The Untapped Power of Conversational Intelligence in CX

New Medallia report finds most organisations are failing to tap into customer conversation data, missing measurable CX gains and growth opportunities despite clear proof of Conversational Intelligence value.

Every day, billions of customer conversations unfold across calls, chats, and social channels, revealing exactly what people love, hate, or hope for from a brand. 

Yet most organisations are still treating these unfiltered exchanges as noise. A new report from Medallia suggests that silence is costing them. 

According to Conversational Intelligence: The New CX Advantage, while companies using AI-driven conversation analysis are seeing measurable gains, the majority are missing out on its full potential.

Defined as the use of AI, natural language processing, and analytics to transform customer conversations into actionable insights, Conversational Intelligence (CI) equips organisations with real-time intelligence that can improve customer interactions and inform strategic decisions. 

“Conversational Intelligence represents one of the most significant opportunities for businesses to transform customer engagement,” said Andrew Custage, Head of Research Insights at Medallia.

Key Findings from the Report

The report highlights several insights:

• 75% of customer experience (CX) practitioners say surveys alone are insufficient to understand customer experiences.
• Contact centre leaders estimate 68% of customer communication is missed by relying only on surveys.
• 90% of CX teams using Conversational Intelligence rate it as valuable, with 87% saying it improves service interactions in real time.
• 64% expect investment in Conversational Intelligence to grow in the next year, rising to 73% among high-growth companies.

Despite these results, according to the study of CX and contact centre professionals, only one in three organisations use Conversational Intelligence frequently, while nearly half are not using it at all. 

Clear Gains, Slow Adoption

For those who have adopted CI, the rewards are measurable. 

85% of CX practitioners believe their organisations would make better decisions if they analysed more conversational data, and over half of existing CI initiatives are already showing major positive business impact.

What’s more, 70% of practitioners believe customers themselves would support the use of Conversational Intelligence if they understood it was enhancing their experiences.

Still, for many organisations, conversational data remains siloed or underutilised. “The conversations are happening every day,” Custage adds. “But too often, those signals stay hidden. When companies bring them into the light, the impact on customer experience is immediate and measurable.”

The Road Ahead: Turning Conversations into Strategy

Investment momentum is growing. Nearly 64% of CX practitioners plan to increase their CI investment next year, with AI advances cited as the top driver. High-growth firms are especially bullish, with nearly three-quarters planning to expand adoption. 

The business case for adoption is also clear, with the research also showing that organisations with leading CX programmes are 6x more likely than laggards to be heavy Conversational Intelligence users.

The message is clear: brands that treat conversations as a strategic data asset will outpace those who treat them as background noise. 

Conversational Intelligence doesn’t just improve customer interactions; it strengthens decision-making, fuels growth, and delivers measurable ROI.

“When companies bring them into the light, the impact on customer experience is immediate and measurable,” added Andrew Custage. “Companies that succeed in integrating Conversational Intelligence will make smarter decisions and measurable business gains.”

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