96 percent of businesses report AI has met or exceeded expectations, finds Medallia study

AI’s potential to transform customer experience is driving adoption across industries.

Medallia, the global leader in customer and employee experience has released its latest report, What CX Practitioners Really Think of AI, which has revealed that organisations are doubling down on artificial intelligence. 70 percent of organisations now have roles dedicated solely to generative AI, and 68 percent are hiring for additional AI-focused positions. 51 percent of organisations have also appointed a Chief AI Officer, underscoring AI’s growing strategic importance.

The report found that 90 percent of CX practitioners have used generative AI tools like ChatGPT, with 89 percent reporting a positive impact. An encouraging 96 percent of organisations reported that AI has met or exceeded expectations so far. The findings reflect how businesses are leveraging generative AI and advanced analytics to achieve measurable outcomes.

According to the report, CX practitioners are leading the way in AI adoption, prioritising use cases that streamline operations and deliver tangible business value. Data analysis, quality, and speed, for instance, are critical focus areas, while automated communications and predictive modelling are enabling businesses to act more quickly and accurately on customer needs.

With one third of organisations already implementing vendor-led AI solutions, the study emphasises the role of partnerships in driving successful outcomes. Practitioners are increasingly looking to vendors to enhance data protection, improve scalability, and lower costs while delivering cutting-edge tools for automating actions, personalisation, and knowledge synthesis.

Despite optimism, the report notes barriers to maximising AI’s impact. Challenges such as employee confusion (32 percent), insufficient time to realise benefits (32 percent), and data privacy concerns (23 percent) indicate the need for smarter deployment strategies. The upcoming EU AI Act, enforceable by 2026, further underscores the urgency of aligning AI investments with regulatory requirements.

With 44 percent of organisations planning to boost AI investment within the next year, the report underscores the growing importance of AI leadership and cross-functional collaboration. Companies equipped with tailored strategies, skilled talent, and robust data governance are best positioned to capitalise on AI’s transformative potential.

“AI is a transformative tool, but its return on investment depends on how strategically it’s developed and deployed,” said Michael Mallett, VP Product – CX Solutions at Medallia “The fact that 89 percent of CX practitioners report a positive impact shows the tremendous value AI has already delivered in areas like prescriptive insights and personalised customer experiences. Yet, there’s still untapped potential in techniques like predictive and simulation modeling and agentic applications to deliver even greater innovation. With the clock ticking on regulations like the EU AI Act, businesses must act now to align their strategies or risk financial and reputational setbacks. Those who invest in scalable, tailored solutions today will define the competitive landscape of tomorrow.”

About Medallia

Medallia is the pioneer and market leader in customer, employee, citizen, and patient experience. As the leading enterprise experience platform, Medallia Experience Cloud is the mission-critical system of record that makes all other applications customer and employee aware. The platform captures billions of experience signals across interactions including all voice, video, digital, IoT, social media, and corporate-messaging tools. Medallia uses proprietary artificial intelligence and machine learning technology to automatically reveal predictive insights that drive powerful business actions and outcomes. Medallia customers reduce churn, turn detractors into promoters and buyers, create in-the-moment cross-sell and up-sell opportunities, and drive revenue-impacting business decisions, providing clear and potent returns on investment.