Businesses are increasing investment into AI to improve their relationship with customers, but gaps in visibility across the customer journey are limiting its impact. While 72% plan to invest in AI for CX in the next year, 17% still cannot see the full customer journey across touchpoints and departments.
According to UK businesses surveyed in Zoho’s Digital Health Survey 2026, gaps in real-time data access and fragmented technology systems are limiting companies’ ability to retain proactively and serve customers.
Ironically, some of the areas that AI was expected to transform are where businesses struggle most. Fifty-nine percent of respondents express retaining customers as a major challenge, and the same proportion find it difficult to predict issues before they happen. The problem isn't AI itself, but what sits beneath it. Without connected systems and reliable data, AI fails to deliver.
The most cited barriers to great customer experience tell a clear story: AI can't fix what the data can't see. Businesses blamed limited access to real-time data (17%), a lack of the right software to manage the data they have (13%) and difficulty applying AI effectively (11%).
The challenge doesn't end with better data. As businesses feed more customer information into AI, they also need to show customers it's in safe hands. While improved customer experience is the top benefit businesses want from digital transformation (49%), fewer than half (45%) are confident their data privacy policies are clear and transparent to customers and employees.
That gap is a risk. Businesses need data that's connected enough to see the customer and protected enough to earn their trust.
Sachin Agrawal, Managing Director for Zoho UK, commented, "You can't buy your way to better customer experience. Our research shows businesses are investing heavily in AI and still struggling with the basics of retaining customers and spotting problems before they happen. AI will only mirror the reality of a company's data and systems. Point it at disconnected data and it reflects disconnected service straight back to your customers.
"But getting the data right isn't only about systems. Customers hand over their data in good faith. They expect it to be used to serve them better, and they expect it to be looked after. Businesses need to invest in a well-designed customer experience strategy that uses the power of AI responsibly to enhance CX. A business that fails to do this is not putting its customers first, no matter how much AI it has."
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