Mastering-Data-Management-The-Rise-of-Specialisation-in-Data-Science
Mastering Data Management: The Rise of Specialisation in Data Science

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Historically, data scientists have been the linchpins in the world of AI and machine learning, responsible for everything from data collection and curation to model training and validation. However, as the field matures, we’re witnessing a significant shift towards specialisation, particularly in data engineering and the strategic role of Large Language Models (LLMs) in data curation and labelling. The integration of AI into applications is also reshaping the landscape of software development and application design.

The Growth of Embedded AI

AI is being embedded into applications to enhance user experience, optimise operations, and provide insights that were previously inaccessible. For example, natural language processing (NLP) models are being used to power conversational chatbots for customer service, while machine learning algorithms are analysing user behaviour to customise content feeds on social media platforms. These applications leverage AI to perform complex tasks, such as understanding user intent, predicting future actions, or automating decision-making processes, making AI integration a critical component of modern software development.

This shift towards AI-embedded applications is not only changing the nature of the products and services offered but is also transforming the roles of those who build them. Since the traditional developer may not possess extensive AI skills, the role of data scientists is evolving, moving away from data engineering tasks and increasingly towards direct involvement in development processes.

The Role of LLMs in Data Curation

The emergence of LLMs has introduced a novel approach to handling data curation and processing tasks traditionally performed by data scientists. LLMs, with their profound understanding of natural language and ability to generate human-like text, are increasingly being used to automate aspects of data labelling and curation. This not only speeds up the process but also allows data scientists to focus more on strategic tasks such as model architecture design and hyperparameter tuning.

The accuracy of AI models is directly tied to the quality of the data they’re trained on. Incorrectly labelled data or poorly curated datasets can lead to biased outcomes, mispredictions, and ultimately, the failure of AI projects. The role of data engineers and the use of advanced tools like LLMs in ensuring the integrity of data cannot be overstated.

The Impact on Traditional Developers

Traditional software developers have primarily focused on writing code, debugging, and software maintenance, with a clear emphasis on programming languages, algorithms, and software architecture. However, as applications become more AI-driven, there is a growing need for developers to understand and integrate AI models and algorithms into their applications. This requirement presents a challenge for developers who may not have specialised training in AI or data science. This is seeing an increasing demand for upskilling and cross-disciplinary collaboration to bridge the gap between traditional software development and AI integration.

Clear Role Differentiation: Data Engineering and Data Science

In response to this shift, the role of data scientists is expanding beyond the confines of traditional data engineering and data science, to include more direct involvement in the development of applications and the embedding of AI features and functions.

Data engineering has always been a foundational element of the data scientist’s role, and its importance has increased with the surge in data volume, variety, and velocity. Integrating LLMs into the data collection process represents a cutting-edge approach to automating the curation and labelling of data, streamlining the data management process, and significantly enhancing the efficiency of data utilisation for AI and ML projects.

Accurate data labelling and meticulous curation are paramount to developing models that are both reliable and unbiased. Errors in data labelling or poorly curated datasets can lead to models that make inaccurate predictions or, worse, perpetuate biases. The integration of LLMs into data engineering tasks is facilitating a transformation, freeing them from the burdens of manual data labelling and curation. This has led to a more specialised data scientist role that allocates more time and resources to areas that can create greater impact.

The Evolving Role of Data Scientists

Data scientists, with their deep understanding of AI models and algorithms, are increasingly working alongside developers to embed AI capabilities into applications. This collaboration is essential for ensuring that AI models are effectively integrated, optimised for performance, and aligned with the application’s objectives.

  • Model Development and Innovation. With the groundwork of data preparation laid by LLMs, data scientists can focus on developing more sophisticated and accurate AI models, exploring new algorithms, and innovating in AI and ML technologies.
  • Strategic Insights and Decision Making. Data scientists can spend more time analysing data and extracting valuable insights that can inform business strategies and decision-making processes.
  • Cross-disciplinary Collaboration. This shift also enables data scientists to engage more deeply in interdisciplinary collaboration, working closely with other departments to ensure that AI and ML technologies are effectively integrated into broader business processes and objectives.
  • AI Feature Design. Data scientists are playing a crucial role in designing AI-driven features of applications, ensuring that the use of AI adds tangible value to the user experience.
  • Model Integration and Optimisation. Data scientists are also involved in integrating AI models into the application architecture, optimising them for efficiency and scalability, and ensuring that they perform effectively in production environments.
  • Monitoring and Iteration. Once AI models are deployed, data scientists work on monitoring their performance, interpreting outcomes, and making necessary adjustments. This iterative process ensures that AI functionalities continue to meet user needs and adapt to changing data landscapes.
  • Research and Continued Learning. Finally, the transformation allows data scientists to dedicate more time to research and continued learning, staying ahead of the rapidly evolving field of AI and ensuring that their skills and knowledge remain cutting-edge.

Conclusion

The integration of AI into applications is leading to a transformation in the roles within the software development ecosystem. As applications become increasingly AI-driven, the distinction between software development and AI model development is blurring. This convergence needs a more collaborative approach, where traditional developers gain AI literacy and data scientists take on more active roles in application development. The evolution of these roles highlights the interdisciplinary nature of building modern AI-embedded applications and underscores the importance of continuous learning and adaptation in the rapidly advancing field of AI.

