UK retail firms are losing as much as £86bn due to negative customer service experiences with AI, new research has found.

The Centre for Economics and Business Research (CEBR) investigated on behalf of Trustpilot how retail firms have been affected by negative reviews caused by AI offerings in the past year.

Poor interactions with AI, ranging from chatbot mishaps to incorrect or uninformative product summaries, has led to a loss of £4.9bn in transactions.

Further, a survey of customers found that two-thirds lessened their use of a firm after experiencing a negative interaction with AI. Customers also share negative AI experiences with around two other people, on average, which can stop other customers from using their services.

It also damages a business’s reputation – CEBR found that £3.7bn was lost from the reputational fallout of negative AI experiences.

“AI tools are making it easier than ever for consumers to discover, research and buy new products and services,” chief strategy officer at Trustpilot, Carrie Ryan, said.

“But as our research shows, they can just as easily turn people away. In an AI-powered world, trust is the currency that powers every transaction.

“It is vital that businesses invest the time and energy now in getting AI experiences right, using quality data sources and thoughtful design to build trust and reliability in the entire shopping experience.”

Recommended reading

• How Will Agentic AI’s Rise Transform Customer Support and Service?
• Agentic AI on the Rise Despite Workers’ Concerns
• Report: Consumers Rejecting AI in Customer Service

Customers have so far been giving mixed signals when it comes to AI in service desk applications, with many disparaging their disappointing interactions with chatbots, while others think AI could be the solution to long wait times and slow solutions.

As more and more service desk teams employ AI in customer-facing services, customers are turning to various means to avoid AI interactions, searching for cheat codes to avoid chatbots.

Despite consumer pushback, Gartner analysts predict AI adoption in customer service will charge ahead, driven by advancements in Agentic AI. By 2029, the analyst firm predicts, Agentic AI will resolve about 80% of customer queries without a human in the loop.