AI Strategy

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feb 16, 2025

CX Transformation in the AI Era: How Public Transit Wins Riders

AI is reshaping transit choice. Win riders with clear, trusted digital journeys, better data, and safe AI-powered guidance.

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AUTHOR

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AUTHOR

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AUTHOR

Arpy Dragffy
Arpy Dragffy

Public transit used to win ridership through a simple equation: coverage + schedules + human service. If you treated people well at the counter, kept the system reliable, and maintained a baseline of safety, riders adapted. Transit was a default.

That world is gone.

Today, every trip is a competitive decision. Riders weigh transit against ride-hailing, carshare, taxis, biking, scooters, and driving—often in real time, on a phone, minutes before departure. The “product” is no longer the vehicle. It’s the end-to-end experience: discovery → confidence → payment → wayfinding → safety → reliability → recovery when things go wrong.

AI is about to accelerate this shift. Not because it will magically fix service, but because it changes how riders decide, how they get information, and what they expect the system to do for them.


The core shift: from “service delivery” to “experience selection”

In the legacy transit model, agencies could focus on operations and customer service as separate domains. Operations ran the service. Customer service handled exceptions. Marketing broadcasted campaigns.

In the modern mobility market, those boundaries collapse. Riders don’t experience your organization chart. They experience a journey—and they judge it against the easiest alternative.

Two trends make that unavoidable:

  • Ridership has not fully recovered to pre-pandemic norms in many places. In the U.S., American Public Transportation Association reported 2024 ridership returned to 79% of 2019 levels, with 7.7B trips taken in 2024 (up from 2023).

  • The alternatives are scaling fast. Uber reported 3.1B trips in Q4 2024, up 18% YoY—a reminder that “not transit” is not a niche option anymore.

When riders have credible alternatives, your CX isn’t a nice-to-have. It’s how you compete for the trip.


What changed after COVID wasn’t only demand—it was tolerance

COVID didn’t just disrupt ridership patterns. It rewired expectations around safety, crowding, predictability, and personal space. It also made “choice mobility” feel more normal: people learned to substitute, avoid, reroute, and pay more for control.

At the same time, many agencies faced underfunding and political pressure—often forcing difficult tradeoffs that riders feel as reduced frequency, inconsistent reliability, or diminished station presence. That becomes fuel for social narratives that amplify fear and frustration, especially on specific routes.

The result is a new rider mindset:

  • “I’ll take transit when it’s the easiest.”

  • “I’ll switch modes when it’s uncertain.”

  • “I’ll pay more when I want control.”

The new battleground is confidence.


The digital experience is now the front door—and the judge

In public transit, “CX” often gets interpreted as signage, staff behavior, or call center performance. Those still matter. But the dominant layer shaping satisfaction is now digital: the information riders see before they ride, and the guidance they receive while they’re in motion.

This is where AI becomes a true CX force multiplier.

Why? Because transit has been quietly turning into a set of APIs for years. Riders increasingly experience your system through:

  • trip planners and real-time arrival predictions

  • service alerts and disruption messaging

  • fare and account systems

  • crowding signals and reliability proxies (when available)

That data is distributed through your channels and third-party apps. When it’s inaccurate, inconsistent, or slow, the rider doesn’t blame “the API.” They blame the agency.

In the AI era, poor information quality becomes a brand problem faster—because AI systems summarize, recommend, and route riders based on what they can reliably interpret.


The “Uber-ification” of transit is already underway

Transit will start to feel more like modern mobility products—not because agencies want to mimic Lyft, but because riders now expect the same primitives:

  • personalization (saved trips, preferences, accessibility needs)

  • proactive alerts (not reactive explanations)

  • simplified payments and entitlements

  • rewards, retention mechanics, fare capping visibility

  • “recovery UX” when disruption happens (clear choices, not confusion)

This is not about gimmicks. It’s about reducing friction and uncertainty—especially for occasional riders and younger cohorts who haven’t built transit habits yet.

If you win younger riders early, you don’t just win a trip—you build lifetime ridership.


Where AI actually changes the game in transit CX

AI is not a single feature. It’s a capability layer that can improve how systems adapt to rider needs and operational reality. The agencies that benefit will apply AI in focused places where it reduces uncertainty and improves decisions.


1) Rider decision support that feels “situationally aware”

Instead of generic alerts, AI-enabled guidance can answer what riders really need in the moment:

  • “Should I wait or walk to the next stop?”

  • “Which route is safer / less crowded right now?” (where data exists and policies allow)

  • “What’s the best alternative if service is disrupted?”

  • “What will this trip cost me today with fare capping?”

When riders feel guided, they stop feeling abandoned.


2) Recovery UX: making disruptions survivable

Most transit CX failures happen during exceptions: delays, missed connections, confusing detours, inconsistent messaging across channels.

AI can help by generating consistent, rider-friendly guidance across web, app, station screens, and alerts—grounded in the same source-of-truth logic.

Your disruption experience is your brand—because it’s when riders decide whether to trust you again.


3) Smarter segmentation without dehumanizing the system

AI makes it possible to tailor communications and experiences to rider needs (frequency, accessibility constraints, language preferences, fare types) without building dozens of manual workflows.

That enables the system to serve:

  • frequent riders who want reliability and speed

  • occasional riders who need clarity and confidence

  • riders who require assistance or accessibility support

Personalization isn’t marketing. It’s operational empathy at scale.


4) Efficiency under funding constraints

AI can also help agencies do more with less: triage service requests, improve knowledge management, reduce repetitive inquiries, and support frontline staff with better context.

Funding pressure doesn’t eliminate CX. It forces you to deliver it more efficiently.


The practical reality: AI won’t fix fragmented CX foundations

Just like in higher education, AI doesn’t save a broken information system. It amplifies it.

If your data, content, and customer journeys are fragmented, “adding AI” becomes a reputational risk generator: inconsistent answers, conflicting policies, confusing guidance, and degraded trust.

Before AI can improve rider experience, most agencies need three foundations:

  • Journey clarity: an end-to-end view of the rider experience (not channel-specific fixes)

  • Information integrity: consistent, governed sources of truth across alerts, web, apps, signage

  • Measurement: a way to benchmark experience performance, not just operational metrics

You don’t need more features. You need a coherent experience system.


What leading agencies do next

The smartest transit leaders don’t start with “a chatbot.” They start with a CX transformation plan designed for the AI era.

That plan typically includes:

  • prioritizing the journeys that drive mode choice (and the moments that cause abandonment)

  • auditing information flow across channels and third parties

  • improving the reliability and interpretability of real-time data and alerts

  • designing recovery experiences for disruptions and safety-sensitive contexts

  • introducing AI in controlled, high-value moments where it reduces uncertainty

The goal isn’t AI everywhere. The goal is trust and confidence where it changes rider behavior.


How PH1 helps transit agencies lead CX transformation in the AI era

At PH1, we help transit and public-sector organizations modernize CX in ways that work within real governance and operational constraints. We build CX Master Plans, map end-to-end journeys, audit experience performance across channels, and define the AI strategy required to deliver clarity, reliability, and personalization without increasing risk.

PH1 runs a focused diagnostic to identify the highest-impact rider journeys, where abandonment happens, and what to fix first. You get a prioritized roadmap for the next 90 days and a clear plan for safe, high-value AI deployment.

Read our case study working with the TransLink transit authority on their Customer Experience Master Plan.

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