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Securing the CX Edge: 5 Strategies for Organisations in the Philippines

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The Philippines, renowned as a global contact centre hub, is experiencing heightened pressure on the global stage, leading to intensified competition within the country. Smaller BPOs are driving larger players to innovate, requiring a stronger focus on empowering customer experience (CX) teams, and enhancing employee experience (EX) in organisations in the Philippines.

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As the Philippines expands its global footprint, organisations must embrace progressive approaches to outpace rivals in the CX sector.

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These priorities can be achieved through a robust data strategy that empowers CX teams and contact centres to glean actionable insights.

Here are 5 ways organisations in the Philippines can achieve their CX objectives.

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Download ‘Securing the CX Edge: 5 Strategies for Organisations in the Philippines’ as a PDF.

#1 Modernise Voice and Omnichannel Orchestration

Ensuring that all channels are connected and integrated at the core is critical in delivering omnichannel experiences. Organisations must ensure that the conversation can be continued seamlessly irrespective of the channel the customer chooses, without losing the context.

Voice must be integrated within the omnichannel strategy. Even with the rise of digital and self-service, voice remains crucial, especially for understanding complex inquiries and providing an alternative when customers face persistent challenges on other channels.

Transition from a siloed view of channels to a unified and integrated approach.

Only 31% of organisations in the Philippines are looking to improve omnichannel experiences in 2024

#2 Empower CX Teams with Actionable Customer Data

An Intelligent Data Hub aggregates, integrates, and organises customer data across multiple data sources and channels and eliminates the siloed approach to collecting and analysing customer data.

Drive accurate and proactive conversations with your customers through a unified customer data platform.

  • Unifies user history across channels into a single customer view.
  • Enables the delivery of an omnichannel experience.
  • Identifies behavioural trends by understanding patterns to personalise interactions.
  • Spots real-time customer issues across channels.
  • Uncovers compliance gaps and missed sales opportunities from unstructured data.
  • Looks at customer journeys to proactively address their needs.
56% of organisations in the Philippines will focus on building a unified view of the customer data in 2024

#3 Transform CX & EX with AI/Automation

AI and automation should be the cornerstone of an organisation’s CX efforts to positively impact both customers and employees.

Key-areas of Ai/Automation applications in the Philippines

Evaluate all aspects of AI/automation to enhance both customer and employee experience.

  • Predictive AI algorithms analyse customer data to forecast trends and optimise resource allocation.
  • AI-driven identity validation reduces fraud risk.
  • Agent Assist Solutions offer real-time insights to agents, enhancing service delivery and efficiency.
  • GenAI integration automates post-call activities, allowing agents to focus on high-value tasks.

#4 Augment Existing Systems for Success

Many organisations face challenges in fully modernising legacy systems and reducing reliance on multiple tech providers.

CX transformation while managing multiple disparate systems will require a platform that integrates desired capabilities for holistic CX and EX experiences.

A unified platform streamlines application management, ensuring cohesion, unified KPIs, enhanced security, simplified maintenance, and single sign-on for agents. This approach offers consistent experiences across channels and early issue detection, eliminating the need to navigate multiple applications or projects.

Capabilities that a platform should have:

  • Programmable APIs to deliver messages across preferred social and messaging channels.
  • Modernisation of outdated IVRs with self-service automation.
  • Transformation of static mobile apps into engaging experience tools.
  • Fraud prevention across channels through immediate phone number verification APIs.
46% of organisations integrate products/services from multiple providers for their CX capabilities

#5 Focus on Proactive CX

In the new CX economy, organisations must meet customers on their terms, proactively engaging them before they initiate interactions. This requires a re-evaluation of all aspects of CX delivery.

  • Redefine the Contact Centre. Transforming it into an “Intelligent” Data Hub providing unified and connected experiences; leveraging intelligent APIs to proactively manage customer interactions seamlessly across journeys.
  • Reimagine the Agent’s Role. Empowering agents to be AI-powered brand ambassadors, with access to prior and real-time interactions, instant decision-making abilities, and data-led knowledge bases.
  • Redesign the Channel and Brand Experience. Ensuring consistent omnichannel experiences through unified and coherent data; using programmable APIs to personalise conversations and discern customer preferences for real-time or asynchronous messaging; integrating innovative technologies like video to enrich the channel experience.
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Unstructured Feedback Analysis Technology: Making Sense of the Market Fragmentation

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In my last Ecosystm Insights, I spoke about why organisations need to think about the Voice of the Customer (VoC) quite literally. Organisations need to listen to what their customers are telling them – not just to the survey questions they responded to, answering pre-defined questions that the organisations want to hear about.   

The concept of customer feedback is evolving, and how organisations design and manage VoC programs must also change. Technology is now capable of enabling customer teams to tap into all those unsolicited, and often unstructured, raw feedback sources. Think contact centre conversations (calls, chats, chatbots, emails, complaints, call notes), CRM notes, online reviews, social media, etc. Those are all sources of raw customer feedback, waiting to be converted into customer insights.  

