Merkle Study: Why AI Often Falls Short in Customer Experience

Companies are currently investing at a rapid pace in automation, personalization, and artificial intelligence. Yet these decisions often lack a central foundation: a solid understanding of the customer’s perspective. Instead of starting with actual needs, many investments are driven primarily by technological possibilities and current market trends. The result is a growing disconnect between where companies focus their resources and what consumers actually consider important for a good AI customer experience. The new Merkle study, «The Invisible Advantage: Five CX Imperatives for AI That Earns Its Place,» sheds light on precisely this gap.

Methodology: Global Survey, Real Voices

For the study, Merkle surveyed 2,500 consumers in 23 countries across North America, Latin America, Europe, and Asia. The study was supplemented by in-depth qualitative interviews and mobile ethnographic research with 15 participants in eight countries. The survey took place between November and December 2025.

Personalization Falls Short of Expectations

Although companies have been investing heavily in personalization for years, the actual added value for many consumers remains modest. Just under half of those surveyed—exactly 51 percent—consider personalized content and recommendations to be truly helpful. According to the study, the reason often lies not in a lack of data, but in how it is used: Many initiatives are primarily based on past interactions, while consumers expect support with current concerns and future decisions.

There is generally a willingness to share personal data in exchange for better experiences. Four out of five respondents view data-driven personalization positively, provided that data protection and data security are guaranteed. The challenge, therefore, lies not in accessing the data, but in using it effectively.

Satisfaction with personalization also declines significantly with age: it drops from 57 percent among Generation Z to 39 percent among baby boomers. Older generations are also more sensitive to the use of their data.

Security as a Key Factor in the AI Customer Experience

For consumers, privacy and security have become key components of a good customer experience. Ninety percent of respondents rate them as important or very important—making them among the most important requirements of all, just behind ease of use and convenience.

At the same time, skepticism toward AI systems is on the rise. Consumers are primarily concerned about the protection of their data and privacy. Added to this are doubts about the reliability of AI-generated results, as well as questions about the extent to which humans still monitor and control these systems. According to the study, this means that for companies, security is no longer merely a compliance issue, but a key competitive factor.

Technology as a means to an end, not an end in itself

One notable finding of the study: Only 43 percent of consumers consider it important for their shopping experience to be supported by new technologies or AI. This puts technology in last place among all the experience factors surveyed—behind criteria such as simplicity, reliability, cost, and personalized service.

Above all, customers expect simple, reliable, and secure processes. Ideally, the technology behind them should remain invisible. From their perspective, what matters isn’t which technology is used, but whether it simplifies the purchasing process, reduces wait times, or resolves issues more quickly.

There is a wide gap between AI investments and actual customer needs

The discrepancy is particularly pronounced when it comes to AI agents. Although this topic is currently one of the most widely discussed trends, only 28 percent of consumers express a strong interest in using AI agents for more complex interactions in the future.

A tension is also evident in customer service: Only 18 percent prefer primarily digital interactions in this area, while 51 percent explicitly prefer human assistance. At the same time, customer service is among the areas where consumers across all industries see the greatest need for improvement. The results suggest that successful AI strategies should not be driven by technological possibilities, but rather by specific customer problems—and that human interaction remains indispensable at certain points.

Loyalty is built after the purchase

Across nearly all industries, consumers see the greatest need for improvement in the post-purchase phase. Customer service, repairs, maintenance, customization, and the repurchase process are cited particularly frequently. According to the press release, many companies still view this area primarily as a cost factor. The study, however, reaches a different conclusion: The post-purchase phase has a significant impact on loyalty, repurchase rates, and long-term growth.

That’s because a customer relationship already exists at that point. Every subsequent interaction influences whether a buyer will become a long-term customer. Two-thirds of respondents say they develop a stronger connection to brands when their experiences feel personal and human.

Patrick Fromm, Chief Client Officer at Merkle Central Europe, sums up the core message of the study: «Successful AI isn’t noticed by customers because of its technology, but because of the value it provides. Those who build trust, simplify processes, and enable relevant experiences will set themselves apart in the long run.»

The full study is available at: https://www.merkle.com