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Brands warned they risk being trapped in ‘doom loop’ as AI reshapes customer expectations

More than eight in ten organisations are failing to maximise the value of their brand investments, creating a cycle of underfunding and underperformance that could undermine growth and customer trust in the age of AI.

The analyst firm Gartner’s latest survey found that 84% of companies are stuck in what it describes as a ‘brand doom loop’, a situation where businesses underinvest in brand measurement, lack confidence in the results and subsequently allocate even fewer resources to brand-building activities.

For customer experience and contact centre leaders, the findings highlight the growing importance of brand consistency and trust as organisations navigate increasingly AI-driven customer interactions.

The research, based on a survey of 426 senior marketing leaders conducted in late 2025, suggests that brand is becoming a critical differentiator at a time when AI is accelerating market commoditisation and making it easier for competitors to replicate products, services and customer experiences.

Julie Reeves, VP Analyst in Gartner’s Marketing practice, said: “Brand has long been treated as a communications asset, but it is actually a growth engine. The challenge is that most organisations lack the measurement discipline and executive narrative needed to connect brand health to business performance.”

Gartner predicts that by 2028, more than 80% of companies will make significant changes to their corporate identity, mission, culture or brand positioning in response to AI’s growing influence on markets and customer behaviour.

The findings are particularly relevant for customer service leaders, as brand perception is increasingly shaped by every interaction customers have with organisations, whether through contact centres, self-service channels or AI-powered customer support.

According to Gartner, organisations with a strong brand strategy are twice as likely to exceed their growth targets compared with those that fail to treat brand as a strategic business asset. Meanwhile, more than half of C-suite executives want marketing leaders to better explain the relationship between brand and wider business strategy, while 43% are seeking clearer links between brand performance and commercial outcomes.

For organisations investing heavily in customer experience transformation, Gartner argues that measuring brand health alongside operational metrics could become increasingly important. As AI-driven customer engagement expands, businesses that can demonstrate a clear connection between brand trust, customer experience and business performance are likely to be better positioned to secure executive support and investment.

The analyst firm recommends that organisations establish regular brand measurement programmes, connect brand metrics to business outcomes and develop clearer executive reporting to demonstrate how brand contributes to growth, loyalty and long-term customer value.

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