The Empathy Gap Why Indian Customers Feel Disconnected Despite AI Investment

MUMBAI : India’s corporate landscape is currently witnessing a massive surge in Artificial Intelligence (AI) adoption, yet a significant disconnect remains between boardroom strategy and consumer satisfaction. According to the ServiceNow Customer Experience Report 2026, titled The CX Shift, a stark “empathy gap” has emerged, revealing that while leaders are eager to invest in tech, they are often failing to address the human element of service.

The Ambition vs. Execution Paradox:
Indian business leaders are showing high levels of commitment to digital transformation. The report highlights that 60% of organisations plan to adopt a connected enterprise approach over the next three years, while 81% intend to consolidate customer data into a “single view.”

However, Sumeet Mathur, Senior Vice President and Managing Director of ServiceNow India, warns that intent alone is insufficient. “Ambition without a connected foundation is just noise,” Mathur noted, emphasizing that the leaders of tomorrow are those who move beyond evaluation and begin building integrated systems today.

Solving the Wrong Problems:
The research identifies a major misalignment in priorities between businesses and their clients:

Empathy: 48% of customers cite a lack of empathy as a major pain point, but only 19% of leaders view it as a priority.

Clarity: 53% of customers are frustrated by unclear policy explanations, compared to just 22% of leaders who recognize this as a hurdle.

Departmental Silos: 45% of customers hate being transferred between departments, yet only 23% of leaders see this as a significant issue.

These discrepancies suggest that organizations are building high-speed solutions for technical problems while ignoring the emotional frustrations that actually drive customer churn.

Fragmentation: The Barrier to AI Potential:
The root cause of these poor experiences is often structural. Many Indian firms have not yet connected their people, data, and processes into a unified foundation. Currently:

• Only 38% of Indian organisations have a “single source of truth” for their data.
• Just 34% are successfully breaking down silos for AI integration.
• Only 31% have optimized their CRM systems for cross-functional collaboration.

The Narrowing Window for Loyalty:
The cost of inaction is high. 44% of Indian customers admit they will switch to a competitor following a slow or inadequate service experience. Despite this, only 30% of businesses have made significant progress in linking the data and processes necessary for AI to deliver on its promises.

As ServiceNow positions itself as the “AI control tower” for business reinvention, the message to India’s leaders is clear: The goal isn’t just to be fast; it is to be understood. The window to build an empathy-first, connected foundation is open, but it is closing quickly as consumers lose patience with fragmented systems.