The AI Gap in Customer Experience: Why Brands Are Falling Short Despite the Buzz
A groundbreaking study conducted by Harvard Business Review Analytic Services (HBR-AS) in collaboration with Infobip has uncovered a glaring disconnect in the world of customer experience (CX). While nearly everyone in the business community talks about the importance of delivering exceptional conversational experiences, very few organizations are actually succeeding. The findings reveal that while 93% of respondents from the HBR audience acknowledge the critical importance of creating positive conversational experiences, only 36% believe their organization is highly effective at achieving this goal. Even more alarming, a mere 11% report being highly effective at leveraging AI to deliver human-like conversations. This stark contrast highlights the vast untapped potential of AI in customer engagement—a gap that is undermining trust, efficiency, and ultimately, customer loyalty.
The Untapped Potential of AI in Customer Engagement
The report, titled “Conversational Experiences: The Untapped Potential of AI in Customer Engagement,” sheds light on the growing chasm between ambition and execution in the realm of CX. While many organizations are utilizing tools like SMS, messaging apps, email, and chatbots at key touchpoints, most are failing to create the seamless, intuitive conversations that customers have come to expect in today’s digital age.
“While everyone talks CX, almost no one delivers,” said Ben Lewis, VP of Marketing and Growth at Infobip. “When brands can’t deliver meaningful, human-like conversations, they don’t just lose efficiency—they lose trust. It’s time to rethink what customer experience really means in the AI era.”
Why Are So Many Organizations Falling Short?
The study identifies several critical roadblocks that are preventing brands from meeting modern customer expectations:
- Poor Visibility Across Platforms (48%): Many organizations struggle to gain a comprehensive view of customer interactions across all communication channels, leading to fragmented and inconsistent experiences.
- Difficulty Capturing Data Across the Customer Journey (46%): Without a clear understanding of customer behavior and preferences at every stage of the journey, brands are unable to personalize interactions effectively.
- Challenges Integrating AI-Powered Features (44%): Even when AI tools are available, integrating them into existing communication platforms proves to be a significant hurdle for many organizations.
- Lack of Best Practices (49%): Nearly half of respondents cited insufficient guidance on how to use communication platforms effectively, leaving them unsure of how to optimize their CX strategies.
- Insufficient Investment in Advanced Technology (48%): A lack of financial commitment to cutting-edge conversational technologies further exacerbates the problem, leaving many brands ill-equipped to meet evolving customer demands.
These challenges paint a picture of an industry struggling to keep pace with technological advancements and shifting consumer expectations. Despite recognizing the importance of CX, organizations are hampered by outdated processes, siloed systems, and a lack of strategic direction.
Bridging the Gap with Automation, AI, and Integration
Encouragingly, the study reveals that companies are aware of the need to close this gap and are taking steps to address it. Over the next 12 months, organizations are prioritizing key areas to improve conversational experiences:
- Automation (50%): Streamlining processes through automation is a top priority, enabling brands to handle repetitive tasks more efficiently and free up human agents for higher-value interactions.
- AI Enhancement (41%): Improving the use of AI in conversations is another focus area, as brands seek to create more personalized and human-like interactions at scale.
- Platform Integration (39%): Ensuring that communication platforms are fully integrated is also a priority, allowing for a unified view of customer activity and smoother cross-channel experiences.
Infobip is at the forefront of this transformation, empowering brands to deliver customer interactions that are not only automated and personalized but also deeply human—at any scale. “This isn’t about tools—it’s about trust,” said Lewis. “Every message, chatbot, and notification should feel like it understands you. That’s what we help brands deliver—across every channel, at any scale.”
Rethinking Customer Experience in the AI Era
The study underscores the urgent need for organizations to rethink their approach to CX. In an era where customers demand instant, relevant, and empathetic interactions, brands must move beyond superficial efforts and embrace AI-driven solutions that truly enhance the customer journey. Success in this endeavor requires more than just adopting new technologies; it demands a fundamental shift in mindset—one that places trust and human connection at the center of every interaction.
For organizations willing to invest in advanced conversational technologies, integrate their platforms, and leverage AI effectively, the rewards are substantial. By closing the AI gap, brands can not only improve operational efficiency but also build deeper, more meaningful relationships with their customers. In doing so, they will transform CX from a buzzword into a tangible competitive advantage.
About Infobip
Infobip is a global cloud communications platform that enables businesses to build connected experiences across all stages of the customer journey. Accessed through a single platform, Infobip’s omnichannel engagement, identity, user authentication and contact center solutions help businesses and partners overcome the complexity of consumer communications to grow business and increase loyalty.
