MSMEs urged to embrace AI for enhanced customer experience

Micro, Small, and Medium Enterprises (MSMEs) have been urged to prioritise customer experience by adopting artificial intelligence (AI)-powered solutions to track customer data, streamline operations, and boost client satisfaction.

Speaking at the Institute of Customer Experience (ICX) CEOs Forum in Nairobi on Wednesday, ICX Chairperson Joseph Choge emphasised that customer satisfaction is a defining factor in business performance.

“Businesses cannot remain sustainable or profitable without making customer expectations a core part of their operations.

AI and technology now make it easier to track and follow up on customer data,” Choge said.

According to ICX research, 73 per cent of consumers consider customer experience a key factor in their purchasing decisions, yet only 49 per cent of businesses prioritise it as a competitive strategy.

“This gap represents both our greatest challenge and our biggest opportunity for growth,” Choge added.

“Leaders must engage with on-the-ground realities to truly understand their customers and foster a culture that drives exceptional customer experiences.”

The forum’s discussions focused on reshaping customer engagement models for Kenyan companies, with ICX positioning itself as a key player in advancing service excellence across Africa.

AI offers MSMEs transformative tools for better decision-making, operational efficiency, increased employability, and employee empowerment.

Through ICX’s training initiatives, MSMEs are learning to harness AI for advanced data analysis, moving beyond traditional record-keeping to gain insights into customer preferences, market trends, and behavioural patterns. This also enables easier tracking of cash flow and optimised investment strategies.

“AI creates a space where we can analyse income data and optimise investments, providing a simple and accurate way to manage pensions,” said Sundeep Raichura, CEO of Zamara Actuaries.

ICX recognised Java, M-Pesa, and Discovery Insurance as leading African brands for their innovative use of technology in customer engagement.

As the backbone of Kenya’s economy, MSMEs account for over 90 per cent of private-sector enterprises and are increasingly vital to national development through a decentralised model.

According to the government’s economic transformation initiative, MSMEs are key drivers of employment and livelihood opportunities, particularly for marginalised groups.