Poor memory in artificial intelligence-powered customer service is putting customer loyalty at risk across Asia Pacific, with seven in 10 consumers abandoning an AI interaction after the system failed to recognise them or recall previous conversations.
The findings, released on 17 September as part of Twilio’s 2026 Customer Insights Series, highlight a growing gap between business expectations and customer experience. While 84% of APAC brands believe their AI agents can recognise returning customers and access their interaction history, 70% of consumers say they are often forced to start from scratch when opening a new conversation.
The consequences extend beyond an abandoned chat. Five per cent of consumers said they ended their relationship with the brand altogether after an AI agent failed to provide the expected context.
The problem, described by Twilio as “AI amnesia”, also persists when an interaction is transferred to a human employee. Some 65% of APAC consumers said they had to repeat themselves or fill in missing information after an AI agent handed them over to a human representative.
“AI is only as helpful as the context you feed it,” said Robert Woolfrey, vice president, Asia Pacific & Japan, at Twilio. “By connecting customer data, brands can evolve from basic chatbots to smart assistants that remember every individual.”
The research also points to a trust deficit. Seven in 10 consumers believe AI agents should identify themselves at the start of every conversation, but only 22% of APAC businesses currently do so. Consumers also want the ability to switch to a human agent on request, cited by 58%; assurance that AI actions require human approval, cited by 57%; and visibility into the customer data available to the AI, cited by 51%.
Businesses are beginning to respond. Twilio said 47% of APAC companies are prioritising explainability features, while 44% are making it easier for customers to reach a human agent. A further 39% are giving customers more control over whether their data is used to train AI models.
“AI use will only transform customer experience if it earns trust first,” said Dr Catherine Ball, scientific futurist. “Transparency matters, and businesses that are clear about when AI is being deployed will be better placed to build stronger, and more genuine customer relationships.”
Despite current shortcomings, consumers appear increasingly open to AI-led engagement. Sixty-eight per cent said the AI bots they had used had improved over the past year, while 65% wanted AI agents from different companies to communicate directly to resolve issues more quickly. Consumers were most comfortable delegating tasks such as scheduling appointments, making restaurant reservations and processing returns.
APAC business leaders expect AI agents to handle 65% of customer service interactions by 2027, up from 52% today. Meanwhile, 91% are building AI workflows intended to deliver proactive support before customers make contact.
