The impact of AI on customer expectations and business models

At Valtech, we empower our clients to leverage Experience Innovation — driven by data and AI — to generate new pathways for growth. This holistic transformation is fueled by adopting innovative technologies, rethinking business models and crafting better customer experiences.

The shift in business paradigms

The introduction of AI is shifting the focus from incremental technological improvements to disruptive innovations. Businesses must now rethink their entire approach — from traditional tech stacks to a comprehensive overhaul of business processes. This shift demands a transition from merely consulting for future business strategies to actively helping clients build capabilities at speed and scale.

Established benchmarks are being replaced with a mindset that challenges the status quo. Clients increasingly desire actionable deliverables that provide measurable outcomes rather than mere hours of consultancy time. The consulting industry must evolve from selling time to selling outcomes.

Emerging business models in consulting

Several pioneering consulting models are emerging in this new landscape that reshape the way services are delivered:

1. Consulting-as-a-service: This new model offers on-demand, subscription-based access to consulting services, where value is derived from outcomes rather than benefits. It creates a continuous relationship between consultants and clients, allowing for agile responses to market needs.

2. Embedded AI in consulting: The role of AI in consulting is becoming increasingly crucial, enabling enhanced analysis of customer data and real-time tracking of performance metrics. This allows for the generation of actionable recommendations and automated delivery of certain aspects of consulting, making services more efficient and impactful.

3. Hybrid models: These include self-service consulting platforms where clients can access tools and resources independently, along with expert support embedded within clients' business tools. Payment structures are evolving to focus on the value or impact generated, rather than traditional billing methods.

4. Strategic cross-skills: Successful consulting now requires a blend of intelligence, integration and impact. Consultants must quickly understand client needs, integrate advice into their processes and deliver measurable results. Hybrid micro-teams focused on delivery are becoming essential for achieving these goals.

Bridging the expectation gap

As AI becomes more prevalent, businesses face a growing disparity between client expectations and actual deliverables. Many clients enter the AI space with high hopes for rapid results and significant cost reductions, often overlooking the foundational changes necessary for successful implementation. 

Organizations must manage these expectations realistically, providing clear guidance and setting achievable goals. Clients may expect immediate benefits from AI investments but must understand that AI is a catalyst for broader transformation, requiring cultural shifts and process reengineering.

Personalization at scale

AI's ability to create personalized customer experiences at scale is a significant driver in shaping customer expectations. Consumers today expect tailored interactions that resonate with their individual preferences. For example, in collaboration with a luxury brand, we harnessed generative AI to produce high-quality 3D product images, dramatically reducing production time from weeks to hours while maintaining artistic integrity. This capability not only improved operational efficiency but also enhanced customer satisfaction by delivering engaging content swiftly.

Real-world applications: Lexus case study

We teamed up with Lexus to develop an interactive car configuration module that allows customers to ask specific questions and receive instant, tailored responses. This AI-driven solution not only enriched the purchasing experience but also led to engagement improvements of 30% to 50%, significantly boosting conversion rates.

By breaking down internal silos and integrating AI across various customer touchpoints, Lexus transformed the way customers interact with the brand, fostering loyalty through enhanced experiences.

Rethinking value in consulting

As the consulting landscape evolves, traditional billing models based on hourly rates are becoming obsolete. The focus must shift to value creation, where compensation aligns with the impact delivered to clients. For example, one of our optimization projects in the luxury sector generated millions in savings within days, by challenging conventional pricing structures and emphasizing the need for a value-centric approach.

Building trust through transparency

In a climate where clients are increasingly skeptical about the value of consulting, establishing transparent communication and realistic benchmarks is vital. We prioritize setting measurable goals and regularly reporting on progress. By providing data-driven insights, we foster a collaborative environment that builds trust and empowers clients to make informed decisions about their AI initiatives.

Innovation at the forefront

AI presents unparalleled opportunities to enhance customer experiences and revolutionize business models across industries. But organizations must approach AI integration with a clear understanding of client expectations and a commitment to innovation. 

As we continue to explore the potential of AI, it is imperative that businesses view this technology not just as a tool, but as a transformative force capable of redefining engagement with customers and reshaping the operational landscape. By prioritizing Experience Innovation, powered by data and AI, companies can position themselves for sustained success in the digital age.