Consumers Demand More from AI-Powered Customer Service, Says Research
MWN-AI** Summary
A recent study by Pegasystems Inc. in collaboration with YouGov reveals that consumer trust in AI-powered customer service remains critically low. Polling over 4,700 individuals across North America and the UK, the research indicates that many consumers are dissatisfied with AI interactions, primarily blaming businesses for the subpar application of the technology rather than the technology itself.
The findings are significant, with 64% of respondents expressing a lack of confidence in how businesses implement AI (GenAI) in customer service contexts. Furthermore, 53% doubted whether organizations are using GenAI responsibly. A major concern is that nearly half (46%) of participants reported infrequent success in resolving issues via AI, driving skepticism about the technology's effectiveness. Respondents also overwhelmingly prefer human interactions; 77% claim they achieve better results when engaging with a person, and two-thirds favor human-led support over AI.
Simon Thorpe, Pega’s director, emphasizes that while AI can transform customer service, it must meet consumer expectations. He argues that many companies deploy AI tools ineffectively, often leading to frustrating experiences rather than effective solutions. To rebuild trust, businesses should move beyond rudimentary chatbots and focus on creating reliable, intelligent AI agents that enhance the customer journey.
Interestingly, although many respondents do not actively choose to engage with GenAI, 14% admit using it less often than once a month, which indicates a potential for increased acceptance if AI is applied seamlessly into daily routines. As AI continues to integrate into everyday life, companies must rethink their strategies to enhance customer experiences and cultivate trust in AI technology.
MWN-AI** Analysis
The recent study by Pegasystems and YouGov indicates a significant gap between consumer expectations and the realities of AI-powered customer service. As a financial analyst, I recommend businesses approach the integration of AI with caution and strategic foresight, particularly given the prevalent consumer skepticism surrounding these technologies.
The survey highlights that a staggering 64% of consumers lack confidence in businesses’ use of AI for customer interactions, with nearly half reporting unsuccessful outcomes during engagements with AI-driven systems. This lack of trust could hinder adoption rates and ultimately affect revenue streams for companies investing heavily in AI solutions. Therefore, organizations must prioritize transparency and reliability in their AI applications to regain consumer trust.
Furthermore, while AI can enhance operational efficiency, it cannot fully replace the human touch that customers crave. With 77% of respondents favoring human interactions and only 2% preferring exclusive interaction with AI, companies should consider hybrid models that incorporate AI for routine inquiries while ensuring human representatives are available for more complex issues. Emphasizing a seamless blend of AI and human involvement could lead to improved customer satisfaction and loyalty.
Additionally, consumer acceptance of AI seems to exist when it operates unobtrusively in the background. Businesses should aim to embed AI technologies in a manner that simplifies customer interactions without overwhelming users or creating dependency. This approach can enhance user experience and drive organic adoption.
In conclusion, as businesses explore AI integration, they must focus on building reliable, customer-centric AI solutions that balance efficiency with the empathy and understanding inherent in human interactions. Adopting a thoughtful, strategic approach will help companies not only meet but exceed customer expectations in an increasingly AI-driven marketplace.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
New Pega study suggests businesses using AI aren’t meeting customer expectations…yet
Consumers don’t yet trust artificial intelligence (AI) to give them the customer service experiences they demand, according to research conducted by Pegasystems Inc. (NASDAQ: PEGA), The Enterprise Transformation Company™, and YouGov .
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The study polled more than 4,700 consumers from North America and the United Kingdom on consumer perceptions of artificial intelligence and how businesses use it. It found consumers are fed up with inaccurate, unpredictable AI-driven experiences, pointing the finger of blame not at the technology itself, but instead at the way businesses are using it with them.
Two-thirds (64%) of consumers reported they are either "not very confident" or "not at all confident" in the way businesses use GenAI when interacting with them, while more than half (53%) lacked confidence that organizations use GenAI responsibly.
This distrust in business use of AI is fueled by a number of factors:
- AI needs to be more reliable: Almost half (46%) of respondents said they either “rarely” or “never” get successful customer service outcomes through AI-powered interactions, raising questions about how accurately businesses are implementing these solutions. A similar number (48%) don’t trust businesses using AI to completely handle their customer service interactions as a result.
- AI can’t match the human touch: Today, 77% of consumers say they “always” or “often” achieve better outcomes when dealing only with a human. Meanwhile, two-thirds (66%) prefer human-led support, suggesting businesses aren’t doing a good enough job of empowering AI to provide the right customer experiences. By comparison, just two percent want to interact exclusively with GenAI chatbots, indicating that businesses must radically rethink their approach to deploying AI for customer service if they are to build confidence and trust, and provide better outcomes.
- Successful AI blends into the background: While nearly half (48%) say they never actively choose to use GenAI in everyday tasks, there’s also evidence to suggest that consumers are sanguine about its use when implemented effectively, and accept becoming more aware that it is something that is already becoming a part of their daily lives. Just 14% say they actively choose to use AI less than once a month, with just 9% saying they choose to use it every day. Despite this, one quarter (24%) thinks they probably use it every day without realizing it.
Quotes & Commentary:
“AI can be transformational for customer service – but it has to live up to customer expectations,” said Simon Thorpe, director, Pega. “There’s a simple reason why we’re seeing a lack of consumer trust in the use of AI. There are just too many first-hand examples of businesses deploying these tools in ways that lead to dead ends and frustration. Businesses must build back consumer trust by moving past simple chatbots and deploying predictable AI agents that consistently get work done on behalf of customers. If businesses can use AI to make customer service faster and easier, they can drive massive new efficiencies while retaining customer trust.”
Supporting Resources:
- Pega Generative AI: https://www.pega.com/technology/generative-ai
- Pega Customer Service: https://www.pega.com/products/customer-service
- Pega Agentic Self-Service: https://www.pega.com/products/agentic-self-service
Notes to editors
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 4,748 adults in the UK (2,222) and US (2,526). YouGov undertook all fieldwork between 4th - 13th November 2025. The survey was carried out online. The figures have been given an even weighting for each country to produce an ‘average’ value.
About Pegasystems
Pega provides the leading AI-powered platform for enterprise transformation. The world’s most influential organizations trust our technology to reimagine how work gets done by automating workflows, personalizing customer experiences, and modernizing legacy systems. Since 1983, our scalable, flexible architecture has fueled continuous innovation, helping clients accelerate their path to the autonomous enterprise. Ready to Build for Change®? Visit www.pega.com .
All trademarks are the property of their respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260225835070/en/
Press Contact:
Jon Brigden
Pegasystems
Jon.brigden@pega.com
FAQ**
How does Pegasystems Inc. (PEGA) plan to address the lack of consumer confidence in AI-driven customer service as highlighted in their recent study?
What measures can businesses adopt to improve the reliability of AI that Pegasystems Inc. (PEGA) advocates for, given that 46% of consumers report rarely achieving successful outcomes with AI interactions?
In what ways can Pegasystems Inc. (PEGA) assist organizations in creating a more human-like touch in AI interactions, given that 77% of consumers prefer human support?
How does Pegasystems Inc. (PEGA) perceive the balance between AI integration in everyday tasks and consumer awareness, especially with 2of users believing they use AI daily without realizing it?
**MWN-AI FAQ is based on asking OpenAI questions about Pegasystems Inc. (NASDAQ: PEGA).
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