When AI deflects, customers defect: Qualtrics finds trust gaps that put loyalty at risk

Customers are losing trust as brands push chatbots that block humans, causing quiet churn. Lead with resolution and transparent handoffs: make humans visible, measure, and fix fast.

Categorized in: AI News Customer Support
Published on: Oct 08, 2025
When AI deflects, customers defect: Qualtrics finds trust gaps that put loyalty at risk

AI Cynicism Is Eroding Customer Loyalty - Support Leaders Need a Different Playbook

Brands are rushing chatbots to the front line. Customers are pushing back. The latest Customer Experience Trends 2026 report from Qualtrics shows growing frustration with AI support, driven by fear that reaching a real person will be impossible. That frustration is translating into lost trust, fewer purchases, and quiet churn.

This isn't anti-technology. It's pro-resolution. Customers want fast answers and clear paths to humans when the bot stalls. If we design for resolution and transparency, AI becomes an asset. If we design for deflection, it becomes a liability.

Numbers Support Leaders Can't Ignore

  • 95% of UK consumers would prefer not to deal with chatbots at all.
  • Only 35% globally say AI support actually solves their problem.
  • About a third of UK customers don't trust information provided by AI.
  • More than half of UK consumers worry they won't reach a human if companies automate with AI.
  • Convenience drives choice for 46% of UK consumers - clunky AI pushes them to competitors.
  • Communication breakdowns cause 42% of bad experiences in the UK.
  • 31% don't tell the company after a poor experience, yet 44% reduce their spending.
  • 63% prefer personalized experiences, but 36% feel uncomfortable with data use and only 40% trust companies to handle data responsibly.
  • Just 39% believe the benefits of sharing data are worth the privacy trade-off.
  • Data breaches are the top fear for 28% of UK consumers (vs. 23% globally).
  • 44% would share more data if companies were transparent; 47% want more control over how it's used.

Why Bots Fail Customers

Most AI support fails at two points: it dodges the issue or it blocks access to a human. That breaks trust fast. As Isabelle Zdatny of the Qualtrics XM Institute put it: "Increasingly, customers don't tell companies about bad experiences - they just act, with roughly half reducing their spending. Companies can be left guessing where they went wrong."

She adds: "Brands need to recognize that every missed signal, whether it's a dropped call, an abandoned shopping cart, or a negative social post, identifies an area for improvement." The fix is to listen for signals, act quickly, and make escalation obvious.

The Fix: Human-First, AI-Assisted Support

Lead with resolution, not containment. Make the human path visible from the first screen. Use bots to shorten time-to-answer and gather context - then hand off cleanly when confidence or sentiment drops.

  • Put "Talk to a human" up front. Offer phone, chat, and callback options, not buried links.
  • Guarantee escalation within two failed attempts or 60 seconds of frustration signals (repeats, "agent" keywords, negative sentiment).
  • Train bots to confirm intent, summarize what they can do, and state when they'll hand off. Avoid circular responses.
  • Route using context: intent, account tier, sentiment, and history. Send complex or sensitive issues straight to agents.
  • Instrument every "missed signal": dropped calls, bot abandons, repeated intents, "transfer to agent" clicks, and negative CSAT comments.
  • Close the loop within 24 hours on escalations and bad CSAT. Acknowledge, resolve, and confirm outcome.
  • Be explicit with data: in-line notices for what's collected and why. Offer quick controls to limit or delete data.
  • Minimize data use in AI flows. Collect only what's needed to resolve; mask sensitive fields by default.
  • Publish clear SLAs for bot and human response times. Measure against them weekly.

Metrics That Matter

  • Resolution rate (blended bot + human), not just bot containment.
  • First contact resolution and time-to-human for escalations.
  • Escalation CSAT/NPS vs. non-escalation - the handoff quality score.
  • Frustration triggers per 100 interactions and recovery rate after trigger.
  • Silent churn signals: complaint-to-contact gap, drop-off after bad CSAT, repeat contact within 7 days.
  • Privacy trust signals: opt-in rate, data-control usage, and data-related complaints.

30-60-90 Day Plan

  • 30 days: Add a visible "human help" button in all bot flows. Enable callback on peak queues. Insert plain-language data notices in key touchpoints.
  • 60 days: Implement frustration detection and automatic escalation. Route by intent + sentiment. Train agents on "rescue calls" and rapid context scanning.
  • 90 days: Rebuild the top 10 intents with resolution-first scripts and clean handoffs. Launch post-escalation surveys. Run a quarterly privacy review and publish changes.

Data Trust Is Part of Service

Customers want relevance without feeling exposed. The research shows strong interest in personalization and strong skepticism about data use. Treat privacy as a feature of your support experience, not a legal checkbox.

  • Explain what you collect, how long you keep it, and how it improves resolution speed or accuracy.
  • Offer one-click controls to limit data for support interactions, and honor the choice across channels.
  • Proactively notify customers after incidents, with clear remediation steps and direct human contact options.

"As brands scale AI solutions across the customer experience, they must do this with authenticity and transparency. People want reassurance that the tools designed to make their lives easier won't erode their privacy or block access to real support," Zdatny said. "When companies deploy AI that actually resolves issues - not just deflects them - while protecting customer data and maintaining clear paths to human support, that's when trust starts to grow. Anything less feels like a cost-cutting exercise."

Bottom Line for Support Leaders

  • Don't hide humans. Make the path obvious and fast.
  • Design for resolution, not containment.
  • Treat silence as a red flag - build signal capture and recovery.
  • Earn data trust with transparency and control at the moment of use.
  • Let AI do real work, then get out of the way.

If you're upskilling your team to build AI-assisted flows that customers actually trust, explore practical, job-focused training here: AI courses by job.