EdTech Insight – The evolution of customer care: AI and the Gen Z effect

by | Jul 8, 2024 | McKinsey, News & Insights

Executive Summary and Main Points

In this rapidly evolving era, Gen Z’s entry into the market as consumers and workforce members heralds a shift in customer service demands. Generative AI (gen AI) has emerged as a transformative agent in customer care within contact centers. Conversations with McKinsey partners highlight the integration of gen AI into business operations to improve efficiency, enhance customer experience, and potentially revolutionize contact centers with sophisticated, empathetic virtual assistance. Leaders are urged to embrace strategic, courageous planning to capitalize on these technologies, creating customer service that excels during critical moments and streamlines the customer journey.

Potential Impact in the Education Sector

The discussed innovations have profound implications for Further Education, Higher Education, and Micro-credentials. Streamlining customer service through gen AI could enable institutions to manage student inquiries more effectively, employ AI-driven advising systems, and integrate sales functions, such as for course enrollment or additional services. Partnerships between educational institutions and tech providers may lead to the sharing of best practices and efficient resource allocation. Digitalization is paramount for adapting to the expectations of Gen Z students who are digitally-native and demand responsive, personalized experiences.

Potential Applicability in the Education Sector

Educational institutes can leverage gen AI to deliver tailored student support and services, thus enriching the learning experience. AI-powered virtual teaching assistants could provide instant responses to academic queries, while AI in admissions and student services can handle routine queries, freeing personnel to address more complex cases. Furthermore, incorporating gen AI into learning analytics can track student performance, thus enabling proactive interventions. Digital tools that support an omnichannel experience could be employed, ensuring consistency across platforms, in line with Gen Z’s blended reality.

Criticism and Potential Shortfalls

While promising, the use of gen AI and digital transformation in contact centers faces scrutiny. Real-world cases exhibit slow adaptation rates and a hesitance to fully replace human interactions with AI, suggesting an overestimation of AI’s readiness to handle complex service scenarios. Additionally, the ethical implications of recording and analyzing customer interactions demand consideration, emphasizing the need to maintain data privacy. Cultural implications also play a significant role, as educational institutions globally must navigate diverse student expectations and communication norms.

Actionable Recommendations

To leverage these technologies, institutions should integrate gen AI at scale, with rigorous privacy protocols, to offer student-centered services. Leaders in international education could establish pilot programs to test AI chatbots and virtual agents, focusing on user feedback and continuous improvement. Mentorship in digital literacy, strategic partnerships between EdTech companies and educational entities, and faculty upskilling initiatives are essential to effectively navigate this transformation. Lastly, to address the blended reality of Gen Z, investing in a seamless, omnichannel communication system that mirrors their digital proficiency is recommended.

Source article: https://www.mckinsey.com/capabilities/operations/our-insights/the-evolution-of-customer-care-ai-and-the-gen-z-effect