Augmented reality CX adoption still in its early stages
The enterprise adoption of AR in CX is limited because of key obstacles, including system integration issues, budgeting structures and tech standardization glitches.
Augmented reality (AR) has long promised to reshape digital customer experiences, from virtual product visualization to interactive troubleshooting. But years after early retail experiments generated buzz, enterprise adoption remains limited.
Despite technological progress and continued investment, AR deployments are still in the early phase of adoption, according to Tuong Nguyen, director analyst at Gartner.
"We're still nowhere near early-majority adoption," Nguyen said. "Early majority would mean roughly 16% of the target market. We're still under 5%."
Many organizations still treat AR as a standalone technology category. That perspective, however, can limit adoption, Nguyen said.
"Organizations often think of AR as a technology," he said. "But it's more useful to think of it as a technique, similar to mobility."
Like mobile computing before it, AR represents a new interface for interacting with digital systems rather than a separate technology stack. Mobile devices didn't replace desktop computing; instead, they expanded the range of ways that users access applications and data.
AR, Nguyen said, is likely to follow a similar path by becoming embedded within existing enterprise software platforms rather than existing as its own category.
"AR sitting by itself isn't going to work," he said. "It has to evolve as a feature or capability within broader software offerings."
AR sitting by itself isn't going to work. It has to evolve as a feature or capability within broader software offerings.
Tuong NguyenGartner director analyst
Enterprise use cases gaining traction
Although consumer-facing AR applications often capture headlines, many of the most practical deployments today appear in enterprise environments. Industries with capital-intensive operations and large frontline workforces -- such as manufacturing, utilities and field service -- are seeing meaningful adoption.
"These tend to be high-consequence situations where accuracy and efficiency matter," Nguyen said.
Customer-facing use cases are also emerging in service and support scenarios. AR guidance can help consumers troubleshoot devices, assemble products or configure home technology, reducing the need for service calls. Such experiences can also help lower product return rates, particularly when customers mistakenly assume a product is defective.
"Sometimes customers think a product is defective when they simply don't understand how to use it," Nguyen said. "AR guidance can help resolve that."
Market forecasts suggest enterprises will continue to invest in AR and related technologies. Global spending on AR and virtual reality (VR) is expected to grow significantly in the coming years as organizations experiment with immersive interfaces and digital collaboration tools.
As enterprise use cases expand, worldwide spending on AR and VR technologies is projected to grow steadily through the decade, according to IDC forecasts. Still, scaling AR initiatives remains a challenge.
Many deployments stall at the pilot stage because AR tools operate separately from core enterprise systems such as CRM platforms, field service software or e-commerce applications. Budgeting structures can also complicate adoption when AR requires separate funding rather than functioning as an extension of existing platforms.
Standardization presents another obstacle. Unlike mobile interfaces -- where gestures and navigation patterns quickly became familiar -- AR interaction models are still evolving.
A gradual shift toward embedded AR capabilities
Over time, Nguyen expects AR capabilities to become integrated into broader enterprise platforms rather than sold as standalone products. Within the next several years, many AR-focused vendors will likely consolidate or be acquired as larger software providers incorporate AR into existing offerings.
"The natural evolution is for AR functionality to become part of broader digital platforms," Nguyen said.
For executives evaluating AR investments, Nguyen recommends experimentation rather than waiting for the market to mature.
"As a technique, AR is inevitable," he said. "Organizations that begin exploring it now will be better positioned when adoption accelerates."
Christine Campbell is a freelance writer specializing in business and B2B technology.
