AI to power next-gen customer experience, but trust deficit and strategy gaps persist: Capgemini Report

Artificial intelligence is rapidly transitioning from an experimental tool to a core pillar of customer experience (CX), even as enterprises struggle with trust deficits and fragmented execution, according to a new report by Capgemini.

The report, titled “Reimagining Customer Experience: Human-led, AI-powered,” highlights how evolving consumer expectations—now dynamic, context-driven, and “liquid”—are forcing organisations to rethink how CX is designed and delivered.

Nearly 68% of organisations believe AI agents will outperform traditional CX channels, while generative AI adoption is projected to surge from 21% to 51% within the next three years. On the consumer side, 58% already view AI as a time-saving tool, as per the report.

Perception gap undermines CX investments

Despite CX being recognised as a growth driver by 84% of executives, a significant disconnect persists between leadership perception and customer reality. The report notes that 84% of executives believe customers are willing to recommend their products or services, compared to just 45% of consumers.

Similarly, while 77% of executives assume customers feel confident about product quality, only 14% of customers actually associate such positive emotions with their experience. This misalignment often leads to underinvestment in CX and missed signals of customer dissatisfaction.

Poor CX driving churn, strong experiences boost loyalty

The business impact of CX remains stark. As many as 63% of customers have switched to competitors following poor experiences, while 61% reduced spending. Conversely, 70% of customers return as repeat buyers after positive interactions, and 65% say good experiences make them feel genuinely valued.

However, systemic challenges continue to hinder CX transformation. Around 40% of organisations cite the lack of clear KPIs or a defined roadmap, and only 23% report having a unified CX strategy. Fragmentation across channels remains a major barrier, with 60% expecting it to worsen and just 28% ensuring seamless experiences.

Data privacy concerns deepen trust deficit

The report underscores a widening trust gap as AI adoption scales. While 83% of consumers express discomfort with their data being recorded, only 38% of executives share similar concerns. Further, 81% of consumers prioritise data security, compared to just 8% of executives who recognise it as a key risk.

As 83% of consumers worry about AI storing personal data without consent, the report calls for a shift towards “human-led, AI-powered” CX models. It recommends aligning CX with business outcomes, building unified strategies, balancing automation with human interaction, and leveraging AI-driven feedback systems to continuously adapt to customer needs.

In an increasingly AI-driven landscape, the report concludes, organisations that fail to bridge trust and execution gaps risk falling behind in the race for customer loyalty.