Organisations can now find the capability of extracting customer insight from raw data across a wide range of solutions, from VoC platforms, data management platforms, contact centre solutions, text analytics players, etc. The expanding tech ecosystem presents opportunities for organisations to enhance their programs. However, navigating this breadth of options can also be confusing as they strive to identify the most suitable tools for their requirements. 

As CX programs mature and shift from survey feedback to truly listening to customers, the demand for tech solutions tailored to various needs increases.

Where are tech vendors headed? 

As part of my job as CX Consultant & Tech Advisor, I spend a lot of time working with my clients. But I also spend a lot of time speaking with technology vendors, who provide the solutions my clients need. Over the last few weeks and months there’s been a flurry of activity across the CX technology market with lots of product announcements around one specific topic. You guessed it, GenAI.   

So, I invested some time in finding out how tech vendors are evolving their offerings. From Medallia, InMoment, Thematic, LiquidVoice, Concentrix, Snowflake, Nice, to Tethr – a broad variety of different vendors, but all with one thing in common; they help analyse customer feedback data.  

And I like what I hear. The conversation has not been about GenAI because of GenAI, but about use cases and real-life applications for CX practitioners, including Insights & Research team, Contact Centre, CX,  VoC, Digital teams, and so on. The list is long when we include everyone who has a role to play in creating, maintaining, and improving customer experiences.  

It’s no wonder that many different vendors have started to embed those capabilities into their solutions and launch new products or features. The tech landscape is becoming increasingly fragmented at this stage.  

What are an organisation’s tech options?  

  • The traditional VoC platform providers typically offer some text analytics capabilities (although not always included in the base price) and have started to tap into the contact centre solutions as well. Some also offer some social media or online review analysis, leaving organisations with a relatively good understanding of customer sentiment and a better understanding of their CX.  
  • Contact centre solutions are traditionally focused on analysing calls for Quality Assurance (QA) purposes and use surveys for agent coaching. Many contact centre players have evolved their portfolios to include text analytics or conversational intelligence to extract broader customer insights. Although at this stage they’re not always shared with the rest of the organisation (one step at a time…).  
  • Conversational analytics/intelligence providers have emerged over the last few years and are a powerhouse for contact centre and chatbot conversations. The contact centre really is the treasure trove of customer insights, although vastly underutilised for it so far!  
  • CRMs are the backbone of the customer experience management toolkit as they hold a vast amount of metadata. They’ve also been able to send surveys for a while now. Analysing unstructured data however (whether survey verbatim or otherwise) isn’t one of their strengths. This leaves organisations with a lot of data but not necessarily insights.  
  • Social media listening tools are often standalone tools used by the social media teams. There are not many instances of them being used for the analysis of other unstructured feedback.   
  • Digital/website feedback tools, in line with some of the above, are centred around collecting feedback, not necessarily analysing the unstructured feedback.  
  • Pure text analytics players are traditionally focused on analysing surveys verbatim. As this is their core offering, they tend to be proficient in it and have started to broaden their portfolios to include other unstructured feedback sources.  
  • Customer Data Platforms (CDP)/ Data Management Platforms (DMP) are more focused on quantitative data about customers and their experiences. Although many speak about their ability to analyse unstructured feedback as well, it doesn’t appear to be their strengths.  

Conclusion 

But what does that leave organisations with? Apart from very confused tech users trying to find the right solution for their organisation.  

At this stage, there is immense market fragmentation, with many vendors from different core capabilities starting to incorporate capabilities to analyse unstructured data in the wake of the GenAI boom. However, a market convergence is expected.  

While we watch how the market unfolds, one thing is certain. Organisations and customer teams will need to adjust – and that includes the tech stack as well as the CX program set up. With customer feedback now coming from anywhere within or outside the organisation, there is a need for a consolidated source of truth to make sense of it all and move from raw data to customer insights. While organisations will benefit immensely from a consolidated customer data repository, it’s also crucial to break down organisational silos at the same time and democratise insights as widely as possible to enable informed decision-making. 

The Experience Economy
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Data Visualisation: Going Beyond the Basics

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AI systems are creating huge amounts of data at a rapid rate. While this flood of information is extremely valuable, it is also difficult to analyse and understand. Organisations need to make sense of these large data sets to derive useful insights and make better decisions. Data visualisation plays a pivotal role in the interpretation of complex data, making it accessible, understandable, and actionable. Well-designed visualisation can translate complex, high-dimensional data into intuitive, visually appealing representations, helping stakeholders to understand patterns, trends, and anomalies that would otherwise be challenging to recognise.

There are some data visualisation methods that you are using already; and some that you definitely should master as data complexity increases and there is more demand from business teams for better data visualisation.

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Download Common Data Visualisation Methods as a PDF

Add These to Your Data Visualisation Repertoire

There are additional visualisation tools that you should be using to tell a better data story.  Each of these visualisation techniques serves specific purposes in data analysis, offering unique advantages for representing data insights.

