Organisations are under intense pressure to automate while preserving the human touch, navigating challenges like fragmented data systems, talent shortages and rising customer expectations for seamless, meaningful interactions. In light of this, Hans Zachar, Group CIO at Nutun, delves into how organisations can balance cost-cutting with delivering empathetic, hyper-personalised customer service.
After a year marked by indecision and uncertainty in customer experience (CX) technology, 2025 is shaping up to be what I’d call ‘the art of the possible’ year. Contact centre operators who spent last year grappling with the promises of Generative AI (GenAI) are now ready to move from theory to practical implementation. GenAI has become an absolutely massive topic. Many organisations, particularly customer service operators, found themselves asking: what does the future actually look like? This uncertainty, combined with the cost of living crisis, led many to focus on no regret efficiency moves. Business continuity planning took centre stage, with emphasis on diversifying contact centre networks.
Shifting focus for SMEs
For small and medium enterprises (SMEs), ensuring a fantastic customer experience is no easy task, especially in today’s digital era. Unlike larger organisations, SMEs typically operate with constrained budgets and resources, and as a result, struggle to experiment broadly with AI implementations. However, SMEs have a unique advantage where they are proving more resilient, agile and adaptive. This agility allows SMEs to react quickly to changes in the market, such as shifts in customer preferences, new regulatory requirements or economic fluctuations. For SMEs, 2025 will be about striking a balance between leveraging cutting-edge technology and managing costs effectively. By focusing on scalable and accessible AI solutions, SMEs can punch above their weight in delivering exceptional customer experiences. Tailored AI applications will allow these businesses to compete on nearly equal footing with larger players, fostering innovation within constrained budgets.
Moving from uncertainty to action
The predominant theme of 2024 may have been uncertainty but this year we will see a marked shift towards practical innovation. Organisations have done their homework – they’ve identified viable use cases and now they’re ready to start trialling AI implementations through proof-of-concepts (POCs). We’ll see two distinct approaches emerge. Some organisations will go all-in, and they’ll achieve significant cost reductions but risk customer service quality. Others, including many SMEs, will opt for a more measured strategy where they’ll selectively automate specific tasks to complement. In fact, SMEs are particularly well-positioned to embrace these POCs, as their leaner structures enable them to act swiftly on identified opportunities.
Behind the scenes, significant work will focus on integration and data management. Making AI work seamlessly with existing contact centre systems isn’t simple. It requires substantial investment in data engineering, normalisation and consistent tagging across data silos. SMEs can mitigate these challenges by partnering with third-party providers who specialise in AI integration, reducing the need for large in-house teams while ensuring high-quality implementation. Data privacy adds another layer of complexity. Most AI solutions are new and not well understood. SMEs must ensure that they’re meeting data privacy regulations with watertight processes for data housing and security.
Driving transparency, security and skills
Digital transactions will continue to grow in 2025 but as more interactions move to apps, web chat and online platforms, a new challenge emerges. How do we efficiently handle complex interactions that reach human agents? Customers have already tried the app, website, chatbot and IVR [interactive voice response] which means they now need solutions only humans can provide. By equipping agents with better tools and information, SMEs can deliver a customer experience that’s not only competitive but exceptional. Whether it’s a bot or human handling the interaction, we’ll see significant reuse of data presentation patterns and automation tools. The key is making this technology work ethically and transparently. SMEs must demonstrate clear safeguards and tracking mechanisms for every conversation, ensuring AI stays aligned with data privacy principles and only uses data for its intended purpose.
IT and technology expertise has always been scarce in the contact centre space. For SMEs, this shortage is even more prominent, as they compete for talent against larger firms with bigger budgets. SMEs must find creative ways to attract and retain skilled professionals, such as offering flexible working arrangements, fostering inclusive workplace cultures and providing opportunities for upskilling.
This talent shortage will only become more acute as we push towards AI implementation. Contact centres often sit at the bottom of investment cycles. While the pressure to reduce costs while improving service quality has intensified, SMEs can leverage partnerships and innovative funding models to sustain their Digital Transformation journeys.
The rise of hyper-personalisation
Generic, templated communications are dead. We’re seeing a definite shift towards hyper-personalisation. Every aspect of conversation needs tailoring. From greetings to language tone, it all matters. AI will match the right agents with specific customer problems. It will predict customer needs before they even make contact. New tools promise major improvements in customer satisfaction through tailored wording. People face a bombardment of communications daily. The signal-to-noise ratio is critical. Without proper tailoring of tone, mode and empathy, messages simply vanish into the noise. This trend presents SMEs with a significant opportunity. By adopting hyper-personalised tools, SMEs can build stronger relationships and enhance brand loyalty.
The human touch remains crucial as automation increases. We need to immerse agents in brand values and customer context. This becomes especially important in globally distributed contact centre networks. For SMEs, where resources may not allow for extensive training or international agent placements, innovative solutions such as virtual reality training and AI-powered coaching tools can bridge the gap. Everyone talks about empathy-filled conversations, but empathy comes from giving agents the right contextual information about products and situations. It’s about equipping them with the tools and knowledge to deliver authentic interactions.
The path to success
Looking ahead, success in 2025 demands balance between technological advancement and human connection. For SMEs, the path forward involves leveraging affordable and scalable tools to implement AI, while retaining the personal touch that often sets them apart. Contact centres often sit at the bottom of organisational spending priorities but we’re seeing a shift. The focus is moving from pure price-based decisions to a price-plus-value approach. It’s about finding that sweet spot between innovation and responsibility, between automation and authenticity, as we navigate this exciting new chapter in customer experience. For SMEs willing to embrace both the challenges and opportunities, 2025 promises to be a transformative year in customer service. The question isn’t whether to adapt, but how quickly we can do so while keeping the customer at the heart of every decision.