October 28, 2025
Self-Service AI May Cost Brands Consumer Trust, Report Warns
The promise of generative AI in customer service has dazzled executives across industries. However, according to Forrester’s 2026 B2C Marketing, CX, and Digital Business Predictions, the race to automate could do more harm than good.
The research firm expects that 30% of brands will erode customer trust by deploying AI-powered self-service tools before they’re ready for real-world complexity.
Driven by budget pressures and competitive urgency, many companies are rushing out chatbots and virtual agents to replace human interactions. Yet these tools often fall short in the moments that matter most, and that is when a customer’s question doesn’t fit the script. Instead of saving costs, brands could damage both acquisition and retention, as consumers lose patience with robotic exchanges and shallow support.
Trust and Authenticity as Decisive Factors
Forrester’s analysts describe 2026 as a year when trust and authenticity will become the decisive factors for B2C marketing and CX leaders.
Quick-fix digital experiences are no longer cutting it. Customers want value, empathy, and transparency, not just faster replies. Companies that over-promise AI efficiency but deliver confusion will find themselves fighting a steeper battle to rebuild loyalty.
The report also points to ripple effects beyond customer service. As AI intersects with privacy, data misuse will fuel a surge in legal challenges. Forrester predicts a 20% rise in U.S. class-action lawsuits tied to AI-driven privacy breaches, as consumers and regulators scrutinise how companies collect and process data through automated systems.
Meanwhile, marketers will have to navigate a changing media landscape. Forrester forecasts that advertisers will cut display ad budgets by around 30% as audiences move away from the open web toward AI-curated summaries, chat interfaces, and entertainment-based platforms such as connected TV and streaming video.
Strengthen the Connection Offline
Interestingly, the pendulum may swing back toward human connection. A growing number of consumers are expected to favour in-person experiences, seeking richer, sensory interactions that digital channels cannot replicate. Brands would need to find more balanced strategies in which digital tools enhance genuine engagement.
Sharyn Leaver, Chief Research Officer at Forrester, said: “Measures such as enhancing personalisation that prioritises relevance and value and integrating AI through a customer-centric lens will be table stakes for brands to earn their customers’ loyalty.”
Generative AI holds vast potential, but its success depends on responsible deployment. Before turning over customer touchpoints to automation, companies must ask whether their AI truly serves the customer or merely serves the balance sheet.
