2025 CX Budget Strategy: Using IVAs to Drive Efficiency and Growth

Matt Whitmer—the CRO and SVP of marketing at Mosaicx and TeleVox—recently explained why companies should incorporate intelligent virtual agents (IVAs) into their 2025 CX budget strategies. This article originally appeared in Insight Jam, an enterprise IT community that enables human conversation on AI.

Recent years have brought a one-two punch to business budgets: inflation squeezing margins and labor shortages stretching teams thin. Following the Fed’s second interest rate cut, business leaders are eager to jump-start recovery. In fact, 71 percent of leaders plan on increasing their investment in AI solutions such as intelligent virtual agents (IVAs)—a clear sign that customer experience (CX) remains a top priority despite economic pressures.

For customers, IVAs are an avenue to fast, self-directed service. For businesses, IVAs offer scalable, efficient CX that fits within budget constraints while also enhancing service quality. They represent a shift from costly, labor-heavy approaches to a lean, data-driven model that delivers substantial CX benefits. In this new CX playbook, IVAs are strategic assets that help companies achieve cost savings, increase retention, and drive sustainable growth.

The Budget Challenges of Traditional CX Models

The cost of delivering a high-quality customer experience has increased significantly, outpacing revenue gains. Traditional CX models rely heavily on human agents and outdated systems—and for businesses with tight budget constraints and a high volume of customer interactions, CX costs are especially challenging.

Traditional customer service methods are prone to various inefficiencies. Long wait times, for instance, can lead to customer frustration and churn, while high turnover means CX leaders must spend valuable time and resources retraining agents. IVAs solve these inefficiencies by tackling repetitive tasks and streamlining operations.

How IVAs Support Budget Efficiency and Boost Productivity

IVAs empower businesses to deliver high-quality service without inflating staff levels or costs. By handling routine inquiries—like checking account balances or resetting passwords—IVAs turn interactions that used to take minutes into ones that take seconds. It all adds up to a boost in efficiency that elevates CX by giving people quick answers when needed. During peak seasons, IVAs become even more valuable, managing high volumes of inquiries without additional staffing. This scalability enables human support teams to stay agile and responsive—and their departments to remain budget-conscious.

Beyond streamlining service, IVAs generate valuable insights that guide smarter budget decisions. Each interaction adds to a pool of data on customer behavior, revealing demand trends, common issues, and opportunities to improve processes. Business leaders can capitalize on this data to clearly understand where to allocate resources and precisely refine budgets. For example, suppose IVA data reveals a high volume of inquiries related to password resets. In that case, a company might invest in a more user-friendly self-service portal, reducing repetitive inquiries and freeing up human agents for more complex cases. With IVAs, companies can spend smarter, maximizing CX and operational efficiency.

Strategic Steps to Transition to IVAs

Embracing IVAs can have transformative effects on CX, but it’s essential to be strategic. Here are four tips to ensure a seamless shift:

1. Identify Pain Points and Priorities

Begin with a deep dive into your current system. Look for recurring issues—where do customers get stuck? What leads to high abandonment rates? Use this feedback as a blueprint to design an IVA solution that targets real frustrations and delivers a noticeably smoother experience.

2. Pilot First, Expand Gradually

Rather than overhauling everything at once, start small. Roll out IVAs in high-impact areas like basic account management or billing inquiries. This phased approach lets you test and fine-tune the system before scaling up, minimizing disruptions and ensuring early successes you can build on.

3. Build Strong Connections to Your CRM

For IVAs to perform at their best, they need continuous access to customer data. Businesses should fully integrate IVAs into their customer relationship management (CRM) and backend platforms, using real-time information to inform every interaction. This integration enables a personalized, context-aware experience that makes customers feel genuinely understood.

4. Empower Your Team with Training

Even as IVAs handle routine tasks, human agents remain crucial. Equip your team with the knowledge and skills to work with IVAs so they know precisely when and how to step in. Training isn’t just about tech—it’s about showing your team how IVAs can enhance their roles, not replace them.

The 2025 CX Playbook: Why IVAs Are a Smart Investment for Sustainable Growth

By adopting conversational AI tools like IVAs, companies are setting themselves up for sustainable growth and streamlined operations. It’s a move that doesn’t just cut costs—it boosts efficiency and clears common service bottlenecks, enabling a smoother customer experience.

The real advantage of investing in CX technology lies in its dual impact. Not only does it help control expenses and balance budgets, but it also builds a foundation for scalable, adaptable growth. With IVAs, companies can effectively future-proof their customer experience, creating a lean-yet-friendly model that drives efficiency and loyalty through changing market conditions. CX leaders who prioritize these technologies now will position their companies to have the flexibility and resilience to thrive beyond 2025.