SAP Engagement Index UK Report: Consumers Abandon Brands Over Disconnected Experiences

SAP has released its SAP Engagement Index UK report, a new research study that highlights a widening gap between customer expectations and enterprise execution, with implications for CX, data strategy, and AI adoption. A significant disconnect has emerged between UK businesses and their customers, termed the “Engagement Divide,” where 75% of consumers report being disappointed by brand interactions despite massive corporate investment in artificial intelligence.

UK consumers are increasingly abandoning brands that fail to deliver connected, seamless experiences, according to the report. The disconnect is driven by the difference in what customers actually experience and what businesses believe they deliver.

The findings show that while 81% of UK businesses believe they provide seamless omnichannel experiences, only a small minority acknowledge gaps in execution. Just one in five companies recognize that their customer experiences are not fully connected.

At the same time, consumers are signaling clear dissatisfaction. More than four in five, 82%, say they are put off by disorganized interactions, such as having to repeat information or being passed between teams. Nearly half say brands do not understand them as individuals.

The Data and AI Paradox

SAP describes the “Engagement Divide” as a structural gap between customer expectations and enterprise capabilities.

The divide is not just a perception issue. It has direct implications for retention and revenue. Customers increasingly compare experiences across brands in real time and are willing to switch quickly when interactions feel fragmented or impersonal.

64% of brands agree their data is too unstructured to be used effectively, creating a situation where companies are “building on quicksand.” This technical debt is increasingly costly, as 34% of consumers have already stopped paying attention to brands because they can now shop using their own AI assistants.

Sara Richter, CMO, SAP Engagement Cloud, said, “Customer expectations are moving at a new speed. With AI at their fingertips, people compare, decide, and switch in an instant. Those micro moments now determine whether a brand wins or loses the relationship.”

While 56% of consumers say their favorite brands deliver connected experiences, the broader market is falling short, indicating uneven execution across industries.

Data Fragmentation Limits AI and Personalization

The research points to data and operational silos as the root cause of disconnected experiences. A majority of UK organizations report challenges in using customer data effectively:

• 63% cannot access or use customer data in real time
• 71% report holding “dark data” that is not accessible or usable

These limitations directly impact the effectiveness of AI initiatives. While 80% of businesses view AI as essential for customer retention, only about a third of consumers say AI is improving their interactions with brands in a meaningful way.

This gap suggests that AI investments are not yet translating into operational improvements at the customer experience level.

Shift Toward Enterprise-Wide Engagement Models

The findings indicate that engagement is no longer a “marketing-only” responsibility but must become a shared business discipline. Most companies (78%) plan to invest in AI-powered engagement platforms in 2026, with a focus on connecting data across marketing, sales, service, commerce, and ERP systems.

SAP’s research emphasizes that engagement must move beyond a marketing function to become an enterprise-wide capability. Delivering consistent experiences requires shared, real-time customer context across all business functions.

What This Means for SAPinsiders

Disconnected CX is now a data and architecture problem. Fragmented systems and siloed data are directly shaping customer experience outcomes, not just front-end design or channel strategy. This shifts ownership from CX teams to enterprise architects and data leaders responsible for integration and governance.

AI value depends on operational integration. Enterprises investing in AI without unified data and cross-functional alignment will struggle to deliver measurable CX improvements. Without real-time data flows, AI remains surface-level and cannot drive personalization, automation, or decisioning at scale.

CX execution is shifting to core ERP and data layers. Connecting customer, operational, and transactional data across ERP, service, and commerce systems is becoming a top enterprise priority. The ability to operationalize this data across processes will define whether CX investments translate into measurable business outcomes.