Increased use of predictive AI by Philippine firms seen

PHILIPPINE brands are expected to increase their use of predictive artificial intelligence (AI) this year to simulate human engagement and leverage consumer trust, according to customer engagement platform Twilio.

In a statement, it said “2025 will mark a turning point in front-line communications as the focus shifts towards eliminating friction in such chatbot engagements.”

This year, brands will go beyond conversational AI platforms, which can already identify user intent and mimick the nuances of human conversations to solve customer issues, it said.

“Beyond conversational AI, brands are also realizing the potential of intelligent AI agents that can offer or upsell products and services, take action on customer issues, make decisions within constraints and operate across communication channels,” it said.

AI bots will go beyond chat windows this year, Twilio said.

It is expected to have a more in-depth understanding of consumer preferences through data collected over time, such as past purchases and previous customer issues.

This would allow bots to tailor their communication style to a specific context, Twilio said.

“The holy grail is to make these AI agents invisible yet highly effective, creating a customer service experience that feels natural, effortless, and trusted,” it added.

“Contextual data can help turn this into reality, empowering AI agents to better anticipate consumer needs, resolve issues quickly, and eliminate the hassle of requiring customers to repeat themselves.”

For 2025, brands’ chatbots are also expected to advance their communication abilities, with AI driving the “ecosystem of trust” with customers.

“Brands will increasingly bet on predictive AI as they strive to eliminate guesswork, refine recommendations and improve communications, ultimately strengthening brand-customer interactions,” Twilio said.

About 56% of consumers in the Asia-Pacific region said they would not buy from a brand they don’t trust, according to Twilio’s 2024 Consumer Preferences Report.

More brands are also expected to rely on chief trust officers to help build lasting customer relationships.

To retain buyers, Philippine brands are also seen turning away from “earn-and-burn” models, such as loyalty programs focused on discounts and cashbacks. 

“Instead, brands will shift towards creating experiences that surprise and delight customers, making them feel valued as their individual preferences and behavior are taken into account.”

About 57% of Filipino consumers said they are likely to spend more on brands that deliver personalized experiences, Twilio said, citing its 2024 State of Customer Engagement Report.

Companies are expected to strengthen “phygital” loyalty programs by combining in-store and online offers for loyal customers. Data will also be used to streamline checkouts and reward redemptions, it added.

The customer engagement platform also projects a shift from traditional user verification practices to protect customer data.

This would be driven by the emergence of new messaging protocols like rich communication services, silent network authentication and passkeys, Twilio said.

Brands are also likely to retain only critical customer data, such as their e-mails, phone numbers and names, while allowing temporary or unnecessary data to expire.

“They (brands) recognize the risks of holding excess data while customers grow more protective of their personal information,” according to Twilio.

Data will also be aligned across organizations’ marketing, sales, and customer service units to ensure smarter, more personalized marketing, it added. — Beatriz Marie D. Cruz