New Delhi: Twilio has released its sixth annual State of Customer Engagement Report. Based on a global survey of more than 7,600 consumers and over 600 business leaders across 18 countries, including India, the report reveals a clear disconnect.
It states that while AI drives measurable returns, the customer perception hasn’t caught up. A stubborn gap persists between what brands believe they are delivering and what customers experience.
Indian brands are personalising customer experiences with AI, but customers want consistency
India is seeing a significant surge in AI adoption to drive personalised customer experiences. Businesses are increasingly leveraging AI to analyse data, ensure consistent communication across channels, and meet evolving customer expectations. These efforts are paying off— almost 8 in 10 (79%) Indian consumers report spending more with brands that personalise their engagement, and an overwhelming 98% say they are more likely to buy when engagement is personalised in real-time.
Additionally, a majority (90%) of Indian consumers believe personalisation is important, expecting brands to use it to provide relevant recommendations (71%), make shopping easier (66%), and boost confidence in brand legitimacy (65%).
Despite these positive indicators, customer sentiment is nuanced. Although 80% of Indian consumers say brands do a good or excellent job at personalisation, only 30% feel that engagement happens consistently. This highlights a clear opportunity for brands to transform one-off personalisation into always-on, individualised experiences.
Among the Indian consumers, 70% say they are ‘much more likely’ to purchase when engagement is personalised, and 88% will abandon a purchase if engagement feels impersonal. Conversely, an overwhelming 98% of Indian consumers are more likely to make purchases when engagements are personalised in real time, highlighting a major opportunity for brands to align automation with actual customer experience and drive higher conversions.
AI alone is not enough; Indians still expect a human fallback
Although AI acceptance is growing, Indian consumers still value human involvement and control in their brand interactions. 91% say it is important that AI-powered brand interactions feel human-like, and more than half (55%) want the ability to speak to a person if AI fails to resolve their issue effectively.
More than 7 in 10 (72%) of consumers want to know when they are communicating with AI, underscoring the need for brands to implement safeguards around visibility and control. Additionally, the majority (87%) of Indian consumers want to choose how brands communicate with them, rather than having AI agents automatically assume their preferences. This reflects a strong desire to retain control and autonomy over their brand interactions.
“Indian consumers are increasingly aware that while AI-powered personalisation influences buying behaviour, it is not a substitute for relevance, trust and human connection,” said Nicholas Kontopoulos, VP of Marketing, Asia Pacific & Japan at Twilio.
“Indian brands are already leading the way, demonstrating a deep understanding of the importance of AI and excelling at delivering personalised experiences. As they continue to scale their use of AI, the next step is to move beyond basic personalisation to true individualisation, where every interaction feels timely, contextual, and humanised. This means putting transparency at the centre, respecting customer preferences, and using data to serve, not just sell. The brands that will lead in India’s next wave of growth are those that get this balance right by blending intelligent automation with authentic engagement to earn loyalty and drive long-term impact.”
The future of customer engagement is Individualisation and Trust
In a world where customer loyalty is harder to win — and easier to lose — businesses can no longer afford to treat trust and personalisation as optional. The 2025 State of Customer Engagement Report shows that basic personalisation no longer cuts it. The future of customer engagement lies in individualisation, built on customer interactions that are relevant, timely, tailored and trustworthy.
By investing in transparent, data-driven and AI-powered engagement strategies, brands in India can bridge the expectation gap, earn trust, deepen relationships and stand out in an increasingly competitive marketplace.
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