The AI trust paradox: how regulated industries can stay credible in an AI-driven world

Date:
Wed, 27 Aug 2025 06:53:30 +0000

Description:
Discover how regulated industries can earn trust by combining AI efficiency with human empathy.

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If youd told a room full of risk-averse insurance executives five years ago that nearly half of UK consumers would soon welcome health advice from AI, youd have been met with serious skepticism, if not outright laughter.

Our latest report shows that 49% of UK respondents would take health recommendations from AI, with 36% open to financial advice and 40% willing to accept insurance suggestions.

The shift is a wake-up call.

To be clear, Im not advocating for AI to replace doctors, advisers or
brokers. But what the research has uncovered is more interesting: consumers are already crossing that line themselves. The trust threshold, that digital Rubicon, has been crossed. And it raises urgent questions for brands and regulators alike.

If people are prepared to make high-stakes decisions based on machine recommendations and AI tools , organizations must rethink how they
communicate with transparency, accountability and humanity front and center.
A shift in expectation

Consumer behavior change in the last decade has been relentless, with high expectations set by the frictionless experiences of eCommerce giants and streaming platforms. Now, even in traditionally cautious sectors like healthcare and finance, people want the same speed, ease and responsiveness.

And they expect the communications to match the seamlessness and immediacy of the service. In other words: the way organizations communicate is now as important as what they deliver.

Research shows that nearly seven in ten insurance consumers would walk away from a brand if its communications fell short. That number has risen sharply, from 51% in 2023 to 67% in 2025.

The message is loud and clear: its how you talk to people that matters.

That includes AI. In 2024, 77% of consumers wanted clear disclosure when AI was involved in customer communications. A year later, that figure has
plunged to just 37%.

On the surface, it looks like comfort is growing. But that drop says more about shifting expectations than confidence: consumers are getting used to AI being part of the conversation, but they still want reassurance that its
being used responsibly.

Consider that while just under half of UK consumers say theyre actually willing to trust AI, and in financial services, nearly half of those respondents say AI-generated content should always be checked by a human.

Thats why clarity, control and human oversight are non-negotiable, for both compliance and trust in a rapidly evolving landscape. Where trust gets tested

So how does this play out in reality?

This is where many organizations slip up. Not by using AI, but by using it in a way that feels impersonal: generic messaging , disconnected channels and clunky digital journeys. These things erode trust at the exact moment customers are willing to place more of it in your hands.

So, what can you do to grow trust? From communication to conversation

The brands that will thrive in this AI-enabled future will be the ones who stay human, who treat communication as a conversation, not a transaction.

This starts with modernizing omnichannel experiences, how brands communicate across channels like email , web, mobile and more, in ways that feel seamless and connected. Data shows that only 54% of UK consumers are satisfied with
how brands deliver across channels. Yet 60% say they would trust companies more if those experiences were consistent.

Its not just a UX issue. Its a trust issue.

AI, when used well, can be part of the solution. From intelligent data
capture to personalized, real-time messaging, AI can help organizations move from one-way broadcasts to contextual, responsive conversations. But only if those experiences are designed with transparency, human oversight and consistent brand voice across every channel. Thats where trust is built and where the real value of AI begins.

But even the smartest communications strategy can fall apart if the most
basic interactions, like submitting a form, are broken. Dont let bad forms break the journey

One of the most overlooked and most damaging elements of the customer journey is data intake. In insurance, 65% of customers say theyll abandon an interaction if providing documentation is too difficult. Among Millennials
and Gen Z, that number jumps to over 70%.

This isnt a surprise. In a world of voice-responsive Gen-AI platforms and real-time chat, handing someone a PDF feels antiquated; Gen Z would tell you its an insult. Increasingly, were seeing younger generations turn to
platforms like TikTok for financial guidance. These channels offer
bite-sized, easily digestible content that fits their lifestyle far better than booking an appointment with a traditional financial advisor.

But the solution here isnt just digital forms. Its smarter, guided, mobile-friendly experiences that adapt to each unique context and channel. This is where AI can shine: streamlining processes without stripping away the human touch. Its about using technology to reduce friction, not automating away relationships. The moment of opportunity is now

Lets be clear: AI isnt a fix-all. Yes, its a powerful tool, but not a replacement for the emotional intelligence, empathy and judgement that define real communication and forge real bonds.

The moment were living in is rare: consumers are more open to AI than ever
and their expectations are rapidly changing. The organizations that rise to meet these expectations, without overpromising or hiding behind the tech, stand to earn something thats increasingly scarce: genuine, lasting trust.

If nearly half the country is ready to take life advice from AI, the question for brands isnt should you evolve? Its how fast you can evolve, and how human can you stay along the way?

We list the best customer experience (CX) tools .

This article was produced as part of TechRadarPro's Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here: https://www.techradar.com/news/submit-your-story-to-techradar-pro



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Link to news story: https://www.techradar.com/pro/the-ai-trust-paradox-how-regulated-industries-ca n-stay-credible-in-an-ai-driven-world


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