New Delhi: Twilio, the leading customer engagement platform, has released its 2025 State of Customer Engagement Report, revealing a widening gap between how businesses perceive their customer engagement efforts and how consumers actually experience them — particularly in the age of AI.
Based on a global survey of over 7,600 consumers and 600+ business leaders across 18 countries, including India, the findings suggest that while AI-powered personalisation is widely adopted and delivering measurable business results, consumers remain skeptical about its consistency, authenticity, and human touch.
In India, AI Adoption Soars—but Expectations Outpace Execution
India is emerging as a frontrunner in using AI to deliver personalised experiences. Nearly 79% of Indian consumers report spending more with brands that personalise engagement, and a staggering 98% say they are more likely to buy when engagement is real-time and tailored. Moreover, 90% believe personalisation is important, expecting brands to help them shop smarter and feel more confident.
Yet, despite this enthusiasm, only 30% of Indian consumers believe their experiences are consistently personalised. This reflects a significant “personalisation consistency gap”, where brands’ efforts often remain one-off or superficial rather than always-on and individualised.
The consequences are stark: 88% of Indian consumers will abandon a purchase if engagement feels impersonal, even as the same number say they’re more likely to buy when it’s real-time and relevant.
Human Touch Still Matters
The report underscores a fundamental insight — AI isn’t enough on its own. 91% of Indian consumers want AI interactions to feel human-like, and 55% want the option to talk to a human when AI fails. Transparency is also critical: 72% want to know when they are interacting with AI, and 87% prefer to decide how brands communicate with them, rather than having AI assume their preferences.
According to Nicholas Kontopoulos, VP of Marketing, Asia Pacific & Japan at Twilio, “Indian brands are leading the charge with AI, but the next big leap is towards individualisation — where every interaction is not just personalised but also contextual, human, and trustworthy.”
Global Trends Reflect Similar Gaps
Globally, while 96% of companies using AI for personalisation report benefits such as faster service and higher satisfaction, only 45% of consumers feel truly understood — compared to 82% of business leaders who believe they understand their customers well. This “customer engagement paradox” signals a disconnect between intent and impact.
Other global findings:
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84% of consumers want to manage their personalisation settings.
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Only 46% of consumers believe brands are transparent about AI use, despite 88% of businesses claiming they are.
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While 87% of businesses rank personalisation as a top priority, just 16% of consumers say these experiences are excellent.
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Channel preferences vary — email and messaging apps lead, while chatbots and video rank lower.
Trust is the New Currency
The report shows that only 15% of global consumers “absolutely” trust brands with their data. Interestingly, responsive service and ease of returns (55%) now outrank even data protection (54%) as key trust drivers. Regional variations also persist — APAC and LATAM consumers are more open to data sharing, while Gen Z remains the most privacy-conscious generation globally.
To address this, companies are investing in simplified tech stacks and smarter integrations. 58% now use customer analytics, up from 37% last year, and 96% plan to build their next customer experience (CX) platform in-house. Newer channels like RCS (Rich Communication Services) are gaining ground, with 75% of businesses planning to invest and 81% of consumers preferring it over SMS.
A “Smarter, Faster, More Human” Future
Twilio’s report concludes with a call for human-centric, AI-enhanced engagement. The brands that will thrive in 2025 and beyond are those that go beyond automation to build trust, transparency, and timely personalisation into every interaction.
“Consumers don’t just want fast — they want real,” the report states. “Trust, timing, and transparency will define customer loyalty in 2025 and beyond.”
