As we prepare for Google Cloud Next 2024, we reflect on the conversations we had at last year’s flagship Google Cloud event. This blog post explores the future of financial services, focusing on the role of artificial intelligence (AI) and cloud computing. 

Episode 46 – Future of financial services with Zac Maufe, Head of financial services industry solutions, Google Cloud 

In this episode between Zac Maufe, Google Cloud’s Head of Financial Services Industry Solutions, Dave Chapman and Rob Kernahan, the hosts of the Cloud Realities podcast, the conversation explores the challenges and opportunities presented by these new technologies. 

Financial Services – the big cloud catch-up 

The financial services industry has historically been behind the race in cloud adoption, owing to stricter regulations, complex legacy systems, and data fragmentation. While banks have been cautious about migrating sensitive financial data to the cloud, times are changing. With regulatory frameworks adapting, and the benefits of cloud computing – scalability, agility, and cost-efficiency – becoming increasingly attractive, the cloud catch up is a current reality. 

So what cloud options are financial services firms exploring? 

Core transformation and data liberation 

Financial institutions are now exploring various cloud-based solutions, including: 

• Core infrastructure modernization. Evaluating options like cloud-native core systems or “lift and shift” approaches to migrate mainframe workloads. 
• Data transformation. Breaking down data silos and leveraging cloud-based data management tools can uncover new insights and improve decision-making. 

Operation AI exploration 

AI, particularly LLMs, is a major area of exploration for financial services. Here are some potential applications: 

• Enhanced employee productivity. LLMs can assist analysts and coders, allowing them to work faster and handle more complex tasks. 
• Improved customer service. LLMs can power chatbots and virtual assistants, offering faster and more efficient support. 
• Risk management and fraud detection. AI can analyze large amounts of data to identify patterns and flag potential risks. 

Security and compliance in focus

While AI offers exciting possibilities, security and compliance remain paramount in financial services. Here’s how these concerns are being addressed: 

• Data ownership and control. Financial institutions retain ownership of their data throughout the AI process. 
• Security integration. Cloud-based AI tools leverage the same security controls as other Google Cloud Platform services. 
• Model governance. Establishing frameworks to ensure the explain ability, traceability, and responsible development of AI models. 

Regulation: Keeping pace with innovation 

Regulations surrounding AI are expected to evolve alongside the technology. Collaboration between regulators and the financial services industry is crucial to ensure responsible innovation and consumer protection. 

Conclusion 

The future of financial services is shaped by cloud adoption and AI. As cloud platforms become more secure and compliant, and AI capabilities mature, financial institutions will be better equipped to navigate the ever-changing landscape and deliver exceptional value to their customers. 

Preparing for Google Cloud Next 2024 

We’ll be at Google Cloud Next with podcasts, exclusive client sessions and demos exploring exactly how we are transforming financial services with cloud, Data/AI, and software engineering on Google Cloud. 

Innovation, meet intelligence. 

Explore the power of our collaboration with Google Cloud. 

As we prepare for Google Cloud Next 2024, we reflect on the conversations we had at last year’s flagship Google Cloud event. This blog post explores the concept of experience-led cloud transformation.

Episode 47 – GoogleCloudNext23: Experience led cloud transformation with Mahin Samadani, Director of strategic business transformation, Google Cloud

Drawing on a conversation between Dave Chapman, Rob Kernahan our Cloud Realities podcast hosts, and Mahin Samadani, Director of Business Transformation at Google Cloud, we explore why cloud transformation is no longer just about technical migration. It’s about fundamentally changing how businesses operate and deliver value. This blog post dives into experience-led cloud transformation, a strategic approach that prioritizes user experience (UX) at every stage.

The shift to experience-led cloud transformation 

Traditionally, cloud transformation has been viewed as a technical exercise. However, businesses are increasingly recognizing the importance of UX in driving success. Mahin emphasizes that cloud adoption should be anchored in user experience design principles. It allows you to understand your cloud transformation in a way that you can prioritize everything in behind delivering UX. And every dollar spent or every or every line of code is impacting the end user or the end customer. This means that businesses should start by understanding their user needs and then use cloud technologies to create solutions that meet those needs.  

Rob Kernahan raises an important point: cloud transformation is often seen as a technical endeavor, neglecting the human aspects of change. Mahin emphasizes the need for a holistic approach that considers not just technology but also change management, culture, talent, and purpose. 

Mahin shares some examples of how businesses are using experience-led cloud transformation to achieve success, such as: 

• Hackensack Meridian Health: Google Cloud found that for every hour a care provider spends providing care to a patient, they spend two hours on administrative tasks. Making that more efficient through experience-led cloud transformation, perhaps through transcription, automation, etc. could provide a significant benefit to the client and to the business. 
• Netflix: Listens to their users to pivot their business – not just necessarily in a qualitative sense, but by looking at their data really carefully, they’re able to take calculated risks and pivot and change and introduce, new capabilities and features. 

