October 06, 2025
Executives Admit Their CX Is ‘Broken’ and Blame It on the Culture
Business leaders may talk endlessly about the power of great customer experience. Yet, few believe they’re getting it right. A new report from WSJ Intelligence and Code and Theory, The Experience Gap: AI’s Imminent Impact on CX, finds that 93% of executives describe their customer experience as “broken.”
The study reveals a mismatch between the recognition of CX’s importance and the ability to deliver it. Although 94% of respondents agree that customer experience strategy contributes directly to business success, just 28% say they are using technology to build digital experiences that are innovative or adaptive.
Internal Dynamics Troubles
The findings suggest that businesses are falling short not because of a lack of technology, but because of the way they’re structured. When asked what’s holding them back, executives pointed to leadership misalignment (49%), creative talent shortages (44%), and organisational silos (43%). More than half (56%) cited cultural dysfunction as a key barrier, indicating that internal dynamics, rather than external limitations, are the true challenge.
Despite these internal roadblocks, there’s broad agreement on the growing urgency of transformation. More than 70% of respondents admit they’re behind on AI adoption, while 88% say the promise of AI-driven personalisation remains unfulfilled. Only 44% claim to have an advanced understanding of AI’s emotional potential and its ability to help brands create deeper, more human customer connections.
Dan Gardner, Co-Founder of Code and Theory, said: “The companies winning with AI aren’t following best practices; they’re inventing new categories of customer value by connecting data, services and experiences in ways that seemed impossible two years ago. Find the spaces where your customers are underserved, frustrated or forced to cobble together solutions from multiple providers. Then use AI to own that entire experience. The question isn’t what AI can do; it’s what only your brand can do with AI that no one else can replicate.”
It’s important to remember that AI can amplify human ability, but it shouldn’t be making decisions on its behalf.
While AI holds enormous potential to transform customer relationships, real progress depends on whether businesses can overcome the cultural and structural issues standing in the way of transformation.
