In an interaction with ET Digital, Ostojic explains how fast adoption of AI would give rise to new opportunities due to the evolving technological landscape. He also says that AI enables businesses to create highly automated customer journeys, and streamline interactions and operations. Edited excerpts:
Economic Times (ET): How is AI changing the dynamics of the global technology space?
Ivan Ostojic (IO): The utilisation of AI technologies has been increasing, but it has not been applied at a scale to generate significant economic productivity. While AI has found application in certain domains, it has not fully transformed companies or led to widespread automation.
With generative AI, coupled with the advancement in large language models, we now have a tool that can have a massive impact on automation in specific areas. Language is a powerful tool, and the capability of AI technology to converse like a human can lead to significant business impact and enhance productivity. A noteworthy example of this lies in an Indian company that achieved remarkable results in customer service by leveraging AI, resulting in a tenfold decrease in resolution time. Similarly, the application of conversational AI is exemplified by Uber India, where Infobip deployed a chatbot on WhatsApp enabling users to book cabs directly from the chat app, substantially improving customer experience.
ET: Should humans worry that AI and ChatGPT will take away jobs?
IO: It’s important to acknowledge that the emergence of AI will make certain job roles obsolete, reshape how other jobs are being done, and open up new job opportunities that require unique human skills. Individuals possessing AI knowledge and programming expertise will play a vital role in guiding and configuring these technologies. At the same time, AI will augment the capacity of people to multitask and do more in less time. Generative AI models still can’t function without human oversight and control. For instance, today, in marketing, you can amplify your team’s content generation by around 50%. However, you still need to fact-check the information it provides and add a human touch. Yet, a substantial advantage lies in the fact that even during the writing process, you don’t need to start from a blank canvas — AI can help you generate ideas, get you started, or rephrase expressions.I feel that machines could potentially tackle mundane tasks that aren’t particularly enjoyable, allowing us to focus on the more human-centric facets of interaction — expressing emotions, exploring art, philosophy, sustainability, and tackling novel creative challenges.
An ideal scenario could entail AI performing automation and transactional tasks while humans concentrate on areas that demand our unique human touch.
ET: How did bootstrapped Infobip become a $1-billion revenue company with operations in over 75 countries?
IO: Infobip was founded in 2006 in Croatia with a vision to democratise digital interactions between businesses and customers. We focused on messaging at a time when there was only peer-to-peer messaging. You could send an SMS to your friends and family members but not to businesses. It makes us a pioneer in this category.
Ivan Ostojic, Chief Business Officer, Infobip
The company was bootstrapped from zero turnover in 2006 to $1 billion in revenue in just 14 years later with no external investment. In 2020, the company became Croatia’s first unicorn when it raised $200m from private equity firm One Equity Partners. The company grew exponentially in response to demand for its market-leading communications platform. Our revenue crossed $1.5 billion in 2022.
We’ve evolved from just SMS to becoming an omnichannel provider, offering various communication channels like Google RCS, Apple Business Chat, chat apps, voice, video, and email through simple APIs.
ET: What are the latest trends in business communication?
IO: There are five prominent trends transforming business communication and customer experience. Firstly, there is composable tech integration, where businesses are entering the age of combining various technologies, like building blocks. This integration allows technologies to work together smoothly, enhancing efficiency and performance.
Then comes hyper-automation with generative AI, where automation is becoming more advanced. It enables businesses to create highly automated customer journeys, streamlining interactions and processes. One such use case is WhatsApp chatbot that companies leverage to provide 24/7 assistance. Then comes hyper-personalisation, which implies tailoring communication to individual customer needs. For instance, determining the best time to deliver messages helps maximise their impact and engagement.
A prominent business communication trend that tops the list is ‘Conversational Everything’. Conversations are becoming the backbone of business interactions. It includes communication through various channels like chatbots, messaging apps, and more.
Lastly, I feel that the rise of phygital experiences, currently in a nascent stage, is a significant trend. It is the concept of merging physical and digital experiences. Technologies like QR codes allow customers to bridge the gap between physical products and digital content. For example, during the pandemic, we’ve witnessed significant progress in these trends. As we move forward, these trends will scale up, taking the lessons learned during the pandemic to reshape how businesses communicate and engage with their customers.
ET: How is the landscape of customer interaction changing, and how is Infobip helping businesses to stay ahead?