Design thinking for cloud transformation 

The conversation highlights the value of Google Ventures Design Sprints, a user-centered methodology that facilitates rapid prototyping and testing of new ideas. This approach helps organizations understand user needs, identify opportunities, and develop cloud-based solutions that deliver real value. 

Key considerations for experience-led transformation 

• The power of purpose. Having a clear purpose is essential for driving successful transformation. A strong purpose provides direction, motivates employees, and helps stakeholders understand the “why” behind the change. 
• User Focus. Prioritize understanding and meeting user needs throughout the transformation journey. 
• Data-driven decisions. Leverage data to inform decisions, optimize user experiences, and measure the success of initiatives. 
• Experimentation. Embrace experimentation and iteration to continuously improve experiences and drive innovation. 
• Platform adoption. Utilize cloud platforms to facilitate rapid development, deployment, and scaling of user-centric solutions. 
• Change management. Develop a comprehensive change management strategy to address employee concerns and ensure successful adoption of new tools and processes. 
• Culture of innovation. Foster a culture that values creativity, experimentation, and continuous improvement. 

Conclusion 

We all know cloud is not a destination, it’s a journey. Experience-led cloud transformation presents a powerful approach to unlocking business value in the cloud era. By prioritizing user experience, adopting a holistic mindset, and embracing a culture of innovation, organizations can leverage the cloud to create new opportunities, improve operational efficiency, and achieve sustainable growth. 

Preparing for Google Cloud Next 2024 

We’ll be at Google Cloud Next with Cloud Realities podcasts recording daily, exclusive client sessions and demos exploring exactly how we are embracing experience-led cloud transformation with our clients across all industries, on Google Cloud. 

Innovation, meet intelligence. 

Explore the power of our collaboration with Google Cloud. 

As we prepare for Google Cloud Next 2024, we reflect on the conversations we had at last year’s flagship Google Cloud event – a hub of innovation and insightful conversations, and of course, many of the most compelling discussions revolved around the transformative power of GenAI. 

In this blog post, we’ll delve into the captivating dialogue between our hosts and Rodrigo Rocha, Global ISV Leader for AI and Applications Partnerships, Google Cloud, as they explored the practical and exciting alternate realities unleashed through cloud-driven transformation. 

Episode 44 – AI is centre stage with Rodrigo Rocha, Director Global Horizontal Partnerships, Google Cloud  

Our hosts, Dave Chapman, and Rob Kernahan shared their experiences and expectations for the conference. As they set the stage for the discussion, it became evident that GenAI was at the forefront of their minds.  

The exponential growth of the partner ecosystem 

Rodrigo, with his expertise in managing ISV applications and AI partnerships for Google Cloud, provided his unique insights into the evolving landscape of AI partnerships. He emphasizes the growth of the partner ecosystem, with a surge in AI startups and established companies seeking to infuse generative AI into their applications. The shift towards enterprise adoption of generative AI is noteworthy, marking a significant departure from the initial consumer-centric focus. 

As the conversation dove into the practical applications of AI, the attention steered to the aviation industry. How will AI streamline air travel, enhance airport logistics, and improve the overall flying experience? The potential for AI to transform customer service through chatbots and real-time data management was also highlighted, reiterating the diverse impact of AI across industries. 

Challenges of applying AI to drive business value 

Rodrigo emphasized the importance of aligning AI initiatives with clear business outcomes, marking a shift from the initial experimentation phase to a more strategic approach. This topic touched on the significance of responsible AI, with a strong emphasis on safeguarding data and ensuring ethical AI practices. 

The hosts and Rodrigo also explored the societal impact of AI, emphasizing the need for responsible stewardship in integrating AI into the fabric of our daily lives. The concept of democratizing AI and empowering users to harness its potential while maintaining robust security measures was a key theme that resonated throughout the conversation. 

The dialogue concluded with a preview of the key themes expected to emerge at the conference, including AI’s role in driving productivity, leveraging real-time data, multi-cloud technology, democratization of AI, and the top importance of security in the AI landscape. 

Conclusion

This episode from Google Cloud Next offers a compelling glimpse into the transformative power of Gen AI and its profound impact on diverse industries. From enhancing customer experiences to driving productivity and democratizing AI, the potential of Gen AI to reshape our world is both exhilarating and thought-provoking.  

No, Gen AI is not just a technological advancement. It’s a catalyst for a creative transformation that has the potential to redefine the way we live, work, and interact with the world around us. And we can’t wait to explore this with you at Google Cloud Next. 

Preparing for Google Cloud Next 2024 

And while we will continue to explore generative AI, we will dive into strategies and solutions in cloud, Data/AI, and software engineering at Google Cloud Next 2024 with a whole new host of Cloud Realities podcast guests. 

