Why AI is the Differentiator in Today’s Experience Market

Experience is everything. From what we buy to where we work, everyone is looking for a more intuitive, personalized experience around everything we do. The best user experiences feel effortless and provide instant recommendations that give us what we want without having to spend precious time providing our preferences. Think of a light, data-rich experience that leads you where you need to go, gives you something you didn’t know you needed, or connects you to the solution you were looking for.

While everyone is familiar with the experience, not everyone understands what works behind the scenes to make it possible: artificial intelligence (AI).

Artificial intelligence is the oxygen that breathes life into these extraordinary user experiences.

Why do I say AI is oxygen? Because in all those cases the AI ​​is invisible – and that’s how you know it works. AI uses the data every day based on user preferences and turns it into compelling experiences.

All organizations exist in an experience market. When it comes to talent, everyone vies to provide an experience that attracts the best-fit candidates and retains employees. Smart companies understand that combining AI with humans is the winning combination to deliver great experiences.

People want personalization

In the past, we thought of personalization as a “nice to have” feature – a touch as simple as getting the customer’s name in a marketing email. But as the pandemic accelerated digital transformation, so did user expectations.

Faced with more and more digital interactions, users encountered many obstacles: hard-to-navigate sites, incomplete contact pages, and frustrating support processes. They told us loud and clear that instead of a clunky, one-size-fits-none experience, they expect relevant recommendations, customized interactions, and tailored messaging that reflects what interests them or applies to them.

According to McKinsey’s “Next in Personalization 2021report, 7 in 10 consumers expect companies to offer personalized interactions, with 76% expressing frustration when those interactions don’t deliver. Companies given the right personalization found that 3 in 4 users make a purchase – the same percentage is likely to repurchase products or services and recommend the company to others.

While personalization leads to an average revenue increase of 10 to 15%, data-centric companies saw revenue growth of almost 25%. Those higher-performing companies shared several personalization-focused qualities, including flexible business models and AI-driven decision-making.

Talent recruitment is all about delivering relevant job recommendations and content based on a candidate’s preferences and background, including skills and geographic location. The faster employers can provide job opportunities that suit every job seeker, the more likely they are to apply. For talent management, it enables employees to develop their skills and identify new opportunities and career paths for internal mobility within their organization.

Data makes for better experiences

Companies already have the key ingredient needed to build hyper-personalized experiences: data. They’re just not using it to the fullest, according to Phenom’s Sixth Annual State of Candidate Experience report. This annual benchmark report audits candidate experience at Fortune 500 companies to evaluate each organization’s career site experience and the use of AI in recruiting.

The vast majority (88%) of Fortune 500 career sites did not present job recommendations based on browsing history or a created profile. In other words, nearly all job seekers who volunteered to provide background information and set up accounts on a company’s career site saw no improvement in their experience.

In addition, only 10% of companies had an intuitive search and application process, while 87% did not use a recruiting chatbot on their career site to facilitate self-service, although most users prefers to solve problems independently.

The bottom line is this: users entrust organizations with their data about behavior and preferences, but companies don’t act as good stewards of that information, and they miss crucial opportunities to deliver personalized experiences that stand out.

Continuous Improvement Strategy

By adding intelligence to talent data sources rather than relying solely on periodic, quantitative surveys with rigid questions, organizations can quickly collect better feedback and customize their candidate experience in real time. This continuous improvement strategy is one of many ways companies can use experience-driven AI to differentiate themselves from the competition.

It’s time for companies to apply the benefits of AI to the candidate experience, leveraging the lessons learned from successful personalized consumer experiences. More than 1,000 executives who responded to PwC’s Annual AI Survey said they have increased their company’s investment in AI. Organizations already on board with AI cited a better customer experience as the biggest benefit of their investment, followed by improved decision making, product innovation, cost savings and increased productivity.

Automation and personalization through AI provide candidates with the same experience and match the high expectations that arise from their day-to-day interactions with online retail and streaming brands. Automation and AI also have dramatic positive outcomes for recruiting teams that can automate mundane tasks, allowing them to focus on tasks that AI isn’t good at.

Companies will thrive or fail based on the experiences they deliver to their key stakeholders, including candidates, employees, recruiters, and hiring managers. Job seekers remember their experience during the job search and hiring process – and it can make or break their decision to apply and join a company. AI provides the personalization needed to deliver a smoother, better experience.

Mahe Bayireddi is CEO of Phenom