New research from Twilio’s 2026 Customer Insights Series indicates that consumers are experiencing growing frustration with AI amnesia”, instances where artificial intelligence fails to retain prior context or interaction history, requiring users to repeatedly explain themselves.
The research reveals a worrying contradiction. The vast majority of Australian brands surveyed (85%) believe their AI effectively recognises returning customers and accesses their history, yet 77% of local consumers report having to repeat basic information they’ve already shared. In many cases, the bottleneck is that AI agents don’t have access to the customer data they need.
“Perhaps the biggest concern in this research is that brands are overestimating their AI agent’s ability to harness customer memory to create seamless and efficient interactions,” said Christopher Connolly, Director Solutions Engineering, Asia Pacific & Japan at Twilio. “As with human agents, AI agents need to have context. Any investments into AI must go hand-in-hand with connected data, which is now the cornerstone of good customer experience.”
AI context and memory deficits
- Customer abandonment: Almost seven in ten (69%) Australian consumers have abandoned an AI customer service interaction due to the system failing to recognise them or recall past conversations.
- Perception gap: While 85% of surveyed Australian brands believe their AI systems effectively recognise returning customers and access their history, 77% of local consumers report having to re-enter basic information. This gap frequently stems from AI agents lacking access to necessary customer data.
- Human handoff issues: Transferring to a human representative often fails to resolve the issue, with 67% of Australian consumers reporting that they must repeat details or fill in information gaps post-handoff. Disconnected data systems prevent both AI and human agents from accessing unified customer histories.
- Industry assessment: Christopher Connolly, Director of Solutions Engineering for Asia Pacific & Japan at Twilio, noted that organisations are overestimating their AI agents’ ability to leverage customer memory. Connolly stated that AI investments must be paired with connected data to deliver effective customer experiences.
Regional AI efficiency comparisons
- Performance perception: Australian consumers reported lower satisfaction regarding AI efficiency compared to regional counterparts across APAC. Only 47% of local consumers felt AI bots had improved over the past year, compared to 70% in Singapore.
- Time savings: Australia recorded the lowest average time saved per AI interaction in the region at 63 seconds, compared to the APAC regional average of 84 seconds and India’s average of 101 seconds.
- Consumer expectations: For 51% of Australian consumers, fast AI lacking context is just as frustrating as context-aware AI that responds too slowly. However, 45% of respondents agreed they feel appreciated if an AI agent is capable of resolving their issue, while 34% stated a company’s use of AI does not impact how valued they feel as customers.
Twilio surveyed 7,652 global consumers and 660 business leaders across 18 markets, including Australia, between April 9 and May 1, 2026. Asia Pacific & Japan markets surveyed included Australia, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, and Singapore.