{"id":884569,"date":"2026-01-13T06:12:12","date_gmt":"2026-01-13T12:12:12","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/13\/ai-in-customer-service-is-eroding-trust-heres-what-you-need-to-know-before-it-derails-your-business\/"},"modified":"2026-01-13T06:12:12","modified_gmt":"2026-01-13T12:12:12","slug":"ai-in-customer-service-is-eroding-trust-heres-what-you-need-to-know-before-it-derails-your-business","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/13\/ai-in-customer-service-is-eroding-trust-heres-what-you-need-to-know-before-it-derails-your-business\/","title":{"rendered":"AI in Customer Service Is Eroding Trust \u2014 Here&#8217;s What You Need to Know Before It Derails Your Business"},"content":{"rendered":"<p>\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n<div>\n<div>\n<h2>Key Takeaways<\/h2>\n<ul>\n<li>51% of U.S. small businesses have now adopted AI for customer service, but 83% would still prefer speaking to a real person rather than an AI.<\/li>\n<li>Businesses risk losing trust, sales and customer loyalty when they rely primarily on AI for customer service. <\/li>\n<li>When customers contact a business, they want empathy, warmth, understanding and genuine connection \u2014 things AI struggles to provide. AI should empower your people, not replace them.<\/li>\n<\/ul>\n<\/div>\n<p>Across industries, from healthcare to real estate, and law to local services, businesses are racing to <a href=\"https:\/\/www.entrepreneur.com\/growing-a-business\/5-things-business-leaders-must-know-about-adopting-ai-at\/376748\" rel target=\"_self\">adopt AI<\/a> because the pressure to do so is real \u2014 fear of being left behind is a serious motivator. Artificial intelligence promises efficiency, increased productivity and cost savings. It can analyze data faster than any human, streamline workflows and optimize processes that once took hours.<\/p>\n<p>And it\u2019s working: <a href=\"http:\/\/www.talkdesk.com\/news-and-press\/press-releases\/small-business-ai-survey\/\">51%<\/a> of U.S. small businesses have now adopted AI for customer service, chasing the dream of instant replies, lower overheads and \u201csmarter\u201d interactions.<\/p>\n<p>But here\u2019s the uncomfortable truth: <b>C<\/b><b>ustomers aren\u2019t chasing the same dream. <\/b><\/p>\n<p>People still want to talk to people.<b> <\/b>And that\u2019s a non-negotiable.<\/p>\n<h2>AI is rising \u2014 but trust is falling<\/h2>\n<p>According to a recent AnswerConnect and OnePoll <a href=\"https:\/\/www.answerconnect.com\/blog\/business-tips\/human-customer-service-stats\/\">survey<\/a> of 6,000 adults, 83% would still prefer speaking to a <a href=\"https:\/\/www.answerconnect.com\/pledge-people-not-bots\">real person<\/a> rather than an AI when contacting a business. That preference climbs even higher in industries where trust matters most \u2014 healthcare (89%), law (87%) and local services (85%)<b> <\/b>like plumbers, electricians, gardeners, etc.<\/p>\n<p>In other words, the very places where empathy is essential are the places people least want to hear a bot.<\/p>\n<p>The same study revealed that a third of people would hang up if they realized they were talking to AI. Every one of those hang-ups represents a lost opportunity \u2014 a sale that doesn\u2019t close, a booking that doesn\u2019t happen or a loyal customer who quietly moves on.<\/p>\n<p>And it\u2019s not just a matter of preference, it\u2019s a matter of trust.<\/p>\n<ul>\n<li>\n<p>53%<b> <\/b>say they would <i>trust a business less<\/i> if it relied primarily on AI for customer service.<\/p>\n<\/li>\n<li>\n<p>86% believe businesses should clearly disclose when they\u2019re using AI instead of a person.<\/p>\n<\/li>\n<li>\n<p>89% believe that <a href=\"https:\/\/www.entrepreneur.com\/science-technology\/ai-isnt-the-ceo-why-human-judgment-still-rules-in\/486206\" rel target=\"_self\"><i>human oversight<\/i><\/a> is essential to ensure fairness, accuracy and ethical use of AI.<\/p>\n<\/li>\n<\/ul>\n<h2>The loss of empathy in the chase for efficiency<\/h2>\n<p>AI is incredible at processing, but <a href=\"https:\/\/www.entrepreneur.com\/growing-a-business\/why-empathy-will-always-outpace-ai\/480678\" rel target=\"_self\">empathy<\/a> isn\u2019t a process; it\u2019s a <i>connection. <\/i>Yet too many businesses confuse efficiency with a good customer experience.<\/p>\n<p>When customers call, they\u2019re looking for a fast response, yes. But they\u2019re also looking to be heard. They want warmth, understanding and genuine connection.