Smart Communications research has found that confidence in artificial intelligence’s ability to improve customer experience is falling, even as consumers expect companies to deliver smoother digital communication across critical journeys.
The company’s 2026 Customer Experience Benchmark study, based on 4,000 consumers across financial services, insurance, healthcare, and government, found that 63% would switch providers if communications failed to meet expectations. The figure rose to 72% among Millennials and 70% among Gen Z.
Communications have a direct effect on brand perception, with 85% of consumers saying they shape how they feel about a provider. Only 52% rated current communications as good or excellent. Satisfaction in insurance fell to 50%, while consumers pointed to poor writing, broken form processes, and AI deployment without enough transparency or human oversight.
Confidence in AI’s ability to improve customer experience dropped to 56%, down five points year on year. Trust in AI to manage personal data securely fell by six points, while 82% of consumers said companies should disclose when AI is used in their interactions.
The findings align with the trust and automation themes examined in The age of the informed consumer, where credibility, transparency, and human connection are becoming more important as digital journeys become more automated.
In regulated industries, customer communication is tied directly to operational risk. Letters, forms, policy documents, claims updates, renewal notices, financial decisions, healthcare correspondence, and public-service interactions often arrive at moments when customers need clarity. A confusing message, failed form, repeated data request, opaque chatbot, or unclear AI decision can create complaints, attrition, higher contact-centre costs, and regulatory exposure.
The research highlights a persistent gap between expectation and delivery. Consumers expect information to move seamlessly across channels and representatives, but half said they sometimes or always need to repeat information when switching channels. That friction drives calls, increases handling time, and weakens confidence in digital investment.
AI can improve service when it is used carefully. Automated drafting, document personalisation, claims triage, chat support, and proactive notifications can reduce delays and improve consistency. Poorly governed AI can create unclear communication, weak escalation routes, or the sense that customers are being managed by systems that do not understand the situation.
The generational divide is commercially important. Younger consumers appear more willing to trust companies using AI responsibly, while older consumers remain more cautious. A single digital service model is unlikely to work across all groups. Older customers often hold significant financial assets, insurance policies, healthcare needs, and long-standing provider relationships, making trust erosion especially costly.
The findings also challenge a narrow efficiency case for AI. Many companies adopted digital tools to reduce service costs. The next stage requires evidence that automation improves clarity, speed, and confidence. If AI reduces staffing but increases complaints, escalations, or abandoned journeys, the commercial case weakens.
Customer communication is becoming a governance discipline. Companies need to know when AI is used, how outputs are checked, when customers can reach a person, and whether forms and messages are understandable. Strong digital journeys will combine automation, human oversight, and clear communication without forcing customers to compensate for system failure.
You must be logged in to post a comment.