Innovation, meet intelligence. 

Explore the power of our collaboration with Google Cloud.

If our team had to summarize the main theme of this year’s Mobile World Congress (MWC) in just three words, they would be: Innovation takes collaboration.

Whether companies were looking to harness powerful technologies like Generative AI, launch OpenRAN networks or achieve net-zero goals, MWC proved that progress thrives in an ecosystem.

So, what does collaboration look like in today’s Telco landscape – and what role does technology play in driving innovation? In this post, we recap some of the biggest announcements, highlights and observations from MWC24.

EU operators call for a “new deal” with radical regulatory changes

The Digital Network Act (DNA), which was introduced by the European Commission as a potential solution, aims to establish a single digital market in Europe (including spectrum allocation reforms). These discussions signal a potential shift towards facilitating cross-border scaling and represent a major reversal of the European Commission’s long-standing position to prevent mergers that could inhibit competition.

The inescapable presence – and incredible power – of Generative AI

At this year’s event, AI took center stage with more than 40 dedicated sessions and numerous booths presenting diverse applications. Many companies also unveiled tailored products like AI platforms, assistants, industry-specific large language models (LLMs) and AI software to support various Telco use cases. 

For example, one announcement that caught our attention at MWC24 was the creation of a joint venture by Deutsche Telekom, e& Group, Singtel, SoftBank and SK Telekom to develop telco-specific AI LLMs. The models will support multi-lingual digital assistants and chatbots that can be used to enhance telcos’ customer interactions.

AI-powered devices were all over MWC24, with handset makers like Samsung and Honor announcing plenty of AI-features and new players like Humane with their AI Pin challenging them. DT launched their own AI-phone built with Qualcomm Technologies and Brain.ai, envisioning an “app-free future” with a single AI assistant handling all interactions and transactions on the device, replacing the need for mobile apps.

While there was much excitement about GenAI, it is clear that the industry is still exploring how to harness the benefits of this technology while minimizing potential risks. MWC underscores the need to develop a comprehensive and responsible approach to AI before scaling initiatives.

A unified ecosystem will accelerate innovation and unlock growth

MWC remains a valuable connection point for industry players to explore the latest technologies, solutions and services that will foster technological innovation and enable market expansion.

Perhaps the best example of this trend is the growing confidence for the GSMA Open Gateway initiative. Since its launch at MWC23, 47 mobile operators, representing 239 mobile networks and 65% of connections around the world, have signed up. The collaborative initiative illustrates the sector’s move toward openness and shared innovation to foster growth and adapt to new technological paradigms. Many companies were talking about the new opportunities that this might lead to.

All players have a role to play in the connectivity value chain

MWC also showcased how major connectivity players are diversifying their investments beyond their traditional core, disrupting the conventional value chain.

For example, chipmakers are riding the wave for satellite communications and wireless integration with AI, with companies like Qualcomm and MediaTek, showcasing how generative AI can be used on mobile hardware to enable on-demand queries for personal devices.

Meanwhile, operators, network equipment vendors and cloud providers are looking to creatively monetize networks. For example, Ericsson and Telefonica designed a PoC to conduct network slicing on demand, while Nokia and Dell Technologies paired up to explore private network slicing. Microsoft also demonstrated how it is modernizing and monetizing networks through its Azure for Operators solution, and ZTE and Red Hat are teaming up to modernize network capabilities in 5GSA.

The quest is on for the next growth horizon

5G monetization, non-terrestrial networks (NTNs) and fixed wireless access (FWA) were all hot topics at MWC2024, but the next growth horizon for Telcos remains unclear.

On top of the Open Gateway initiative, the event also showcased continued advancements in satellites and NTNs and increased integration with existing infrastructure. At the same time, regulatory and technical challenges remain, and the coming year will be one of testing.

Finally, 5G monetization innovations continue to drive discussion at MWC24, with on-demand slicing, private networks, FWA and tailored industrial services taking center stage. Industry leaders are actively seeking partnerships and value-added offerings to optimize revenue generation from high-speed, low-latency networks.

OpenRAN is only a matter of time – and investments

MWC showcased the potential synergy of autonomous networks, cloudification, and edge capabilities with AI across various industries in achieving OpenRAN.

While 84% of telcos have achieved some network autonomy, there’s a growing desire to elevate this further, particularly by integrating AI capabilities. Based on the presence at this year’s event, it is clear that network equipment providers, like Rakuten Symphony, Ericsson, HPE and Samsung, have reaffirmed their priority to deploy ORAN technologies. It is only a matter of time – and investment – before the industry is able to advance at scale.

Social sustainability shifts to the forefront

From an environmental perspective, MWC continues to underpin discussions on network efficiency and renewed commitments to achieve net-zero goals. For the next generation of mobile network, sustainability is planned to be an integral part. Focus now is on more sustainable digital solutions and devices, recyclable materials, and other modular solutions in addition to energy efficiency– demonstrating that sustainability is becoming more mature as a topic, and newfound innovations are continuing to be discovered throughout the Telco’s supply chain.