Data Visualisation: Waterfall Charts

Waterfall charts depict the impact of intermediate positive and negative values on an initial value, often resulting in a final value. They are commonly employed in financial analysis to illustrate the contribution of various factors to a total, making them ideal for visualising step-by-step financial contributions or tracking the cumulative effect of sequentially introduced factors.

Advantages:

  • Sequential Analysis. Ideal for understanding the cumulative effect of sequentially introduced positive or negative values.
  • Financial Reporting. Commonly used for financial statements to break down the contributions of various elements to a net result, such as revenues, costs, and profits over time.
Data Visualisation: Box and Whisker Plots

Box and Whisker Plots summarise data distribution using a five-number summary: minimum, first quartile (Q1), median, third quartile (Q3), and maximum. They are valuable for showcasing data sample variations without relying on specific statistical assumptions. Box and Whisker Plots excel in comparing distributions across multiple groups or datasets, providing a concise overview of various statistics.

Advantages:

  • Distribution Clarity. Provide a clear view of the data distribution, including its central tendency, variability, and skewness.
  • Outlier Identification. Easily identify outliers, offering insights into the spread and symmetry of the data.
Data Visualisation: Bullet Charts

Bullet charts, a bar graph variant, serve as a replacement for dashboard gauges and meters. They showcase a primary measure alongside one or more other measures for context, such as a target or previous period’s performance, often incorporating qualitative ranges like poor, satisfactory, and good. Ideal for performance dashboards with limited space, bullet charts efficiently demonstrate progress towards goals.

Advantages:

  • Compactness. Offer a compact and straightforward way to monitor performance against a target.
  • Efficiency. More efficient than gauges and meters in dashboard design, as they take up less space and can display more information, making them ideal for comparing multiple measures.

Conclusion

Each data visualisation type has its unique strengths, making it better suited for certain types of data and analysis than others. The key to effective data visualisation lies in matching the visualisation type to your data’s specific needs, considering the story you want, to tell or the insights you aim to glean. Choosing the right data representation helps you to make informed decisions that enhance your data analysis and communication efforts.

Incorporating Waterfall Charts, Box and Whisker Plots, and Bullet Charts into the data visualisation toolkit allows for a broader range of insights to be derived from your data. From analysing financial data, comparing distributions, to tracking performance metrics, these additional types of visualisation can communicate complex data stories clearly and effectively. As with all data visualisation, the key is to choose the type that best matches the organisation’s data story, making it accessible and understandable to the audience.

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5 Ways to Succeed in Singapore’s Competitive Battle to Win Customer Hearts

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Customer teams in Singapore face a complex challenge. Organisations recognise the significance of a distinctive customer experience (CX) and adaptability to market shifts in a competitive landscape. They also prioritise enhancing employee experience (EX) and reducing costs. Balancing these priorities requires recalibrating across people, processes, and technologies.

Priorities of Singapore CX Teams in 2024

This underscores the pivotal role of data in CX transformation. When CX teams and contact centres prioritise data in all their initiatives, they gain deep insights into customer journeys, facilitating proactive service delivery, enhancing self-service mechanisms, and fostering genuine innovation in customer engagement.

Here are 5 ways organisations in Singapore can achieve these business objectives.

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Download ‘5 Ways to Succeed in Singapore’s Competitive Battle to Win Customer Hearts’ as a PDF.

#1 Build a Strategy around Voice & Omnichannel Orchestration

Customers seek flexibility to choose channels that suit their preferences, often switching between them. When channels are well-coordinated, customers enjoy consistent experiences, and CX teams and contact centre agents gain real-time insights into interactions, regardless of the chosen channel. This boosts key metrics like First Call Resolution (FCR) and reduces Average Handle Time (AHT).

This doesn’t diminish the significance of voice. Voice remains crucial, especially for understanding complex inquiries and providing an alternative when customers face persistent challenges on other channels. Regardless of the channel chosen, prioritising omnichannel orchestration is essential.

Ensure seamless orchestration from voice to back and front offices, including social channels, as customers switch between channels.

Only 26% of organisations in Singapore are looking to improve omnichannel experience in 2024

#2 Unify Customer Data through an Intelligent Data Hub

Accessing real-time, accurate data is essential for effective customer and agent engagement. However, organisations often face challenges with data silos and lack of interconnected data, hindering omnichannel experiences.

A Customer Data Platform (CDP) can eliminate data silos and provide actionable insights.

  • Identify behavioural trends by understanding patterns to personalise interactions.
  • Spot real-time customer issues across channels.
  • Uncover compliance gaps and missed sales opportunities from unstructured data.
  • Look at customer journeys to proactively address their needs and exceed expectations.
44% of organisations in Singapore will invest in a unified customer data platform in 2024

#3 Transform CX & EX with AI

GenAI and Large Language Models (LLMs) is revolutionising how brands address customer and employee challenges, boosting efficiency, and enhancing service quality.

Despite 62% of Singapore organisations investing in virtual assistants/conversational AI, many have yet to integrate emerging technologies to elevate their CX & EX capabilities. 

Agent Assist solutions provide real-time insights before customer interactions, optimising service delivery and saving time. With GenAI, they can automate mundane tasks like call summaries, freeing agents to focus on high-value tasks such as sales collaboration, proactive feedback management, personalised outbound calls, and upskilling.

