Zendesk’s 2025 Customer Experience (CX) Trends Report has revealed a sharp rise in consumer expectations, with Australian customers increasingly demanding AI interactions that feel more human, personalised, and intuitive.
The research, based on responses from over 10,000 global consumers and business leaders, shows that companies leading in AI adoption are seeing measurable returns, while those lagging behind risk losing customers.
Zendesk found that 73 per cent of consumers now see customer service as central to brand loyalty, with more than half reporting they can tell when a company has successfully embedded AI into its service experience.
In Australia, 89 per cent of CX leaders identified AI as essential to future success, and 75 per cent reported a positive return on investment from their AI tools.
Kellie Hackney, Regional Vice President – Australia and New Zealand at Zendesk, said the report reflects what she’s hearing from clients across industries.
“We support about 60 languages. We’re in 160 countries. For me, that was really important actually because it tells me that no matter where my customers are going — from a global footprint or a growth or a competitive perspective — Zendesk is a very solid stable partner,” Hackney told RetailBiz.
Innovation, not retreat, drives growth
Hackney said that while economic uncertainty is prompting many companies to scale back, those finding success are investing more, not less, in innovation.
“When that macroeconomic situation starts occurring, a lot of companies pull back…Where we see companies thriving, like not surviving but really thriving, is where they go bold and they innovate and they double down on what they need to do from an investment perspective to get through it,” she said.
Freedom Furniture, one of Zendesk’s local clients, is highlighted in the report as an example of a retailer that placed customer experience at the centre of its business strategy.
“Their customer experience actually became their differentiator which put their CX strategy at the forefront of the C-suite,” Hackney said.
“Their automations increased, their average channel time came down, the speed in which they could get to their customer in the first place sped up…Their CSAT went up 17 per cent in the same window.”
AI copilots support agents behind the scenes
Hackney said AI tools are no longer confined to front-facing chatbot services. Zendesk’s AI co-pilot technology works in the background to assist human agents by analysing sentiment, searching internal knowledge, and suggesting tailored responses.
“That co-pilot is sitting there scraping what the customer’s just asked me to do…and it’s recommending a response to me, and it’s doing it with sentiment and intent analysis,” she explained.
These tools are especially useful for small retailers, she added, as they help reduce training time, minimise turnover, and maintain service quality without needing large customer service teams.
“If the company you work for doesn’t have a platform that’s easy for you to use… this is a helper in the background for them, which is really important.”
New roles emerge as CX becomes more data-driven
Hackney said AI is not replacing jobs outright but is reshaping them.
“We’re not seeing companies try and figure out how to lay off 20 per cent of their workforce. They’re figuring out how to stabilise it a bit but reimagine it a lot,” she said.
“We think it’ll create more creativity…and more complex thinking for the agents.”
She added that customer service roles are evolving, with businesses increasingly investing in digital journey mapping, AI compliance, and content development.
“This isn’t going to be the end of my employment, but actually it’s the start of an opportunity,” Hackney said. “Those roles are becoming really important.”
Zendesk is also rolling out commercial models designed to align pricing with outcomes, such as outcome-based and flexible pricing.
“We’ll let you change your mix as your business evolves,” Hackney said, noting that such pricing structures reflect how AI is used to resolve real customer issues.
A message to AI-hesitant businesses: move quickly
Despite the growing body of evidence supporting AI investment, some businesses remain hesitant. Hackney’s advice to them is direct.
“Move at pace. Go and educate yourself on what AI is possible for your organisation. Adopt it and play it back to your strategy… Don’t hesitate.”
With more than half of consumers saying they would switch brands after just one bad experience, Hackney said customer experience has never mattered more.
“Companies that we see adopting AI very well…stay true to their North Star. North Star has to be primarily what drives them. AI is a technology and a strategy that can support them in achieving it.”
Zendesk’s findings indicate that as customer expectations continue to rise, businesses that act now, strategically and with intent, are positioning themselves to lead the next era of customer loyalty.