The need for a standardized way to acknowledge operators investments needed for the net zero transition was also addressed.

At the same time, while the mobile industry transitions into big data analytics and AI, the digital usage gap – especially with media literacy, digital skills, cyber security, accessibility, and affordability of handsets globally – will increase if not addressed immediately. Mats Granryd, director general of GSMA when on stage and talked about “leave no one behind” as one of the key objectives.

Digital security is receiving increased attention

Networks have become more open; the world has become more interconnected; and the political landscape has become more unpredictable. Against this backdrop, security emerges as a top priority in the telecom industry. At MWC, this emphasis was underscored by the presence of six dedicated cybersecurity events, including a three-hour security summit.

In addition to focusing on security in all aspects of telecom operations, many operators and vendors launched or demoed dedicated security products. For example, Deutsche Telekom announced that starting in 2025, they will be offering new network-based security products from the “Magenta Security on Net” line. Palo Alto Networks also debuted a suite of private 5G security services in collaboration with select private 5G partners.

As our team reflects on MWC 2024, we are reminded that overcoming the challenges within our companies and across our industry requires us to work together—to innovate, advance, scale and sustain. Stay tuned when we dive into more details on some of the trends while we explore the areas of the Innovation Generation (iG).

TelcoInsights is a series of posts about the latest trends and opportunities in the telecommunications industry – powered by a community of global industry experts and thought leaders.

Imagine a future where enterprises don’t just aim to become data powerhouses but do so sustainably, ensuring both technological advancement and planet preservation.

Tapping into the vast data sources for improved products and digital services is crucial. Yet, in our race for innovation, sustainability emerges as a pivotal cornerstone, safeguarding both our planet and a company’s future relevance. The secret sauce? A sustainable data value chain. Dive in as we explore the essence of green data, drawing insights from the Green Software Foundation.

In recent years, enterprises followed the goal of becoming data-powered enterprises to leverage the full potential of data for their value chain. Levering the insights from all the sources of relevant data to create improved and new products and additional (digital) services is the top priority for enterprises. But sustainability has become a main goal for businesses too, to preserve the planet and the company’s relevance in the next decades.

The Greenhouse Gas Protocol defines three scopes (scope 1, scope 2 and scope 3) to delineate direct and indirect emission sources, improve transparency, and provide utility for different types of organizations and different types of climate policies and business goals. Through this framework companies can define and manage their emissions.

But this is only the first step. With clarification of emissions within the three scopes, companies get transparency on what’s happening within the value chain and clarity on where to reduce. But the main challenge is to know how to reduce their emissions.

Here, the Green Software Foundation has defined six principles to be applied in software development:

1. Carbon efficiency: Emit the least amount of carbon possible.
2. Energy efficiency: Use the least amount of energy possible.
3. Carbon awareness: Do more when the electricity is cleaner and do less when the electricity is dirtier.
4. Hardware efficiency: Use the least amount of embodied carbon possible.
5. Measurement: What you can’t measure, you can’t improve.
6. Climate commitments: Understand the exact mechanism of carbon reduction.

For each of the six principles, examples on achieving them are available, especially on the area of carbon awareness. Not only have the big hyperscalers (AWS, Azure, Google) made this topic a top priority, but also dedicated smaller solutions can be found. Two innovative examples are Green Mountain, which provides 100 percent renewable energy sourced data centers for co-location in Norway, and windCORES, which helps companies deploy small, co-location data centers in wind turbines, provided by 100 percent renewable energy and maximizing the used space from the wind turbines. With Green Data Engineering, a first view on how to apply these principles to data engineering have been laid-out.

But one question remains: how can companies aiming to be data-powered enterprises do this in a sustainable way? The answer sounds simple and complex in the same way: apply the principles of the GHG framework towards the data value chain and make the carbon footprint of data products and use cases transparent.

This is not as complicated as it sounds; most information is already available.

With the Carbon Aware SDK  from the Green Software Foundation and the Sustainability APIs, SDKs, and dashboards from hyperscalers, it is possible to calculate the carbon footprint of applications and processes. As an example, the Azure Sustainability Manager provides a comprehensive overview with multiple reports on the customer landscape running on Azure. But this is limited to one cloud. What about the more common example of customers running multi-cloud environment strategy?

Modern applications are composed of many smaller pieces of software (components) running on many different environments, for example: private cloud, public cloud, bare-metal, virtualized, containerized, mobile, laptops, and desktops.

Every environment requires a different model of measurement, and there is no single solution to calculate the environmental impacts for all components on all environments.

