New research reveals AI adoption is rising, but fragmented systems and lack of empathy continue to hinder customer experience
A new study by ServiceNow has revealed that customers in the UAE collectively lose more than 83 million hours each year due to inefficient and slow customer service, highlighting a significant gap between AI investment and real-world service delivery.
According to the report, The CX Shift: Customer Expectations in the AI Era, UAE consumers spend an average of 10.8 hours annually dealing with service-related issues such as long wait times, repeated interactions, and navigating outdated systems equivalent to more than a full working day lost per person.
The research, conducted in partnership with ThoughtLab, surveyed over 34,000 respondents globally, including 1,335 participants from the UAE. It underscores how legacy infrastructure continues to limit the effectiveness of AI-led customer service transformation.
Hidden Productivity Drain
Across the EMEA region, customer issues typically take three to four days to resolve, with sectors like manufacturing extending close to a full workweek. Even in technology often seen as a leader in digital adoption only 18% of issues are resolved within an hour.
Customer dissatisfaction is also rising. Around 41% of UAE consumers rate current service levels as average to poor, while 45% say they would switch providers after just one bad experience.
“Consumers across EMEA are losing entire working days to service experiences that should take minutes.”
— Shakira Talbot, Group Vice President, CRM EMEA, ServiceNow
AI Adoption Rising, But Empathy Lags
Despite these challenges, AI is gaining traction. About 62% of UAE consumers acknowledge improvements in service due to AI, particularly in speed, efficiency, and 24/7 availability. However, emotional intelligence remains a major shortfall.
Nearly 55% of customers cite lack of empathy as their biggest frustration. While 80% attempt self-service channels first, nearly half report that chatbots fail to understand their concerns effectively.
“Customers want to feel heard and resolved, not just routed. Organisations that succeed are those connecting front and back office systems on a single platform turning CRM into a system of action rather than a digital filing cabinet,” added Talbot.
System Fragmentation Slows Agents
The study also highlights internal inefficiencies. Service representatives in the UAE spend only 44% of their time resolving customer issues, with the rest consumed by administrative tasks and navigating multiple systems.
A significant 73% of agents log into three to five different platforms to resolve a single query, while 51% cite inconsistent customer data as a major barrier to effective service delivery.
Leadership Disconnect
A notable gap exists between executive priorities and customer expectations. While over half of customers highlight empathy as a key concern, only 24% of UAE executives consider it a priority. Similarly, 50% of customers are frustrated by being transferred between departments, but just 36% of leaders acknowledge the issue.
The Path Forward: Unified AI Strategy
The report concludes that fragmented systems are the primary bottleneck. Only 46% of UAE organisations have integrated their data into a unified platform, and just 19% have enterprise-wide AI strategies.
To bridge the gap, ServiceNow emphasizes the need for AI-driven platforms that unify workflows, data, and teams enabling organisations to deliver faster, more empathetic, and seamless customer experiences.
As enterprises accelerate AI adoption, the study makes it clear: without system integration and human-centric design, the promise of AI in customer service will remain only partially fulfilled.
