Consumer Distrust in AI-Powered Customer Service Rises, Pega Research Finds — Pegasystems Inc.

Event summary

Pegasystems and YouGov surveyed 4,748 consumers in the UK and US, finding 64% lack confidence in businesses' use of GenAI for customer service.
53% of respondents doubt organizations use GenAI responsibly, with 46% reporting rare or no successful outcomes from AI-powered interactions.
77% of consumers achieve better outcomes with human-led support, while only 2% prefer exclusive AI chatbot interactions.
24% of consumers believe they use AI daily without realizing it, suggesting passive acceptance when implemented effectively.

The big picture

The research highlights a growing disconnect between consumer expectations and the current state of AI-powered customer service, signaling a strategic inflection point for companies relying on automation. As businesses race to deploy AI solutions, the findings suggest that those failing to prioritize reliability and human-like interactions risk eroding customer trust and loyalty. The broader industry trend toward AI adoption in customer service may need to pivot toward more transparent and effective implementations to regain consumer confidence.

What we're watching

Trust Rebuilding: How Pega and other AI providers will address consumer distrust through more reliable and human-like AI interactions.
AI Integration: The pace at which businesses shift from simple chatbots to more sophisticated, predictive AI agents for customer service.
Regulatory Scrutiny: Whether increased consumer skepticism will prompt regulatory bodies to impose stricter guidelines on AI use in customer service.