Going beyond chatbots and Agent Assist solutions, predictive AI algorithms leverage customer data to forecast trends and optimise resource allocation. AI-driven identity validation swiftly confirms customer identities, mitigating fraud risks.

32% of organisations in Singapore are enhancing chatbots by integrating GenAI, while 39% are improving Agent Assist Capabilites.

#4 Augment Existing Systems for Success

Despite the rise in digital interactions, many organisations struggle to fully modernise their legacy systems.

For those managing multiple disparate systems yet aiming to lead in CX transformation, a platform that integrates desired capabilities for holistic CX and EX experiences is vital.

A unified platform streamlines application management, ensuring cohesion, unified KPIs, enhanced security, simplified maintenance, and single sign-on for agents. This approach offers consistent experiences across channels and early issue detection, eliminating the need to navigate multiple applications or projects.

Capabilities that a platform should have:

  • Programmable APIs to deliver messages across preferred social and messaging channels.  
  • Modernisation of outdated IVRs with self-service automation.  
  • Transformation of static mobile apps into engaging experience tools. 
  • Fraud prevention across channels through immediate phone number verification APIs. 
72% of customer interactions in Singapore are digital.

#5 Focus on Proactive CX

In the new CX economy, organisations must meet customers on their terms, proactively engaging them before they initiate interactions. This will require organisations to re-evaluate all aspects of their CX delivery. 

  • Redefine the Contact Centre. Transform it into an “Intelligent” Data Hub providing unified and connected experiences. Leverage intelligent APIs to proactively manage customer interactions seamlessly across journeys. 
  • Reimagine the Agent’s Role. Empower agents to be AI-powered brand ambassadors, with access to prior and real-time interactions, instant decision-making abilities, and data-led knowledge bases.  
  • Redesign the Channel and Brand Experience. Ensure consistent omnichannel experiences through data unification and coherency. Use programmable APIs to personalise conversations and identify customer preferences for real-time or asynchronous messaging. Incorporate innovative technologies such as video to enhance the channel experience. 
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Feedback Disruption: Break Down Silos With GenAI

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Customer feedback is at the heart of Customer Experience (CX). But it’s changing. What we consider customer feedback, how we collect and analyse it, and how we act on it is changing. Today, an estimated 80-90% of customer data is unstructured. Are you able and ready to leverage insights from that vast amount of customer feedback data?

Let’s begin with the basics: What is VoC and why is there so much buzz around it now?

Voice of the Customer (VoC) traditionally refers to customer feedback programs. In its most basic form that means organisations are sending surveys to customers to ask for feedback. And for a long time that really was the only way for organisations to understand what their customers thought about their brand, products, and services.

But that was way back then. Over the last few years, we’ve seen the market (organisations and vendors) dipping their toes into the world of unsolicited feedback.

What’s unsolicited feedback, you ask?

Unsolicited feedback simply means organisations didn’t actually ask for it and they’re often not in control over it, but the customer provides feedback in some way, shape, or form. That’s quite a change to the traditional survey approach, where they got answers to questions they specifically asked (solicited feedback).

Unsolicited feedback is important for many reasons:

  • Organisations can tap into a much wider range of feedback sources, from surveys to contact centre phone calls, chats, emails, complaints, social media conversations, online reviews, CRM notes – the list is long.
  • Surveys have many advantages, but also many disadvantages. From only hearing from a very specific customer type (those who respond and are typically at the extreme ends of the feedback sentiment), getting feedback on the questions they ask, and hearing from a very small portion of the customer base (think email open rates and survey fatigue).
  • With unsolicited feedback organisations hear from 100% of the customers who interact with the brand. They hear what customers have to say, and not just how they answer predefined questions.

It is a huge step up, especially from the traditional post-call survey. Imagine a customer just spent 30 min on the line with an agent explaining their problem and frustration, just to receive a survey post call, to tell the organisation what they just told the agent, and how they felt about the experience. Organisations should already know that. In fact, they probably do – they just haven’t started tapping into that data yet. At least not for CX and customer insights purposes.

When does GenAI feature?

We can now tap into those raw feedback sources and analyse the unstructured data in a way never seen before. Long gone are the days of manual excel survey verbatim read-throughs or coding (although I’m well aware that that’s still happening!). Tech, in particular GenAI and Large Language Models (LLMs), are now assisting organisations in decluttering all the messy conversations and unstructured data. Not only is the quality of the analysis greatly enhanced, but the insights are also presented in user-friendly formats. Customer teams ask for the insights they need, and the tools spit it out in text form, graphs, tables, and so on.

The time from raw data to insights has reduced drastically, from hours and days down to seconds. Not only has the speed, quality, and ease of analysis improved, but many vendors are now integrating recommendations into their offerings. The tools can provide “basic” recommendations to help customer teams to act on the feedback, based on the insights uncovered.

Think of all the productivity gains and spare time organisations now have to act on the insights and drive positive CX improvements.

What does that mean for CX Teams and Organisations?  

Including unsolicited feedback into the analysis to gain customer insights also changes how organisations set up and run CX and insights programs.

