Twilio released new Indian market data from its 2026 Customer Insights Series. The findings reveal a growing expectation gap as consumers increasingly encounter ‘AI amnesia’, where AI forgets who they are or lacks context from previous interactions, forcing them to repeat themselves. Nearly seven in 10 (68%) Indian consumers have stopped using an AI agent mid-interaction because it lacked basic information about them or their previous interactions, with 5% cutting ties with the brand altogether.
AI’s amnesia problem
Nearly 9 in 10 (89%) Indian brands believe their AI agents effectively recognise returning customers and access their history. Yet, three in four (75%) consumers say they have to repeat information they have already shared when interacting with an AI agent.
Handing off to a human also doesn’t fix the problem, often leaving consumers stuck in a frustrating loop. Slightly more than half (51%) of Indian consumers report having to repeat themselves or fill in information gaps after the AI bot hands them off to a human agent.
“India is showing us what the next phase of AI-powered customer engagement looks like. Speed and round-the-clock availability are now table stakes but the real test now is whether AI can recognise customers, understand the context of an interaction and carry it forward without making them start again. For local businesses, this means connecting customer data so AI can deliver experiences that feel continuous, relevant and genuinely useful,” said Nicholas Kontopoulos, VP of Marketing, Asia Pacific and Japan, at Twilio.
Unprecedented readiness for an AI future
Despite these issues, the data also shows clear progress. More than eight in 10 (83%) Indian consumers agree that the AI bots they interacted with have improved over the last year, well above the APAC average of 68%. AI customer service agents are also saving Indian consumers an average of 101 seconds per interaction, the highest in the region and well above the APAC average of 84 seconds.
Indian consumers are becoming more comfortable choosing AI. Two-thirds (67%) are now more likely to choose an AI chatbot over a human than they were a year ago, including 25% who now say they strongly prefer the chatbot. Availability remains one of AI’s clearest strengths. More than half (52%) of local consumers cite access to 24/7 assistance as one way AI agents have improved their satisfaction with brands. This is mirrored on the business side with 69% of Indian businesses saying instant, round-the-clock responses have improved customer satisfaction.
India is already moving towards an AI-to-AI future
Indian consumers are also the most willing in the region to embrace the next generation of AI-powered engagement. Eight in 10 (80%) are comfortable allowing AI agents from different companies to communicate directly to resolve issues faster, higher than the APAC average of 65%.
That willingness extends to letting AI act independently on their behalf. More than nine in 10 Indian consumers would trust an AI agent to schedule appointments (94%), process a product return (94%), make dinner reservations (92%), or pick seats at a concert (91%), marking the highest readiness to delegate daily tasks across the entire APAC region.
Indian businesses are preparing for this shift. AI agents currently handle 55% of all customer service interactions and business leaders are expecting that figure to rise to 74% by 2027. As AI-to-AI engagement becomes more common, brands that deliver context-aware, transparent and reliable AI experiences will be best positioned to earn the trust that tomorrow's AI-first economy depends on.
Trust and transparency will determine how far consumers let AI go
Trust is another element that cannot be overlooked. As Indian consumers become more comfortable with AI, they are also setting clear expectations on disclosure. Over seven in 10 (71%) consumers believe brands should declare whether a conversation is powered by AI right at the start of an interaction. However, while 86% of Indian brands state their bots identify as AI at some point during a chat, only 31% actually do so from the very beginning.
Consumers also want greater transparency and control. Nearly six in 10 (59%) Indian consumers say they would feel more comfortable interacting with AI if they had an immediate option to switch to a human representative, and an equal 59% demand clear visibility into the specific personal data the AI can access. Additionally, 57% state that knowing high-stakes AI actions require human approval is essential for building their confidence.
Encouragingly, businesses are beginning to respond. Many are taking concrete steps to strengthen trust by prioritising explainability features (71%), making it easier for customers to reach a human agent (49%), and giving customers greater control over whether their data is used to train AI models (37%). Together, these measures signal growing recognition that earning trust with AI depends on transparency, accountability, and customer control.
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