August 01, 2025
This Week in CX: When AI Delivers, and Institutions Fall Behind
Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’ve explored how AI is reshaping customer experience across sectors, from drive-thru automation and lagging loyalty programs to growing public sector frustrations and the rise of agentic AI inside the workplace.
We’re also discussing new updates from the European Commission, the Financial Times, and more.
Key news
- European wine and spirits are set to face new tariffs from the US, with no exemptions expected when the measures take effect this Friday. Under a trade deal reached between the two sides on Sunday, most European exports to the US will be hit with a 15% tariff. While items like chip-making machines, aircraft, and cork are likely to be excluded, the European Commission confirmed on Thursday that alcoholic beverages are “not expected” to be on that list—though negotiations are still ongoing.
- The growing use of AI-generated summaries is raising concerns among businesses that rely on website traffic. A Pew Research Center analysis found that users on Google were nearly half as likely to click on external links when shown AI-generated answers. According to Similarweb, which monitors online traffic, search referrals dropped by roughly 15% over the year to June—though Google disputes claims of a significant decline in outbound clicks. This week, the UK became the latest country where Google introduced its AI Mode, offering users conversational-style answers instead of the traditional list of links.
- England’s victory over Spain to secure a second consecutive European title could spark a surge in investment in women’s football, according to the Financial Times. With record-breaking crowds, €41 million (£35 million) in prize money, and peak TV audiences in the UK, interest from brands, broadcasters, and investors is already growing. The key question now is whether this momentum will carry over to the women’s club level, where teams still often take a back seat to their male counterparts. Research shows that women’s football is the most commercially valuable women’s sport globally, generating around €500 million in annual revenue.
- Germany has approved the use of psilocybin – the hallucinogenic compound in magic mushrooms – to treat certain patients with treatment-resistant depression. Earlier this month, the Czech Republic authorised its medical use for similar conditions. Advocates have welcomed Germany’s decision under a so-called “compassionate use” scheme, viewing it as a step towards full regulatory approval. The scheme allows patients in urgent need to access drugs that have not yet been authorised. Similar schemes exist in Switzerland and Canada, and several clinical trials on psychedelic medicines – some backed by EU funding – are currently underway.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest news about drive-thrus, the challenges of public sector hold times, and digital grocery loyalty.
Retailers Are Betting on AI, But Missing the Basics
New data from Lucidworks’ 2025 Generative AI Global Benchmark Study reveals a striking contrast between AI ambition and execution in retail. While many brands are investing in advanced tools like AI-guided shopping assistants, many still fall short on foundational e-commerce features.
The study surveyed over 1,600 AI decision-makers and used Lucidworks’ proprietary agent, Guydbot, to evaluate the actual capabilities of 1,100+ retail websites. The result is a sector caught between innovation and inconsistency.
While 34% of e-commerce companies are actively developing AI-powered sales experiences, 49% still don’t display product availability in their search results.
“We discovered that 34% of e-commerce companies are working on AI-guided selling, yet 49% don’t even have product availability in their search results. They’re doing it backwards,” said Michael Sinoway, CEO of Lucidworks. “It’s like chatting with a salesperson at a clothing store, only to learn that they ran out of your size. Some companies have recreated that frustrating experience online – and spent millions on AI to do it.”
Language Support
Language support also remains underdeveloped, with only 38% of retailers offering multilingual interfaces, making it the most overlooked of the 24 capabilities tracked in the study.
Despite these gaps, results from AI investments are starting to show. In 2025, 33% of retailers reported significant benefits from AI, up from just 14% in 2024. However, retail still lags behind other sectors like B2B (37%) and Healthcare (43%) in AI impact.
Another key insight shows that enthusiasm around AI spending has cooled. Just 58% of companies plan to increase AI investment, a steep drop from 93% in 2023, as cost anxiety has increased 18-fold year over year.
Lucidworks also ranked companies by their AI and search capability maturity. Leaders by category include:
- Furniture: Wayfair (79%), Raymour & Flanigan (69%), Pottery Barn (63%)
- Footwear: Vans (71%), UGG (69%), Timberland (65%)
- Drugstores & Beauty: CVS (73%), Ulta Beauty (71%), Walgreens (67%)
- Automotive standout: Harley-Davidson (#3 in category), despite being 122 years old
While retailers are eager to embrace AI, real success will depend on closing the gap between flashy innovation and foundational functionality.
