Arms race: The transition towards AI-powered communication is not without its challenges. Increasing customer expectations, combined with rapid advances in technology, mean that brands must constantly innovate to keep up. "It's almost like an arms race," says Lewis. "One brand introduces a new feature, and then all the others feel the need to catch up. Customers are starting to expect these advancements, so if a brand doesn't offer AI-powered live chat or personalized recommendations, it risks falling behind."

Conversational commerce: Lewis also highlights that shopping trends are venturing towards ‘conversational commerce’, an online shopping shift that leverages messaging apps, chatbots, and voice assistants to assist customers in making purchases. "The younger generation is shopping more socially, often via platforms like TikTok, and they don’t use email as much. So now, brands are leveraging SMS and other direct messaging services to engage with customers where they're most active," he explains. This shift toward more conversational commerce requires brands to strike a balance between scaling their outreach while still maintaining authentic, personalized interactions.

AI displacement: The impact of AI isn't confined to customer engagement alone. Internally, companies are using AI to streamline operations and reduce the need for large teams. "We don't need as many people to do the same amount of work," Lewis notes. "Our team can scale with AI, and we've seen clients reduce their headcounts while achieving more." While this trend is beneficial for companies' bottom lines, Lewis anticipates it could lead to job displacement. "AI tools are so effective that businesses no longer need excess employees, which could lead to unemployment, but new industries will emerge to absorb that workforce," he explains.