The fight for customer loyalty has shifted to a new arena – the realm of artificial intelligence. Customers are becoming accustomed to the speed, efficiency, and personalisation that AI-powered solutions can deliver. They expect seamless interactions, instant answers, and proactive support.
Commenting on findings from Zendesk’s seventh annual CX Trends report, Kellie Hackney, Regional Vice President, Zendesk ANZ, says, “The report explores consumer demands and what companies perceive as necessary for future success. We analysed two key perspectives: the consumer’s and the business’s”.
The Zendesk report, based on insights from over 10,000 global consumers and business leaders, highlighted five key trends shaping the future of customer service. The report identified a widening gap between companies embracing AI (“CX Trendsetters”) and those relying on traditional methods. Hackney comments, ““A number of takeaways from this year’s report stood out. First, consumer impatience is growing. They expect speed and digitisation, and they’re increasingly aware of whether companies are delivering AI-powered experiences. Second, there’s a widening gap between “trendsetters”—companies rapidly adopting AI and those slow to adopt”.
With consumer expectations escalating, businesses that combine AI with empathy and personalisation are achieving a competitive edge. Notably, 89% of Australian CX Trendsetters consider AI investment not just an option, but a necessity for future success.
Zendesk’s 2025 CX Trends Report highlighted five key trends:
- Human-like AI: Consumers (57%) desire AI agents with human-like traits, increasing trust (39%). Companies investing in this area gain a competitive edge.
- AI Copilots: Agents (80%) believe AI copilots improve their work, and CX Trendsetters (92%) report positive returns on AI tools. However, “shadow AI” usage poses risks. CX leaders expect high levels of autonomous CX soon (78% predicting 80% resolution without human intervention).
- Personal AI Assistants: Consumers (39%) are ready to delegate tasks to AI assistants, creating opportunities for “assistant-first” experiences. CX leaders are preparing for this shift.
- Voice AI: Voice AI is gaining popularity, especially for complex issues. Consumers (59%) find voice interaction easier than text, and many (54%) believe AI understanding voice would improve their experience. CX Trendsetters (96%) see it as the next evolution of communication.
- Personalisation: Personalised service is crucial for customer loyalty. Consumers (53%) expect AI-driven personalisation and have low tolerance for bad experiences (52% will switch after one). Agents (66%) see declining brand loyalty. CX Trendsetters (53%) prioritise AI-driven personalisation.
Customers expect AI-powered experiences
Customers expect AI-powered experiences that are fast, accurate, and personalised. They want the convenience and efficiency that AI can provide, such as quick answers to their questions and personalised recommendations. Hackney says, “At Zendesk, we predict that within the next three years, AI will be involved in 100% of customer service interactions, with up to 80% potentially being automated, depending on the business. However, we strongly believe that complete automation is neither possible nor desirable. While customers demand digital, fast, and AI-driven experiences, they also value personalized, connected, and human-like interactions. Therefore, a “human in the loop” will always be essential”.
“For example, a customer buying new pants might appreciate interacting with an AI-powered conversational bot for its speed, accuracy, and natural feel. This interaction could be enhanced by AI-powered knowledge bases (like Retrieval Augmented Generation or RAG) to quickly provide relevant information, similar to a sophisticated FAQ. Crucially, the ability to seamlessly transition from this AI-driven experience to a human agent is vital”.
AI Copilots
AI can play a supportive role even when interacting with a human agent. Customer service agents are proactively seeking tools with copilot functionality. According to Hackney. “Agents can benefit from an AI copilot that provides access to all company content, including customer-specific information, enabling them to quickly resolve queries and improve key metrics like average handle time and first response time. Customers expect fast resolutions, and AI can help agents deliver”.
Companies recognise that increased agent efficiency frees them to focus on more complex issues, which is critical for driving customer loyalty. “Companies must develop a clear strategy for providing governed, secure AI copilot tools to empower their agents while protecting their intellectual property. Addressing the need for agent support securely is crucial to mitigate the risks associated with shadow IT”.
Voice interactions
Despite the rise of online chat, voice interaction is making a comeback, especially for conveying nuanced information. Hackney says, “While other channels like online chat gained prominence, customers are now emphasising the need for voice, particularly for conveying qualitative information. AI can analyse customer sentiment, mood, and tone to provide real-time support to the agent. This highlights how multiple AI technologies, such as voice AI integrated with the IVR, can work together to enhance the customer experience”.
The battleground for customer loyalty has dramatically shifted. In today’s rapidly evolving digital landscape, customers are increasingly accustomed to—and even expect—the speed, efficiency, and hyper-personalisation that AI-powered solutions can provide. This isn’t just a trend; it’s a fundamental shift in customer expectations.
“Australian consumers have told us they expect companies to be embracing human-centric AI across all aspects of the customer journey and for companies that already are, consumers have noticed the difference. Our research tells us 56% of consumers believe there is a clear gap forming between companies that use AI effectively and those that do not, with the gap only set to widen for those who fail to embrace AI. With customer service a key battleground for loyalty, it’s critical that organisations look at how they can integrate human-like AI into all aspects of their CX. When they do they’re better positioned to meet rising expectations, drive retention and growth, and leap ahead of their competition.”
Companies that fail to embrace AI and integrate it strategically into their customer experience risk falling behind. Customers are quick to recognise and reward businesses that leverage AI to create frictionless, personalised, and proactive journeys. Conversely, they’re equally quick to abandon those that offer clunky, impersonal, or reactive experiences. Therefore, mastering the art of AI-driven customer service is no longer optional; it’s the key to unlocking and maintaining customer loyalty in the modern marketplace.