Tech Trends
1.8.2025

Gartner Insights: Conversational GenAI Set to Transform CX by 2025

GenAI to transform customer service by 2025, with 85% of leaders planning adoption for enhanced CX.

James Kim
CEO of Makebot AI

Customer service is on the brink of a transformative era, driven by the rise of conversational generative AI (GenAI). 

As businesses look to streamline interactions and enhance customer experiences, GenAI emerges as a game-changing tool. 

According to Gartner’s latest research, an overwhelming 85% of customer service leaders are gearing up to explore or pilot conversational GenAI solutions by 2025

This surge in adoption reflects a broader recognition of AI’s potential to redefine the landscape of customer experience (CX).

More on GenAI Adaptation here: Generative AI in E-commerce: What to Expect in 2025

What Is Driving GenAI Adoption?

Customer service functions are transitioning from being people- and process-driven to technology-focused,” notes Kim Hedlin, Senior Principal at Gartner

The survey highlights a notable trend: customer service leaders, rather than IT departments, are spearheading AI initiatives. 

Nearly half (47%) of respondents reported that their department is primarily responsible for identifying AI opportunities, compared to just 19% who view this as IT’s domain. Furthermore, 40% of leaders stated that customer service teams are responsible for road-mapping the evolution of AI activities, demonstrating their critical role in driving adoption.

Further, executive pressure is a critical driver. 

Over 75% of customer service leaders feel the mandate to implement GenAI solutions, underscoring its perceived potential to revolutionize customer interactions.

Statistics That Speak Volumes

  • 85% of customer service leaders aim to explore or pilot conversational GenAI by 2025.
  • 44% are already exploring GenAI voicebots, with 11% piloting and 5% having deployed these solutions.
  • 64% of leaders plan to enhance their technology literacy in 2025, compared to only 3% who plan to reduce this focus.
  • By 2027, Gartner predicts that 40% of all customer service issues will be fully resolved by third-party tools powered by GenAI.
  • 61% of leaders face backlogs in updating their knowledge libraries, and over one-third lack formal processes for maintaining these critical resources.

Read this also: How GenAI with LLMs are Transforming Banking & Financial Services

The Promise of GenAI in Customer Service

Conversational GenAI offers a myriad of opportunities. From streamlining interactions to delivering personalized experiences, AI-powered solutions are transforming the way organizations interact with their customers. Notable real-world applications include:

  • HotelPlanner.com uses AI booking agents to handle multilingual inquiries and complex tasks like reservations and payments.
  • Reddit’s AI feature, Reddit Answers, curates summaries and links related posts to user queries, offering seamless assistance.
  • Commonwealth Bank of Australia deploys GenAI to enhance fraud detection and proactively alert customers. The bank sends an estimated 20,000 proactive fraud alerts daily to retail customers.
  • Totaljobs Group employs GenAI-powered AI Job Search Companion to deliver empathetic and enthusiastic support to job seekers.

These examples underscore the versatility and impact of GenAI across diverse industries, improving efficiency and driving customer satisfaction.

Barriers to Success

While the potential is immense, hurdles remain. Knowledge management is a significant bottleneck. 

As Hedlin remarks, “Service and support leaders are eager to deploy conversational GenAI, but they cannot ignore existing issues with knowledge management.”

To overcome these barriers, organizations must:

  • Dedicate resources to building an AI-optimized knowledge base.
  • Foster collaboration between customer service and IT teams.
  • Commit to ongoing training to upskill leaders and frontline staff.

Furthermore, organizations must address gaps in knowledge library maintenance. 

According to the survey, 61% of leaders report a backlog of articles to edit, and over one-third lack formal processes for revising outdated materials. 

These inefficiencies can compromise the effectiveness of GenAI implementations.

More on Generative AI here: New Generations Lead the GenAI Charge in Asia-Pacific Region: A 2024 Deloitte Report

Future Implications for CX

What does the future hold? 

By 2027, Gartner predicts that 40% of customer service issues will be resolved by third-party GenAI tools, highlighting a growing shift toward self-service solutions. 

For organizations, this means investing in differentiated experiences and focusing on complex, high-value customer interactions.

Moreover, customer expectations are evolving. As consumers become accustomed to GenAI’s conversational capabilities, companies must balance efficiency with empathy—a cornerstone of exceptional CX.

A Call to Action for Leaders

For customer service leaders, the path forward is clear: embrace GenAI thoughtfully. 

As Xabi Zabala, Chief Operations Manager at HBX Group, advises, “Generative AI is not a magic wand. It must be implemented thoughtfully and safely, with a focus on augmenting human capabilities.”

To succeed, companies must prioritize:

  • Building robust and up-to-date knowledge libraries.
  • Ensuring seamless collaboration between IT and customer service teams.
  • Investing in training and technology literacy for both leaders and frontline staff.
  • Creating personalized, human-centric experiences that leverage AI’s full potential.

By addressing knowledge gaps, prioritizing collaboration, and aligning AI initiatives with human-centric values, organizations can unlock the full potential of GenAI and redefine the customer service landscape in 2025 and beyond. 

The question is: Are you ready to lead this transformation?

Take the Next Step with Makebot

From LLM to chatbots, Makebot provides cutting-edge AI solutions tailored for any industry. With over 1,000 clients and a reputation as a leader in generative AI technology, Makebot combines advanced tools and expertise to help you excel in the age of AI.

Contact Makebot today to build customized chatbots that meet your unique business needs.

📧 Email: b2b@makebot.ai

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