Closing the AI Trust Gap

Why AI should drive efficiency, not replace human judgement.

AI is reshaping customer service. Chatbots handle millions of queries every day, and the appeal to businesses is obvious: instant response, lower cost, and round-the-clock availability. But our latest research reveals a more complex picture, one that businesses can't afford to ignore.

At Trust Alliance Group, we are investing in AI to improve accessibility, speed and efficiency in dispute resolution. But we remain firmly committed to a human-led approach, where trained people retain judgement and accountability for outcomes. This is not a case of human-only versus AI-only. We believe that the strongest model is technology-enabled and human-led.

Our latest consumer research suggests that this balance matters more than ever. While the findings reflect consumers' reported experiences, they highlight where trust begins to break down when AI replaces, rather than supports, human judgement.

What the research tells us

• More than two-thirds of UK consumers (67%) now interact with chatbots during customer service journeys.
• One in ten Brits report having switched to a competitor following a poor AI customer service experience.
• A quarter of consumers report having abandoned a complaint after a frustrating chatbot interaction.
• Two in five (41%) say their trust in a business has fallen following AI-driven customer service.

A generational divide

The generational divide in our research is notable. Gen Z are five times more likely than Baby Boomers to trust chatbots to deliver fair customer service, and half of Gen Z users prefer chatbots as their go-to channel for resolving issues.

Yet despite this digital preference, Gen Z is also the generation most likely to report chatbot failures, with 62% saying their complaint was left unresolved.

For Baby Boomers, the picture is different but just as concerning. Just 5% trust chatbots, and only 3% say their trust in a business increased after using one. For businesses, this is not a niche problem, it's a vulnerability affecting consumers regardless of their willingness to engage with new technologies.

Accessible, efficient, but always personal

At Trust Alliance Group, our response to this landscape is deliberate and considered. We believe that accessible and efficient dispute resolution should always retain a human-centric approach.

That is why, across our organisations, including Energy Ombudsman and Communications Ombudsman, once a dispute enters the case-handling process, a named case handler takes ownership and remains accountable for progressing it through to resolution.

This model matters because disputes are rarely straightforward. They involve real people, in real circumstances, who need to feel heard. A case handler who knows the full history of a dispute can apply judgement, demonstrate empathy, and work towards an outcome that is genuinely fair, not just technically closed.

Failing to invest in trusted, human-led customer service can come at a real cost.

The business case

When consumers lose trust, they leave. When complaints go unresolved, trust is damaged.

Those that can get the balance right, with technology that supports efficiency, and humans who lead accountability, will be the ones that retain customers, build long-term trust, and protect their reputations. Those that don't risk increased complaint abandonment, declining trust and avoidable customer churn.

AI has an important role in improving the speed, accessibility and efficiency of dispute resolution. However, it should augment rather than replace the judgement of trained case handlers or customer services. Consumers must be able to reach a person, understand how they are being considered, and know who is accountable for the outcome.

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About the data: Trust Alliance Group’s research was undertaken by Bilendi in February 2026 and involved surveying 2,000+ general members of the public, matched to the national representation of British consumers