comes to identifying KPIs that will show its impact. Both
will be necessary if generative AI is to fulfill its potential and deliver tangible returns on investment.

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Recommendations

Exceptional digital CX through personalization,


generative AI, and unified data.
To deliver on the needs of customers today across their buyer’s journey and to
capitalize on the opportunities afforded by generative AI, organizations should
focus on the following key recommendations distilled from this year’s
Digital Trends research:

■ Understand your customers and don’t make assumptions about personalization. Build a better
understanding of how and where customers want to experience personalization and how touchpoints
should connect across their journey. Then use that understanding to “right-size” digital experiences
based on their preferences.

■ Unify your data and use it to deliver what your customers’ expect. Data must be unified in a robust
system and ready to support emerging CX innovations. Only then can you gain more accurate insight
into consumer needs and effectively personalize across journeys. Customers are looking for brands to
improve tailored messages and timely reminders, give relevant recommendations, and recognize them
across channels.

■ Reinforce data governance. Consumers want reassurance that their data is being used appropriately
and securely, especially in the hands of generative AI. And internal teams want reassurance they
can use data to inform their strategies without inadvertently breaching that trust. Strong data
compliance policies can be built on the back of robust data systems to instill that trust and pave
the way for progress.

■ Content is a solid starting point. Start your generative AI journey by optimizing and scaling content.
From there, work to build more complex use cases. Automating customer support tasks, such as chatbot
experiences, are attractive to brands but require sophisticated data systems.

■ Break down cross-functional siloes. Integrate systems, cross-functional teams, and workflows that
will allow you to embed generative AI as an integral part of your business operations.

■ Align generative AI to overall business goals. The promise of generative AI won’t be realized with a
piecemeal approach. Organizations need to set realistic generative AI goals that are aligned with real
business priorities and investment to drive effective transformation and achieve sustained growth.

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Methodology Customer Data Systems—Moderately/Ineffective
and Highly Effective

Executive survey Respondents were asked to rate aspects of their customer data
system on a scale of 1–5, with 5 being the most effective. Areas
The executive survey was fielded in January and February 2024 rated included:
to Econsultancy, Adobe lists, and external panels. Launched on
January 1, 2024, the survey closed on February 19, 2024, with 8,600 ■ Provides consistent data across all customer touchpoints
qualified respondents.
■ Enables rapid insights for personalization
■ 76% of all respondents are client-side marketers. The remaining
24% comprises agency executives, consultancies, and marketing ■ Produces actionable insights that give us a
technology/services vendors. This report presents insights from competitive edge
client-side marketers.
■ Provides a holistic view of the customer
■ 37% of client-side respondents are senior director level or
above, and 63% are practitioners (made up of junior executives,
■ Maintains rigorous data privacy and security
managers, and director-level respondents). Throughout the
report, we compare these two groups.
Using their responses to this question, we grouped them into three
segments: Highly Effective, Effective, and Moderately/Ineffective.
■ As defined by the target market, the client-side sample is split
We only compared Highly Effective and Moderately/Ineffective
between B2B (32%), B2C (23%), and those addressing both
executive groups for the analysis.
markets equally (45%).

Generative AI adoption—Mainstreamers and Piloters


■ The client-side sample is global, with Europe providing the
Respondents were asked to state their organization’s status
largest share of respondents (42%), followed by North America
regarding the adoption of generative AI. Using their responses to
(32%) and the Asia-Pacific region (22%). The survey was
this question, we grouped them into two segments:
translated into eight languages.

■ Mainstreamers—those who have solutions in place and are


■ Every business sector is represented, with most client-side
evaluating effectiveness.
responses coming from technology (21%), manufacturing and
engineering (14%), retail and ecommerce (14%), financial services
(13%), and media and entertainment (7%). ■ Piloters—those who are implementing initial solutions, including
pilot projects.
Executive Market Leaders, Challengers, and Followers
Generative AI usage for workflow content production—Early
This study draws comparisons between Market Leader and Market Adopters and Late Movers
Follower organizations. These are defined based on practitioners’
and senior executives’ responses to a survey question relating Respondents were asked to state when they planned to use
to their 2023 company performance versus sector competitors. generative AI in different areas of content production (Figure 17).
Focusing on these insights allows us to explore issues that Using their responses to this question, we grouped them into three
most differentiate commercially successful from unsuccessful segments: Early Adopters, Fast Followers, and Late Movers.
organizations.
Consumer Survey
■ Market Leaders are senior executives and practitioners who
agreed they “significantly outperformed” their sector Between February 1, 2024 and February 13, 2024, we surveyed
(21% of all respondents). 6,800 consumers who engaged with brands online within the past
three months. In addition to an even gender split, the country and
■ Market Challengers are senior executives and practitioners age breakdowns included the following:
who agreed they had “slightly outperformed” their sector
(35% of all respondents). While they are not called out ■ 49% were men and 51% were women.
specifically in this report, their responses are included in all
the respondents’ figures. ■ 12% were aged 18–24, 17% were from the age bands of 25–34,
35–44, and 45–54, respectively, 20% were from 55–64, and 13%
■ Market Followers are senior executives and practitioners were from 65–74.
who agreed they had “kept pace” with their sector or
“slightly or significantly underperformed” their sector ■ Respondents were sourced from across 13 countries across three
(44% of all respondents). regions. A majority of respondents came from US, UK, France,
and Germany.

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