Human empathy still critical as AI reshapes customer experience industry 

• Industry leaders say empathy and trust remain essential in an AI-driven world
• Technology should remain an enabler, not the defining purpose of the industry

Automation and artificial intelligence may be reshaping the customer experience industry, but human empathy and connection must remain at the heart of how the sector evolves.

Speaking at the 15th National Contact Centre Conference (NCCC) 2026, Anuar Fariz Fadzil (pic), CEO of the Malaysia Digital Economy Corporation (MDEC), said while technology is helping businesses improve efficiency and streamline operations, it cannot replace the human ability to build trust, understand emotions and solve complex customer needs.

“You can have all the tech. You can have all the ChatGPTs and all the tools in the world, but nothing replaces humans. Nothing replaces human empathy and nothing replaces the desire to be able to make a connection,” he added.

Anuar said Malaysia’s contact centre and shared services industry has evolved significantly over the past two decades, growing from traditional outsourcing operations into sophisticated global business services and customer experience hubs serving international markets.

Today, Malaysia is recognised as one of the region’s leading hubs for multilingual and high-value customer experience operations, supported by strong digital capabilities, skilled talent and close industry collaboration. The country is also ranked number one in Southeast Asia and among the world’s top 25 destinations for contact centre operations by the Milken Institute.

The industry’s continued transformation supports Malaysia’s broader ambitions under the Malaysia Digital national strategic initiative and the nation’s goal of becoming an AI-driven economy by 2030, particularly through the advancement of high-value digital services, talent development and AI adoption across industries.

Although AI, automation and digital tools are becoming increasingly embedded within customer engagement operations, Anuar stressed that technology should remain an enabler rather than the defining purpose of the industry.

“At the centre of it, it is about how we keep it all human. Tech is just a tool,” he said.

On talent development and workforce readiness, Anuar said MDEC remains committed to working closely with ecosystem partners, industry associations and businesses to strengthen industry standards, enhance digital capabilities and reinforce Malaysia’s position as a trusted destination for digital services.

He added that Malaysia’s ability to connect with global markets while delivering culturally nuanced and people-centric customer experiences remains one of the country’s key competitive advantages.

The conference, organised by the Contact Centre Association of Malaysia (CCAM), brought together industry leaders, customer experience professionals and ecosystem players to discuss the future of customer engagement, AI adoption and digital services.

Meanwhile, CCAM president Vigneswaran Sivalingam said the customer experience industry is rapidly evolving as AI, automation and digital engagement channels continue to reshape how organisations interact with customers.

However, he stressed that the sector is not shrinking but expanding beyond traditional call handling into a broader customer engagement ecosystem.

“We used tools like Zoom to stay connected and collaborate, but today we use it for contact centre solutions and to elevate customer experience,” he said.

Vigneswaran added that Malaysia’s multilingual talent, digital maturity and growing AI capabilities position the country strongly to lead the next phase of customer experience transformation in the region.