The C-suite understands the importance of CX and its place as a revenue driver. So, funding is easier, but getting it up and running is still hard going.
Customer engagement and experience (CX) are in the midst of yet another big shift thanks to new technology and changing customer behaviors. So businesses are turning to AI to personalize interactions, boost satisfaction and improve efficiency—all while driving revenue. Two recent reports provide important insights into today’s CX landscape, investment trends and AI’s growing role.
CX is no longer just about keeping customers happy—it’s a key driver of business results and the C-suite knows it. According to Nextiva’s 2025 CX Landscape report, 89% of CX decision-makers say their execs understand CX’s impact on profit margins. Most leaders now see CX as a revenue driver (79%) rather than a cost center (21%).
No surprise, this has made it easier to get CX investments OK’d — 67% of respondents say it’s less of a battle than five years ago. Furthermore, nearly all companies (94%) have seen ROI on their major CX investments.
However, there’s a difference between getting ROI and getting the ROI you want. According to The Future of Customer Engagement from Apply Digital, only 5% of senior execs said personalization engines were delivering sufficient ROI. Only 15% said this about rewards and loyalty programs. Nearly the same numbers said this about those methods and customer lifetime value.
Yikes.
Even so, 47% of respondents in the Apply Digital report continue to see loyalty and rewards programs as a powerful tool for repeat business.
AI’s expanding role in customer engagement
AI’s importance in CX is an accepted fact. Ninety-three percent of senior leaders in The Future of Customer Engagement Report say AI is a key part of their current strategy. Key doesn’t mean up and running, though. The 2025 CX Landscape Report found 24% of businesses are just getting started with AI and 31% are now actively implementing it.
As always, one major challenge is data. The 2025 CX Landscape Report found that 86% of companies struggle with customer data being spread across different systems. Other hurdles include customer resistance to change, lack of internal expertise and budget constraints. The Future of Customer Engagement Report found that customer resistance was the biggest challenge (90%), with other factors like budget limitations and data collection difficulties also ranking high.
However, practice with AI pays off. The more experience and investment companies put into AI, the greater the returns. According to The 2025 CX Landscape Report, 84% of mature AI adopters say they’re getting high value from their investment.
Balancing AI and the human touch
While AI can enhance customer engagement, it works best when paired with human interaction. A strong handoff between AI and human agents is essential — 98% of respondents in the 2025 CX Landscape Report agree. However, many CX leaders are still figuring out how to make that transition seamless. One major roadblock? Employee resistance — 36% of companies report pushback when implementing AI-human handoffs.
To overcome this, businesses need to innovate how AI and employees work together. Features like supervisory monitoring and real-time agent support can improve workflows. When employees feel empowered by AI, they’re more satisfied — 51% of companies that have made major AI investments say their employees are extremely happy with the results.
Methodologies
Nextiva’s 2025 CX Landscape report is based on an online survey of more than 1,000 CX leaders with decision-making responsibility at companies with more than 100 employees in the United States, Canada and the United Kingdom. The full report can be found here.
Apply Digital’s Future of Customer Engagement report is based on a survey of 500 senior leaders at U.S. and Canadian companies with more than $ 500 million in annual revenue. The report can be found here.
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