New data from the Better Business Bureau (BBB) reveals that over 90% of customer reviews mentioning AI services on its platform express negative experiences.
The findings come as the BBB reports receiving over 100,000 complaints and reviews related to AI and automation over the past three years.
The data suggests a growing sense of alienation among consumers, many of whom report feeling “unheard or dissatisfied” when forced to interact with AI-powered systems, such as chatbots and automated phone lines, rather than human agents.
While enterprises continue to pour capital into generative AI and automated workflows, consumer confidence has failed to keep pace. Currently, only 30% of users trust AI-generated responses “completely or a lot.” The preference for human interaction remains dominant, particularly among older demographics who often find automated hurdles more frustrating than helpful.
The report also highlights a darker side of the AI boom: the rise of sophisticated fraud. AI is increasingly being exploited by scammers to create highly convincing fake videos, fraudulent investment schemes, and AI-generated voicemails. These activities have led to significant financial impact, with the BBB noting median scam losses of approximately $4,000.
To combat this trust gap, the BBB is urging businesses to pivot toward a more thoughtful adoption of the technology. Recommendations include ensuring total transparency regarding when AI is being used, prioritizing data security, and—most crucially—providing customers with “easy access to human representatives.”
The stakes for getting this balance right are high. Recent surveys indicate that poor AI-driven customer service experiences are directly linked to reduced consumer spending. The BBB suggests that the most successful integration examples currently involve using AI for internal tasks or as a co-pilot to assist human agents, rather than using it as a total replacement for front-line customer service roles.
For businesses moving forward, the advice is clear: monitor customer feedback closely, offer clear escalation paths to humans for complaints, and remain willing to adjust AI implementations based on real-world consumer responses.
You can read the full BBB report here.