A new report highlights an estimated $860 billion opportunity AI presents in customer experience across industries, including $100 billion for insurance, while also revealing that most senior executives are reluctant to adopt AI.

The $860 billion AI customer experience value comes from three primary areas, according to the report published by Qualtrics, a provider of customer experience management platforms and advanced CX AI.

1. Increased workforce productivity, such as by automating routine tasks, contributes an estimated $420 billion.
2. Accelerated top-line growth adds $260 billion.
3. Streamlined processes, such as automatically solving customer issues save organizations $180 billion annually.

The report attributed these AI opportunity estimates to McKinsey research on AI experience to value.

At an industry level, the biggest gains are in business and professional services ($150 billion), consumer retail and retail banking (both $100 billion), commercial insurance ($70 billion), and small business banking, clinical care and hotels (all $60 billion), the report says. In addition to commercial (B2B) insurance, the report includes a $30 billion estimate for retail (B2B) insurance.

A survey portion of the report reveals that while three-quarters (72 percent) of executives say AI will significantly change how they approach customer experience over the next three years, few are willing to lead the charge.

Only 15 percent of executives aspire to be at the forefront of how AI changes the business landscape, the report noted.

Organizations investing in customer experience are already gaining market share that could prove significant. Market leaders are more than twice as likely to have made improving experiences a greater priority over the past three years compared with their peers, the Qualtrics report stated.

“Companies that deliver great experiences build deeper relationships with their customers, and AI is transforming these interactions, going beyond measuring experiences to closing the loop with customers in the moment to make every connection count,” said Qualtrics CEO Zig Serafin in a media statement. “Qualtrics AI is already helping organizations respond and deliver personalized, proactive and empathetic experiences that increase loyalty, boost employee engagement, and drive greater business insights and opportunities.”

Executives expect AI to directly enhance customer experiences. They anticipate it will have the greatest impact on improving product quality and delivery (45 percent), enhancing customer support (44 percent), personalizing experiences and enabling more empathy in engagements (both 39 percent).

Almost half of executives (42 percent) expect to see a significant measurable impact within two years of implementing AI to improve experiences. An additional 42 percent expect to see impact in three to five years, the report added.

The key to a successful AI rollout is having an organization-wide strategy under centralized leadership, rather than running disparate programs, Qualtrics recommended.

While 89 percent of executives report having at least one AI initiative underway, just 12 percent of executives have this strategy. Market leaders stand out as they are 2.3 times more likely to take this path compared with more stagnant companies.

To overcome this challenge, the report identifies seven key actions to realize the value of AI in customer experience organizations must take:

1. Set AI ambition and value strategy to decide where to invest in AI.
2. Establish risk and ethics guidelines for responsible and compliant AI use.
3. Create the technology and data foundation to evolve and grow with AI technology.
4. Design AI organization and governance team to oversee company-wide implementation.
5. Launch high-impact priority use cases to build momentum for expanded implementation.
6. Develop the talent strategy with employee training.
7. Lead the cultural shift of embracing AI as a core enabler of customer experience.

The global executive study conducted by Qualtrics XM Institute in the fourth quarter of 2024, collected data from 1,501 executives from companies with 1,000 or more employees.