Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’ve explored the reality of hospitality customer experience, AI in Steve Madden eCommerce, as well as the real impact of call centre agents.
We’re also discussing new updates from Bloomberg, Gartner, and more.
Key news
- The EU parliament and member states have agreed to make driving bans for reckless drivers bloc-wide, as part of measures to improve road safety. Currently, a driving ban can only be imposed in the country where the offence took place. The EU committees also agreed to introduce a digital driver’s licence by the end of 2030, though citizens will maintain their right to carry a physical one. The agreements still need to be formally adopted. The EU set a target to halve road deaths and serious injuries by 2030; in 2024, 19,800 people lost their lives in road traffic accidents.
- The EU has unveiled a list of 47 projects across 13 countries deemed “strategic” for securing domestic supplies of rare-earth elements for sectors including automotive and renewable energy. The mines, processing and recycling sites will have faster access to permits and funds. Spain and Portugal lead with six and four selected projects respectively. More strategic sites for the remaining three of 17 essential minerals will be announced later. The initiative is part of the EU’s Critical Raw Material Act, which aims to lessen the bloc’s dependence on rare-earth producers such as China by 2030.
- The recent Heathrow airport shutdown, which led to over 1,000 cancelled flights, was traced back to a single point of failure: a burning transformer, or device that transfers electric energy. This incident is part of a larger global issue: transformer shortages, Bloomberg reports. In Europe, the shortage has significantly impacted the buildout of cheap renewables, exacerbating the energy crisis. The situation underscores the critical role of transformers in maintaining infrastructure and the cascading consequences of their scarcity.
- The Trump administration will impose 25% tariffs on all cars not made in the U.S., effective April 2, marking an escalation of the White House’s trade war offensive. The move threatens to disrupt operations for North American automakers, which are reliant on supply chains through the U.S., Mexico and Canada. The tariffs will likely lead to higher prices on foreign-made cars — roughly half of all vehicles sold in the U.S. are imported, analysts say.
CXM news stories
Here’s the full news stories that CXM have reported on in the past week. Learn all about the latest news in hospitality, contact centres, and the impact of AI on big retailers.
AI’s productivity impact falls short, Gartner survey finds
Despite high expectations surrounding artificial intelligence (AI) as a tool for efficiency and business transformation, many organisations struggle to translate AI investments into meaningful productivity gains, according to a recent survey by Gartner.
The study revealed that productivity gains from AI remain modest. Among teams using traditional AI, 37% reported significant productivity improvements. Surprisingly, teams leveraging genAI saw slightly lower returns, with only 34% reporting notable efficiency gains.
“Despite the excitement surrounding AI, its impact on productivity has been inconsistent, leading to what some describe as the AI productivity paradox. While AI has shown potential to boost productivity at the segment level, such as in call centres, broader organizational benefits have been harder to achieve. Therefore, CFOs should recalibrate expectations on how AI will truly impact worker productivity and headcount,” said Randeep Rathindran, vice president of research in the Gartner Finance practice.
Why AI isn’t delivering expected productivity gains
Many organisations expect AI to deliver instant, transformational improvements, leading to disillusionment when reality falls short. While AI can automate tasks and generate insights, it doesn’t guarantee an across-the-board productivity boost.
In addition, tracking and quantifying AI’s impact remains a challenge, often delaying clear assessments of its effectiveness. Many companies also face technical and operational lags, slowing the full realization of AI’s potential.
Not all departments reap the same rewards from AI. Marketing teams report the biggest productivity gains, while legal and HR departments see significantly less impact. This disparity highlights the importance of context—AI’s success depends heavily on how and where the organisations use it.
A smarter approach to AI adoption
Instead of viewing AI as a one-size-fits-all solution for efficiency, business leaders should recalibrate their expectations and focus on creating the right internal conditions to maximize AI’s impact.
To fully harness AI’s potential, companies should integrate it strategically rather than using it only to reduce expenses or headcount.
In addition, they should educate leadership on how organisational behaviour influences AI’s effectiveness, ensuring proper alignment between AI capabilities and business goals