How AI Is empowering SMBs to redefine customer experience

Across the Asia-Pacific region, small and midsize businesses (SMBs) are confronting a new reality, one where customer experience (CX) can determine competitiveness and survival. As digital adoption accelerates, customer expectations are rising faster than ever. Yet, many SMBs operate with lean teams, limited budgets, and growing pressure to deliver seamless, personalised service.

In this environment, AI and automation are no longer optional; they’re becoming core enablers of customer trust and business resilience. The rise of agentic AI, AI that acts intelligently, adapts contextually, and scales human capability, is redefining how smaller businesses manage CX.

In a written interaction with DQ Channels, Sean Woodward, Vice President, APAC SMB at Zendesk, shares his perspective on how SMBs are transforming their approach to customer service, the critical role of agentic AI, and why now is the pivotal moment to act.

SMBs face mounting pressure to deliver experiences with limited resources

“Across Asia Pacific, small and midsize businesses (SMBs) face mounting pressure to deliver customer experiences that keep up with evolving expectations and rapid change, often with constrained budgets and lean teams,” says Woodward.

He explains that maintaining operational agility is a major challenge for smaller firms. “Many are challenged by the need to maintain operational agility, which can slow down investments in new customer experience (CX) technology or talent.”

Another persistent roadblock is proving the ROI of CX initiatives. “A key hurdle is demonstrating the clear business impact of CX initiatives in order to secure broader stakeholder buy-in,” he adds.

To overcome these constraints, SMBs are experimenting with agile and measurable CX strategies.

“Many SMBs I’ve spoken to are rethinking their approach to CX, testing small-scale pilots, learning quickly, and focusing on practical improvements,” he shares. “Innovative pricing models, such as outcome-based approaches where businesses pay only for successful AI-driven resolutions rather than overall ticket volume, are also gaining traction as they allow businesses to tie expenditure directly to measurable results.”

This pragmatic approach, Woodward says, enhances the ability to justify CX improvements financially, paving the way for broader adoption of technology-led solutions.

Agentic AI is levelling the playing field for SMBs

As AI reshapes the definition of great service, SMBs are seizing the opportunity to scale customer engagement intelligently.

“Nearly three-quarters of Indian CX leaders surveyed in our 2025 CX Trends Report believe AI is fundamentally changing everything about service,” notes Woodward.

For SMBs, the emergence of agentic AI represents a major equaliser.

“What makes Agentic AI particularly transformative for SMBs is its ability to level the playing field by making enterprise-grade capabilities widely accessible for businesses of any size or budget,” he explains.

He adds that low- and no-code AI solutions are unlocking new efficiencies.

“The growing availability of low- and no-code agentic AI solutions means that SMBs can now embed these advanced solutions into their operations without requiring deep technical expertise or substantial investment.”

While automation helps with repetitive tasks, Woodward stresses that AI’s real power lies in helping SMBs anticipate customer needs.

“The real breakthrough lies in helping SMBs become more proactive service providers,” he says. “These solutions can pre-empt emerging pain points, adapt quickly to new patterns in customer behaviour, and even suggest improvements that strengthen customer loyalty and business resilience.”

He also highlights that natural language processing (NLP) has matured significantly.

“Substantial progress in natural language processing has also meant that conversations with AI agents feel more human-like, an important criterion for 91% of Indian consumers.”

Ultimately, AI is driving more meaningful interactions:

“Agentic AI is helping SMBs do more than just work faster and smarter; it’s empowering them to create meaningful experiences that have real, lasting impact for both the business and its customers.”

SMBs are the most dynamic and high-potential segment in India

For Zendesk, India’s SMB sector is both vast and vibrant.

“SMBs are among the most dynamic and high-potential segments in India,” Woodward emphasises. “Apart from their sizable contribution to the nation’s economy, these businesses employ more than 25 crore people in the country.”

That scale, he notes, brings both opportunity and complexity.

“That scale speaks to both the opportunity and the competition these businesses face daily. In this fast-moving environment, we’re seeing SMBs turning to CX as a key differentiator.”

However, the volume of interactions is growing exponentially.

