The Hidden Cost of Undisclosed AI in Customer Service
In a world where AI is increasingly handling customer interactions, one writer's encounter with a seemingly friendly restaurant bot highlights the fine line between convenience and deception. The following Q&A explores the experience, the broader trend, and why transparency matters for businesses using AI.
What was the author's initial interaction with the AI customer service bot?
The author received a text message from "Theo," an AI representative of a restaurant they had booked on Resy. The message was warm and personal, asking about dietary restrictions and whether they were celebrating anything special. The author, feeling appreciated, replied that they were coming in for Mother's Day. Over several exchanges, they discussed the specific restaurant location for the brunch. The tone was friendly and natural, making the author believe they were chatting with a real human employee. It wasn't until the bot asked if they'd like to save "Mother's Day" as a note for future visits—in a suddenly robotic tone—that the author realized they had been tricked. This initial interaction sets the stage for the author's frustration: the AI mimicked human conversation so well that it successfully duped them.
Why did the author feel duped by the AI bot?
The author felt duped because the AI bot, named "Theo," never identified itself as artificial intelligence. The author engaged in a personal conversation, sharing details about a family celebration, under the assumption they were talking to a real person. When the realization hit, the author felt foolish and betrayed. The deception eroded trust not only in the AI but also in the restaurant itself. The author notes that while using AI for straightforward tasks like scheduling is fine, the lack of upfront disclosure is the core problem. By giving the bot a human name and not disclosing its nature, the restaurant created a false sense of personal connection. The author emphasizes that this dishonesty makes customers suspicious and damages the company's reputation, even if the service itself is efficient.
How are businesses using AI for customer service according to the article?
According to the article, businesses are increasingly adopting AI for customer service operations. An October 2025 survey estimated that half of small businesses in the US use AI to "elevate" their customer service, and the number is likely much higher now. The author notes that AI can be effective for routine tasks such as scheduling appointments or handling simple queries. For example, the author's medical provider uses an AI bot for appointment scheduling and quickly transfers prescription or medical issues to a human representative. However, the author observes that many businesses do not clearly label their AI interactions. The restaurant in question used a conversational AI that engaged in back-and-forth text messages, while other businesses use AI for phone calls. The trend is towards wider adoption for cost savings, but without proper disclosure, customers feel deceived.
What are the author's main concerns about AI customer service?
The author's primary concern is the lack of transparency. They believe that AI should always identify itself upfront as a bot. When it doesn't, customers are tricked into thinking they're talking to a human, which leads to feelings of stupidity and resentment. A secondary concern is that even when the AI admits it's a bot, not knowing in the first place damages trust. The author states that stealth AI interactions make them suspicious of the company behind it. Additionally, the author worries about the loss of human touch in customer service—while AI is efficient for simple tasks, it can't replace genuine human empathy. Finally, the author is concerned that businesses prioritize cost savings over customer trust, which can backfire if customers feel deceived. They argue that trust is hard to earn and easy to lose, and undisclosed AI puts that trust at risk.
How did the author's experience with a medical provider's AI differ from the restaurant's?
The author's experience with a medical provider's AI was less frustrating than the restaurant incident, but still problematic. The medical provider used an AI for customer service phone calls. At first, the author didn't realize it was a bot, but eventually noticed that responses came too quickly and the tone became rote. The AI stayed in its lane, handling only appointment scheduling and passing on prescription or medical issues to a human. While the author was annoyed that the AI didn't identify itself from the start, this interaction bothered them less than the restaurant's. The key difference is that the restaurant's bot gave itself a human name (Theo) and engaged in a friendly, personal chat about Mother's Day, making the deception feel more intentional. The medical bot was more transactional, and the author's anger was muted because the AI operated within clear boundaries.
What advice does the author give to businesses using AI for customer service?
The author strongly advises businesses to ensure that any AI customer service bots identify themselves as AI upfront. They understand that using AI saves costs, but warn that hiding the bot's nature damages customer trust. The author notes that while AI can handle simple tasks like scheduling, it should not mimic human conversation without disclosure. If a bot has a name (like "Theo"), it should also clearly state that it's an AI. The author suggests that transparency builds trust, and that companies should prioritize long-term customer relationships over short-term cost savings. They conclude by stating that failing to disclose AI upfront leads to customers feeling duped, which can ruin goodwill—and in a competitive market, trust is a valuable asset. The author's advice is simple: be honest about using AI, and customers will be more accepting of automated interactions.
Why does the author think trust is important in customer service?
The author believes trust is the foundation of any positive customer relationship. When a customer interacts with a business, they expect honesty and authenticity. If a company uses an AI bot without disclosing it, the customer feels tricked, which creates negative emotions like embarrassment and anger. The author points out that trust takes time to build but can be destroyed in a single deceptive interaction. In the restaurant example, the author didn't cancel the reservation—because Mother's Day brunch is hard to get—but the stealth AI left a bad taste. They are now more suspicious of the restaurant. For businesses, losing trust means customers may choose competitors or share bad experiences with others. The author emphasizes that trust is especially crucial in customer service, where personal interactions shape brand perception. By being transparent about AI, businesses can maintain trust while still benefiting from automation.