Zendesk launches its 2026 Customer Experience (CX) Trends report today, indicating that Contextual Intelligence – the capacity to merge AI, data, and human insight in real time – is transforming the definition of excellent service.

In India, the appetite for this degree of intelligence is rising with changing consumer expectations: 80 percent of Indian consumers state their service standards have improved over the last year, 79 percent desire more tailored experiences from brands utilizing AI, and 96 percent seek transparent AI explanations.

Nonetheless, gaps remain – only 44 percent of organizations presently offer a complete, inspectable AI decision trail, and merely 44 percent of agents regard fostering trust and transparency as a key priority.

Also Read: Lookback 2025: 7 Companies that Embraced & Advanced AI this Year

Leaders understand the consequences of these gaps – and are taking steps to bridge them. Ninety-one percent think that fragmented data jeopardizes reliable service, and 92 percent state that customers will abandon businesses that cannot address problems on the first interaction. In reply, 49 percent of Indian companies have embraced prompt-analytics hubs – a number anticipated to more than double to 93 percent in a year – and 92 percent are incorporating AI reasoning controls to enhance transparency.

Drawing on perspectives from more than 11,000 consumers, CX leaders, and customer service representatives globally, Zendesk's eighth annual report emphasizes how the top-performing companies are integrating AI's abilities with the empathetic understanding of human service.

Also Read: Lookback 2025: 7 of the Year's Biggest Tech Acquisitions

“AI is not the differentiator anymore. How intelligently you apply it is. When 85percent of CX leaders say one unresolved issue is enough to lose a customer, speed, accuracy, and empathy become non-negotiable. The best systems connect past interactions to present intent to anticipate what is next, putting contextual intelligence in action. That is the balance Zendesk delivers: automation that feels personal and builds trust by bringing real context to every conversation.” says Tom Eggemeier, Chief Executive Officer of Zendesk.

Also Read: Lookback 2025: 7 Indian Companies That Drove Major Expansions

Mitch Young, Senior Vice President, APAC, Zendesk says, “India’s growth story is playing out against a backdrop of more digital journeys, more choice, and far less tolerance for friction. Customers aren’t looking for faster replies; they expect issues to be resolved on the first contact, with service that feels personal and AI that can clearly explain its decisions. We’re also seeing a clear divide between organizations that operationalize AI with the right data and governance, and those that simply deploy it: one group is building loyalty and efficiency, the other is creating inconsistency and eroding trust. For brands in India, strong CX leadership means earning trust while delivering seamless resolution at scale.”