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How artificial intelligence is transforming customer experience (CX)

Written by Hans Laroche | Nov 14, 2025 3:35:02 PM

For a long time, artificial intelligence (AI) was perceived as a futuristic vision. Today, AI is no longer just a possibility—it’s become a lever for operational efficiency.

From Starbucks’ personalization strategy to Sephora’s virtual assistants and including Spotify’s algorithm, artificial intelligence is influencing millions of interactions every day.

Let’s take a look at how AI is reinventing customer experience (CX) and becoming a true differentiator that helps companies stay competitive.

  1. How AI is redesigning the modern customer journey
  2. Specific examples of how artificial intelligence is used in customer experience (CX)
  3. What do consumers think about AI?
  4. The AI race: Canada needs to move faster
  5. Building enhanced customer experience with AI

 

How AI is redesigning the modern customer journey

For many years, hyper-personalized strategies were operationalized manually. But thanks to the latest generation of AI tools, teams can now combine several data sources to develop very advanced marketing information. In particular, marketing managers can make use of:

  • data sourced from customer data platforms (CDP);
  • transactional data;
  • digital interaction signals;
  • behavioural data;
  • social and media-specific data;
  • socio-demographic profiles. 

Altogether, these data offer a much more complete picture of consumers, which allows the entire customer journey to be mapped, predicted, and optimized.

This transformation also allows companies to optimize certain tasks and, in some cases, reduce their operating expenses. Consider the following possibilities:

  • Ensure optimal inventory (manage supply chains)
  • Supply customer recommendations
  • Develop advanced targeting models
  • Create predictive models

Agentic AI: The next revolution in CX

After the wave of predictive and generative AI, we're now entering yet a third wave: agentic AI. Artificial intelligence agents are no longer just for analysis: They interact, advise, and... take action! 

Whether they are segmenting audiences, automating campaigns, or personalizing communications, AI agents are already widely used in managing communications. They even advise customers in their choice of product, answer their questions (chatbots), and handle customer satisfaction issues. 

Specific examples of artificial intelligence in customer experience (CX)

The most advanced sectors

AI applications used in customer experience are often similar to each other within a particular sector of activity. Some industries are also notably ahead of the curve when it comes to implementing AI-optimized customer experience.

Sectors

Examples of AI applications

Telecommunications

  • Predictive models for reducing customer churn
  • Automated customer contact/service centres (such as Verizon in the United States)

Banking, insurance, and finance

  • Chatbots
  • Virtual assistants
  • Predictive scoring
  • Offer personalization

Retail and e-commerce

  • Personalized recommendations
  • Search engine
  • Conversational shopping

Travel and hospitality

  • Reservations by AI chatbot
  • Multilingual customer service 
  • Anticipation of needs in real time

Health

  • Enhanced patient experience
  • Health chatbots
  • Smart triage
  • Remote follow-ups

Adoption in this sector is more cautious due to regulatory constraints.

 

No matter what the sector of activity, one thing is clear: AI is redefining customer experience standards. More than just a technological trend, AI is becoming a differentiator. The companies presented below have understood this evolution and are already taking advantage of it.

Seven companies combining AI and CX

Starbucks mobile app via Google Play

Starbucks offers personalized recommendations via predictive AI

Goal: Drive engagement and increase the average shopping cart value via its mobile application.

AI solution: Recommendations using purchase history, time of day, and even weather conditions to suggest relevant products.

Expected results: Increase in average shopping cart value, increased loyalty, massive adoption of the mobile application as the main channel for orders.

Key factor for success: Fluid integration of AI in the customer journey.

Discover Weekly personalized playlist | Credit: Spotify

Spotify personalizes music on a massive scale

Goal: Earn loyalty of subscribers and create a unique experience in an ultra-competitive marketplace.

AI solution: Recommendation algorithms (with machine learning) to create personalized playlists like Discover Weekly.

Results: Over a hundred billion streams have been generated by Discover Weekly. Strong differentiator in terms of the competition and retention.1

Key factor for success: AI isn't seen as a gadget, but as the mainstay of user experience.


Verizon logo | Credit: Marques Thomas

Verizon reduces churn with generative AI

Goal: Reduce churn, a continual challenge in the communications sector.

AI solution: Predictive models and generative AI that are able to understand close to 80% of reasons for customer calls and steer customers towards the best solution or the right agent.

Results: 100,000 customers “retained,” reduction of 7 minutes per visit in-store.2

Key factor for success: The proactive use of AI to transform a potentially sensitive interaction into an opportunity for customer retention.

Sephora mobile app

Sephora offers a virtual assistant for beauty recommendations

Goal: To quickly answer questions about products and guide customers through a vast inventory.

AI solution: Smart chatbots and personalized recommendations (shade, style, purchase preferences).

