This glossary serves as your go-to resource for navigating the language of AI in CX. Whether you’re new to these concepts or looking for clarity on advanced topics, you’ll find concise definitions and descriptions to guide your understanding of AI’s role in creating smarter, more seamless customer experiences.
Glossary of Terms
A
AI Agents: Advanced, next-generation systems that use AI to engage in natural, contextual conversations, learn over time, and adapt to user needs.
AI Assistants: These support human agents by automating repetitive tasks, suggesting real-time responses, and enhancing service quality.
AI Copilot: AI assistants that enhance human decision-making, providing real-time insights and support.
AI Governance: Policies and processes to ensure ethical, secure, and effective AI deployment, addressing risks like bias and data privacy.
AI Training Data: Datasets used to train AI models, where high-quality data ensures accuracy and unbiased performance.
AIOps (AI for IT Operations): The application of AI to automate and enhance IT operations, ensuring smooth customer-facing system performance and reducing downtime.
Agentic AI: AI designed to exhibit autonomous reasoning, goal-directed behavior, and a sense of agency, mimicking human interactions through natural language processing.
Algorithm: A set of rules or instructions designed to solve a problem or perform a task.
Artificial Intelligence (AI): The simulation of human intelligence by machines, enabling them to perform tasks such as learning, reasoning, and decision-making.
Automation Anxiety: Concerns about the impact of AI on human jobs and relationships within CX.
Autonomous Agents: AI systems capable of operating independently, performing tasks without constant human oversight.
B
Bias in AI: The risk of AI systems reflecting biases present in training data, leading to unfair or inaccurate outcomes.
Big Data: Large, complex datasets that require AI for analysis and actionable insights.
Build vs. Buy: Approaches to AI adoption:
- Build: Custom development tailored to specific needs.
- Buy: Off-the-shelf solutions for faster deployment.
- Buy-to-Build: Hybrid option combining purchased solutions with customizations.
C
Chatbots: Legacy systems that follow predefined scripts or workflows, with limited flexibility and handling capabilities.
Continuous Improvement Cycle: An iterative process for refining AI systems based on performance data and feedback, ensuring they stay aligned with customer needs.
Conversational AI: AI systems capable of advanced, dynamic conversations using natural language processing and machine learning, providing a more human-like experience than chatbots.
Conversational Designer: A specialist responsible for designing AI-driven conversations, ensuring interactions feel natural, effective, and user-friendly.
Customer Effort Score (CES): A metric to evaluate how easy it is for customers to resolve issues, often improved by AI-driven automation.
CX Automation: The use of AI and machine learning to streamline customer interactions and optimize experiences across touchpoints.
D
Data Privacy and Security: Practices ensuring customer data handled by AI systems is protected against breaches, unauthorized access, or misuse.
Deep Learning: A subset of machine learning that uses multi-layered neural networks for complex data analysis.
Digital Twin: A virtual representation of a physical product, process, or system, used in CX to model customer journeys or simulate interactions.
E
Edge Cases: Rare or unusual scenarios that AI systems may not handle effectively, requiring special attention for robust implementation.
Emerging Concepts: New and evolving ideas in AI technology that are reshaping customer experience.
Ethical AI: The design and deployment of AI systems prioritizing fairness, transparency, and user rights.
Explainability (or Interpretability): The ability of an AI system to provide clear, understandable explanations for its decisions, crucial for trust and accountability.
F
First Contact Resolution (FCR): A metric measuring the resolution of customer issues on the first interaction, often improved by AI systems.
G
Generative AI: AI systems capable of creating new content (text, images, videos) based on patterns learned from large datasets, used for content generation and personalization.
H
Hyper-Personalization: Advanced personalization using AI and big data for highly tailored customer experiences.
I
Intent Recognition: AI’s ability to identify the purpose behind customer queries, enabling smarter routing and contextual responses.
K
Knowledge Management Systems: Digital systems that store and organize information (FAQs, policies) to train AI and improve response accuracy.
L
Large Language Models (LLMs): AI models trained on massive datasets to understand and generate human-like language, powering tools like chatbots and content generators.
M
Machine Learning (ML): A subset of AI that uses algorithms and statistical models to enable systems to improve their performance on tasks through experience.
Metrics and Impact: Key indicators for measuring AI’s impact in CX, such as cost savings, CSAT, and operational efficiency.
N
Net Promoter Score (NPS): A measure of customer loyalty and satisfaction, often influenced by AI-driven CX enhancements.
Neural Network: A computing system inspired by the human brain, consisting of layers of nodes (or “neurons”) that process information.
O
Omnichannel Integration: AI’s ability to operate seamlessly across various interaction channels, ensuring consistent and connected customer experiences.
P
Predictive Analytics: AI techniques analyzing historical data to forecast future trends, needs, or behaviors.
Proactive Support: AI-driven capabilities that anticipate customer needs or problems, such as predictive maintenance alerts or tailored recommendations.
R
Real-Time Analytics: The processing and analysis of data as it is generated, enabling immediate insights and actions.
Recommendation Engine: AI systems suggesting products, services, or content based on user behavior and preferences.
S
Self-Service Automation: AI tools empowering customers to resolve issues independently, such as through chatbots or interactive knowledge bases.
Stakeholder Alignment: Ensuring all relevant parties—CX leaders, IT teams, and compliance officers—are aligned on AI goals and responsibilities.
T
Tracking Success Metrics: Key indicators like cost savings, customer satisfaction (CSAT), and operational efficiency to measure AI’s impact.
Training Data: The dataset used to teach AI models to recognize patterns and make predictions.
V
Voice of the Customer (VoC) Analytics: AI-driven analysis of customer feedback from multiple channels to uncover insights and improve CX strategies.
Voice Recognition: AI’s ability to process, understand, and transcribe spoken language, often a key component of voice-based CX solutions.