Why are consumers upset despite AI? 48 percent of consumers feel a lack of empathy; Only 19 percent of business leaders have addressed ‘this’ issue

• Why are customers upset despite AI?
• 48 percent of customers feel lack of empathy
• Only 19 percent of business leaders are aware of this issue

Mumbai, April 15, 2026: Business leaders in India are confidently embracing AI in the boardroom, but consumers are yet to feel the impact. This is the key finding of ServiceNow’s Customer Experience Report 2026: The CX Shift. The report captures the views of consumers, service representatives and business leaders in India. While business leaders are increasingly prioritizing AI in customer experience, there is a huge gap between where companies are investing and what customers actually need. This is a big challenge for 2026, as well as a significant opportunity to prove yourself.

The ambition is real, but the execution is not

Businesses in India are backing their cause with major investments. 60 percent of executives say their companies will adopt a connected enterprise approach to deliver the next level of customer experience in the next three years. Eighty-one percent of executives will consolidate all customer data in one place, while 69 percent of executives plan to improve integrated omnichannel CRM engagement across both sales and service. However, this research reveals a more nuanced picture, where the direction of investment is as important as the scale of investment.

“The ambition in India’s boardrooms is real, I see it in every conversation. Leaders want to move fast on AI and are ready to invest. But ambition without a connected foundation is just complexity, which customers will eventually ignore. Companies at the forefront may not be exploring more and more platforms, they’re going to stop exploring and start building.” Sumit Mathur, Senior Vice President and Managing Director, ServiceNow India said.

Business leaders are solving the wrong problems

The gap in attitude between India’s business leaders and their customers is staggering. While 53 percent of consumers in India say unclear explanations of processes and policies are a major source of frustration, only 22 percent of business leaders see it as a major challenge. Also, 48 percent of consumers cite lack of empathy as a top concern, but only 19 percent of executives consider it a priority concern.

The same inconsistent picture is seen with regard to transfers from one department to another. While 45 percent of consumers are frustrated by the experience, only 23 percent of executives admit it’s a problem. Also, 37 percent of customers resent having to repeat the same information to an agent over and over again, while only 25 percent of executives agree. This difference in approach has serious consequences. This leads to companies looking for solutions to the wrong problems and ignoring the most important questions of customers.

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Separate systems are hindering AI’s true potential

The root cause of the problem is fragmentation and its direct impact on the customer experience. Customers are suffering from being transferred from one department to another and having to repeat their information every time. This indicates a large number of failures. Many companies still haven’t connected their people, data and processes to a coherent foundation on which AI can operate effectively.

This fact is evident from the statistics. Only 38 percent of companies in India have consolidated their data into a single trusted source. Only 34 percent of companies are trying to seamlessly integrate AI by breaking down barriers between departments. And only 31 percent of companies have enabled their CRM (customer relationship management) for the cross-functional collaboration needed for consistent service.

Sumit Mathur added, “Just being fast doesn’t mean you win the customer. Our research shows that customers in India will disengage from slow service, as well as become frustrated with service that fails to understand them despite being fast. Business leaders are working to address the first problem. But, the second problem shows a gap in loyalty, and currently only 19 percent is making progress in this regard.” are.”

Chances are shrinking

India’s business leaders have no shortage of ambitions when it comes to AI. But ServiceNow’s research reveals an unsettling fact: the gap between intent and impact is widening, and consumers are starting to feel it.

The challenge facing many companies today is not a lack of options, but quite the opposite. The proliferation of AI platforms, the promises made by each of them, and the huge investment they require have created a new type of organizational risk. The risk is, waiting for a certainty that may never come, and on the other hand, consumers are quietly making their own decisions.

The cost of inaction is evident from the statistics. 44 percent of consumers in India say they would switch to a competitor because of slow or inadequate service. 45 percent of business leaders agree that bad experiences are leading to customer churn. Yet, only 30 percent of companies have made significant progress in building the integration of people, data, and processes that will allow AI to truly deliver on its promise.

The companies that define the next chapter of customer experience in India will not necessarily be the ones with the most advanced AI; So will those who understand that the opportunity to build a connected and empathy-centered foundation is now available. If the different departments of the company are not connected with each other, customers suffer. The longer it takes to fix this fragmented system, the more expensive it will be for the company and the more customers will leave

The real question for business leaders in India is not ‘which AI to choose’, but ‘is our organizational structure right for any AI to work effectively’. This is a decision that cannot be postponed until the next production cycle.

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