“Two-thirds of SMB leaders expect customer interactions to grow fivefold over the next few years, and we believe AI is essential to handling this growth.”

Zendesk’s approach, according to Woodward, focuses on accessibility, scalability, and trust.

“Working closely with Indian SMBs, we understand that every rupee matters, especially in uncertain times. That’s why our solutions are designed to be easy to adopt and quick to deliver value,” he says. “As our customers evolve and grow, our Resolution Platform grows with them, offering the sophistication and flexibility needed to match their ambition.”

He adds that Zendesk’s AI Summit announcements reflect its vision for the region.

“With our latest advancements announced at our annual AI Summit, we’re helping businesses resolve issues faster, enhance value, and strengthen trust in AI service by combining intelligent automation, streamlined workflows, and advanced analytics to personalise solutions.”

“For us, it’s about making AI-driven service effective, accessible, and sustainable, so that Indian SMBs can focus on delighting their customers and staying competitive.”

AI acts as a true force multiplier

AI’s business impact, according to Woodward, goes far beyond efficiency.

“Customer interactions move at a different speed today, conversations can start anywhere, any time, and expectations are higher than ever,” he notes.

AI allows smaller teams to operate at enterprise scale:

“AI acts as a true force multiplier here. It equips small teams with insights, strategies, and best practices that were once only accessible to larger enterprises.”

The key, he adds, lies in real-time analytics and sentiment analysis.

“Access to real-time analytics and sentiment analysis means SMBs can quickly spot shifting trends and get ahead of them before they disrupt service delivery.”

He underlines how automation complements the human element.

“AI takes care of the repetitive work in the background, leaving people to focus on the moments that make customers feel valued and understood.”

The result is a more human-centric, scalable CX model.

“Thinking of AI as just another technological upgrade misses the real point. For ambitious Indian SMBs, it’s opening up new territory: 86% of Indian consumers notice a clear gap between companies that successfully embed AI in customer service and those that don’t.”

“As consumers grow more discerning and digital interactions surge, those that use AI thoughtfully are setting themselves apart, not only through speed and efficiency, but by building genuine, lasting relationships.”

Agentic AI is already showing tangible value

In uncertain economic times, AI gives SMBs agility and resilience.

As Sean stated, “Economic volatility and shifting market conditions have made it more challenging than ever for SMBs to plan with certainty,” says Woodward. “In this climate, putting off investment in CX until ‘things settle down’ is a risk few can afford.”

Furthermore, adding on how AI agents offer a practical solution, he explained, “AI agents give small businesses a way to stay on the front foot, helping them effortlessly navigate demand spikes, streamline workflows, and maintain consistent service quality without needing to hire additional staff during seasonal peaks.”

He points out that deployment is now simpler and more cost-effective.

“AI agents today are no longer costly or complicated to deploy. Out-of-the-box solutions, especially those purpose-built for service, allow SMBs to hit the ground running, automating routine interactions and delivering results quickly.”

The benefits are measurable. “A recent Forrester Total Economic Impact study, commissioned by Zendesk, found that the composite organisation realised a value of USD 6.5 million over a three-year period by deploying AI agents,” Woodward shares.

“Purpose-built solutions like these give SMBs the ability to adapt quickly, spot fresh opportunities, and turn today’s unpredictability into an advantage.”

Conclusion: AI as the CX catalyst for SMB growth

The message from Sean Woodward is clear, for SMBs across APAC: AI isn’t just a technology trend, it’s a business necessity. As customer expectations rise, SMBs that invest early in intelligent CX solutions are not only improving service quality but building stronger, longer-lasting customer relationships.

With agentic AI making enterprise-grade capabilities accessible to all, the next phase of CX transformationwill be defined by how quickly SMBs harness data, automation, and human empathy together.

As Woodward concludes, the opportunity is now:

“Agentic AI is empowering SMBs to create meaningful experiences that have real, lasting impact for both the business and its customers.”

Read More:

Inside Veeam’s ProPartner strategy: What’s next for data protection

Beyond Make in India: How IMS 2025 is powering the next era of industrial self-reliance

AISIE applauds DGTR’s Anti-Dumping move on toner cartridge imports