53% of AI projects have exceeded budgets, CX leaders say
Sixty-five per cent of customer experience (CX) professionals say their firm’s artificial intelligence (AI) projects have been successful, but for many there is an “operational drag” that includes increased friction, delays and stalls, according to research conducted by Laivly.
Based in Winnipeg, Manitoba where it offers an enterprise AI contact centre platform, the company surveyed 200 contact center leaders who had decision making authority over AI implementation to produce its Laivly 2026 AI Deployment Index, which was subtitled ‘Modern Contact Centers
Aim for a False Finish Line.’
Besides spending more than they had expected, the Laivly report shows brands are actually losing revenue based on AI that doesn’t meet expectations. For example, 28 per cent attributed financial shortfalls to AI that can’t handle complex issues. Another 20 per cent feel sure they’re losing revenue but can’t quantify it.
Ideally, AI should eliminate friction by streamlining the process of connecting customers to responsive support. Yet 57 per cent of CX leaders who said their brand has seen significant friction from AI deployments also reported sales losses of between five and 10 per cent of their total.
Part of the problem could stem from a plethora of platforms and tools, and the resulting data fragmentation and integration challenges. On average, 56 per cent of those surveyed are using more than three AI solutions, according to the report.
There was also a correlation between AI tool sprawl and job cuts: 70 per cent of brands with more than 10 tools were planning headcount reductions.
“The companies that will lead the next phase of CX are looking honestly at how their AI is actually affecting customers, agents, and revenue — and
rebuilding their strategy around those signals,” the report’s authors wrote. “The question for every CX and technology leader: Are you measuring success the way your board wants to see it — or the way your customers and
agents actually feel it?”
360 Magazine Insight
To some extent, the challenges highlighted in Laivly’s report could reflect the natural growing pains of organizations that are still well within the first half of their AI journey. We saw similar budget cost concerns when organizations first moved from on premises software to cloud computing, for example.
The difference with AI is that CX leaders are acting largely out of pressure from above. According to the study, 43 per cent respondents
say their companies’ board of directors or senior leadership are, on some level, dissatisfied with AI progress. That could be because CX leaders simply tried to do what they were told instead of “managing up” and explaining some of the real limitations and potential pitfalls from deploying AI so quickly.
Hope springs eternal, however: 41 per cent expect full return on investment (ROI) on their AI deployment within a single year. It’s hard to look at the rest of the data in this research and see that as realistic.
Though the findings in this gated 12-page report may age fairly quickly, they could provide a helpful reality check for those CX leaders who are in a similar stage of deployment and want to avoid any negative fallout.
