See the questions and answers below for key findings and expert insights.
Are customers happy with AI-powered customer service?
No — BBB data shows the large majority of customer reviews mentioning AI and automation are negative (91% over the past three years).
Why are so many customers frustrated with AI customer service?
The main complaint isn't AI itself — it's being forced into an AI interaction with no way out. According to Qualtrics workplace psychologist Benjamin Granger, customers with complex problems want the option to reach a human quickly and feel "forced into an AI experience" when that option is removed. A 2026 Qualtrics survey found one in five consumers said they saw no benefit from an AI customer service interaction, and half said a bad AI experience could lead them to cut spending with that company.
How much are businesses spending on AI, and is it working?
Corporate AI investment topped $252 billion in 2024, with nearly $34 billion going specifically into generative AI, according to a Stanford AI Index report cited in the study. Internally, it appears to be paying off: almost 50% of businesses using AI in service operations reported cost savings. The disconnect is on the customer-facing side, where satisfaction hasn't kept pace with adoption.
Are scammers using AI?
Yes, and BBB Scam Tracker reports citing AI have grown sharply, from 782 in 2023 to nearly 3,000 in 2025. Consumers have reported AI-generated celebrity videos used to push fraudulent products, AI-crafted voicemails, and scammers falsely claiming to use AI-powered investment tools — the latter tied to a median loss of $4,000 per victim in 2024.
How can businesses use AI without losing customers?
Successful adoption depends on transparency and an easy path to a human. Nearly 85% of consumers in the HubSpot/SurveyMonkey survey said data security and disclosure about AI use matter to them. Granger's advice to businesses is to use AI for simple problems but "give customers an out" and protect human-centered moments for anything more complex; research from Info-Tech Research Group's Terra Higginson echoes this, warning that companies shouldn't adopt AI for its own sake or assume a chatbot will work well without real investment in how it's implemented.
How can I tell if an AI interaction is a scam?
Be cautious of unexpected calls with an automated or AI-sounding voice, since scammers can generate new phone numbers on demand, so a "new" number doesn't mean a new actor. Also watch for sponsored search ads that imitate legitimate AI company websites, and be skeptical of any celebrity video or endorsement pushing a financial product, since AI-generated videos of public figures are a known scam tactic.
Where can someone report an AI-related scam?
Reports can go to the Better Business Bureau or BBB Scam Tracker, the FTC (reportfraud.ftc.gov or 877-FTC-Help), the FBI's IC3 (ic3.gov), the Canadian Anti-Fraud Centre for Canadian residents, or a state Attorney General's office.