68% Indian Consumers Abandon AI Customer Service Over Amnesia, Twilio Report Reveals

AI Amnesia Creates Growing Frustration for Indian Consumers

A new Twilio report from the 2026 Customer Insights Series reveals a troubling disconnect in AI customer service across India1

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. Nearly 68% of Indian consumers have abandoned AI interactions mid-way because AI agents lacked basic information about them or their previous interactions1

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. More concerning, 5% severed ties with brands entirely due to these frustrating experiences2

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. This phenomenon, termed AI amnesia, occurs when AI forgets who customers are or lacks context from previous interactions, forcing them to start over1

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The lack of context creates significant friction. Three in four Indian consumers—75%—report having to repeat information they've already shared when interacting with AI agents2

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. This stands in stark contrast to business perception, where nearly 89% of Indian brands believe their AI agents effectively recognise returning customers and access their history1

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AI-to-Human Handoffs Fail to Solve the Problem

Even when AI escalates issues to human representatives, the frustration persists. Slightly more than half—51%—of Indian consumers report having to repeat themselves or fill in information gaps after AI-to-human handoffs1

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. This creates a frustrating loop where customers remain stuck regardless of whether they interact with AI or humans.

Nicholas Kontopoulos, VP of Marketing, Asia Pacific and Japan at Twilio, notes that speed and round-the-clock availability are now table stakes1

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. "The real test now is whether AI can recognise customers, understand the context of an interaction and carry it forward without making them start again," Kontopoulos stated2

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Despite Issues, AI Improvements Drive Growing Acceptance

The data reveals clear progress alongside these challenges. More than 83% of Indian consumers agree that AI chatbots over humans have improved over the last year, significantly above the APAC average of 68%1

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. AI customer service agents save Indian consumers an average of 101 seconds per interaction—the highest in the region and well above the APAC average of 84 seconds2

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Two-thirds—67%—of Indian consumers are now more likely to choose AI chatbots over humans than they were a year ago, with 25% strongly preferring the chatbot option1

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. More than half—52%—cite access to 24/7 assistance as a key factor improving their satisfaction with brands2

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. This sentiment is mirrored among businesses, with 69% reporting that instant, round-the-clock responses have improved customer satisfaction1

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India Leads in Readiness for AI-to-AI Communication

Indian consumers demonstrate the highest regional willingness to embrace next-generation AI interactions. Eight in 10—80%—are comfortable allowing AI-to-AI communication between different companies to resolve issues faster, surpassing the APAC average of 65%2

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. This openness extends to autonomous task delegation, with more than 94% trusting AI agents for scheduling appointments and processing returns, 92% for making dinner reservations, and 91% for picking concert seats1

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Businesses are preparing for this shift. AI agents currently handle 55% of all customer service interactions, with business leaders expecting that figure to rise to 74% by 20272

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Trust and Transparency Remain Critical for AI Adoption

As Indian consumers grow more comfortable with AI interactions, they're setting clear expectations around trust and transparency. Over 71% believe brands should declare AI disclosure at the start of conversations1

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. However, while 86% of Indian brands claim their bots identify as AI at some point, only 31% do so from the very beginning2

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Consumers demand greater control and visibility. Nearly 59% want human-switch options immediately available during AI interactions, while an equal 59% demand clear visibility into the specific personal data AI can access1

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. Additionally, 57% state that knowing high-stakes AI actions require human approval is essential for building confidence2

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Businesses are responding. Many prioritize explainability features—71%—while 49% make it easier for customers to reach human agents, and 37% give customers greater data control over whether their information trains AI models1

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. These measures signal growing recognition that earning trust depends on delivering context-aware, transparent, and reliable AI experiences as the market moves toward an AI-first economy2

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