Business Wire

Twilio ’s Latest Report Highlights Conversational AI’s Rapid Adoption, Challenges, and Perception Gaps

13.11.2025 15:00:00 CET | Business Wire | Press Release

Share

Twilio (NYSE: TWLO), the customer engagement platform that drives real-time, personalized experiences for today’s leading brands, today released its Inside the Conversational AI Revolution report.1 Based on a global survey of 457 business leaders and 4,800 consumers across 15 countries, the report unearths major trends related to conversational AI’s adoption, perceptions, and expectations, including a finding that 99% of organizations anticipate their conversational AI strategy will change in the next 12 months.

“Businesses that want to successfully deploy conversational AI for customer service, sales, and marketing need to prioritize customer preferences in order to build long-term trust,” said Inbal Shani, chief product officer and head of R&D at Twilio. “As with any new technology, business leaders must be ready to navigate a rapidly changing technical landscape. The key capabilities to prioritize are flexibility, experimentation, and continuous monitoring of the customer experience.”

The report shows rapid adoption of conversational AI for customer service and sales, with 63% of organizations in either the final or complete stages of development, and 85% of consumers reporting interactions with an AI agent within the past three months. The speed of innovation has created a significant gap in perceptions between business leaders and consumers. While an overwhelming 90% of business leaders believe their customers are satisfied with their conversational AI experiences, only 59% of consumers report satisfaction.

Rapid Adoption Leads to Unique Challenges

While business leaders and consumers both have a positive perception of conversational AI and embrace its benefits, the technology’s accelerated adoption has surfaced a series of challenges. Despite these challenges, consumers’ satisfaction with AI agents is improving quickly. While only 45% were satisfied with their interaction more than three months ago, that number jumped to 67% for those interacting with AI agents within the past three months.2

Key insights from the report show:

  • Early investments are far from future proof – Early adopters are discovering that their conversational AI solutions have a surprisingly short shelf life. 59% of organizations expect to fully replace their current solution in less than a year, and 80% of business directors report that it’s expensive to keep up with the rapid change of AI models.
  • A delicate balance with AI and human agents – 83% of business leaders believe conversational AI can replace human agents, but 78% of consumers say it is important to be able to switch from an AI agent to a human agent. Only 15% of consumers reported experiencing a seamless handoff from AI to human agents.
  • Balancing contextual data, trust, and privacy – 54% of consumers believe AI agents rarely or never have context about them as a customer. To compound that issue, 51% of consumers are uncomfortable sharing personal or financial information with AI agents, and 66% feel uneasy about an AI agent having access to their full history with a business. For businesses, security and privacy considerations served as the most influential factors (39%) when developing their conversational AI deployment strategies.

Misguided Perceptions and a Generational Divide

Robotic customer service experiences and clunky IVR menus of the past have left a lasting impression on consumers. The report surfaces a number of misguided perceptions of AI agents, including pronounced differences across generations.

  • Consumers can’t identify AI as well as they think – A large majority of consumers (75% for text-based interactions and 72% for voice-based interactions) claim they can immediately identify an AI agent. In reality, 90% of consumers failed to correctly identify AI-generated voice clips – with older generations being twice as good at spotting the differences.
  • Humans over AI, unless it’s faster – 69% of consumers prefer interacting with real people, but 63% believe an AI agent is better at responding faster, and 72% would pick an AI agent over a human agent if the issue was guaranteed to be solved faster. Additionally, 33% of consumers admit to having shouted or typed expletives when interacting with customer service, with nearly equal amounts to AI agents (20%) as human agents (19%)
  • Generational trust differences – Gen X (53%) and Baby Boomers (46%) express the lowest satisfaction levels with AI agents, have a stronger preference for human agents, and higher skepticism rates for businesses’ use of AI. Meanwhile, Gen Z consumers are least likely (31%) to require human support after an AI interaction, but are also most uneasy (70%) across all age groups about AI data privacy.

Consumer Expectations and Business Opportunities

The report’s findings are clear: consumers value effective and fast resolutions above all else, and their willingness to engage with AI agents is highly conditional on the AI agent’s performance.

Businesses striving to close the AI customer satisfaction gap and deliver reliable, empathetic and personalized customer experiences must focus on: effective problem-solving, not just speed; improved AI agent to human agent handoffs; enhanced security, privacy, and transparency to build customer trust; and adaptable omni-channel solutions with a flexible and composable tech stack that supports multiple AI models. As these businesses prepare to replace their existing solutions in the next 12 months, further investments in interoperability and modularity will play a critical role in strengthening their ability to adapt in the more distant future.

The full report - Inside the Conversational AI Revolution - is available here.

Report Methodology

Twilio1 surveyed 4,800 global consumers and 457 business leaders (full-time directors or higher at B2B and B2C companies) spanning 12 countries from August 7 - September 4, 2025, with an additional 3 countries surveyed from October 10 to October 17, 2025.

About Twilio

Today's leading companies trust Twilio's Customer Engagement Platform (CEP) to build direct, personalized relationships with their customers everywhere in the world. Twilio enables companies to use communications and data to add intelligence and security to every step of the customer journey, from sales to marketing to growth, customer service and many more engagement use cases in a flexible, programmatic way. Across 180 countries, millions of developers and hundreds of thousands of businesses use Twilio to create magical experiences for their customers. For more information about Twilio (NYSE: TWLO), visit: www.twilio.com.