It’s important to understand that feedback doesn’t belong to a single person or team. CX is a team sport and particularly when it comes to acting on insights. It’s essential to share these insights with the right people, at the right time.

Some common misperceptions:

  • Surveys have “owners” and only the owners can see that feedback.
  • Feedback that comes through a specific channel, is specific to that channel or product.
  • Contact centre feedback is only collected to coach staff.

If that’s how organisations have built their programs, they’ll have to rethink what they’re doing.

If organisations think about some of the more commonly used unstructured feedback, such as that from the contact centre or social media, it’s important to note that this feedback isn’t solely about the contact centre or social media teams. It’s about something else. In fact, it’s usually about something that created friction in the customer experience, that was generated by another team in the organisation. For example: An incorrect bill can lead to a grumpy social media post or a faulty product can lead to a disgruntled call to the contact centre. If the feedback is only shared with the social media or contact centre team, how will the underlying issues be resolved? The frontline teams service customers, but organisations also need to fix the underlying root causes that created the friction in the first place.

And that’s why organisations need to start consolidating the feedback data and democratise it.

It’s time to break down data and organisational silos and truly start thinking about the customer. No more silos. Instead, organisations must focus on a centralised customer data repository and data democratisation to share insights with the right people at the right time.

In my next Ecosystm Insights, I will discuss some of the tech options that CX teams have. Stay tuned!

The Experience Economy
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Ensuring Ethical AI: US Federal Agencies’ New Mandate

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5/5 (3)

The White House has mandated federal agencies to conduct risk assessments on AI tools and appoint officers, including Chief Artificial Intelligence Officers (CAIOs), for oversight. This directive, led by the Office of Management and Budget (OMB), aims to modernise government AI adoption and promote responsible use. Agencies must integrate AI oversight into their core functions, ensuring safety, security, and ethical use. CAIOs will be tasked with assessing AI’s impact on civil rights and market competition. Agencies have until December 1, 2024, to address non-compliant AI uses, emphasising swift implementation.

How will this impact global AI adoption? Ecosystm analysts share their views.

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Click here to download ‘Ensuring Ethical AI: US Federal Agencies’ New Mandate’ as a PDF.

The Larger Impact: Setting a Global Benchmark

This sets a potential global benchmark for AI governance, with the U.S. leading the way in responsible AI use, inspiring other nations to follow suit. The emphasis on transparency and accountability could boost public trust in AI applications worldwide.

The appointment of CAIOs across U.S. federal agencies marks a significant shift towards ethical AI development and application. Through mandated risk management practices, such as independent evaluations and real-world testing, the government recognises AI’s profound impact on rights, safety, and societal norms.

This isn’t merely a regulatory action; it’s a foundational shift towards embedding ethical and responsible AI at the heart of government operations. The balance struck between fostering innovation and ensuring public safety and rights protection is particularly noteworthy.

This initiative reflects a deep understanding of AI’s dual-edged nature – the potential to significantly benefit society, countered by its risks.

The Larger Impact: Blueprint for Risk Management

In what is likely a world first, AI brings together technology, legal, and policy leaders in a concerted effort to put guardrails around a new technology before a major disaster materialises. These efforts span from technology firms providing a form of legal assurance for use of their products (for example Microsoft’s Customer Copyright Commitment) to parliaments ratifying AI regulatory laws (such as the EU AI Act) to the current directive of installing AI accountability in US federal agencies just in the past few months.

It is universally accepted that AI needs risk management to be responsible and acceptable – installing an accountable C-suite role is another major step of AI risk mitigation.  

This is an interesting move for three reasons:

  • The balance of innovation versus governance and risk management.
  • Accountability mandates for each agency’s use of AI in a public and transparent manner.
  • Transparency mandates regarding AI use cases and technologies, including those that may impact safety or rights.

Impact on the Private Sector: Greater Accountability

AI Governance is one of the rare occasions where government action moves faster than private sector. While the immediate pressure is now on US federal agencies (and there are 438 of them) to identify and appoint CAIOs, the announcement sends a clear signal to the private sector.

Following hot on the heels of recent AI legislation steps, it puts AI governance straight into the Boardroom. The air is getting very thin for enterprises still in denial that AI governance has advanced to strategic importance. And unlike the CFC ban in the Eighties (the Montreal protocol likely set the record for concerted global action) this time the technology providers are fully onboard.

There’s no excuse for delaying the acceleration of AI governance and establishing accountability for AI within organisations.

Impact on Tech Providers: More Engagement Opportunities

Technology vendors are poised to benefit from the medium to long-term acceleration of AI investment, especially those based in the U.S., given government agencies’ preferences for local sourcing.

In the short term, our advice to technology vendors and service partners is to actively engage with CAIOs in client agencies to identify existing AI usage in their tools and platforms, as well as algorithms implemented by consultants and service partners.

Once AI guardrails are established within agencies, tech providers and service partners can expedite investments by determining which of their platforms, tools, or capabilities comply with specific guardrails and which do not.

