Consumers Still Don’t Trust AI to Handle Customer Service

New research from Pegasystems and YouGov shows that most consumers in the UK and US remain wary of generative AI in customer service, preferring human interaction despite widespread corporate investment in chatbots and automated support.

What the Research Found

The study, published in February 2026 by Pegasystems Inc., a US-based enterprise AI software company, surveyed 4,748 adults across the UK and the US between 4 and 13 November 2025. The results show a widening disconnect between how confidently businesses are deploying generative AI in customer service and how comfortable consumers feel interacting with it.

Two-thirds of consumers (64 per cent) said they were either “not very confident” or “not at all confident” in the way businesses use generative AI when interacting with them. More than half, 53 per cent, lacked confidence that organisations use generative AI responsibly.

That scepticism appears to come from lived experience. For example, almost half (46 per cent) reported that they either “rarely” or “never” get successful outcomes when their customer service interaction is AI-powered. A similar proportion (48 per cent) said they do not trust businesses to handle their customer service entirely through AI.

People Prefer Human Support Over AI

What stands out most clearly is that people still prefer human support rather than AI. According to the research, 77 per cent say they “always” or “often” achieve better outcomes when dealing only with a person. Two-thirds, 66 per cent, actively prefer human-led assistance. By contrast, just 2 per cent say they want to interact exclusively with generative AI chatbots.

Taken together, the figures suggest that while AI adoption has accelerated rapidly inside organisations, consumer confidence in those systems has not kept pace.

Why Consumers Don’t Trust AI

Simon Thorpe, Director at Pega, was clear about what is driving the unease. “AI can be transformational for customer service – but it has to live up to customer expectations,” he said in the company’s press release. “There’s a simple reason why we’re seeing a lack of consumer trust in the use of AI. There are just too many first-hand examples of businesses deploying these tools in ways that lead to dead ends and frustration.”

That frustration is now likely to be familiar to many customers. People report being stuck in automated loops, struggling to escalate to a human agent, or having to repeat information that has already been provided. Even when an issue is eventually resolved, the process can feel inefficient and impersonal.

Not Rejecting AI Outright

That said, the research suggests that consumers are not rejecting AI outright. Instead, they are reacting to how it has been introduced into customer service channels. As Thorpe added: “Businesses must build back consumer trust by moving past simple chatbots and deploying predictable AI agents that consistently get work done on behalf of customers. If businesses can use AI to make customer service faster and easier, they can drive massive new efficiencies while retaining customer trust.”

The distinction matters. The concern is less about AI existing and more about whether it delivers a reliable, transparent and genuinely helpful experience.

Consumers May Not Choose AI, But They Suspect It’s There Anyway

The research also reveals something more subtle. Although 48 per cent of respondents said they never actively choose to use generative AI in everyday tasks, many suspect they are already using it without realising it. Around 24 per cent think they probably interact with AI every day, even if they are not consciously aware of it.

That suggests a form of reluctant acceptance. People may not actively seek out AI-powered customer service, yet they understand that it is becoming embedded in daily life, from online banking and retail to travel and utilities.

AI is becoming part of everyday customer service, from chatbots and automated emails to voice systems and agent-assist tools. Yet many customers still question whether businesses are using it in ways that genuinely improve their experience. That contrast is becoming harder to ignore.

Pressure on Businesses to Deploy AI

Despite consumer scepticism, organisations face mounting internal and competitive pressure to adopt AI. Separate industry research from Gartner has found that more than nine in ten customer service leaders report being under pressure to implement AI within the year.

The commercial reasons are clear. AI promises lower operating costs, faster response times and improved self-service success. It can triage routine queries, surface relevant data for agents and operate around the clock.

For large enterprises, even marginal gains in efficiency can translate into significant savings. For smaller organisations, automation can help manage peaks in demand without expanding headcount.

However, the Pega findings suggest that cost efficiency alone will not secure customer loyalty. A separate study by Gladly and Wakefield Research has shown that even when AI or hybrid AI-to-human interactions resolve an issue, only a minority of customers say it increases their preference for the company. Customers, the report noted, “don’t resent AI… They resent wasted effort.”

That distinction matters.

Implications

For consumers, the issue is not technology in itself. It is reliability. When AI works seamlessly, it fades into the background. When it misfires or blocks access to a person, frustration rises quickly.

For frontline staff, AI systems are reshaping workflows. In the best cases, they reduce repetitive administration and surface relevant information at speed. In weaker implementations, they add another layer of process that can constrain judgement rather than support it.

For senior leaders, AI in customer service now sits at the intersection of cost control, brand perception and regulatory scrutiny, and any decisions about deployment increasingly carry reputational weight.

Organisations are therefore navigating a narrow path. They must modernise service operations while protecting customer confidence and employee engagement. That balance is becoming a defining feature of digital strategy.

What Does This Mean For Your Business?

For UK SMEs and mid-sized organisations, the message from this research is clear. Customer service automation can’t be treated as a plug-and-play efficiency project.

Before expanding AI across service channels, it’s worth asking three commercial questions. Does it genuinely improve resolution times? Does it reduce customer effort? Does it enhance, rather than restrict, human support when it matters?

The data suggests that customers are not rejecting AI outright. They are simply reacting to poor experiences. That means implementation quality is now a competitive differentiator. A well-designed hybrid model, where AI handles routine interactions and escalates intelligently to trained staff, is likely to outperform either extreme.

There is also a governance dimension here. Transparent communication about how AI is used, what data is processed and when a human can intervene will increasingly influence trust. With regulatory scrutiny of automated decision-making growing across the UK and Europe, customer service AI is unlikely to remain outside compliance conversations for long.

For growing businesses, AI offers the opportunity to extend service hours, smooth demand spikes and provide operational insight that was previously unavailable. Yet the organisations that benefit most will be those that treat AI as an augmentation layer, not a replacement for judgement.

The commercial advantage will not come from deploying more chatbots. It will come from deploying better ones, supported by people, process and clear accountability.