Retailers, brands, and distributors rushing to implement AI in customer support and service risk alienating their own customers, according to new predictions from Forrester Research.

The firm’s 2026 B2C marketing, customer experience, and digital business forecast highlights that the rapid rollout of generative AI is exposing fragmented vendor ecosystems and driving growing consumer skepticism. By next year, a third of companies are expected to frustrate customers with poorly implemented AI self-service tools.

“For many organizations, the pressure to cut costs will lead to premature deployment of AI chatbots and virtual agents in contexts where they’re unlikely to succeed,” said Sharyn Leaver, chief research officer at Forrester. “This can erode brand trust, harm customer experience, and impact both acquisition and retention.”

The report also flags privacy concerns as a major risk. AI-driven data breaches could spark a 20% surge in US consumer class-action lawsuits, as regulators, consumers, and law firms increasingly scrutinize AI applications and the companies that use them.

Advertising is expected to face disruption as well. Despite skepticism about generative AI, consumers will continue using AI-generated summaries and chat tools, shrinking audiences on the open web. Forrester predicts leading advertisers will cut display ad budgets by 30%, shifting spending toward entertainment-driven platforms like connected TV, streaming audio, and social video.

Meanwhile, offline brand experiences are set to gain traction. Drawing on 2025 data, Forrester notes that 52% of US online adults actively seek in-person, tactile experiences for richer interactions that digital channels cannot replicate. By 2026, a third of consumers are expected to intentionally favor offline experiences over digital engagement.

Leaver emphasized that as consumer expectations rise, brands must prioritize relevance, value, and trust when integrating AI into customer experiences. “Enhancing personalization and adopting a customer-centric approach to AI will be table stakes for earning loyalty,” she said.

Forrester is recognized globally as one of the leading research and advisory firms, providing insights into digital transformation, consumer behavior, and marketing strategy.