The Age of Experience: How AI is Supercharging CX
“You are caller number five, please wait on the line”. There was a time when most of us, albeit grudgingly, accepted this as the best customer experience (CX) the biggest companies could offer. Then, engagement between businesses and their customers was reactive, characterised by slower response times, no personalisation and inefficient problem resolution.
But this no longer passes muster. Customer expectations have shifted enormously in recent years, driven by the proliferation of digital platforms and channels, the way Amazon and others have transformed consumer habits, and the convenience and ‘want-it-now’ world that AI has created.
In short, today’s customers expect more: real-time and intelligent engagement, callback options, consistent and integrated experiences across multiple channels, and tailored or personalised experiences.
For companies operating in an increasingly competitive environment, this matters. According to a Deloitte Digital study on personalisation, nearly 70% of consumers are more likely to purchase from a brand that personalises experiences.
Salesforce research finds that, for 91% of business buyers and 86% of consumers, the experience a company provides is as important as its products and services. It also reveals that 73% of customers expect companies to understand their unique needs and expectations, and that 62% prefer personalised product recommendations.
The rise of AI-powered engagement
Manual or human-only service models aren’t sufficient to deliver on these expectations at scale. Rather, embracing AI to optimise customer experience, especially at enterprise scale, is now a strategic imperative for all businesses.
“As customer expectations continue to rise, adopting AI is essential for long-term success, helping organisations stay agile, competitive and consistently ahead of evolving demands,” says Matt Trickett, EMEA XM Strategist at experience management firm Qualtrics.
“AI transforms customer interactions by harnessing large volumes of data to deliver more personalised, proactive and efficient experiences. From intelligent agents offering round-the-clock support, to advanced tools that can identify and resolve issues in real time, AI improves product quality, enables deeper personalisation and supports more empathetic engagement.”
There’s also a business case for adopting an AI-first approach to CX. Earlier this year, Qualtrics published a report on leaders using AI to turbocharge customer engagement. It found that doing so could reap an estimated US$860bn in annual revenue and cost savings, particularly for businesses in sectors such as professional services, consumer retail and retail banking.
“By using AI to tap into individual behaviours and sentiment insights, organisations can deliver targeted interactions that make customers feel understood and valued,” says Matt. “This not only reduces friction but also improves customer retention and lifetime value, as people are more likely to engage with and advocate for brands that understand them.”
McKinsey says that AI-powered personalisation can boost revenues for businesses by 10%-15%, and that companies that prioritise customer experience have a significant competitive advantage over their competitors.
“Today’s customers expect more than quality,” says Nicolas Maechler, Senior Partner at the global consulting firm. “But true customer-centricity isn’t about chasing every whim, it’s about balancing customer needs with a long-term vision.
“Companies that deliver the right experience at the right moment, understand not just what customers want, but when and how to engage,” he adds. “How? By embedding insights into every decision, ensuring products, services and experiences align with what customers truly value. This creates the ‘next best experience’ that keeps them coming back for more.”
Maximising business value
This AI-led transformation is already well underway. Businesses worldwide are using AI to reshape richer and more rewarding customer journeys. Netflix, for example, employs AI algorithms to analyse user viewing patterns and preferences, enabling highly personalised content recommendations that have helped retain subscribers and increase usage times.
Another example is Starbucks, which has integrated AI into its mobile app to offer customers personalised order suggestions. Known as Deep Brew, this sits at the heart of the app, which is used by more than 17 million people. It analyses data to understand store performance, where customers like to drink, and things like weather conditions and time of day to recommend tailored food and drink.
Other benefits of using AI in CX include consistency of brand message and interaction across channels – according to a study by Zendesk, 73% of customers want to be able to start conversations on one channel and continue on another. It also improves operational efficiency as a result of streamlined processes from chatbot and virtual agents capable of handling thousands of simultaneous queries with consistent accuracy, and improved customer retention.
Verizon’s use of Google’s Gemini AI to assist its contact centre agents demonstrates how effective these gains can be. The company uses AI to access approximately 15,000 internal documents to provide real-time assistance during customer interactions. Since its full deployment at the start of 2025, Verizon has reported a nearly 40% increase in sales.
According to Qualitrics’ research, businesses can add the most value from AI across three primary areas. Increased productivity, such as by automating routine tasks, contributes an estimated US$420 billion, accelerated topline growth adds US$260 billion, and streamlined processes, such as automatically solving customer issues, save organisations US$180 billion annually.
“Integrating AI and specialised agents into the customer experience process boosts productivity by automating tasks such as call routing, post-call documentation, and real-time data analysis,” says Matt. “This allows human agents to focus on more strategic, high-value interactions while providing valuable insights through natural language processing and behavioural analytics.
“Also, it can create a seamless, omnichannel experience that aligns with customer expectations. These factors together drive operational efficiencies and support long-term strategic growth by allowing organisations to adapt more quickly and intelligently to changing market demands”.
The AI-engagement paradox
Despite the compelling business case, both Qualtrics and McKinsey note a hesitance on the part of large organisations to lead the way.
Qualtrics found that, while three-quarters (72%) of executives say AI will significantly change how they approach CX over the next three years, only 15% of executives aspire to be at the forefront of how the technology changes the business landscape.
“The gap between intention and impact is stark,” Nicolas adds. “The gap between intention and impact is stark and leaders value customer-centricity but stumble on execution. Why? A lack of vision, siloed teams, outdated systems, weak processes, and clashing priorities block progress.
According to McKinsey, leaders should harness AI to drive ‘experience-led growth’, a distinctive and direct CX strategy focused on consistency, redesigned customer journeys, products and services, and a transformative mindset.
“It’s not about sacrificing quality – it’s about evolving,” Nicolas explains. “By leveraging AI-powered tools like predictive analytics, chatbots and other methods like A/B testing, real-time engagement loops, businesses can decode behavioural patterns and purchasing history. The result is hyper-personalised experiences, delivered with precision at the right moment, driving customer loyalty.”
Qualtrics’ research shows that organisations investing in CX are already gaining market share that could prove significant. Market leaders – organisations identified as gaining market share – are more than twice as likely to have focused on improving experiences over the past three years compared to peers.
Hyper-personalising business engagement
“Integrating AI into customer service channels requires a clear strategy to be successful,” Matt explains. “Navigating siloed data, striking the right balance between automation and human interaction, and managing organisational change are all key challenges.
“Successfully implementing AI requires a thoughtful, cross-departmental approach, guided by centralised leadership and aligned with overall business strategy. New technologies must integrate seamlessly with existing solutions to create a unified customer view. To fully realise the benefits, organisations will need to have a comprehensive AI transformation strategy in place, with leadership support and a focus on long-term impact and value.”
Based on its report research, Qualtrics identifies several key actions organisations should take. These include setting AI ambition and a dedicated value strategy, creating a technology and data foundation that enables growth, establishing risk and ethics guidelines and leading the cultural shift of embracing AI as a core enabler of CX.
“The best leaders put growth front and centre, taking bold risks and breaking free from outdated norms,” says Nicolas. “They don’t just hear customer feedback, they act on it, aligning company culture with customer expectations. They invest in talent, equip teams with the right tools and build agile, customer-focused operating models. Most importantly, they turn customer centric ambition into action and witness profitable growth.”
“In the future, success will belong to companies that go beyond collecting feedback – they’ll embed insights into every strategy. By leveraging AI, acting swiftly and staying anchored to a long-term vision, they’ll align customer experiences with measurable business outcomes. This transforms passive data into meaningful, resonant experiences, making customer-centricity a true growth engine.”
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