A new MIT Technology Review Insights report explores how AI is reshaping CX. It highlights the need to balance automation with the human touch to deliver smarter, faster, and more personalised engagement.
Customer expectations are evolving faster, with AI changing how brands connect, respond, and deliver value. But loyalty doesn’t come from automation; it comes from the right balance of technology and human interaction.
A new report by MIT Technology Review Insights reveals how brands can deliver enhanced CX, balancing AI with the human touch. The report, “The connected customer,” is an MIT Technology Review Insights report sponsored by NiCE.
“The future of customer experience isn’t humans versus machines, it’s humans powered by machines,” said Barry Cooper, President, CX Division, NiCE.
This report draws on in-depth interviews with senior executives and experts from Metrigy Research and NiCE, conducted in the first half of 2025. It seeks to understand how organisations are deploying AI in their customer service capabilities to improve customer satisfaction and increase efficiency.
“When AI and automation work hand-in-hand with the workforce, every interaction becomes smarter, faster, and more personalised,” added Barry.
“This is about amplifying human potential, not replacing it, empowering employees with the tools to anticipate needs, resolve issues instantly, and create experiences that feel effortless for the customer.
Key Report Findings:
To make sense of the evolving CX landscape, the report highlights three themes that are shaping strategies for the future:
- AI is Reshaping CX
Customer service has evolved from the era of voice-based support through digital commerce and cloud to today’s AI revolution. Powered by LLMs and a growing pool of data, AI can handle more diverse customer queries, produce highly personalised communication at scale, and help staff and senior management with decision support.
- Legacy Systems Hold Back AI Potential
While customer service and IT departments are early adopters of AI, the broader organisations across industries are often riddled with outdated infrastructure. This impinges the ability of autonomous AI tools to move freely across workflows and data repositories to deliver goal-based tasks. Creating a unified platform and orchestration architecture is key to unlocking AI’s potential.
- Balancing AI and Human Touch
Organisations should not underestimate the unique value their workforce offers. Sophisticated adopters strike the right balance between human and machine capabilities. The most effective organisations treat AI as a collaborative tool that enhances rather than replaces human connection and expertise.
Robin Gareiss, CEO and Principal Analyst, Metrigy, said, “77% of agents are handling complex issues all or most of the time, which causes burnout. Companies are using AI to determine when an employee needs support. AI can determine when they need a break, which links to lower turnover rates.”
Conclusion
The report made it clear: AI is a powerful enabler, but its true value lies in how it augments people, not replaces them.
Laurel Ruma, Global Director of Custom Content for MIT Technology Review Insight, said, “AI is transforming customer service, but its full potential depends on seamless integration and maintaining the human touch.”
When companies weave automation with human empathy, the results go beyond efficiency. They ease employee stress, spark confidence, and create CXs that feel natural, personal, and even memorable.
As Laurel Ruma said, “The best outcomes come from balancing technology with personal connection.”
ALSO READ: Experience Debt: The Silent Killer of CX Progress
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