New 2024 report highlights AI's game-changing role in customer engagement

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April 09, 2024
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Twilio's 2024 State of Customer Engagement Report

Over the past year, advancements in predictive and generative artificial intelligence (AI) have paved the way for brands looking for a competitive edge in customer engagement. Now, thanks to customer engagement powered by AI, brands can ditch the age-old method of one-to-many personalization and deliver unique experiences for every single customer. We’re calling this the age of individualization.

Our 2024 State of Customer Engagement Report* dives deep into five key trends, examining how AI and trusted communications tools are shaping customer engagement strategies across the globe.

  • Trend 1: Using AI can greatly improve customer engagement. 
  • Trend 2: Protecting consumer data is key to maintaining trust.
  • Trend 3: Some brands aren't letting go of third-party cookies.
  • Trend 4: Younger consumers want better digital experiences.
  • Trend 5: Brands need to close the customer experience gap.


New actionable insights from customer engagement leaders

Through surveys of business leaders and consumers alike, we gained valuable insights into how brands are leveraging AI to enhance customer interactions and how customers expect businesses to engage with them in 2024 and beyond. 


76% of businesses say personalized customer engagement is a high or critical priority in 2024 according to Twilio's 2024 State of Customer Engagement Report


To identify businesses that excel in customer engagement and learn from their achievements, we developed a Customer Engagement Maturity Score for each brand surveyed. Using this score, we categorized the brands into three groups: those with low maturity, medium maturity, and those we dubbed Engagement Leaders. These brands stand out for their: 

  • Adeptness in omnichannel engagement
  • Ability to personalize customer experiences effectively 
  • Embracement of first-party data.

Among the 4,700 business leaders surveyed for Twilio's 2024 State of Customer Engagement Report, 17% were classified as Engagement Leaders.

We also provide actionable insights for businesses to build and improve upon their customer engagement strategies as they tackle each trend in 2024.

How AI is revolutionizing customer engagement in 2024 and beyond

One of our key findings explores the growing importance of AI in redefining customer engagement. Businesses are increasingly turning to AI-powered solutions to deliver personalized experiences across multiple touchpoints, from social media interactions to customer service inquiries. By harnessing the power of AI, companies can gain deeper insights into customer behavior, preferences, and needs, allowing them to tailor their offerings and communications accordingly.


7 in 10 companies say they’re already using AI to personalize content and marketing according to Twilio's 2024 State of Customer Engagement Report


However, while AI presents exciting opportunities for businesses, it also comes with its own set of challenges. Data privacy concerns continue to be a major issue, with consumers demanding greater transparency and control over their personal information. And as businesses collect and analyze vast amounts of customer data to power their AI systems, they must prioritize data privacy and security to build and maintain trust with their customers.


40% of businesses say finding a balance between security and customer experience will be one of their most pressing challenges in 2024 according to Twilio's 2024 State of Customer Engagement Report


Embrace AI and transform into a customer engagement leader

Our advice to businesses? Embrace AI as a key enabler of customer engagement, with caution. Investing in the right data and communications platforms is crucial to harnessing the full potential of AI while mitigating risks associated with data privacy. By doing so, businesses can not only deliver better engagement for their customers but also achieve stronger results for their bottom line.

Read Twilio’s 2024 State of Customer Engagement Report and our actionable insights to become an engagement leader today.

*This report features survey responses collected between November 16 and December 22, 2023 from 4,700 business leaders and 6,300 consumers.