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European firms race to scale AI in customer service but governance lags behind

A new survey reveals 99% of European organisations feel pressure to scale AI for customer experience, yet only 38% have a clear governance framework. The gap risks compliance failures and eroding customer trust, particularly in multilingual markets.

  • 99% of European organisations face pressure to scale AI in customer experience, but only 38% have a clear governance approach.
  • 70% believe speed of AI adoption is often prioritised over compliance, with just 39% saying compliance is keeping pace.
  • 64% of organisations using AI in multilingual settings say it is a major challenge, increasing risks of inconsistent outcomes.

A new study from CallMiner, conducted by independent research firm Vanson Bourne, has found that nearly all European organisations are under intense pressure to scale artificial intelligence in customer experience (CX), yet fewer than four in ten have a well-defined governance framework. The survey of 200 senior leaders across Western and Central Europe reveals a widening gap between AI adoption and oversight, creating fresh risks for compliance, customer trust, and operational consistency.

According to the research, 99% of organisations report pressure to expand AI in CX, driven by rising customer expectations and competitive dynamics. However, only 38% say they have a clear and well-defined AI governance approach. While 59% claim they are scaling AI quickly, just 39% believe compliance is keeping pace. Seven in ten respondents agree that the speed of AI adoption is often prioritised over compliance requirements, even though 94% insist AI must be applied intelligently, not just quickly.

These challenges are particularly acute in Europe’s complex regulatory and multilingual environment. Nearly all organisations (96%) use AI in multilingual CX settings, but almost two-thirds (64%) say managing AI across multiple languages is a major hurdle. Limited visibility into real customer interactions makes it harder to detect experience issues, compliance failures, or inconsistent outcomes before they escalate. Frank Sherlock, Vice President of International at CallMiner, commented: 'Without visibility into how AI is performing in real customer conversations, leaders risk creating blind spots that undermine trust and expose new CX and compliance risks.'

Trust has emerged as the primary constraint on AI adoption, the study found. More than seven in ten organisations say employee confidence (72%) and customer willingness to engage with AI-driven interactions (71%) directly affect how quickly AI can be scaled. Accuracy and consistency (70%) are cited as the top drivers of customer trust in AI, followed by transparency and explainability (57%), and data protection (47%). Trust is strongest when AI operates with human oversight, with 87% expressing strong or very strong trust in AI used alongside human supervision.

For UK households and businesses, the findings carry significant implications. As AI becomes more embedded in customer service across sectors such as banking, telecoms, and retail, consumers may encounter inconsistent experiences or compliance gaps. The Bank of England has previously highlighted the importance of operational resilience in financial services, and the Financial Conduct Authority (FCA) is expected to scrutinise AI governance closely. Savers and mortgage holders may see little direct impact, but investors in FTSE 100 companies with large customer-facing operations should be aware that weak AI governance could pose reputational and regulatory risks. No investment advice is provided; readers are advised to consult a qualified financial adviser for personalised guidance.

Why this matters: UK consumers increasingly interact with AI in customer service, from bank chatbots to telecoms virtual assistants. A lack of governance could lead to compliance breaches, data protection lapses, and eroded trust, affecting millions of households.

What this means for you: What this means for you: If you use online banking, shop with retailers, or contact utility providers, the AI systems handling your queries may lack proper oversight. This could lead to errors, privacy risks, or inconsistent service across different channels.

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