To achieve this, the Green Software Foundation has incubated the Impact Framework (IF). The IF is a framework to Model, Measure, simulate, and Monitor the environmental impacts of software. It allows you to define a calculation manifest file, a YAML file which describes the calculation of emissions. So rather than just saying “Carbon is X” you can say “Carbon is X and here is all the data, all the working out, and all the assumptions and models that we used.” You can run the YAMLs to confirm a claim and if you don’t agree with some of the data, models, and assumptions, you can change and run it again to see how that alters the value.

IF represents the carbon footprint of different components in a graph to aggregate the information and draw dependencies and interconnections.

• Configuration describes shared information regarding this component and, most importantly, parameters required by this model.
• Observations are a time series of data points used as inputs to the model.
• Model is a plugin which when given some configuration and a series of observations can calculate the impact, e.g. carbon impact from an observation of CPU utilization.

With this approach, it’s possible to aggregate up the carbon footprint of software components of applications easily. And by proper application of portfolio management, the mapping of application-based carbon footprint along the value chain is mainly pure calculations.

We might wonder how about data products and use cases? Didn’t we want to be data-powered? Sure, just as a small recap: The “data product, the architectural quantum is the node on the mesh that encapsulates three structural components required for its function, providing access to the domain’s analytical data as a product as Martin Fowler mentions in his article. They are:

• Code
• Data and metadata
• Infrastructure

Sounds familiar? Right, it’s easily comparable to any other application. Therefore, the transfer of the Impact Engine Framework towards a Data Mesh approach is not as hard as it sounds.

And with that, companies have the right tooling in place to ensure ESG compliance for their data-powered enterprise journey. And as the whole value chain transformation towards more digital services and products continues, the importance of mapping their carbon footprint along the data value chain is essential. Not only to be compliant with ESG reporting, based on the scope 3 disclosures required under the European Union’s Corporate Sustainability Reporting Directive, which comes into force January 2024, but also to maintain the Race to Zero. The race is still on, and it’s a data-powered race.

“LEVERING THE INSIGHTS FROM ALL THE SOURCES OF RELEVANT DATA TO CREATE IMPROVED AND NEW PRODUCTS AND ADDITIONAL (DIGITAL) SERVICES IS THE TOP PRIORITY FOR ENTERPRISES. BUT SUSTAINABILITY HAS BECOME A MAIN GOAL FOR BUSINESSES TOO, TO PRESERVE THE PLANET AND THE COMPANY’S RELEVANCE IN THE NEXT DECADES.”

INNOVATION TAKEAWAYS

COMPLIANCE = TRANSFORMATION

Enterprises need to comply with the EU’s Corporate Sustainability Reporting Directive, which has an impact on the transformation towards more digital services and products.

THE SOLUTIONS ARE IN THE CLOUD

Hyperscalers provide solutions within their environments to tackle carbon footprint.

AN OPEN FRAMEWORK

With the IEF by the Green Software Foundation, a framework for overarching carbon impact calculations exists.

Interesting read?

Capgemini’s Innovation publication, Data-powered Innovation Review | Wave 7 features 16 such fascinating articles, crafted by leading experts from Capgemini, and partners like Aible, the Green Software Foundation, and Fivetran. Discover groundbreaking advancements in data-powered innovation, explore the broader applications of AI beyond language models, and learn how data and AI can contribute to creating a more sustainable planet and society.  Find all previous Waves here.

We boiled down this year’s biggest conference into 10 key trends that (surprise) revolve around AI’s most promising benefits and practical applications.

In January, the 2024 Consumer Electronics Show – CES® – unleashed a swarm of emerging technologies that are driving both present and future advancements. The prevailing theme? Artificial Intelligence. With 2023 dubbed the “Year of AI,” we weren’t that shocked to see AI ubiquitous in all facets of innovation showcased at CES; from wearables and immersive technologies to robotics and semiconductor chips.

Beyond mere buzz, brands flocked to CES eager to explore the tangible applications of AI. In the aftermath of CES, we’ve distilled our observations into 10 trends spanning five key pillars, each exemplifying AI’s key benefits: Knowledge Enhancement, Convenience and Safety, Immersive Experiences, Augmented Decision Making, and Efficiency.

Read on as we unpack these industry-defining trends.

Pillar #1: Knowledge Enhancement

AI’s power to unlock unprecedented insights into our health and the world around us signals a leap towards more informed and frictionless living.

Trend #1: DIY Diagnosis.

Forget looking up your symptoms on WebMD.com, health management is getting personal and proactive with at-home diagnostics tools. Wearables, facial scans, at-home urine tests, and more provide real-time insights and personalized health recommendations, empowering users to take charge of their well-being.

•  Impact:
  –For Consumers: Detect symptoms early for better health outcomes.
  -For Businesses: Generate more frequent yet meaningful consumer touch points.
•  Thought Starter: How might a life sciences company collaborate with research institutions and startups to create accessible self-diagnosing products and complementary services?
•  What We Saw at CES: Withings’ BeamO device offers a complete at-home health checkup in just one minute, including insights into your heart and respiratory system. Another one we liked was FaceHeart, which provides information on your vitals in 60 seconds or less using AI image recognition technology.

