Smart Communications has released its 2026 Customer Experience Benchmark report, surveying more than 4,000 global consumers across the finance, insurance, healthcare, and government sectors. The research exposes a widening divide between corporate AI investments and consumer trust, alongside the devastating consequences of subpar customer communications.
Key Insights:
- Stagnant AI optimism: Consumer confidence that AI will significantly improve their experience slipped from 61% in 2025 to 60% in 2026, marking a one-point decline in a single year.
- The high price of poor communication: An overwhelming 73% of all consumers would abandon their current provider if communications do not meet expectations. This risk remains high across younger demographics, sitting at 72% for Millennials and 70% for Gen Z.
- Eroding data privacy trust: Confidence in AI’s capability to securely manage personal data took a notable five-point hit, dropping from 46% to 41% over the past year.
- Fear of weak human oversight: Anxieties regarding a lack of human oversight climbed from 43% to 51% overall. This worry was most pronounced among Baby Boomers, whose concern surged ten points in just twelve months—jumping from 46% to 56%.
The initial wave of AI optimism is flattening and, in some areas, reversing. Consumer confidence in AI’s ability to improve the customer experience has dropped to 56%, down five points from last year, while trust in AI to manage personal data securely has fallen six points in just twelve months. Concurrently, concern about the lack of human control has increased by 4% globally, with Baby Boomers registering a sharp 10% surge in concern over a single year.
The value consumers place on AI for practical use cases is also on a year-on-year (YoY) decline:
- AI-powered financial advice: Valued by 44% of global consumers (a 2% decrease YoY), with Australia matching this sentiment at 44%.
- AI-suggested insurance plan changes: Valued by 45% globally (a 6% decrease YoY), compared to 46% in Australia.
- AI health recommendations: Valued by 46% globally (an 8% decrease YoY), with Australia tracking slightly higher at 48%.
Meanwhile, the demand for transparency has intensified. The vast majority of consumers worldwide state that it is important for companies to disclose when AI is being used in their interactions. This expectation rises to 88% among Baby Boomers and reaches 90% in Australia. Furthermore, while 44% of global consumers trust companies to use AI responsibly and to their benefit, that figure plummets to just 30% among Boomers. Regional trust trails significantly lower in the Benelux region (31%) and New Zealand (38%), where consumer confidence is at its lowest.
The generational divide offers valuable insight into these trends. Over half of Gen Z and Millennials (56% and 57%, respectively) trust companies to use AI responsibly, compared with just three in ten Boomers (30%). Similarly, confidence that AI will improve the customer experience is highest among Millennials (67%) and Gen Z (65%), but drops to 42% among Boomers. As the demographic holding the greatest financial assets today, older consumers represent a critical segment organisations cannot afford to alienate.
About the survey
The survey was conducted by Toluna on behalf of Smart Communications in June 2026, gathering insights from 4,000 consumers aged 18–55+ across the United States, the United Kingdom, Europe, and APAC, spanning the financial services, insurance, healthcare, and government sectors.
