Regulations & AI reshape customer experience in Australia

Recent regulatory changes and a spate of outages have intensified focus on the reliability of customer experience (CX) for organisations across Australia and the Pacific.

The introduction of new Australian Prudential Regulation Authority (APRA) CPS 230 rules, which strengthen requirements for operational risk management and service continuity, has prompted both public and regulator scrutiny of how businesses deliver uninterrupted service to customers.

According to Rahul Tabeck, Country Manager & Sales Director at SolarWinds ANZ and Pacific, the essence of customer experience has shifted significantly. Tabeck emphasised reliability over surface-level polish, noting that modern customers prioritise uninterrupted service and seamless transactions above all else.

"Today, customer experience (CX) is no longer just a polished interface, instead it's about continuous, reliable, uninterrupted service. Even monetary stalls and brief micro-outages quietly erode trust, reduce revenue and frustrate customers. With alternatives just a tap away, a brief lag or stalled checkout is often enough for customers to try the next competitor."

The consequences of even minor outages or delays extend beyond the technology team. Loss of customer trust can lead to immediate revenue impact and longer-term brand damage, especially in sectors where switching providers or services is easier than ever for consumers.

Tabeck outlined a direct solution to this challenge, advocating for a broader adoption of artificial intelligence for IT operations (AIOps) and full-stack observability tools. These technologies provide organisations with real-time insights into their systems, enabling the proactive identification and mitigation of issues before they affect end-users.

He emphasised that the right tools empower teams to detect and resolve incidents before they escalate, thereby reducing both the duration and frequency of outages.

"AIOps and full-stack observability provide a single pane to detect, diagnose and often predict and mitigate issues before they become customer-facing, cutting downtime, lost revenue and the burnout that drives IT attrition. Investing in these tools will result in fewer outages, stronger customer trust and a healthier, more productive team."

Strengthening service continuity is not just a question of regulatory compliance but also of maintaining a competitive edge. Tabeck added that organisations that invest in operational resilience will ultimately protect their reputation and customer base.

Similar themes have emerged from research into customer support operations. Simon Bowker, Vice President of Customer Service and CRM at ServiceNow, observed that the fundamentals of customer service are about trust and efficiency, with a human element underlying every interaction.

"Customer Experience Day is a great reminder that behind every brand interaction is a person trying to help another person. At its best, customer service is about solving problems quickly, building trust, and leaving people with a positive impression. Yet the reality for many Australians is far from this. Our research shows people spent 123 million hours on hold last year, while service teams were only able to spend a fifth of their time fixing issues. Four in five agents say they enjoy helping people, but they're held back by disconnected systems, silos, and outdated processes."

Bowker suggested that to overcome these challenges, organisations need to break down internal silos and empower their staff with integrated systems and artificial intelligence capabilities. The aim is to streamline workflows and allow customer service teams to focus on resolving issues rather than navigating inefficient processes.

He pointed out that customer satisfaction is diminished when organisations rely on outdated infrastructures that prolong wait times and frustrate users. Bowker called for a reimagining of customer engagement strategies, with an emphasis on removing obstacles and facilitating faster, more personal resolutions.

"The organisations that stand out will be those willing to rethink their approach: breaking down silos, empowering employees with the right tools, and using AI to eliminate roadblocks and drive faster, more human outcomes. Customer service shouldn't be about navigating roadblocks, and it shouldn't be defined by wait times. It should be about resolving issues, restoring trust, and leaving people with a positive memory of your brand. That's the standard to aim for in today's experience-driven economy."

The development and implementation of effective CX strategies now requires a blend of technology investment, process reform, and cultural change across all functions of the organisation. Service teams, IT departments, and senior leadership are being called upon to work more closely together to ensure service continuity, compliance, and levels of customer satisfaction that foster long-term loyalty.

The increased scrutiny from both regulators and the public is expected to continue, particularly in industries where reliability is core to the customer relationship. As the operational landscape evolves, organisations are taking concrete steps to reinforce their systems and processes, with the future of customer experience increasingly tied to the invisible backbone of technology and collaboration.