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How Intelligent Virtual Agents Will Transform Customer Experience Stephen P. Hoover CEO PARC, a Xerox Company

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Page 1: How Intelligent Virtual Agents Will Transform …opusresearch.net/wordpress/pdfs/PARC_SteveHoover_IAC2015.pdfHow Intelligent Virtual Agents Will Transform Customer Experience ... and

How Intelligent Virtual Agents Will Transform Customer Experience

Stephen P. HooverCEOPARC, a Xerox Company

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Xerox today: Engineering the Way the World Works…

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Today Xerox is Engineering the Way the World Works

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We are a diversified business services company.

We remain a leader in document management and managed print services.

And, we are also a leader across a range of business and government operational segments like customer care, healthcare services, transaction processing and transportation.

We help businesses and governments, big and small, improve the way they work to achieve better outcomes.

Xerox Today

• Clients include 90% of the Fortune 100

• Founded in 1906

• Presence in 180 countries

• Over 130,000 employees worldwide

• Annual revenue over $19 billion, more than 50% from business services

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Touching Lives Every Day

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200 millionDelivering 200 million pieces of in-store marketing materials annually

1+ billionProcessing 1+ billion claims transactions annually

2.5 millionAnswering 2.5 million customer interactions daily

12 millionProcessing over 12 million credit card applications annually

3 millionSupporting 3 million learners around the globe

1,700Supporting more than 1,700 country, federal, state and local governments

2 out of 3Touching 2 out of every 3 insured lives in the United States

$5 billionCollecting $5 billion in electronic tolls annually

60 billionManaging 60 billion printed pages per year

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PARC LEGACYA storied history of inventing the future

Xerox PARC PC - Alto WYSIWYG GUI Multi-beam lasers Blue laser

PARC, a Xerox Company

Energy

Laser printing Ethernet Programminglanguages

Ubiquitouscomputing

Electronic reusable paper

Biomedical systems

Content-centricnetworking

Printed, Flexible electronics

1970 1973 1975 1986 1997 2001 2012 2014

1971 1973 1980 1988 2000 2002 2013

Over $1 trillionnew industries

$60 billionstart-ups & spin-offs

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Successful Intelligent Agents will require more than good technology

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New models for business

Human behavior and context

Technologyexpertise & know-how

Transformational innovation requires all three

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What happens when you don’t put the person first…

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Agent Orange or Clippy? Which was worse??

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Source: Time Inc.

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So, what makes a good virtual agent?

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› It should understand:› The system› You› Context› How to interact with you naturally› How to adapt over time

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System model

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Understand how systems operate to diagnose problems and understand cause/effect and cost/benefit of actions.

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User model

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Understand the individual’s preferences and personality to provide the right help in the right way.

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Context

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Understand context including time, location, activity, and intent to provide the right help at the right time.

Where you are now (and where you are

going next)

What you are doing now (and what you

need to do next)

What assistance do you need now and when is the right

time to help

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Natural interaction that adapts over time

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Engage in a conversation that builds understanding over time, not just a series of point notifications.

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Why can we make better virtual agents now?

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The coming waves of technology changeInternet of Things: embedded and connected intelligenceMachine Intelligence: Computers that read, see, hear and act

…create new capabilities…Context Aware: Computers analyze and decideUbiquity: Everywhere, everything always on connectedMore and more the physical and digital interact in real time.

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Enabling personalized real world, real time optimization

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INDIVIDUAL

ORGANIZATION CITY

Real world, real time optimization

INDIVIDUAL

ORGANIZATION CITY

Real%world,%real%time%optimization

INDIVIDUAL

ORGANIZATION CITY

Real%world,%real%time%optimizationBUSINESS!

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Intelligent agents will transform the customer experience

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We’re seeing early examples already:

Automated customer care that learns from past successes and failures to diagnose and resolve problems.

Source: WDS, a Xerox Company

Xerox Virtual Agent

“The future is here - it is just not very evenly distributed.” - William Gibson

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Intelligent agents will transform the customer experience

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Xerox Digital Signage

We’re seeing early examples already:

MyWave puts the customer first to manage the relationship with a brand

Digital signage tailored to customer demographics, time of day, day of week, geographic location and other attributes.

“The future is here - it is just not very evenly distributed.” - William Gibson

MyWave’s Frank

Source: MyWave

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Intelligent agents will transform the customer experience

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We’re seeing early examples already:

Proactive assistants and self-healing products.