Impact on SE Asia: Promoting a Digital Innovation Hub

By 2030, Southeast Asia is poised to emerge as the world’s fourth-largest economy – much of that growth will be propelled by the adoption of AI and other emerging technologies.

The projected economic growth presents both challenges and opportunities, emphasizing the urgency for regional nations to enhance their AI governance frameworks and stay competitive with international standards. This initiative highlights the critical role of AI integration for private sector businesses in Southeast Asia, urging organizations to proactively address AI’s regulatory and ethical complexities. Furthermore, it has the potential to stimulate cross-border collaborations in AI governance and innovation, bridging the U.S., Southeast Asian nations, and the private sector.

It underscores the global interconnectedness of AI policy and its impact on regional economies and business practices.

By leading with a strategic approach to AI, the U.S. sets an example for Southeast Asia and the global business community to reevaluate their AI strategies, fostering a more unified and responsible global AI ecosystem.

The Risks

U.S. government agencies face the challenge of sourcing experts in  technology, legal frameworks, risk management, privacy regulations, civil rights, and security, while also identifying ongoing AI initiatives. Establishing a unified definition of AI and cataloguing processes involving ML, algorithms, or GenAI is essential, given AI’s integral role in organisational processes over the past two decades.

However, there’s a risk that focusing on AI governance may hinder adoption.

The role should prioritise establishing AI guardrails to expedite compliant initiatives while flagging those needing oversight. While these guardrails will facilitate “safe AI” investments, the documentation process could potentially delay progress.

The initiative also echoes a 20th-century mindset for a 21st-century dilemma. Hiring leaders and forming teams feel like a traditional approach. Today, organisations can increase productivity by considering AI and automation as initial solutions. Investing more time upfront to discover initiatives, set guardrails, and implement AI decision-making processes could significantly improve CAIO effectiveness from the outset.

The Future of AI
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Databases Demystified. Cloud-Based Databases

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In my previous Ecosystm Insights, I covered how to choose the right database for the success of any application or project. Often organisations select cloud-based databases for the scalability, flexibility, and cost-effectiveness.

Here’s a look at some prominent cloud-based databases and guidance on the right cloud-based database for your organisational needs.

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Click here to download ‘Databases Demystified. Cloud-Based Databases’ as a PDF.

Amazon RDS (Relational Database Service)

Pros.

Managed Service. Automates database setup, maintenance, and scaling, allowing you to focus on application development. 

Scalability. Easily scales database’s compute and storage resources with minimal downtime. 

Variety of DB Engines. Supports multiple database engines, including MySQL, PostgreSQL, MariaDB, Oracle, and SQL Server. 

Cons.

Cost. Can be expensive for larger databases or high-throughput applications. 

Complex Pricing. The pricing model can be complex to understand, with costs for storage, I/O, and data transfer. 

Google Cloud SQL

Pros.

Fully Managed. Takes care of database management tasks like replication, patch management, and backups. 

Integration. Seamlessly integrates with other GCP services, enhancing data analytics and machine learning capabilities. 

Security. Offers robust security features, including data encryption at rest and in transit. 

Cons.

Limited Customisation. Compared to managing your own database, there are limitations on configurations and fine-tuning. 

Egress Costs. Data transfer costs (especially egress) can add up if you have high data movement needs. 

Azure SQL Database

Pros.

Highly Scalable. Offers a scalable service that can dynamically adapt to your application’s needs. 

Advanced Features. Includes advanced security features, AI-based performance optimisation, and automated updates. 

Integration. Deep integration with other Azure services and Microsoft products. 

Cons. 

Learning Curve. The wide array of options and settings might be overwhelming for new users. 

Cost for High Performance. Higher-tier performance levels can become costly. 

MongoDB Atlas

Pros. 

Flexibility. Offers a flexible document database that is ideal for unstructured data. 

Global Clusters. Supports global clusters to improve access speeds for distributed applications. 

Fully Managed. Provides a fully managed service, including automated backups, patches, and security. 

Cons. 

Cost at Scale. While it offers a free tier, costs can grow significantly with larger deployments and higher performance requirements. 

Indexing Limitations. Efficient querying requires proper indexing, which can become complex as your dataset grows. 

Amazon DynamoDB

Pros. 

Serverless. Offers a serverless NoSQL database that scales automatically with your application’s demands. 

Performance. Delivers single-digit millisecond performance at any scale. 

Durability and Availability. Provides built-in security, backup, restore, and in-memory caching for internet-scale applications. 

Cons. 

Pricing Model. Pricing can be complex and expensive, especially for read/write throughput and storage. 

Learning Curve. Different from traditional SQL databases, requiring time to learn best practices for data modeling and querying. 

Selection Considerations 

Data Model Compatibility. Ensure the database supports the data model you plan to use (relational, document, key-value, etc.). 

Scalability and Performance Needs. Assess whether the database can meet your application’s scalability and performance requirements. 

Cost. Understand the pricing model and estimate monthly costs based on your expected usage. 

Security and Compliance. Check for security features and compliance with regulations relevant to your industry. 

Integration with Existing Tools. Consider how well the database integrates with your current application ecosystem and development tools. 

Vendor Lock-in. Be aware of the potential for vendor lock-in and consider the ease of migrating data to other services if needed. 