Trend #2: Intelligent Accessories.

Brace yourselves for the biggest fashion trend of the decade: AI hardware accessories are officially “IN.” These aren’t your run-of-the-mill gadgets; they’re wearable computers that seamlessly integrate into our lives. From capturing photos intuitively to transcribing notes, these accessories are redefining our relationship with technology.

•  Impact:
  –For Consumers: Enable seamless and personalized services and experiences.
  –For Businesses. Reach and engage with customers in the moments that matter.
•  Thought Starter: How might a major theme park operator use AI-powered accessories to enhance visitor experiences by providing real-time information about queue wait times and unlocking interactions with beloved film characters?
•  What We Saw at CES: Of course, everybody was talking about Meta’s Ray Ban collection and the rabbit r1 — two prime examples of how we see this trend unfolding in the market — but we wanted to spotlight another example: Wisear, a Techstars backed startup, enables consumers to achieve voiceless and touchless controls over their everyday devices through its patent-pending neural decoding technology, Wisearphones.

Pillar #2: Convenience & Safety

Through AI, our homes and cars are becoming guardians of our well-being, adding layers of convenience and safety to our lives.

Trend #3: Robotic Helping Hands.

The average household is getting larger…in the form factor of a small, mobile, metal companion. Robotic adoption is primed to accelerate due to advancements in machine learning, autonomous software, and rising consumer demand for security and convenience. These robots streamline daily tasks, from making coffee to keeping an eye on the dog when you are away from home.

•  Impact:
  – For Consumers: Achieve greater convenience and safety in the home.
  –For Businesses: Unlock a wealth of new insights pertaining to the home and homeowner behavior to fuel meaningful growth opportunities.
•  Thought Starter: How might a P&C insurer leverage robotics to bolster the safety and well-being of homeowners — from detecting potential leaks to assisting with day-to-day chores?
•  What We Saw at CES: Ogmen Robotics supports family care through robotic companions that monitor and care for the well-being of pets, children, and the elderly. We also took note of larger tech players dropping their own robotic home care companions, including Samsung’s Ballie and LG’s two-legged Smart Home AI Agent.

Trend #4: Smart(er) Cars.

Fully autonomous cars may not be mainstream, but drivers are steadily lifting fewer fingers as AI-powered advancements make driving safer and more intuitive. From autonomous features to personalized hands-free assistance, cars are becoming smarter companions on the road.

•  Impact:
  -For Consumers: Benefit from improved safety and personalized in-car experiences.
  –For Businesses: Uncover new revenue opportunities through value-added software services.
•  Thought Starter: How might an OEM use AI and autonomous technologies to reduce the stress of driving and create a more streamlined in-car experience?
•  What We Saw at CES: Leveraging generative AI and Amazon Alexa, BMW’s new Intelligent Personal Assistant can converse with drivers and carry out functions like climate control, lights, media, and experience modes.

Pillar #3: Immersive Experiences

AI is redefining customer interactions by supercharging immersive experiences that were once the stuff of science fiction — shifting immersive experiences from a nice-to-have to a must-have competitive advantage.

Trend #5: Screen 3.0.

It’s not just bigger and better, screens are evolving beyond size and resolution, offering immersive, interactive, and versatile experiences. Whether it is augmented, touchless, transparent, or projected, screen advancements are transforming how we engage with digital content.

•  Impact:
  -For Consumers: Enable more hygienic and intuitive user interactions.
  –For Businesses: Drive increased brand awareness, engagement, and conversion.
•  Thought Starter: How might an airline leverage touchless and 3D screen technologies to make displays more engaging and hygienic?
•  What We Saw at CES: Leia, a 3D technology company (named after the Princess Leia hologram in Star Wars Episode IV), is pioneering holographic experiences on any device to create a digital future as rich as our 3D world. We also recommend you check out Hypervsn, creating next-gen signage for companies like LVMH, and Ultraleap, which is retrofitting digital interfaces to make them touchless.

Trend #6: Build-a-Metaverse.

Metaverse may have taken a back seat this year, but thanks to AI, it’s becoming more of a reality and less of a sci-fi concept. AI is transforming the metaverse in two ways: 1) Making it easier to build, 2) Enabling more personalized user experiences. From gaming to learning, the metaverse offers limitless possibilities for high-engagement brand interaction.

•  Impact:
  –For Consumers: Uncover more personalized, accessible, and informative brand experiences.
  –For Businesses: Unlock a new channel to reach customers, particularly the younger, gaming-native generations.
•  Thought Starter: How might a beauty retailer create a virtual branded store using AI and metaverse technologies to offer a more personalized, accessible, and informative shopping experience?
•  What We Saw at CES: Obsess, a top experiential e-commerce platform, powers immersive, interactive 3D, and 360-degree virtual experiences for Fortune 500 brands. It’s compatible with desktop, mobile, and Apple Vision Pro. Explore the new Crate & Barrel virtual flagship store here.
  