<\/p>\n<p>They don\u2019t want a perfect script. They want a real person who understands urgency, frustration or confusion.<\/p>\n<p>The data backs that up:<\/p>\n<ul>\n<li>\n<p>70%<b> <\/b>say <a href=\"https:\/\/www.entrepreneur.com\/business-news\/klarna-ceo-reverses-course-by-hiring-more-humans-not-ai\/491396\" rel target=\"_self\">human agents<\/a> show more empathy and care than AI.<\/p>\n<\/li>\n<li>\n<p>65% believe customer service would be <i>worse<\/i> if AI replaced humans.<\/p>\n<\/li>\n<li>\n<p>69% would be <i>more loyal<\/i> to a company that employs people, not machines, for their service interactions.<\/p>\n<\/li>\n<\/ul>\n<p>Customers don\u2019t just buy products. They buy <i>trust<\/i>. And trust doesn\u2019t scale through automation \u2014 it\u2019s built one genuine conversation at a time.<\/p>\n<h2>The empathy gap: AI can\u2019t close it<\/h2>\n<p>AI agents can answer questions. But humans answer <i>needs<\/i>.<\/p>\n<p>When your customer\u2019s heating breaks at midnight, or they\u2019re facing a legal issue, or they\u2019re worried about their health \u2014 no one wants to explain their problem to a machine that can\u2019t <i>feel or care <\/i>about what\u2019s at stake.<\/p>\n<p><a href=\"https:\/\/www.entrepreneur.com\/leadership\/ai-may-come-for-our-jobs-but-it-cant-replace-our\/450698\" rel target=\"_self\">AI systems struggle<\/a> with nuance, emotion and context. They misunderstand tone, miss subtle cues and lack the emotional intelligence that makes customers feel understood.<\/p>\n<p>It\u2019s no surprise then that 51% of people say AI tools fail to understand their needs, and 48% say their issues remain unresolved after dealing with an AI agent.<\/p>\n<p>That frustration has a cost. Every unresolved issue erodes satisfaction, every robotic response <a href=\"https:\/\/www.entrepreneur.com\/en-in\/news-and-trends\/ai-age-trust-critical-for-consumers-to-help-companys\/483193\" rel target=\"_self\">weakens loyalty<\/a>, and every time AI lacks empathy, it chips away at your brand\u2019s credibility.<\/p>\n<p><b>Humans build trust. AI should support it, not replace it.<\/b><\/p>\n<p>AI is an extraordinary tool, but it\u2019s not the solution to every problem. Used wisely, it can empower people, not replace them.<\/p>\n<p>It can <i>assist<\/i> your team by surfacing insights, automating low-value tasks or streamlining workflows. But when it comes to connection \u2014 the heartbeat of business \u2014 it\u2019s the <i>human voice<\/i> that wins every time. Your people are your biggest advantage.<\/p>\n<p>In an age where technology is everywhere, empathy has become the ultimate differentiator.<\/p>\n<h2>The future isn\u2019t AI or human. It\u2019s AI + human.<\/h2>\n<p>Businesses that thrive in the next decade will be the ones that know where to draw the line. They\u2019ll use AI to <a href=\"http:\/\/www.entrepreneur.com\/science-technology\/how-im-using-ai-to-empower-not-replace-my-team\/498214\" rel target=\"_self\">empower their people<\/a>, as a tool to support them, not to silence them.<\/p>\n<p>They\u2019ll automate processes, but never <i>relationships. <\/i>Because business is still personal. When a customer calls, it\u2019s not just a transaction \u2014 it\u2019s a test of trust.<\/p>\n<p>And trust still begins with a voice.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/www.entrepreneur.com\/leadership\/ai-could-be-driving-customers-away-heres-how-to-stop-it\/500911\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Natalie Ruiz<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Opinions expressed by Entrepreneur contributors are their own. Key Takeaways 51% of U.S. small businesses have now adopted AI for customer service, but 83% would still prefer speaking to a real person rather than an AI. Businesses risk losing trust, sales and customer loyalty when they rely primarily on AI for customer service. When customers<\/p>\n","protected":false},"author":1,"featured_media":884570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21,22],"tags":[],"class_list":{"0":"post-884569","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-customer","8":"category-service"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/884569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=884569"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/884569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/884570"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=884569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=884569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=884569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}