Choosing the right cloud-based database involves balancing these factors to find the best fit for your application’s requirements and your organisation’s budget and skills. 

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Securing BFSI: Strategies to Eradicate Identity Fraud

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5/5 (2)

Despite financial institutions’ unwavering efforts to safeguard their customers, scammers continually evolve to exploit advancements in technology. For example, the number of scams and cybercrimes reported to the police in Singapore increased by a staggering 49.6% to 50,376 at an estimated cost of USD 482M in 2023. GenAI represents the latest challenge to the industry, providing fraudsters with new avenues for deception.

Ecosystm research shows that BFSI organisations in Asia Pacific are spending more on technologies to authenticate customer identity and prevent fraud, than they are in their Know Your Customer (KYC) processes.

The Evolution of the Threat Landscape in BFSI

Synthetic Identity Fraud. This involves the creation of fictitious identities by combining real and fake information, distinct from traditional identity theft where personal data is stolen. These synthetic identities are then exploited to open fraudulent accounts, obtain credit, or engage in financial crimes, often evading detection due to their lack of association with real individuals. The Deloitte Centre for Financial Services predicts that synthetic identity fraud will result in USD 23B in losses by 2030. Synthetic fraud is posing significant challenges for financial institutions and law enforcement agencies, especially with the emergence of advanced technologies like GenAI being used to produce realistic documents blending genuine and false information, undermining Know Your Customer (KYC) protocols.

AI-Enhanced Phishing. Ecosystm research reveals that in Asia Pacific, 71% of customer interactions in BFSI occur across multiple digital channels, including mobile apps, emails, messaging, web chats, and conversational AI. In fact, 57% of organisations plan to further improve customer self-service capabilities to meet the demand for flexible and convenient service delivery. The proliferation of digital channels brings with it an increased risk of phishing attacks.

While these organisations continue to educate their customers on how to secure their accounts in a digital world, GenAI poses an escalating threat here as well. Phishing schemes will employ widely available LLMs to generate convincing text and even images. For many potential victims, misspellings and strangely worded appeals are the only hint that an email from their bank is not what it seems. The maturing of deepfake technology will also make it possible for malicious agents to create personalised voice and video attacks.

Identity Fraud Detection and Prevention

Although fraudsters are exploiting every new vulnerability, financial organisations also have new tools to protect their customers. Organisations should build a layered defence to prevent increasingly sophisticated attempts at fraud.

  • Behavioural analytics. Using machine learning, financial organisations can differentiate between standard activities and suspicious behaviour at the account level. Data that can be analysed includes purchase patterns, unusual transaction values, VPN use, browser choice, log-in times, and impossible travel. Anomalies can be flagged, and additional security measures initiated to stem the attack.
  • Passive authentication. Accounts can be protected even before password or biometric authentication by analysing additional data, such as phone number and IP address. This approach can be enhanced by comparing databases populated with the details of suspicious actors.
  • SIM swap detection. SMS-based MFA is vulnerable to SIM swap attacks where a customer’s phone number is transferred to the fraudster’s own device. This can be prevented by using an authenticator app rather than SMS. Alternatively, SIM swap history can be detected before sending one-time passwords (OTPs).
  • Breached password detection. Although customers are strongly discouraged to reuse passwords across sites, some inevitably will. By employing a service that maintains a database of credentials leaked during third-party breaches, it is possible to compare with active customer passwords and initiate a reset.
  • Stronger biometrics. Phone-based fingerprint recognition has helped financial organisations safeguard against fraud and simplify the authentication experience. Advances in biometrics continue with recognition for faces, retina, iris, palm print, and voice making multimodal biometric protection possible. Liveness detection will grow in importance to combat against AI-generated content.
  • Step-up validation. Authentication requirements can be differentiated according to risk level. Lower risk activities, such as balance check or internal transfer, may only require minimal authentication while higher risk ones, like international or cryptocurrency transactions may require a step up in validation. When anomalous behaviour is detected, even greater levels of security can be initiated.

Recommendations

  1. Reduce friction. While it may be tempting to implement heavy handed approaches to prevent fraud, it is also important to minimise friction in the authentication system. Frustrated users may abandon services or find risky ways to circumvent security. An effective layered defence should act in the background to prevent attackers getting close.
  2. AI Phishing Awareness. Even the savviest of customers could fall prey to advanced phishing attacks that are using GenAI. Social engineering at scale becomes increasingly more possible with each advance in AI. Monitor emerging global phishing activities and remind customers to be ever vigilant of more polished and personalised phishing attempts.
  3. Deploy an authenticator app. Consider shifting away from OTP SMS as an MFA method and implement either an authenticator app or one embedded in the financial app instead.
  4. Integrate authentication with fraud analytics. Select an authentication provider that can integrate its offering with analytics to identify fraud or unusual behaviour during account creation, log in, and transactions. The two systems should work in tandem.
  5. Take a zero-trust approach. Protecting both customers and employees is critical, particularly in the hybrid work era. Implement zero trust tools to prevent employees from falling victim to malicious attacks and minimising damage if they do.
The Resilient Enterprise
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