Remote configuration and updates

Intelligent devices with embedded prognostic capabilities to self-repair.

- 40% better uptime than competitive presses

“The future is here - it is just not very evenly distributed.” - William Gibson

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Intelligent agents will transform the customer experience

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We’re seeing early examples already:

Connected products that sense and adapt to our personal usage and environments.

Source: Nest

“The future is here - it is just not very evenly distributed.” - William Gibson

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The next wave in intelligent assistants:Moving from a series of point-wise interactions to collaborative task-based problem solving

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Interacting Naturally:Building understanding through conversation

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› Create a shared understanding between the system and user› Using both natural language and affect

› and a set of models that represent and understand both the state of the system and the user’s history of actions

› and that dynamically adapts & learns over time

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Automated learning with graceful failover to humans

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natural languagegeneration

natural languageunderstanding

Customerexperiencemanager

2 HUMAN ASSISTANCE

3 HUMAN FALLBACK

1 AUTOMATED

Customer Virtual agent

Pastinteractiondata

Knowledgeframe

Solutionfinder

Customermodeler

Emotionanalyzer

Customerexperienceregulator

Diagnosis

Training

CRMKnowledge basePublic data

Dialogmanager

Customermodel

Xi LearningModule

Process

Data Representation

KnowledgeAPI

Learning module

Natural language

understanding

Natural language

generation

Adapting & learning over time and happy customers

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Automated learning with graceful failover to humans

24 Xi

natural languagegeneration

natural languageunderstanding

Customerexperiencemanager

2 HUMAN ASSISTANCE

3 HUMAN FALLBACK

1 AUTOMATED

Customer Virtual agent

Pastinteractiondata

Knowledgeframe

Solutionfinder

Customermodeler

Emotionanalyzer

Customerexperienceregulator

Diagnosis

Training

CRMKnowledge basePublic data

Dialogmanager

Customermodel

Xi LearningModule

Process

Data Representation

KnowledgeAPI

Learning module

Natural language

understanding

Natural language

generation

Adapting & learning over time and happy customers

Facebook M

Interactions ™ Human Assisted Understanding

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Comfortable (20.3%)

Comfortable, but only if the data stays with my supplier (14.9%)

A bit nervous (16.4%)

I actively avoid sharing my data (18.5%)

I am concerned about the use of my data (30.0%)

Interacting Naturally: Building trust and respecting privacy

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› “How comfortable are you with your suppliers using the data they have about you to communicate and adapt their products and services to you?”

Source: Preview data from “The State of Customer Service 2015, Xerox.”

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Interacting Naturally: Building trust and respecting privacy

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› Use conversation to build trust, where users reveal more personal information over time as they get more value.

I’m not at home

Can you share your current location?

I’m at the corner of 49th and Lexington in New York

OK. We have had intermittent network issues in that area …

Hello. This is the Xerox Virtual Agent. How can I help you today?

I can’t access the web from my phone

It may be a cellular network issue, but let’s be sure. Can you access the

web from your home network?

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Understanding Context: Preserving your privacy by performing analytics on encrypted data

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› Developing new analytical techniques that can operate on encrypted data to create privacy preserving analytics

PARC’s model for future privacy technologies

Security and Privacy Tools

Applications

Methods

Privacy-Preserving

Search

Disclosure Control

Similarity

Data Quality Assessment

Clustering

Private Cyber Threat Mitigation

SearchAggregate Sorting

EncryptionAnonymizationLocality

Sensitive Hashing

Secure Multiparty

Computation

...

...

...

Automated System DataPrivacy

Policy

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Summary: What is the next wave in intelligent assistants?

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› An intelligent agent that works with you in collaborative task-based problem solving and understands:› The system› You› Context› How to interact with you naturally› How to adapt over time

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“The future is already here — it's just not very evenly distributed”

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› But our job is not yet done, we need to continue to develop› Technologies and user interaction models for collaborative task-based problem solving

› Human augmented computational cognition

› New ways to build trust with users

› Create analytics and contextual awareness models that preserve privacy

› We can see intelligent agents in a variety of ways

Intelligent devices with embedded prognostic capabilities to self-repair.

Learning from humansXerox Virtual Agent

Intelligent agent based productsNest Thermostat

Proactive assistants and self-healing products.Xerox Digital Press

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©2015 Xerox Corporation. All rights reserved. Xerox® and Xerox Design® are trademarks of Xerox Corporation in the United States and/or other countries. BR16044