Friendly and Empathetic AI: The Future of Customer Loyalty in India 81 % of surveyed consumers in India stated they would engage more with AI if it provided more human-like interactions

Indian consumers' expectations of Artificial Intelligence (AI) are shifting drastically, with customers increasingly desiring AI to behave and work more like humans. Companies that were early adopters of AI technology and are now reaching AI maturity within their operations are reaping significant benefits in terms of retention, revenue, and return on investments (ROI), according to the Zendesk's 2025 Customer Experience (CX) Trends Report. Also, approximately 88 per cent of CX leaders in India have reported positive ROI from their AI tools in customer experience (CX). Moreover, businesses that integrate AI with a focus on empathy and personalisation are gaining a strong competitive advantage, building trust, and boosting customer retention.

"In India, consumers increasingly desire more human-like AI interactions, and companies looking to differentiate themselves must invest in AI for their customer service as it becomes a key battleground for customer loyalty," said Maureen Chong, Regional Vice President, Asia, Zendesk.

"AI should be more than just another technology we use—it's a way to bring companies and customers closer, and it's redefining the relationships we can build," added Tom Eggemeier, CEO of Zendesk.

The report also highlights a growing divide between companies that embrace modern technology like AI, referred to as "CX Trendsetters," and those lagging behind with traditional approaches.

In India, 97 per cent of CX Trendsetters reported positive returns from AI tools for agents, as copilots enhance both the customer journey and operational agility. In fact, CX Trendsetters in the Asia-Pacific region experience 56 per cent higher customer acquisition rates, 45 per cent higher customer retention rates, and 63 per cent higher cross-sell revenue. However, the use of shadow AI–which is not officially approved to use—has jumped over 200 per cent year-on-year in Asia Pacific—putting customer privacy, security and service quality at risk.

"Organisations that have fully embraced AI—CX Trendsetters—recognise its transformative power. In India, 94 per cent of them say adopting AI at scale will be crucial to surviving competitive pressures in the next five years. Their efforts are paying off because 86 per cent of consumers in India see a clear gap forming between companies that leverage AI effectively in customer service and those that don't," Chong further added.

Furthermore, 81 per cent of surveyed consumers in India stated they would engage more with AI if it provided more human-like interactions, and 63 per cent are more likely to trust AI agents that demonstrate friendliness and empathy.

Eggemeier explained further, "We believe that AI should be in service to humans and help companies understand and better connect to their customers as individuals. When brands focus on creating genuine, human-centred AI interactions, they don't just make things run more smoothly—they create trust, loyalty, and a lasting connection. This report shows that putting customers at the heart of AI is more than a smart strategy; it's becoming the new standard for building loyalty in a rapidly changing world."