How Agentic AI is Transforming Customer Experience

As businesses compete for increasingly price-sensitive customers, one factor is standing out as a decisive differentiator: customer experience (CX). Yet many organisations still struggle to deliver, often held back by outdated systems, fragmented data, and entrenched silos that limit agility and consistency.

A recent report by MIT Technology Review Insights (2025) highlights how the current wave of artificial intelligence—particularly agentic AI that can reason and act across workflows—is reshaping the way organisations engage with customers. The findings provide valuable lessons for companies looking to move from AI’s promise to measurable CX impact.

Agentic AI is Redefining Customer Experience

According to MIT Technology Review Insights, customer service has evolved through several eras: from voice-based support, to digital commerce, to cloud solutions, and now into the age of AI (MIT Technology Review Insights, 2025).

With the power of large language models (LLMs) and access to growing pools of data, AI can now:

• Handle a wider range of customer queries with speed and accuracy.

• Deliver personalised communication at scale.

• Assist staff and management with data-driven decision support.

Early adopters report tangible benefits including more satisfied customers, higher staff productivity, and deeper insights into service performance. Customers themselves are becoming more comfortable engaging with AI as reliability improves.

Legacy Systems Still Hold Businesses Back

Despite the promise, many organisations remain constrained by legacy infrastructure and data silos. These fragmented systems prevent autonomous AI tools from seamlessly moving across workflows and repositories to complete tasks effectively (MIT Technology Review Insights, 2025).

The report stresses that building a unified platform and orchestration layer is essential. This not only unlocks AI’s full potential but also creates an opportunity to streamline and rationalise the wider business.

Balancing AI Innovation with Human Connection

MIT’s research makes clear that the most successful organisations use AI without losing the human touch. While customers are warming to AI, they can also feel uneasy about excessive personalisation or artificial “empathy” from bots.

The organisations achieving the best outcomes:

• Maintain a clear balance between human and machine capabilities.

• Communicate transparently about how AI is being deployed.

• Invest in staff training and proactively address concerns about job displacement.

In practice, this means treating AI as a collaborative tool—one that enhances, rather than replaces, the uniquely human qualities of empathy, creativity, and nuanced understanding.

What This Means for New Zealand Businesses

For Kiwi businesses, the lessons are clear:

1. CX is no longer optional. Customers are more demanding and cost-conscious than ever.

2. Agentic AI offers a competitive edge. By automating routine queries, personalising support, and giving staff decision-making insights, businesses can scale efficiently while improving customer satisfaction.

3. Integration is key. Without modernising infrastructure and creating unified platforms, AI’s potential will remain limited.

4. People still matter most. AI should empower your team, not replace them.

At DigitalxMarketing, we help businesses integrate AI-powered marketing and customer experience platforms like DxM Marketing AI to bridge these gaps—ensuring your organisation can harness the latest AI while staying authentically human.

Email info@digitalx.marketing to learn more.