10 AI Capabilities You’ll Need in CPQ by 2025
CPQ AI CHECKLIST
Table of Contents
Key Steps to Integrate AI into CPQ
Artificial intelligence has been disrupting countless industries and professions, but does AI have a place in CPQ? Absolutely. AI is poised to be the next game-changer in the world of advanced configuration and eCommerce, and we’re only at the beginning.
10 Step Checklist
1. Smart Predictions
2. Intelligent Guided Selling
3. Function Assistance
4. Dynamic Pricing
5. Supplier Integration
6. Customer Data
7. Chatbot Assistance
8. Sales Forecasting
9. Unstructured Data
10. Localization
1. Smart Predictions
In advanced configuration, AI will have a significant impact on being able to predict product and service selections and to suggest options based on what end-users have configured in the past. In this case, AI helps sellers to operate with greater efficiency by eliminating extra steps, saving time, and ensuring optimal configurations.
2. Intelligent Guided Selling
Large language models (LLMs) have made it possible to add greater intelligence to guided selling. By leveraging LLMs, AI can generate custom messages that shepherd users through the configuration process. Here, AI boosts efficiency and enhances the experience by guiding users to the best configurations in seconds.
3. Function Assistance
CPQ admins can use generative AI to support coding and the scripting of rules within their configurator. In this scenario, admins can input—in plain language—the type of rule they need, and AI can generate the appropriate rule within seconds. Ultimately, this will save admins time and help to prevent errors in the rule-writing process.
4. Dynamic Pricing
Pricing complex deals can be notoriously complicated, and this is a use case where AI can help. AI can be used to optimize the pricing strategies you leverage depending on a variety of factors—without endless calculations or manual intervention. With AI, you can take the guesswork and tedious ‘spreadsheet work’ out of deal pricing.
5. Supplier Integration
AI can facilitate integration with suppliers and their inventory systems, enabling real-time updates on product availability, lead times, and pricing. Here, AI helps to ensure accurate and up-to-date information for sellers at any time.
6. Customer Data
Applying AI to customer data enables CPQ to auto-suggest configurations based on previous orders and selections. By using AI, CPQ systems can ingest customer data and then recommend fully configured products, services, and solutions based on those previously selected options—instantaneously.
7. Chatbot Assistance
Integrating AI-powered chatbots or voice assistants into the CPQ process can offer real-time support to both sellers and customers. In this scenario, AI helps by answering questions and providing information on product configurations and pricing in the buying workflow, so no one is left waiting for the answers they need.
8. Sales Forecasting
AI can assist sales teams and channels in predicting future trends and demand. With AI providing real-time and valuable insights, businesses can better forecast sales, optimize inventory, and allocate resources.
9. Unstructured Data
Under the AI umbrella, natural language processing (NLP) can organize and make sense of unstructured text data from customer inquiries, emails, and other sources. This enables end-users to provide quicker and more accurate responses, ultimately improving the performance within the CPQ process.
10. Localization
AI can assist in adapting quotes and product configurations to meet the specific requirements and regulations of different regions and markets. In this way, AI can support businesses’ global expansion plans and localized selling efforts.
In our view, there’s no question that AI has the potential to reshape CPQ and guided selling for the future. When AI is thoughtfully and purposefully applied to the configuration process, you can unlock new levels of efficiency and effectiveness in your buying and selling experience.
Curious to see how we’re adding AI to CPQ and complex commerce? Discover Cosmo AI →
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