When AI feels real: How PH businesses must rethink customer experience in 2026
Artificial intelligence (AI) transparency will become an enforceable consumer right as the AI identity crisis deepens.
The AI identity crisis is here. Imagine a phone conversation where you only later realize the “person” was AI. This is already happening.
Most consumers cannot reliably tell human agents from AI voice systems. Our Twilio research found that 90 percent of consumers, including those from the Philippines, failed to correctly identify AI-generated voice clips.
When the majority of customers cannot distinguish who they are speaking to, regulatory intervention is a certainty.
As voice AI advances, we are seeing agentic systems capable of making autonomous decisions and engaging in highly natural dialogue. Mandatory disclosure will become a core compliance requirement. Organizations will need clear, explicit identification. Something like, “I am Ruby, [spokesperson]‘s voice AI assistant,” will become standard.
This level of clarity is driven by regulation and by risk management. Concealing AI use exposes companies to reputational damage, customer distrust and significant legal liability.
Technology leaders are preparing now. Apple’s call screening shows how mainstream devices can detect and classify machine interactions. As this functionality sharpens, transparency shifts. It moves from a mere compliance obligation to a fundamental customer expectation.
In 2026, transparency will transform.
It is shifting from an ethical talking point to an enforceable consumer right when engaging with AI services. Clear identification of AI voice agents will be non-negotiable. This will be standard practice across finance, retail, telecom and government.
The takeaway is clear
Brands that proactively build transparent AI interaction frameworks will gain a competitive edge. Those that attempt to obscure AI use will face regulatory scrutiny and rapidly eroding customer confidence.
Operational opacity will become the primary driver of customer attrition.
Customers are no longer satisfied with basic status updates. They demand to know three things: what happened, why it happened and what happens next.
If a brand fails to provide this clarity, customers will move to a competitor that does.
This reflects a fundamental shift to real-time accountability. Digital-native consumers track parcels minute by minute. They monitor financial transactions instantly. They expect service updates in real time.
When a service stalls, customers demand context. They will not tolerate silence or corporate vagueness.
Brands must move from reactive notification to proactive transparency. Stop waiting for the customer to ask. Instead, provide continuous progress indicators and contextual explanations.
The generic message “Your case is being reviewed” is now obsolete. This message must evolve. It needs to become a detailed, time-stamped workflow. It must show exactly where an issue sits in the process. Crucially, it must clarify the next step.
This is critical in sectors with complex operations, such as telecommunications, logistics, banking and government.
Operational winners in 2026 will treat transparency as a core product feature. They will invest in systems that safely surface internal workflows to customers. They will also build communication frameworks designed to anticipate customer questions.
The payoff is significant: reduced call volumes, higher satisfaction and stronger long-term loyalty. Conversely, companies that maintain operational opacity are actively choosing to accelerate customer attrition.
AI trust threshold will be the new frontier of CX
Brands must identify the threshold where customers lose faith in an AI-generated response. This is where they begin to question the credibility of the entire interaction. As AI handles more front-line service roles, this invisible line becomes a critical operational metric.
Trust is the foundational pillar of engagement. It forms the basis of all sound customer experience (CX) strategies. Brands will use trust as a new routing rule. This rule determines precisely when AI should lead the conversation and when it must immediately step aside for a human.
Imagine a frustrated customer thinking, “Am I talking to a bot?” Savvy brands will monitor for the signals of this shift in real time.
Emotional intensity, customer hesitation or rising uncertainty must trigger an immediate handoff to a human agent. Thanks to advanced sentiment analysis and observability tools, companies can now route conversations based on these trust signals, not just issue categories.
Brands will deploy tools to track sentiment decay, confidence scores and trust drop-offs. This prevents AI missteps from escalating into significant churn, complaints or reputational damage.
In 2026, trust-aware routing and AI observability will be nonnegotiable features of a mature CX environment.
Brands that recognize and proactively address the limits of customer trust in AI will deliver services that are smoother, safer and highly resilient.
In today’s market, competitors are only a tap away. Clarity becomes the ultimate retention strategy. Brands that explain, in plain language, what is happening and why, will secure customer loyalty.
Nicholas Kontopoulos is the vice president of marketing for Asia Pacific and Japan (APJ) at Twilio. Based in Singapore, he oversees the overarching marketing strategy to support business growth in the APJ region and cement Twilio’s position to be the leader in Customer Engagement Platform.
