Generative AI will break customer trust for a third of brands, Forrester warns
Forrester predicts one-third of companies will frustrate customers with bad AI tools
If you're banking on generative AI to improve your customer experience in 2026, think again. According to Forrester’s newly released 2026 B2C Marketing, CX, and Digital Business Predictions, one-third of companies will hurt customer trust by rolling out genAI-powered self-service tools that backfire.
This article breaks down Forrester’s key predictions and explains why marketers, CX leaders, and digital strategists need to coordinate now to avoid long-term damage to brand credibility.
Short on time?
Here’s a table of contents for quick access:
- What’s new in Forrester’s 2026 forecast
- AI will frustrate users and fuel lawsuits
- Marketers face a shrinking open web
- What marketers should do next
Patrecia Meliana
What's new in Forrester's 2026 forecast
Forrester’s annual report is a compass for marketing and CX professionals preparing for disruption. The 2026 edition flags five major shifts that matter to brand leaders:
- One-third of companies will deploy customer-facing genAI that frustrates users and erodes trust
- Privacy-driven class-action lawsuits in the US will rise 20 percent, targeting misuse of AI and personal data
- Display ad budgets will shrink by 30 percent as audiences leave the open web
- Over one-third of consumers will actively choose offline experiences
- Brands that fail to deliver relevance and value will struggle to retain customers
As Chief Research Officer Sharyn Leaver puts it, "In 2026, trust and value will be the guiding beacons. Superficial efforts won’t cut it anymore."
AI will frustrate users and fuel lawsuits
Companies are under pressure to cut costs. Forrester expects many will rush to deploy genAI chatbots and virtual agents, often in scenarios where they are not ready to handle real customer needs.
The result? Broken experiences that damage the brand.
Meanwhile, consumers are becoming more aware of how their data is used. Forrester predicts a 20 percent increase in US-based class-action lawsuits, not just from tracking pixels, but from AI misuse. Legal scrutiny will shift toward how AI systems interact with personal information and the firms behind them.
Patrecia Meliana
Marketers face a shrinking open web
AI tools are changing how people find and consume content. More users will lean into AI-generated summaries and search assistants instead of browsing websites. That behavior shift means:
- Lower click-through rates across the open web
- Fewer impressions and less data for advertisers
- Display ad budgets will drop by 30 percent as brands redirect spending to entertainment channels like connected TV, streaming audio, and short-form video
The decline of the open web will force marketers to pivot toward more immersive and context-rich formats.
Atikah Amalia
What marketers should do next
Forrester’s predictions send a clear signal. If marketers want to stay ahead, they need to approach AI implementation with caution, not speed. Here’s where to start:
1. Test AI thoroughly before customer rollout
Don't let a shiny new tool ruin your customer relationships. Make sure genAI tools are tested in high-friction scenarios, not just ideal ones. If the AI fails in real moments of need, trust breaks instantly.
2. Prioritize relevance over automation
AI should support meaningful personalization, not generic responses. Forrester highlights the importance of value and relevance. Make sure your AI systems are aligned with what customers actually care about.
3. Stay proactive on privacy
Audit your AI stack. Make sure you’re transparent about data collection and use. Build safeguards into your CX and marketing workflows to avoid becoming the next brand hit by a class-action suit.
4. Rethink your ad mix
As open web traffic declines, look at where your audience is spending their time. Consider reallocating budget toward content platforms that blend discovery and entertainment, not just clicks and impressions.
5. Go offline to stay connected
Forrester found that 52 percent of US online adults are seeking richer, in-person experiences. Digital won't disappear, but brands that integrate physical moments into their strategy will stand out.
The AI arms race is heating up, but Forrester’s 2026 outlook makes one thing clear. Deploying genAI without a strategy could do more harm than good. Customers will not forgive clunky automation, data misuse, or tone-deaf personalization.
Brands that slow down and lead with transparency, ethics, and real utility will be better positioned to build loyalty and stand out in a noisy, automated world.
