“AI amnesia” is quietly costing Southeast Asian brands their customers
A customer in Jakarta spends 20 minutes explaining a billing dispute to a chatbot, gets bounced to a human agent, and has to start the story over from scratch. Multiply that across the millions of AI-mediated conversations happening daily across the region, and you get a sense of the trust deficit quietly building beneath Asia […] The post “AI amnesia” is quietly costing Southeast Asian brands…
In the Southeast Asian market, AI-powered customer service is booming, but a growing issue is emerging - "AI amnesia." A recent study by customer engagement firm Twilio has highlighted how AI agents often forget customer details, leading to a loss of trust. In Jakarta, a customer spent 20 minutes arguing a billing dispute with a chatbot, only to be transferred to a human agent and have to restart the process.
This experience is repeated millions of times daily across the region, creating a trust deficit. Seven out of ten APAC consumers have abandoned AI customer service interactions mid-conversation due to the system failing to recognize them or lack context. Five percent even left the brand entirely. Brands perceive their AI agents are performing well, yet 70% of consumers believe they have to start from scratch each time they engage with an AI system, indicating a significant gap between perception and reality.
The root cause, Twilio suggests, lies in fragmented data scattered across various systems, making it difficult for AI agents to assemble a coherent customer profile. This issue is particularly pronounced in Southeast Asia, where many businesses operate with legacy systems alongside newer AI agents. Consumers want transparency and control, demanding clear identification of AI agents at the start of conversations, the option to switch to a human agent, and visibility into data usage.
Despite some progress in implementing explainability features and offering more control to customers, a significant trust gap remains between what consumers expect and what businesses deliver. Despite these challenges, APAC consumers are generally optimistic about AI-driven service, with 68% reporting improvements over the past year and 65% comfortable with AI agents communicating directly with each other.
This comfort level is crucial for the development of AI agents that can handle a wide range of customer needs and enable seamless agent-to-agent commerce.
Written by urgent.news from e27's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
