Reggie Scales on AI, Cloud Communications & the Future of CX

1. Reggie, you’ve been at the forefront of cloud communications evolution. What pivotal inflection points have defined your leadership and industry outlook ?

Working in the tech and communications space for nearly three decades, I’ve seen my share of industry shifts, but two, in particular, stand out. The first, of course, is just the rapid adoption and evolution of cloud computing and its impact on how we access and share information. Initially, companies embraced cloud strategies primarily to reduce costs. However, the focus has since shifted towards more strategic benefits, including enhanced innovation agility, global customer reach, business continuity, and overall risk mitigation. We now see organizations investing in multi-cloud and hybrid-cloud environments, alongside cloud-native services like serverless architectures.

The second inflection point is the remarkable growth of AI and its use across organizations, especially in customer engagement. The technology is enabling incredible efficiencies and personalization. And our recent Global Customer Engagement Report (GCER) found a sustained rise in both the comfort with, and adoption of, AI-powered interactions within businesses. Even more interesting is the increasing consumer acceptance - and expectation - of personalized experiences and customized solutions through the power of AI. 

These inflection points have reminded me just how quickly technology evolves and the importance of continued evolution and innovation both as a company and as a leader.

2. AI and automation are redefining enterprise communication. What’s the most disruptive paradigm shift you foresee, and what’s the biggest barrier to adoption ?

No doubt AI has greatly impacted the way businesses communicate today, both internally and externally with their customers. I think the biggest shift we’re seeing, in line with our recent GCER, is that users have come to expect an element of AI to be implemented across all communications channels, whether text, voice, video, or others, so that they can achieve more personalized and efficient engagement on their channel of choice. Preference for AI-supported communication varies, with a third (32%) of consumers suggesting they’ll increase chatbot usage over the next 6-12 months (up from just 23% the year prior), just over a quarter (26%) suggesting they’ll increase voice personal assistant usage over the next 6-12 months (up from 22% the year prior), and 25% suggest they’ll increase automated phone support in the next 6-12 months (up from 21% the year prior). In terms of barriers to adoption, ensuring the technology is seamlessly integrated across these channels can be a challenge and if not done correctly, can greatly impact brand perception. Our report shows that just one bad experience would drive 75% of customers to take their business elsewhere and nearly half (48%) would leave for good after one or two bad experiences.

3. Security, compliance, and innovation often operate in silos. How can enterprises architect a framework that seamlessly integrates all three without trade-offs ?

Organizations cannot successfully innovate in today’s world without considering security and compliance. A ‘cloud-smart’ approach, which involves balancing innovation with a robust governance framework, is the smartest way to balance all three priorities. This means investing in solutions that optimize cloud costs and implementing comprehensive security measures from the outset in line with rapidly evolving regulatory standards. Additionally, adopting a Zero Trust security model is important in ensuring only verified users can access information, which is especially important when it comes to AI being used to analyze behavior and make real-time access decisions. All of this is essential to staying ahead of security and cost management challenges. 

4. Customer experience is now a key differentiator. What’s the secret to building frictionless, hyper-personalized engagement at scale ?

Building frictionless, hyper-personalized engagement at scale lies in carefully integrating comprehensive data strategies with advanced technology. The first step here is to ensure transparency in how data is being used, giving customers the chance to opt-out. From there, businesses can leverage opted-in customer data to develop a deeper understanding of individual preferences and behaviors. Utilizing technologies such as AI and machine learning allows companies to analyze this data effectively, automating the personalization process while providing real-time, contextually relevant interactions.

Additionally, creating a seamless customer journey requires a robust omnichannel strategy that integrates all communication platforms into a cohesive system. By ensuring consistency and continuity across every channel, businesses can provide a unified experience that adapts to the customer’s needs at any given moment. Continuous feedback loops and customer insights are vital in iterating and refining these strategies to meet evolving customer expectations, ultimately fostering loyalty and enhancing overall satisfaction. When customers interact with an automated system, AI can perform real-time sentiment analysis, enabling the system to escalate a call and route to the appropriate live agent when necessary. When agents receive the customer, they can also access AI-generated insights, allowing them to more quickly address and resolve customer concerns, leading to increased loyalty. 

5.With hybrid and remote work now mainstream, what’s the essential tech stack for enabling seamless, high-fidelity collaboration across distributed teams ?

In today’s hybrid and remote work environment, a thoughtfully designed tech stack is crucial for maintaining seamless collaboration. Implementing a unified communications platform helps integrate various communication channels into a single, accessible interface. For real-time collaboration, video conferencing with advanced features like screen sharing and recording capabilities is essential, alongside instant messaging platforms that facilitate quick exchanges and provide presence indicators. Our GCER found that 77% of consumers use video chat and call platforms and 91% use some kind of messaging platform, so this technology is helpful both internally and externally when communicating with both colleagues and customers. 

6. AI-powered automation is streamlining workflows, but no one wants to engage with a bot that feels transactional. How do companies strike the right balance between efficiency and authenticity ?

AI-powered automation is reshaping customer service, but striking the right balance between efficiency and authenticity remains critical. Our GCER reveals that after a negative experience, 75% of customers are likely to take their business elsewhere, and 48% need only one or two poor interactions before leaving for good. This underscores why AI-powered communication must be precise while maintaining human touchpoints. AI chatbots are evolving as essential customer service components, not to replace human agents but to enhance their capabilities. We see AI managing an increasing share of routine tasks, freeing human agents to focus on complex scenarios requiring empathy, creativity, and nuanced problem-solving. Industries like retail and finance already utilize AI for personalized support, a trend rapidly increasing with advances in generative AI and large language models. The optimal approach combines AI's efficiency with human emotional intelligence. Rather than positioning AI against humans, successful companies view AI as a tool that empowers staff to deliver exceptional, authentic customer experiences while handling higher volume interactions efficiently.

7.  Delivering seamless omnichannel experiences is the gold standard, yet many companies still struggle with fragmentation. Where do most go wrong, and how can they fix it?

Many companies struggle with delivering seamless omnichannel experiences due to a lack of integration across multiple customer touchpoints, resulting in a fragmented customer journey. This usually stems from disparate systems and data silos that prevent a whole view of the customer. Companies frequently fail to align their communication channels, focusing on individual channel optimization rather than a holistic strategy.  

To address these issues, businesses can prioritize integrating communication channels and systems by adopting an integrated, single platform approach to their communications solutions. As providers, we need to simplify multi channel availability. At Vonage, we’ve taken the one platform approach. We want it to be less about the solution and more about the capabilities - one intelligent platform that does it all.

A single-platform approach eliminates silos, improves efficiency, and enhances the overall user experience. By incorporating AI-driven automation, virtual agents, and intelligent call routing, a fully integrated UC and CC solution - for example - empowers businesses to optimize customer interactions while reducing operational complexity and costs.

8. If you had to place a bet on one emerging technology that will be the next big disruptor in cloud communication, what would it be and why ?

The rapid evolution of AI in the contact center continues and we’ll continue to see AI take more of a front seat in how agents work, augmenting the human touch with more authentic and autonomous AI-powered actions. 

Agentic AI and Knowledge-based AI - these emerging technologies operate autonomously, enabling end-to-end problem-solving teams and workflows. Designed to work like a human employee, Agentic AI will enhance CX with virtual agents that have the ability to make decisions, learn, and act autonomously - but the ability to switch to a live agent when needed will be critical. Finding that balance between technology and the human touch is still going to be very important.