The 'empathy gap' is costing UK businesses billions, but it's easy to fix

This is the current reality for some businesses. Put simply, consumers want empathy but they’re often not getting it.

For too long, empathy has been relegated to a 'soft skill' – something appropriate but not essential. Yet, extensive academic research reveals this to be a fundamental misunderstanding.

Empathy is a dynamic, trainable ability, not an inherent trait. When people are equipped with specific techniques, their empathic responses improve, and this capacity strengthens with consistent application.

The scientific evidence is clear: our brains are capable of empathy, and these abilities can be intentionally developed.

So, what are the implications for UK businesses? Empathy represents a powerful source of competitive advantage. Our findings are striking: almost two out of three consumers surveyed globally exclusively engage with companies that show genuine care, with 61% of respondents saying they would be willing to pay more to use a brand that demonstrates care.

This "empathy gap" (the difference between what consumers expect and what they receive) is leading to lost customers and eroding trust. In fact, almost half of consumers surveyed globally have left a brand due to a lack of empathy.

Zurich Insurance (Group) has actively tested this scientific principle. Understanding that insurance often involves customers during life's most challenging moments, we've made empathy central to our global customer strategy. Since 2023, over a quarter of our global employees have dedicated nearly 46,000 hours to a multi-award-winning Global Empathy Training Programme.

This approach is about genuinely changing business culture to put people first. The programme uses thorough, targeted diagnostics to pinpoint areas for improvement, introduces employees to diverse customer personas, and even utilises local actors to simulate real-world scenarios.

This process empowers our teams to genuinely comprehend and respond effectively to customer needs. The outcomes are compelling, with our Transactional Net Promoter Score (TNPS) rising by 7 points from January 2024 to June 2025.

In an increasingly AI-driven landscape, the demand for authentic human connection has not diminished – it has intensified. While AI offers remarkable efficiencies, nearly three quarters of consumers surveyed globally remain convinced it cannot replicate human connections.

An AI can understand you, but it cannot genuinely feel with you. Technology should enhance human capabilities, not substitute for genuine emotional engagement.

Adding to this challenge in Britain is the recognition that AI is making it increasingly difficult for companies to demonstrate empathy, with 68% of consumers agreeing with this – the highest of any markets surveyed.

For UK businesses who want to win, the message is clear: Empathy isn't just about playing nice, it's essential to business success. It requires strategically integrating empathy into every customer interaction, equipping employees with practical communication skills, and rigorously measuring its contribution to financial performance.

By making empathy a core part of their business, UK leaders can build strong customer relationships, drive lasting growth, and truly lead with human understanding in a customer-focused market.

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Dr. Jamil Zaki is Director of the Stanford Social Neuroscience Laboratory, pioneering research on empathy as a learnable skill. He is the author of "The War for Kindness."

Conny Kalcher is Group Chief Customer Officer at Zurich Insurance, driving customer loyalty and advocacy globally. They co-authored the new report, 'Addressing the Empathy Gap.'

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