Consumers across the Asia-Pacific region are raising their expectations for AI-powered service. They want more transparency, better personalization, and clear explanations when AI is involved. A new report from Zendesk shows that businesses are racing to meet these demands, with many already taking steps to improve their customer experience through smarter technology.

The Rising Demand for Explainable and Personalized AI

In APAC, 77% of consumers say their service expectations have grown over the past year. A large majority, 75%, now want brands to use AI to deliver more personalized experiences. But they also want transparency—96% of consumers in the region insist on clear explanations for AI decisions. Despite this, many companies still lag behind. Less than half (49%) of customer experience leaders see personalization as a priority, and only 35% can fully inspect AI decision-making processes. Additionally, just 37% of agents consider building trust and transparency as a top focus.

These gaps concern leaders because they recognize the risks of disconnected data and unresolved issues. About 78% believe that inconsistent data can harm service quality, while 86% say customers will leave if their problems aren’t resolved on the first try. To address these challenges, many firms are adopting new tools. Over a third (37%) have implemented prompt-analytics hubs, and this number is expected to more than double soon. Meanwhile, 78% are working to improve transparency with AI reasoning controls.

Blending Human Touch with Advanced AI

The report highlights that the most successful companies are those combining AI’s capabilities with human emotional intelligence. They focus on connecting past interactions with current intent to anticipate customer needs. This approach, called contextual intelligence, creates a more personal experience. It helps avoid issues like delays or misunderstandings, building trust and loyalty.

According to Zendesk CEO Tom Eggemeier, speed, accuracy, and empathy are now non-negotiable. He emphasizes that AI is no longer a differentiator just by existing, but by how well it’s applied. The best systems are those that make conversations feel natural and personalized, by bringing relevant context into every interaction. This balance of automation and human insight is what sets top brands apart.

Why APAC Is Leading the Way in AI Customer Service

Mitch Young, Zendesk’s Senior Vice President for APAC, notes that what’s considered industry-leading today quickly becomes the standard tomorrow in the region. Customers here want more than quick replies—they seek instant resolutions, deep personalization, and AI that is transparent and easy to understand.

Investing in AI maturity pays off. Organizations in APAC that advance their AI capabilities are seven times more likely to see reductions in customer churn and nearly twice as likely to report strong financial returns. With a growing middle class and rising consumer spending, companies need to stay ahead by focusing on delivering value, building trust, and ensuring seamless interactions at every touchpoint.

As AI continues to evolve rapidly, businesses that prioritize transparency, personalization, and emotional intelligence will be best positioned for success in 2026 and beyond. The future of customer experience is about blending technology with human understanding to create truly exceptional service experiences.

Inspired by

• https://ai-techpark.com/contextual-intelligence-becomes-the-new-standard-for-exceptional-cx-in-2026/