Bengaluru: ServiceNow has unveiled insights from its latest Customer Experience Report 2026, The CX Shift, highlighting a widening gap between enterprise AI investments and actual customer expectations in India.
The report reveals that while Indian organisations are accelerating AI adoption in customer experience (CX), execution remains misaligned with customer needs. Notably, 48% of Indian customers cite lack of empathy as a key pain point, yet only 19% of business leaders prioritise addressing it through AI—underscoring a critical disconnect.
Despite strong intent, the report suggests that organisations are often solving for the wrong challenges. While 53% of customers are frustrated by unclear processes and policies, only 22% of leaders recognise it as a major issue. Similarly, 45% of customers are dissatisfied with being transferred between departments, compared to just 23% of leaders acknowledging the problem.
“The ambition in Indian boardrooms is real — I see it in every conversation. Leaders want to move fast on AI, and the investment intent is there. But ambition without a connected foundation is just noise that customers eventually stop listening to. The organisations that will pull ahead are not the ones evaluating the most platforms. They are the ones that stopped evaluating and started building,” said Sumeet Mathur, Senior Vice President and Managing Director, ServiceNow India.
The study also highlights structural challenges limiting AI’s impact. Only 38% of Indian organisations have consolidated customer data into a single source of truth, while just 34% have enabled seamless AI integration across departments. Additionally, only 31% report having optimised CRM systems for cross-functional collaboration—key to delivering consistent customer experiences.
Fragmentation across systems continues to impact CX directly, with customers frequently forced to repeat information or navigate siloed service channels. This lack of integration undermines both efficiency and personalisation, two core promises of AI-led transformation.
Sumeet Mathur further adds, “Speed is the entry ticket, not the prize. Our research shows Indian customers will leave over slow service — but they will also leave over service that is fast and still feels like it doesn’t understand them. Leaders are building for the first problem. The second one is where the loyalty gap actually lives, and right now only 19% of organisations are making real progress there.”
The report also underscores the business impact of this disconnect. Around 44% of Indian customers say they would switch to competitors due to slow or inadequate service, while 45% of business leaders themselves report high churn linked to poor customer experiences. Yet, only 30% of organisations have made significant progress in connecting data, people, and processes to enable effective AI deployment.
Based on inputs from 5,000 consumers, 425 customer service professionals, and 280 business leaders in India, the study points to a narrowing window of opportunity. As enterprises navigate an increasingly crowded AI landscape, the challenge is no longer about access to technology but about building the right foundation to make it work.
With AI adoption accelerating, the report concludes that organisations that prioritise connected systems and empathy-driven experiences will be better positioned to close the gap between intent and impact in India’s evolving CX ecosystem.
