Everest Group Survey: Majority of Businesses Consider Outsourcing Generative AI Development Amid Concerns Over Data Security, Privacy and Regulatory Compliance

Many companies are in the process of reviewing their first quarter results, and leaders are particularly focused on innovative ways to enhance customer experience (CX) through generative AI (GenAI) technology while balancing the need for return on their investment. Insights from a survey by Everest Group, supported by TELUS International (NYSE and TSX: TIXT), reveal several trends across industries: nearly half (47%) of the surveyed CX leaders across banking, financial services and insurance (BFSI), telco and media, healthcare, retail and travel industries said that non-voice customer support channels will be a key deployment area for GenAI in the next six to 12 months.

However, many enterprises have been hesitant to move their GenAI applications from pilot to production. Data security and privacy, exposure risks and regulatory compliance are among the top worries, along with accuracy, fairness and bias. Each of these challenges carry ethical, legal and reputational risks. To help mitigate these issues, a substantial 76% are considering outsourcing their GenAI development to specialist third-party firms.

“Enterprises are confronting a trust gap around generative AI. That is why so many projects are getting stuck in the pilot stage and are not moving to production,” said Tobias Dengel, President of WillowTree, a TELUS International Company. “At WillowTree, we’ve helped large companies overcome the trust gap by customizing AI governance frameworks, introducing tools to address concerns about AI safety and security, and helping quickly build out generative AI enabled applications that deliver immediate value. By merging our deep CX expertise with the latest AI technologies, we keep 'humans in the loop' as GenAI programs roll out to users. Our clients have deployed both internal and public-facing generative AI solutions at scale by embracing an approach that tackles the core use case requirements while also attending to critical enterprise needs around performance, trust and safety.”

WillowTree was recognized as a notable provider in Forrester’s The Innovation Consulting Services Landscape for Q1 2024. The company’s GenAI Jumpstart Accelerator, part of its recently released Fuel iX beta program, supports scalable AI deployments, enabling seamless integration across enterprise systems. WillowTree utilizes a human-centered, systematic approach to assess and prioritize AI-specific risks, converting these into user and technical requirements that influence product roadmaps and architectures. The framework is rooted in the National Institute of Standards and Technology’s (NIST) Trustworthy AI Characteristics, which are operationalized to enable teams to proceed with greater confidence and a keen appreciation of the contexts and individuals impacted by the technology.

Companies across various sectors are recognizing the value of this approach to GenAI, particularly those in highly regulated industries. A premier consumer financial services company in the U.S. recently enlisted the expertise of WillowTree to establish an AI Center of Excellence. Deliverables included a modular architecture with swappable components and large language model (LLM) sandboxes and “starter kits” to support AI ideation, innovation and experimentation, along with a safe deployment methodology covering model tuning, security testing and UX design. This dedicated hub was developed by engaging various teams from across the business to ensure the resulting guidelines and tools reflected their diverse needs and perspectives, and fostered deeper understanding and engagement.

“For many buyers of AI technology, the solutions are like a 'black box'—a place where decisions are made out of sight,” said Dengel. “This means buyers really have to trust their solution builders. Choosing a partner with technical expertise is critical, but it’s just the starting point when you consider how complex the environment is in which we operate. To truly succeed as a market front runner, and to do so on a sustainable basis, that expertise needs to be combined with a commitment to responsible deployment.”

About WillowTree, a TELUS International Company

WillowTree, a TELUS International Company, is a digital experience consultancy partnering with the world’s most customer-centric brands to tackle their thorniest challenges. The company designs and builds mobile apps and websites, launches personalized and automated marketing campaigns, and deploys the latest in Generative AI and machine learning. WillowTree staffs small, elite teams to minimize the time from idea to code and concept to campaign — all with a relentless focus on ROI. Founded in 2008, WillowTree has a team of 1,000+ strategists, designers, engineers, and data scientists across the globe. Discover more about WillowTree, a TELUS International Company, and its suite of services at: www.willowtreeapps.com.

About TELUS International

TELUS International (NYSE & TSX: TIXT) designs, builds and delivers next-generation digital solutions to enhance the customer experience (CX) for global and disruptive brands. The company’s services support the full lifecycle of its clients’ digital transformation journeys, enabling them to more quickly embrace next-generation digital technologies to deliver better business outcomes. TELUS International’s integrated solutions span digital strategy, innovation, consulting and design, IT lifecycle including managed solutions, intelligent automation and end-to-end AI data solutions including computer vision capabilities, as well as omnichannel CX and trust and safety solutions including content moderation. Fueling all stages of company growth, TELUS International partners with brands across high growth industry verticals, including tech and games, communications and media, eCommerce and fintech, healthcare, and travel and hospitality.

TELUS International’s unique caring culture promotes diversity and inclusivity through its policies, team member resource groups and workshops, and equal employment opportunity hiring practices across the regions where it operates. The company is building stronger communities and helping those in need through large-scale volunteer events that have positively impacted the lives of more than 150,000 citizens around the world and through its five TELUS International Community Boards that have provided $5.6 million in funding to grassroots charitable organizations since 2015. Learn more at: www.telusinternational.com.

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