New WSJ Intelligence/Code and Theory research report, Experience Gap, shows that businesses are failing to harness AI's potential to fundamentally reshape customer relationships.

NEW YORK — Business leaders are chasing AI-driven efficiency but overlook the people who matter most: their customers, according to new research conducted by WSJ Intelligence and Code and Theory.

The report, titled “The Experience Gap: AI’s Imminent Impact on CX,” found that only 28% of the 800 C-Suite members surveyed say they are leveraging new technologies to create digital customer experiences (CX) that are “innovative or adaptive.” In fact, the vast majority of respondents (93%) characterized their CX as “broken.” Even though 94% of the respondents agree that CX strategy contributes directly to their business's success.

Companies mastering digital CX are redefining entire industries. They generate 30% more revenue, $1.4 billion on average, than customer-experience laggards.

The study found that success demands rethinking customer relationships from the ground up. AI offers the path to emotionally intelligent customer connections that drive lasting competitive advantage.

Among the most notable takeaways:

• 76% of C-suite respondents say they’re behind on AI transformation
• 88% believe the promise of AI-driven personalization hasn’t been realized
• 44% report having an advanced understanding of AI’s emotional potential
• 86% expect CX to become a top-tier investment priority

The primary barriers to CX transformation are cultural and organizational rather than technological. While 53% of respondents say they’re “very ready” for transformation, the gap between intention and capability reveals deep structural issues.

When executives identify transformation obstacles, they point to internal failures rather than external constraints: leadership misalignment (49%), creative talent shortages (44%) and organizational silos (43%). Even among industry leaders, 56% cite cultural dysfunction as a primary barrier.

Don McGuire, Senior Vice President and Chief Marketing Officer, Qualcomm Incorporated, says: “When you’re integrating AI tools into your workflows, you have to take a human-centric approach and plan for that asthe outcome. Think about your customer interactions. Can they be improved? Can an interaction with an AI be better than one with a human? That’s not easy, and it takes a lot of planning. The companies taking leadership roles will be the ones that vault ahead.”

Dan Gardner, co-founder of Code and Theory, says: “The companies winning with AI aren't following best practices; they're inventing new categories of customer value by connecting data, services and experiences in ways that seemed impossible two years ago. Find the spaces where your customers are underserved, frustrated or forced to cobble together solutions from multiple providers. Then use AI to own that entire experience. The question isn't what AI can do; it's what only your brand can do with AI that no one else can replicate.”

The survey demographics comprised 800 U.S.-based senior executives at companies with at least $500M in annual revenue, with an even split between CEO (33%), CTO/CIO (33%), and CMO (33%).

Learn why the winners are winning, how you can leverage AI to deepen emotional connections with customers and what the roadmap for success looks like.

Download “The Experience Gap: AI’s Imminent Impact on CX” report here.

About Code and Theory

The Code and Theory Network is the only technology and creative network with a balance of 50% creative and 50% engineers. Our unique makeup makes us the place where CMOs, CTOs and CIOs come together to drive results for their businesses. We partner with our clients to redefine what is possible to create lasting impact and drive long-term growth. Part of Stagwell, Code and Theory offers a global footprint and the capabilities to work across the entirety of the customer-facing journey, and implement the technology that powers it. The network includes the flagship agency Code and Theory as well as Kettle, Instrument, Left Field Labs, Truelogic, Create. Group, Rhythm and Mediacurrent. Code and Theory clients include Amazon, JPMorganChase, Microsoft, NBC, NFL and Yeti. For more, visit codeandtheory.com