68% of CEOs Will Boost AI Spending in 2026: Good or Bad for Customers? (The Verdict Revealed)
2026 is shaping up to be a major AI spending year. The hidden risk is assuming “more automation” automatically means “better customer experience.” It doesn’t. AI can improve outcomes and reduce effort, but only when it’s designed around the customer’s emotional context, not just operational efficiency.
If you have read the news lately, you’ve likely noticed a massive shift in where the budget is going. According to the Vision survey by Teneo, and reported by the Wall Street Journal, “68% of CEOs plan to increase their spending on Artificial Intelligence (AI) in 2026.” Is investing more in AI and emerging technology a smart business move? It depends.
AI is the most powerful tool we have seen in decades. It has the potential to solve problems faster, predict needs before they happen, and revolutionize how we work.
But there is a costly concern.
Right now, less than half of these projects are delivering the financial returns companies expect. As a customer-centric leader, this is incredibly important to know. The technology isn’t the problem; the application is.
The Missing Link: Emotional Connection
When the application is wrong, AI becomes a speed layer on top of a broken experience. It answers faster, but it doesn’t remove confusion, create clarity, or make customers feel like the outcome is resolved. That’s where the ROI disappears.
From working at brands of all sizes and consulting with clients, I see a clear pattern. Brands that struggle with AI use it to replace human connection. Brands that succeed use AI to support their teams and deliver better experiences, online and offline.
I call this the “Heart & Science” approach. The Science is your AI tech stack. The Heart is the positive feeling your customer gets when they interact with you.
You need both.
Verizon ‘s CX Annual Insights report, based on research by Longitude (a Financial Times company), puts numbers behind this, and quotes by me too.
Hybrid Opportunity:
Customer satisfaction is 88% when interactions are human-led, compared to 60% for fully AI-driven interactions.
Action: Use AI to empower human teams with better context and data so they can close the gap. (Side note: I’d retire C-Sat and replace it with modern KPIs, but that’s a separate article.)
Personalization Opportunity:
44% of executives say AI is delivering benefits in personalization, yet consumers are more likely to say personalization has detracted from their experience (30%) than improved it (26%).
Action: Make personalization useful in the moment and pair it with clear communication about how data is used.
Human Access Opportunity:
The top frustration for 47% of consumers is not being able to reach a human when they have a complex issue.
Action: Use AI for straightforward requests, and make escalation to a skilled human fast when complexity is high.
How AI Can Save the Day (And The Budget)
When used correctly, AI is a superpower for your team.
For example, the same Verizon report highlighted how Prudential Financial used AI to save their marketing team up to 75% of the time spent drafting content.
Imagine what your customer service team could do if AI gave them 75% of their day back? They wouldn’t be rushing through calls. They would be listening, empathizing, and creating the kind of loyalty that customers rave about.
This is the winning formula: Use AI to remove the friction so humans can build deeper connections and relationships with those they serve.
My Core Recommendation: Map Before You Automate
If you want to help your company get a return on its AI investment, here is the one step you cannot skip.
Before you deploy one more AI tool, map your customer journey and define exactly where AI creates positive emotional connections with customers at every interaction.
Not “automate everything possible.” Not “keep humans only when forced to.”
Actually design the strategy. Intentionally. With customer emotions at the center.
You can measure this beyond traditional metrics like satisfaction scores. You can track emotional outcomes, loyalty indicators, and whether customers actually come back. (Ask me how I know.)
The Bottom Line
There are many companies focused on customer experience. They say they are doing CX, but in reality, they are not Doing CX Right®.
And that gap is creating a LOSS of revenue, talent, and customers.
The 68% of CEOs increasing their AI budgets in 2026 are making a bold bet. Your job is to ensure that bet pays off by closing the gap between technology and empathy.
Want to learn how to blend the “Heart & Science” of CX to turn your AI investments into customer loyalty? Let’s talk.