Expected results: Reduction in response times, increase in conversion rates, and improvement in customer satisfaction (CSAT).

Key factor for success: An assistant that combines convenience and inspiration.

Ralph Lauren virtual assistant via the mobile app | Source image

Ralph Lauren and Uniqlo offer AI stylists

There are already a number of initiatives in the clothing sector that integrate AI agents to offer a personalized experience, increase customer engagement, and influence sales.

Two brands in particular stand out: Ralph Lauren and Uniqlo have developed AI agent stylists (Ask Ralph and StyleHint) that help buyers make the right choices and/or mix different items of clothing to create looks.

We Cook uses AI to prevent unsubscribes

While the adoption of AI is rapidly being imposed within large organizations, more and more SMEs are now exploring its potential for optimizing and personalizing customer experience.

Adviso lent its expertise to support WeCook's integration of CX, data, and AI in order to build a 360 view of their subscribers and create a predictive model to reduce customer churn.

Goal: Identify customers likely to unsubscribe in order to reengage them.

AI solution: Predictive model trained on over 23 variables. 

Results: 85% precision at detecting customers likely to churn using the AI model. WeCook was then able to develop a campaign to reengage subscribers likely to churn via email, SMS, mobile notification, and paid digital media. These initiatives were also personalized based on meal history and member evaluations and preferences.

Key factor for success: An established data culture at WeCook, where data are clean and structured.

Discover more about the full strategy in our WeCook case study.

What do consumers think about AI?

Although companies are multiplying the number of initiatives to enhance customer experience with AI, one question remains: Are consumers ready?

Perceptions are still mixed. 

According to a study by research platform Attest, only 31% of respondents believe that artificial intelligence can improve customer experience.3 Some of the main disadvantages mentioned: the loss of a more human experience and the impossibility of talking to a real person.

In Canada, skepticism is also evident. According to a Salesforce study, close to half of Canadians (49%) stated they were skeptical about the ability of agentic AI to actually improve their customer experience.4 That said, 55% stated they were indifferent with regard to interacting with a human or an AI, as long as their request was handled quickly.

Artificial intelligence still needs to prove its worth amongst consumers, and especially to “deliver the goods.” Companies have good reason to implement a gradual adoption while reassuring their clientele at every stage.

The 3 golden rules of AI implementation

To ensure AI inspires trust, three principles should guide its integration: transparency, explainability, and human-in-the-loop (HITL).

  • Transparency: Clearly explain what data are used and where they are stored.
  • Explainability: Describe how AI uses these data and the real value this creates for customers.
  • Human-in-the-loop: Ensure there is always a human present, whether it’s to take over from AI (especially during sensitive or complex situations) or to validate its answers. 

Organizations that combine these three principles into their customer-centric AI strategy will maximize the profitability and sustainability of their AI initiatives.

The AI race: Canada needs to move faster

The integration of new technologies has become crucial for maintaining solid relationships with customers... and for staying competitive.

Yet amidst the international rush for adoption, Canada is struggling to keep up. A KPMG study ranks the country 44th out of 47 for its artificial intelligence literacy.5

To compete with the American and Chinese markets, for whom the sprint is already well underway, Canadian companies need to pick up the pace and establish solid foundations for the future.

Those foundations are based on data, which remains a major issue. An in-house survey amongst adviso’s clients reveals that the main impediment to AI integration isn’t so much related to cost or company culture, but rather to the data themselves.

A robust and secure data strategy that is aligned with business objectives is still the first step in any successful adoption process.

Building enhanced customer experience with AI

Artificial intelligence doesn’t replace the relationship with the customer. It transforms it.

When adopted strategically, AI becomes much more than a technological tool: It becomes a lever for differentiation, personalization on a wide scale, and the continuous optimization of the customer journey. But you still have to know where to get started.

That’s why the Data, AI, and Customer Experience teams at adviso combined their expertise to create a tailored AI road map. This strategic tool will help you to:

  • identify high-impact opportunities;
  • evaluate costs, timelines, and potential benefits; and
  • prioritize actions to be implemented quickly.

Build your AI road map today and get a step ahead of your competitors.

REFERENCES

1Spotify, Discover Weekly turns 10: Celebrating 100 billion+ tracks streamed and a decade of personalized discovery, June 30, 2025.
2Supantha Mukherjee, Verizon uses GenAI to improve customer loyalty, Reuters, June 18, 2024.  
3Attest, Consumer Adoption of AI Report 2025.
4Salesforce Canada, How Canadian leaders can overcome hesitancy and drive AI adoption, July 28, 2025.
5KPMG, Trust, Attitudes and Use of Artificial Intelligence: A Glob al Study 2025—Canadian Insights.

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