Pillar #4: Augmented Decision Making

AI aids in complex decision-making processes, providing clarity and precision in the business units that matter most.

Trend #7: Consumer Bullseye.

The margin for error of who to target, when, how, and with what content is dwindling as AI empowers marketing and sales to directly resonate with target customers. There is a decreased reliance on guesswork that can lead to ineffective campaigns, as AI tools help target the right customers at the right time with the right content.

•  Impact:
  –For Customers: Unlock more personalized and relevant touch points.
  –For Businesses: Optimize marketing and sales strategies.
•  Thought Starter: How might a luxury fashion brand use AI to analyze qualitative data from social media and surveys to uncover changes in customer sentiment over time?
•  What We Saw at CES: Glimpsehere uses cutting-edge generative AI capabilities to help businesses gain insights into qualitative feedback at scale and test marketing messages with virtual personas.

Trend #8: Sticky Success.

Through AI, R&D is becoming less art and more science, enabling teams to launch innovations more likely to stick in the market. Tasks like searching for patents, identifying market gaps, and validating ideas can be bolstered by AI to accelerate innovation and market success.

•  Impact:
  –For Customers: Access more frequent, relevant, and affordable innovations.
  –For Businesses: Achieve faster innovation at reduced costs.
•  Thought Starter: How might a beverage company use AI to identify and validate top flavor combinations of 2025 that are most likely to resonate with Gen Z customers?
•  What We Saw at CES: Prelaunch connects innovative products with potential customers before market entry. Another one of its features includes an AI Market Research Assistant that reviews and assesses competitor praises and complaints to uncover market opportunities.

Pillar #5: Efficiency

The drive towards efficiency is finding its champion in AI, optimizing operations across industries for better outcomes.

Trend #9: Company Clone.

Seeing double? Companies with a physical footprint are making digital copies. AI, IoT, and digital twin technologies enable companies to create dynamic virtual replicas of their properties, people, and processes to not only better understand their present, but better predict the future.

•  Impact:
  -For Customers: Enhance decision-making with real-time information and recommendations.
  –For Businesses: Gain real-time and predictive insights into operations to more efficiently address potential issues.
•  Thought Starter: How might a Tier One Supplier leverage digital twin technologies to design an offering that helps OEMs better predict and prevent failures in their vehicles?
•  What We Saw at CES: In a CES ’24 keynote, the CEO of Siemens fully endorsed digital twins and discussed plans to build an ‘Industrial Metaverse’ with NVIDIA, enabling companies to monitor their physical assets in real time.

Trend #10: Cloud-Free Days.

We are entering an era of less loading lags as AI at the edge brings intelligence closer to the source, enabling us to enjoy faster, smarter, and more secure experiences, without reliance on the cloud or internet. From smart devices to autonomous systems, digital experiences are thriving with AI at the edge.

•  Impact:
  –For Customers: Unlock faster and more reliable device performance.
  –For Businesses: Drive lower data transmission costs and latency.
•  Thought Starter: How might a fleet operator leverage AI at the edge to optimize routing and delivery, and enhance warehouse automation?
•  What We Saw at CES: NVIDIA released new AI chip modules powering on-device AI applications that are embedded in anything from delivery robots to autonomous mining vehicles.

Bringing these trends to life

CES 2024 was a resounding call for businesses and individuals alike to adapt to an AI-infused future. Understanding and integrating these AI applications is no longer optional but essential for thriving in a rapidly evolving world.

At the Applied Innovation Exchange, we help businesses experiment and explore new technologies so that they can bring transformative, industry-leading innovations to market. We enable this through our rich and diverse ecosystem of experts, startups, alliance partners, and Capgemini capabilities to deliver pinnacle innovation engagements: Workshops, experimentations, functional prototypes, and ecosystem collaborations. Get in touch with us today to learn more and find out how you can step into tomorrow.

Redefining customer interactions with advanced personalization

In the ever-evolving landscape of customer service, contact centers are more than mere operational hubs; they are experience hubs that excel in service and create exceptional moments. As the primary interface between businesses and customers, each interaction within such a center holds the power to profoundly influence a customer’s opinion.

In response to the escalating customer expectations, businesses are strategically adopting advanced personalization strategies and technologies that cover end-to-end customer journeys. This is especially important for financial institutions, where contact centers play a significant role for customers, demanding interactions that are not just satisfactory but deeply personalized. As per Capgemini’s latest World Retail Banking Report, 45% of contact center agents’ time is spent on operational activities resulting in a dip in customer interactions and engagement.