IO: The customer interaction landscape is significantly transformed by changing customer preferences. Businesses can recognise the need to personalise interactions to cater to individual needs rather than relying on generic bulk messaging. This shift involves conveying only relevant information that resonates with each customer.
Moreover, customers now expect seamless interactions around the clock with businesses. This requires businesses to maintain a constant presence for uninterrupted customer experience. Additionally, customers are expressing a strong desire to communicate through their preferred platforms, highlighting the importance of flexibility in engagement channels. In fact, customers find interacting with businesses on chat more convenient than getting on a call.
Infobip, in this dynamic environment, is playing a pivotal role in helping businesses stay ahead of the ever-changing curve of customer interaction. For example, a hospital needed to enhance its appointment scheduling process. Infobip assisted the hospital in creating a solution on WhatsApp. This innovation led to remarkable efficiency gains. Patients can now easily select the doctor they wish to see, choose a hospital based on availability, view the doctor’s calendar, and book an appointment – all within the messaging platform. This approach saves patients significant time and effort in making phone calls and inquiries. Moreover, a reminder message feature ensures that appointment updates can be communicated promptly.
ET: What is India’s contribution to Infobip’s growth and the CPaaS industry? Any particular sectors where Infobip sees significant growth potential?
IO: India’s contribution to Infobip’s growth and the CPaaS industry is undeniable, driven by its innovation-friendly environment, vibrant sectors, and entrepreneurial spirit. Last year, Infobip handled a staggering 450+ billion interactions globally, with India contributing a third of the volume.
Our growth has been steady in India across various communication channels. With SMS, we’ve experienced an average year-on-year growth of 20-25%. Email has witnessed a remarkable expansion at 106%, while WhatsApp interactions have surged by 48-51%. In fact, our latest market research showed that 59% of businesses in India have already adopted CpaaS solutions, and a remarkable 63% of these businesses plan to increase their communications platform spending in FY24. Additionally, our research highlighted that the primary drivers behind CpaaS investments in India include the digital transformation of business, reduced overall cost structure, and the creation of new revenue streams. With its robust digital infrastructure, widespread mobile penetration, and enthusiasm for conversational channels, India has proven to be an innovative hub for us.
The country’s balanced approach to policies and regulations, which safeguards people’s interests while facilitating business operations and data privacy, sets it apart from other markets. This makes India a strategically important market for us, not only from a commercial standpoint but also as a fertile ground for forward-looking innovations.
As a technology frontrunner, we are bringing advancements like GenAI into our technological landscape. So, India’s willingness to adopt and explore new technologies positions it as an attractive market for us to test them and refine our offerings before deploying them globally.
Looking at specific sectors, we see significant growth potential in healthcare, BFSI (banking, financial services, and insurance), automobile, and retail e-commerce. These sectors are creating ample opportunities for innovation. India is also witnessing the emergence of intriguing SaaS platforms with global integration potential. We are well-positioned to enable these platforms and support their international expansion, utilising our global footprint to facilitate growth in other markets.
Additionally, we support several Indian B2B SaaS platforms striving to scale up globally. The need for a more unified and cost-effective approach for channel integration among B2B companies in the CPaaS market has resulted in the emergence of the next generation of CPaaS — CpaaS X — which will allow them to manage a high number of clients, expand to new markets, and also provide channel flexibility without a rise in deployment and management overheads. Other benefits include automation for immediate benefits, scaling up communication up and down during the year and optimising costs.
ET: What are the growth strategies of the company to strengthen its position in the Indian market?
IO: When it comes to India, the plans and growth strategies are focused on harnessing evolving communication trends and enhancing customer experiences. India’s high WhatsApp penetration has enabled collaborations like our work with the Karnataka government to improve communication with businesses through the platform. We are excited about the convergence of super apps and generative AI. This synergy allows the integration of technologies. We’re committed to developing more solutions globally, driven by analytics and generative AI to fuel transformation.
We aim to transition from transactional selling to being a valued partner, offering software solutions that add value to Indian businesses. In B2C and B2B2C contexts, we’re devoted to aiding digital transformation journeys through conversational channels like WhatsApp for marketing, commerce, and support.
As Indian companies aspire to become global players, we’re also enthusiastic about assisting emerging companies in their global growth journey. Our approach involves organic expansion, seeking opportunities that complement our offerings.
Although our company has a global reach, providing local support remains crucial. We’re committed to being a trusted enabler of successful business outcomes, delivering on our vision of transformation and excellence.
