AI cynicism threatens loyalty: 95% of UK consumers would rather avoid chatbots, putting loyalty at risk
• More than half of UK consumers worry they won’t be able to connect with a human when companies automate their interactions with AI
• A third say nothing directly to the company after a bad experience, leaving brands flying blind without customer feedback
• Two-thirds want personalisation, but only 39% believe the benefits are worth the privacy trade-off
New research from Qualtrics, the leader and creator of the Experience Management (XM) category, reveals that AI-powered customer service is falling short for UK consumers and it’s costing brands both loyalty and sales. With only 5% of UK consumers saying they would prefer to use an automated assistant, such as a chatbot, and 80% saying they haven’t used AI for customer service help or support recently, it’s clear there is scepticism around using AI across their customer experience.
The gap between expectation and reality matters. When asked why they choose one brand over another, almost half (46%) of UK customers point to convenience, choosing to buy from brands because they make life easier, with good products and services close behind at 44%. However, communication breakdowns remain a major source of dissatisfaction, driving 42% of poor experiences in the UK.
AI service tools are not yet closing that gap. A third of UK customers (33%) say they don’t trust the information provided by AI, while globally just 35% report that AI customer support actually solves their problem. At the same time, more than half (58%) worry they won’t be able to reach a human when companies use AI, compounding frustration when communication fails.
That frustration is colliding with feedback fatigue which is leaving businesses without the insights they need to understand churn and continue building brand loyalty. A third (31%) of UK consumers say nothing directly to the company after a bad experience. With nearly half (44%) of bad experiences leading to cut spending, brands are losing loyalty and revenue without being able to understand why.
Isabelle Zdatny, Head of Thought Leadership at Qualtrics XM Institute, said,
“Consumers can tell the difference between brands that use AI to genuinely improve service and those that deploy it purely to cut costs. In the UK, where consumers remain cautious about spending, brands cannot afford to deliver poor and impersonal experiences. The findings show that UK consumers expect seamless, convenient customer experiences, clear communication from brands, and assurance that their data is handled responsibly.”
Trust is at stake for brands. Developing trust with customers is vital to delivering a reputable CX that builds brand loyalty, but consumer concerns around AI are undermining efforts to nurture trusting relationships. While 63% of UK consumers prefer to buy from brands that provide personalised experiences, a third of UK consumers (36%) are uncomfortable with their information being used for personalisation, and only 40% trust companies to use their data responsibly. Just 39% believe the benefits received from sharing data with brands is worth the privacy trade off.
UK consumers are among the most worried globally about hackers stealing their information, with 28% saying this is their biggest fear when companies collect their personal information, compared with 23% of global consumers. Recent high-profile breaches in the UK have sharpened those fears and left many questioning whether sharing data is worth the risk. But the research points to a way forward as nearly half of UK consumers (44%) say they would share more data if companies were transparent about what’s being collected, while 47% want greater control over how it’s used. Trust can be rebuilt if brands put transparency and control at the heart of their AI strategies.
Zdatny adds, “Competing on discounts or cutting costs with AI is short-lived. UK consumers reward companies that use technology responsibly, keep their data safe, and make it easy to get problems solved. Brand leaders should focus on convenience, clarity, and trust – the foundations of long-term loyalty. The brands that thrive will be those that use AI to enhance human connections, not replace them.”
Qualtrics is trusted by thousands of the world’s best organisations to power exceptional customer and employee experiences that build deep human connections, increase customer loyalty, boost employee engagement, and drive business success. Our advanced AI and specialized Experience Agents allow businesses and governments to proactively interact with customers and employees in personalized ways across every channel and touchpoint, respond in-the-moment to fix or improve experiences, and stay across the latest market trends and opportunities.
Methodology – The research was conducted by Qualtrics XM Institute among a sample of more than 20,000 consumers globally across 14 countries, including 1,500 UK Respondents (Nat Rep 18+). The data was collected in Q3 2025.
