Data and AI chaos costing financial services businesses millions amid economic uncertainty
45% of UK businesses admit their operating in data ‘chaos’ amid rapidly adopting AI causing 43% of financial service businesses to lose millions in revenue due to poor customer experience, according to new research from AND Digital.
The findings from the AND Digital Know Me or Lose Me report, which polled 250 business leaders across businesses between £200m and £2bn revenue, revealed that 47% of businesses agree their organisation is prioritising AI investment over fixing data infrastructure.
58% believe that without significant improvements to customer experience, their organisation will lose millions of customers within the next year, with 59% agreeing the loyalty gap is widening due to AI and data access, calling for the urgent need for CEOs to prioritise customer experience to protect their customer base.
With customer expectations evolving, businesses are increasingly seeing data and technology as the key to enhancing experiences with 64% of respondents agreeing that data is the single biggest factor in delivering good customer experience.
However, the ability to leverage data effectively depends on having the right technical infrastructure as 61% of business leaders say that without the right tech stack, along with financial pressures, their organisation will struggle to retain customers.
55% of respondents agree they are expected to improve customer experience without an increased budget, with a further 60% saying the future of the business landscape will be dominated by organisations with the biggest tech budgets.
Despite economic challenges, businesses are adjusting their financial priorities to focus on customer experience and retention. 71% state that their customer experience budget has increased over the past year, reflecting a growing recognition of the need to invest in long-term customer relationships which is essential for sustainable growth.
Paramjit Uppal, founder of AND Digital commented: “Its clear that poor customer experience is directly impacting revenue and retention. Business leaders understand that data is the single biggest factor in delivering good customer experience, and most get that without the right tech stack, they will struggle. Its reassuring that despite the financial pressure, leaders are reallocating technology budgets from customer acquisition to retention and loyalty, and many have prioritised and increased their customer experience investments in the past year.”