AI
The 50-Point Loyalty Gap: What Telecom Execs Get Wrong About Their AI Tool

MCE staff
Do communication service providers' AI tools for customers make them more loyal? PwC's 2025 Customer Experience Survey investigated this very question late last year, asking executives and consumers the same question: has customer loyalty grown because of AI tools? Eighty-nine percent of executives said yes. Only 39% of consumers said the same. That fifty-point gap shows up across industries, but telecom is where it has a powerful meaning.

In Nvidia’s annual telecom industry survey, executives in North America and Europe listed customer experience as their top and second priorities for AI investment, respectively. If AI tools are to reshape customer experience, what earns loyalty has to be redefined first.
Faster Isn't the Same as Better
Most of that AI investment sits in the back office: shorter hold times, virtual agents that resolve a billing question without a transfer, faster ticket routing. These are real improvements, and they are mostly invisible to the customer as anything more than "that took less time than usual."
Seventy percent of executives say customer expectations are evolving faster than their organization can keep up with, per the same PwC survey. That gap keeps widening because faster resolution of an old process is not the same as a better relationship with the brand. A shorter hold time is a valuable improvement, but it is not the kind of change that substantially moves customer loyalty.
Telecom Can't Afford This Gap
In telecoms, this gap carries more weight than almost anywhere else. Seventy-seven percent of consumers already say they feel no loyalty to their provider, and industry Net Promoter Scores sit well below most other sectors, hovering around between 20-40 points.
Baseline loyalty in this category is thin to begin with. Pouring AI investment into expediting support resolution or improving spectrum allotment does not rebuild it; it makes the existing relationship marginally less frustrating, which positively impacts NPS, but is a different goal entirely.
Offense Builds Loyalty, Defense Just Buys Patience
What builds loyalty is ultimately both the product and the experience around it. Customers receive excellent connectivity from their provider and a device, but the holistic experience (support, upsell, etc.) around those is highly reactive and defensive.
AI that plays defense, resolving problems faster after they happen, buys back a little patience. AI that plays offense, anticipating a need and reaching the customer before a problem becomes a complaint, builds a relationship with more frequent positive communication and what more closely resembles loyalty building. For CSPs, the device is the one channel built for offense: it is the product customers touch daily, the one many providers still subsidize and the richest source of real-time signal about how a customer is actually experiencing the network and the brand. MCE works with CSPs to put that signal to work, using on-device intelligence to power engagement customers notice and not just resolutions that they come asking for.
None of this means AI has failed to deliver for CSPs,but rather that most CSP AI investment still points at only half the target. Explore how device intelligence turns AI investment into loyalty CSPs can measure.
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