In this blog, we will explore the essential elements of effective and improved customer interaction and personalization in contact centers, focusing on the indispensable role of data, creation of personas, and the application of behavioral science.

1. Convergence of marketing and service: Orchestrating seamless journeys

Effective personalization in banking contact centers begins by mapping the customer journey. Here, the right convergence of marketing and service is essential. Shifting from short-term transactions to long-term relationships requires breaking down organizational silos – the primary culprit in unsuccessful digital transformations. This provides an opportunity for marketing to deepen customer relationships and foster loyalty. Such approach allows organizations to build cohesive experience and journeys.

Integrating marketing and service reshapes organizational structures, fostering collaboration and introducing new leadership roles like Chief Customer Officer. Cultural and technological shifts, along with leadership commitment and investment in CRM systems as well as analytics platforms, are essential. For example, a large European Financial Services Firm successfully organized its marketing and contact center teams under a larger customer experience department ensuring an integrated CX and streamlined process.

2. The vital role of data in personalization success

Data, often described as the new currency, plays a pivotal role in the personalization journey. Contact centers house a trove of valuable customer insights that can be harnessed to understand customers at a deeper level. Consider, for instance, a scenario where a bank’s contact center utilizes transactional history to tailor investment advice, aligning recommendations with each client’s unique goals and risk tolerance. This personalized approach not only fosters trust but also cultivates long-term loyalty.

Leveraging data analytics and artificial intelligence empowers agents, ensuring personalized interactions and tailored strategies for diverse customer segments. Building on customized service, top brands are using conversation intelligence solutions to improve the digital to call experience. As per Forrester, 82% of marketers agree that insights from inbound calls and call experiences reveal costly blind spots in their organizations.

3. Creating personas for enhanced personalization

Forward-thinking organizations create personalized experiences at scale by designing and orchestrating omni-channel journeys. This enhances customer experiences, reduces costs, and generates sales opportunities. Segmenting customers into personas based on behaviors, preferences, demographics, journey stage etc., enables tailored interactions, refining experiences through hyper-personalization. In line with this trend, Capgemini’s latest World Retail Banking Report underscores the growing preference for chatbots and self-service options among a significant quarter of millennials and gen Z, indicating a shifting landscape where such technologies are increasingly embraced as preferred modes of interaction. Consider this scenario: Two customers call a contact center seeking assistance. Alex, a digital native, is quickly diverted to self-service options tailored to their needs. Meanwhile Emily, who prefers speaking to a representative, remains in the Interactive Voice Response (IVR) – an automated phone system directing the call based on voice or keypad input. This highlights the importance of recognizing and catering to the diverse preferences of customers, ensuring a seamless and personalized experience that supports individual needs.

4. Applying behavioral science in contact centers for optimal interactions

Behavioral science is defined as the study of human behavior, which involves applying scientific methods to comprehend, predict, and influence behavior across diverse contexts, including contact centers. It provides insights that help you anticipate problems and design solutions by understanding likely human behaviors.

Technology can be leveraged to observe customer behaviors and provide timely guidance to agents. This application of behavioral science seeks to grasp the underlying motivations of individuals and optimize service interactions accordingly. Integrating behavioral science principles allows organizations to improve the efficacy of service interactions and ensure precisely addressing of customer needs.

Barclays exemplifies this approach by applying behavioral science techniques in its contact center operations. By harnessing behavioral insights, the bank segments customers based on their communication preferences, personalizes interactions across various channels, and identifies opportunities for proactive outreach and support.

5. Personalization for agents’ development

In today’s landscape, personalization extends beyond enhancing customer experiences to encompass the development and support of contact center agents. According to Capgemini’s latest World Retail Banking Report, a staggering 62% of Tier 1 bank contact center agents and 40% of Tier 2 bank agents express concerns over inadequate chatbot capabilities affecting their productivity and efficiency. This underscores the critical importance of equipping agents with robust tools and resources to meet evolving customer expectations.

With the advent of the quality assurance (QA) era and the widespread adoption of AI-powered solutions in every interaction, organizations now can discern what works effectively and what does not for each agent. This abundance of data serves as a foundation for creating personalized training plans tailored to the specific needs of individual agents, thereby ensuring continuous improvement and optimal performance across the board.

On-demand training can be provided through dynamic delivery models and tailored to learning styles and needs. Additionally, automating simpler interactions enables organizations to redirect agents’ attention towards more intricate tasks, ultimately saving time and enhancing overall efficiency. This contributes significantly to agent development. Gartner projects that 10% of agent interactions will be automated by 2026, an increase from an estimated 1.6% of interactions today that are automated using AI.

By optimizing training efforts and investing in agents, organizations can achieve the maximum return on investment, creating a workforce that consistently delivers exceptional customer experiences. In the rapidly evolving landscape of customer service, personalization in contact centers is no longer a luxury but a strategic necessity.