Why outdated IT systems are becoming the biggest risk to the customer experience

Despite growing pressure to modernise, progress has been limited: on average, only 31 per cent of CX infrastructure runs entirely in the cloud – exactly the same figure as in last year’s report. This means that 69 per cent of systems are still not fully cloud-based.

This is significant because many of the most advanced CX features absolutely require a modern, cloud-based platform:

These capabilities can hardly be scaled on fragmented, locally operated systems. As agent-based orchestration increases, the pressure grows even further: AI agents must be able to consistently access the same networked environment in order to retrieve customer information and derive actions.

CX executives certainly have ambitious plans. 91 per cent expect to be orchestrating customer experiences end-to-end within the next three years, and 86 per cent agree that agent-based or autonomous AI will increasingly drive the customer experience.

However, true orchestration goes beyond the traditional contact centre. Customer issues – from invoicing and order fulfilment to account management – often require access to middle- and back-office processes.

That is why they say:

Without such a connected platform, there is a risk that companies will improve individual interactions whilst the overall customer journey remains fragmented.

The costs of delays in modernisation are clearly felt – particularly as customers are now actively using automation and have correspondingly high expectations of it. 94 per cent of chatbots deployed by CX organisations are now AI-powered, and the vast majority of executives see virtual agents as an effective gateway to self-service.

At the same time, patience is limited: 84 per cent of consumers give a virtual agent a maximum of three attempts to resolve a problem – fewer than 20 per cent are willing to tolerate more. If the handover between AI and a human fails due to a lack of context, this is precisely what triggers frustration. Almost a fifth of consumers say that having to provide the same information repeatedly makes them so angry that they would avoid a brand in future.

The report uses the data to draw up five specific recommendations for a CX operating model that connects channels, systems, data and people:

The data paints a clear picture: investment in AI alone is not enough if the underlying infrastructure cannot keep pace. Companies that continue to rely on isolated, on-premises systems risk not only inefficient processes but, increasingly, a loss of customer trust and loyalty.

The real question for CX leaders is therefore no longer whether to introduce AI, but whether the platform behind it is capable of connecting data, channels and teams in such a way that individual AI tools can actually be transformed into a seamlessly orchestrated customer experience.