5 trends set to reshape customer conversations in 2025

AI, data quality, regulatory considerations, and innovation will transform customer engagement, according to the latest report launched by Smart Communications.

The latest "5 Trends Shaping Customer Conversations in 2025" report identified key developments that will transform how organizations interact with customers in the coming year.

Developed in collaboration with over 20 subject matter experts across multiple industries, the report provides actionable insights for organizations looking to improve customer relationships through modernized technology, data governance frameworks, and agile processes.

"As we look ahead to 2025, it's clear that the landscape of customer conversations is rapidly evolving," said Leigh Segall, chief executive officer. "New technologies, shifting customer expectations, and an increasingly complex regulatory environment are converging to create both challenges and opportunities for organizations across industries."

The report identifies five trends that will shape customer conversations:

1. Businesses will need improved data quality to support AI initiatives – High-quality data is the foundation to successful implementation of AI-based initiatives and reaping the benefits of advanced analytics. Organizations that prioritize data governance frameworks and validation processes will gain competitive advantage.
    
2. Regulatory challenges and ethical considerations will precede AI implementation – The speed and scope of regulatory changes are the primary barriers to AI adoption, particularly in highly regulated industries. Organizations need transparent tracking capabilities and ethical AI strategies to remain compliant while enhancing customer experiences.
    
3. Organizations will prioritize strategic modernization to overcome technical debt – With legacy systems consuming 70-75% of overall IT budgets, enterprises are increasingly shifting to cloud-based, modular architectures that facilitate flexibility and accelerate feature adoption.
    
4. Organizations will use data and AI to enhance customer experience and personalization – Companies are leveraging data and AI to provide the personalized and contextually aware experiences today's consumers expect, with GenAI making personalization possible at significantly greater scale and efficiency.
    
5. Companies that prioritize continuous improvement and innovation will increase market share – Organizations that adopt a culture of continuous improvement will stay competitive while keeping pace with rapid technological and regulatory change.
    

"The world is changing, and the pace of transformation is only accelerating," Segall said. "By understanding and acting on these trends, organizations will be positioned to thrive in a customer-first future."

The full report is available at www.smartcommunications.com.

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