AI services, particularly generative AI, are not meeting enterprise expectations, according to the latest ISG Star of Excellence™ CX Insights Report. The findings indicate a decline in customer experience ratings, with GenAI receiving the lowest score among emerging technologies in 2024.

The report shows that enterprises perceive the value derived from GenAI services as insufficient relative to their costs. Specifically, GenAI achieved a customer experience score of 69.5, while the broader category of AI scored slightly better at 71.5, both lower than the average for new technologies.

ISG's managing director, Heiko Henkes, commented on the challenges faced by enterprises in harnessing AI effectively, stating that many companies did not see clear returns on AI investments this year. However, there remains a cautious optimism regarding future improvements as organizations scale AI systems and work towards stronger returns.

The report also highlights that while AI services scored below average in several key areas including cost and delivery speed, providers are still performing well across other emerging technology offerings. For instance, services related to cloud-native technologies scored higher, indicating a favorable view among clients in those sectors.

Moreover, satisfaction varied significantly by industry, with businesses in the power and utilities sector rating their providers highly, while the public sector noted a significant decrease in satisfaction. Overarching trends show a decline in ratings for larger providers, while mid-sized providers have improved, suggesting a shift in client needs and expectations.

As enterprises continue to navigate the complexities surrounding AI, the report underscores the necessity for tailored advice on effective AI strategy development and the selection of service providers as they seek to align expectations with market capabilities.