According to Twilio’s latest survey, artificial intelligence is transforming customer experiences, but it’s trust and relevance that ultimately drive long-term value. Drawing from over 7,600 consumers and more than 600 business leaders across 18 global markets, the report shows both opportunity and risk in a tightening economic environment.
“AI has opened the door to more personalised customer experiences than ever before — but technology alone isn’t the answer,” said Chris Koehler, CMO of Twilio. “Our research shows that to truly engage customers, brands must earn their trust, respect their preferences, and meet them in real-time with experiences that feel human. In today’s climate, customer loyalty is harder to earn — and the brands that succeed will be the ones that invest in the right tools to deliver personalisation at scale, while maintaining transparency and putting the customer first.”
The survey reveals that 96% of companies report that AI is improving customer-facing operations—from support to marketing to personalisation. And it’s working: 75% of businesses say personalised engagement is increasing customer spending. Yet, while AI brings undeniable operational and revenue benefits, many brands are falling short on the human side of the equation. Only 45% of consumers feel genuinely understood by the brands they interact with—a figure that’s slightly down from last year.
This disconnect is especially visible given that most business leaders (83%) believe they deeply understand their customers. However, consumers tell a different story through their actions: 71% are willing to abandon purchases if an experience doesn’t feel relevant. The implication is clear—brands can’t rely on AI alone. To truly win customer loyalty, they must combine technology with transparency, empathy, and real-time responsiveness.
Divide Between AI’s Promise and Customer Perception
More than half of companies leverage AI to deliver dynamic, personalised experiences, and the financial payoff is clear. However, 61% of consumers believe companies misuse their personal data, and 55% say they’re fatigued by constant AI messaging. There’s a growing sense that while experiences may be getting smarter, they’re not always getting better from the customer’s perspective.
What customers want is a timely, relevant interaction. As many as 88% say they’re more likely to buy when brands engage them in real time with personalised content—but only 44% of businesses are currently delivering on that expectation. This gap represents both a challenge and an opportunity for forward-thinking companies.
While consumer trust has seen some improvement, it remains delicate. A strong 90% say they trust at least some brands, but only 15% are fully confident in how their hadnle their data. More than half (54%) want transparency about when they’re interacting with AI rather than a human, and a significant majority (84%) want control over the personalisation of their experiences.
To stay competitive, businesses are investing strategically. Nearly all companies surveyed (96%) intend to build their own customer experience solutions instead of relying on generic, off-the-shelf products. These investments also aim to improve data integration, automation, and transparency. Many are also betting on richer communication technologies—75% of businesses plan to adopt Rich Communication Services (RCS) in 2025 to enhance customer conversations with multimedia and interactive capabilities.