AI in Customer Communication: Essential Opportunities and Risks for SMBs
Small and mid-sized businesses (SMBs) in the UK are rapidly increasing their AI investments, with spending expected to grow fivefold from 2022 to 2024. By 2025, these companies could save over £29,000 each year by integrating AI tools. Given ongoing economic uncertainty and rising costs, AI’s role in improving efficiency and profitability is crucial for staying competitive.
One of the most dynamic areas for AI adoption is customer communication. AI enables businesses to personalize messages at scale, respond faster to inquiries, and streamline service workflows. These improvements are quickly becoming the baseline expectation for customers. When implemented correctly, AI can enhance customer satisfaction, reduce errors, and free employees to tackle more complex tasks. However, careless use risks damaging trust as much as it boosts performance.
Trusting AI to Connect with Customers
Generative AI is still relatively new in customer communication, but nearly half of consumers aged 18–35 are comfortable with AI-generated messages. They value the personalized and timely interactions AI can offer, which improve their overall experience. Properly applied, AI supports human interaction by handling routine tasks efficiently while enabling deeper engagement.
AI also delivers measurable benefits for business goals. A 2024 KPMG report found that UK brands using AI in customer service saw a 1.4% increase in customer satisfaction. Examples include real-time delivery updates, personalized recommendations, and improved accuracy in billing or scheduling—all enhancing the customer journey.
Building Consumer Trust in AI
Trust is not yet universal. Only 23% of consumers aged 55 and older feel comfortable with AI communications, highlighting a trust gap across age groups. Skepticism remains about quality, security, and privacy. Research shows 58% of people believe AI-generated writing is inferior to human communication, and 81% expect companies to disclose when AI is used.
Lack of transparency around AI’s role or data handling can create unease. This is especially true in sensitive sectors. For instance, 45% of consumers would react negatively if AI generated their medical test results, and 34% feel similarly about AI handling insurance claims. Customers are becoming more discerning, so companies must clearly demonstrate how AI benefits, rather than hinders, communication quality.
From Algorithm to Ally in Customer Care
To earn trust, businesses need to show that AI genuinely improves communication quality, relevance, and reliability. Clear explanations of how AI supports secure and accurate interactions are essential—not just internally, but in ways customers understand.
AI should be positioned as a tool that handles routine tasks, freeing employees to focus on complex or sensitive customer needs. Transparency around data usage is critical. Companies must explain how customer information is protected and how AI is applied responsibly. This might include labeling AI-generated messages or proactively informing customers about data use.
The key is to consistently prove that AI is more than an efficiency tool; it should be a secure, thoughtful addition to the customer experience.
The AI Audition
Businesses are now in a critical “audition phase” for AI. It’s no longer enough to simply promote AI’s benefits—they must demonstrate how AI enhances quality, security, and personalization in customer communications.
Failing to do so risks losing customer trust. Conversely, those who implement AI strategically and transparently will secure its place as a trusted voice in every interaction.
For PR and communications professionals looking to deepen their understanding of AI tools and responsible implementation, exploring targeted training can be valuable. Resources such as Complete AI Training’s latest AI courses offer practical guidance tailored to communication roles.
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