Companies in Australia are accelerating their adoption of AI-enabled and hybrid contact center models to improve efficiency, compliance and customer experience, according to a new research report published by Information Services Group (ISG)  a global AI-centered technology research and advisory firm.

Australia’s contact center transformations are marked by the convergence of AI adoption, increasing regulation and continuing need for cost efficiencies. Enterprises are embedding intelligence into every layer of CX delivery.

The 2025 ISG Provider Lens^® Contact Center — Customer Experience Services report for Australia finds that enterprises are modernizing operations to meet rising expectations for personalized interactions that seamlessly flow across multiple digital channels. Companies are moving from cost-focused outsourcing toward blended sourcing models that combine efficiency with quality and cultural alignment.

“Australia’s contact center transformations are marked by the convergence of AI adoption, increasing regulation and continuing need for cost efficiencies,” said Himanshu Chawla, director at ISG. “Enterprises are embedding intelligence into every layer of CX delivery to enhance productivity while meeting evolving customer expectations.”

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Australian enterprises are integrating AI into customer operations to enhance agility and accuracy, the report says. Generative AI (GenAI) applications such as chat summarization, real-time coaching and automated knowledge tools are delivering measurable benefits in speed of response and customer satisfaction. These systems are now moving from pilot phases to production-level adoption, enabling consistent service outcomes across high-volume channels. However, ISG says enterprises remain cautious about AI hallucinations and the transparency and explainability of models, especially in sensitive sectors such as healthcare and government.

Companies are also embracing hybrid delivery models that balance cost efficiency with data sovereignty, ISG says. Many enterprises are blending onshore centers with nearshore operations in New Zealand and the Philippines, seeking proximity and English proficiency, while maintaining security and compliance. Tier 2 Australian cities and countries such as Fiji and Vietnam are also emerging as strategic locations for cost optimization. This shift reflects a broader move toward flexible sourcing that supports service continuity and customer trust.

Cloud platform modernization is also accelerating, the report says. Australian enterprises are consolidating contact center technologies around scalable platforms such as Genesys Cloud, Amazon Connect and Microsoft Dynamics to streamline operations and unify communication channels. This integration of AI, analytics and workforce optimization helps companies personalize customer journeys, reduce average handling times and improve first-call resolution rates.

“Enterprises in Australia are redefining customer experience by combining digital innovation with empowered human interaction,” said Hemangi Patel, senior manager and principal analyst, ISG Provider Lens Research, and lead author of the report. “The most successful organizations are those that implement effective automation while ensuring human agents are prepared to handle more complex, high-value interactions.”

The report also explores other trends in the Australian contact center market, including rising investment in employee experience tools to support agent well-being and the shift toward outcome-based provider pricing models linked to measurable customer outcomes.