1. Twilio conducted this research using an online survey prepared by Method Research and distributed by RepData.

2. Data was collected from August 7 to September 4, 2025 with an additional 3 countries surveyed October 10 to 17, 2025.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251113237668/en/

Contacts

Media Contact:
Roman Skuratovskiy
press@Twilio.com

(c) 2024 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Enry’s Island Unveils “Enry’s Island Adventures”: Venture Capital Becomes a Videogame and Launches the “Strap” Movement on Kickstarter3.4.2026 09:47:00 CEST | Press Release

Enry’s Island SpA (WBAG: EIOS), the world’s first publicly traded Venture Builder, today announced the upcoming Kickstarter launch of Enry’s Island Adventures (EIA), developed by its New York-based portfolio company, Enry’s Island Adventures LLC. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260402548535/en/ The game is designed to make venture capital accessible to new generations, transforming startup creation into an engaging and social gaming experience. After three years of R&D, EIA introduces a "bleisure" model (business + leisure): players learn to launch and manage startups through gameplay that includes real business KPIs, a customizable and evolving personal island, synchronous and asynchronous multiplayer modes, social events, and community-driven seasonal missions. The “VC revolution”: teaching and democratizing through play "I agree with Elon Musk that the best way to teach is through a video game, and this is

SES Announces Results of the Annual General Meeting2.4.2026 16:49:00 CEST | Press Release

SES (the “Company”) held the Annual General Meeting (“AGM”) of Shareholders today in Betzdorf, Luxembourg. Following the recommendations made by the Board of Directors of SES, the shareholders have voted in favor of all resolutions, including the Company’s 2025 annual accounts and the proposed annual dividend of EUR 0.50 per A-share (EUR 0.20 per B-share). The total dividend amount comprises the interim dividend of EUR 0.25 per A-share (EUR 0.10 per B-share), which has already been paid to shareholders on October 16, 2025. The final dividend of EUR 0.25 per A-share (EUR 0.10 per B-share) will be paid to shareholders on April 16, 2026. “I would like to sincerely thank our shareholders for their active engagement, visionary support and continued confidence in SES’ strategy,” said Adel Al-Saleh, CEO of SES. “The outcomes of today’s AGM underscore our shared commitment to a bold multi-orbit approach, with Medium Earth Orbit as the strategic backbone of a dynamically evolving global interco

Forrester: Three Years Into GenAI, Enterprises Are Still Chasing Its True Transformative Value2.4.2026 16:00:00 CEST | Press Release

According to Forrester’s (Nasdaq: FORR) latest report, Accelerate Your AI Voyage, most enterprises are struggling to turn growing AI adoption and investment into measurable business impact. One of the key factors holding businesses back is low artificial intelligence quotient (AIQ) — Forrester’s measure of AI aptitude — with many employees lacking a clear understanding of how to use AI. Other barriers include an overemphasis on productivity-focused use cases, difficulty measuring impact, and siloed adoption within individual functions. While these challenges can leave firms frozen in doubt or indecision, the wait-and-see approach to AI adoption is no longer viable. To unlock AI’s full potential, organizations need to focus on four key areas: Define the business outcomes and success metrics for what they want AI to achieve; identify specific use cases for AI deployment aligned to those business outcomes; establish a structured runway to plan, test, and strategically time the deployment

Andersen Consulting Adds Multiplica2.4.2026 15:30:00 CEST | Press Release

Andersen Consulting enters into a Collaboration Agreement with Multiplica, a digital consulting firm that helps organizations design, build, and scale impactful digital experiences. Founded in Spain with a presence in Latin America and the U.S., Multiplica focuses on user research and discovery, customer experience research, digital strategy, data modeling and analysis, report automation and data visualization, conversion rate optimization, product design, and user experience design. The firm helps organizations accelerate digital transformation by building digital capabilities, teams, and assets that advance expertise across digital products, consulting, and talent development. Multiplica enables clients to forecast emerging trends in digital experience and transform their businesses through enhanced digital channels and customer engagement. “Collaborating with Andersen Consulting represents an exciting opportunity to extend our reach and impact,” said David Boronat, CEO of Multiplica

The LYCRA Company Announces Strategic Partnership on Renewable LYCRA ® Fiber2.4.2026 15:00:00 CEST | Press Release

The LYCRA Company, a global leader in innovative and sustainable fiber solutions for the apparel and personal care industries, today announced the signing of a strategic partnership agreement with Texhong International Group Limited (“Texhong”), one of the world’s largest suppliers of core-spun cotton textiles. Under the agreement, Texhong will exclusively partner with The LYCRA Company to bring Renewable LYCRA® fiber made with 30 percent plant-based content* to China’s core-spun yarn sector. This collaboration aims to accelerate the adoption of bio-derived spandex across the global apparel and textile industry. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260402505834/en/ The LYCRA Company announced a strategic partnership with Texhong International Group for renewable LYCRA® fiber. Pictured at the signing ceremony held in Shanghai (left to right): Jason Wang, Vice President, Asia, The LYCRA Company, and Zhou Xia, Chief O

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye