Artificial Intelligence is no longer emerging; it’s embedded in how we work, buy, and connect. For UK businesses, it brings game-changing benefits: faster customer service, smarter decisions, and reduced costs. But without thoughtful strategy, these gains can turn into major business risks.
Sundar Pichai, CEO of Google, warned: “The promise of AI is immense… but without careful oversight, it could deepen inequalities or erode trust in our institutions”. That tension between promise and risk is something every company must navigate, especially when it comes to customer communication.
To dig deeper into this shifting landscape, we surveyed over 750 UK business decision-makers to understand how AI is being adopted, and where the biggest concerns lie. These insights are unpacked in the myths that follow, offering a clearer picture of what’s holding businesses back and how to move forward with confidence.
Moneypenny’s research findings indicate that 42% of people worry about their job security as automation becomes more embedded in daily business operations. But in some sectors, that anxiety is even more acute: with over half (52%) of those in Manufacturing & Utilities fearing being replaced by AI, and concern also running high in Healthcare (48%) and IT & Telecoms (46%).
The growth of phone answering services, agentic AI, and live chat handling only adds to that anxiety. When people feel replaced, trust erodes.
But businesses using AI to enhance human roles, not replace them, see better results. For example, an AI agent can remove repetitive admin, provide round-the-clock customer support, and save precious time, enabling in-house staff to focus on higher-value work. Framing AI as a support tool, not a substitute, builds morale and confidence.
AI is only as fair as the data it’s trained on. If your phone answering service uses biased data, you could end up with skewed results – like misrouted calls or poor customer segmentation.
While 18% of those surveyed worry AI may show bias or discriminate, this number rises in sectors where accuracy and fairness are essential, such as Healthcare or Finance. There are also growing ethical concerns around AI’s environmental impact and its disruption of creative and frontline professions.
Brands that want to build trust must prioritise transparency. That means being honest about how call answering services work, what data is used, and when a human steps in.
Data security risks topped the chart in Moneypenny’s 2025 research, with 43% of business leaders citing it as the biggest downside of AI. But in sectors where trust is critical – like HR, IT & Telecoms and Manufacturing – that figure climbs to 48%. Even in creative and consumer-facing industries such as Arts & Culture or Healthcare, concerns remain high at 45%.
That’s a loud and clear message from businesses across the board: don’t compromise security for speed.
AI thrives on data. But the more customer information you feed into an AI agent, the greater the risk of violating privacy expectations. Customers are increasingly aware, and wary, of how their details are being collected and used.
That’s why any telephone answering service or AI-driven support solution must demonstrate rock-solid data protection, GDPR compliance, and total transparency about consent.
In the UK, GDPR already limits certain AI decision-making. The EU’s new AI Act adds complexity with legal tiers, transparency requirements, and steep fines.
If your call handling services include automated routing or script-based chatbots, you could be regulated – even if you’re a small business. Futureproof your model by staying informed and ensuring your receptionist services or AI tools have compliance built in.
One in five respondents (20%) in Moneypenny’s study said AI is simply too expensive to justify without a clear ROI. That includes infrastructure, licences, skilled people, and security protocols, all of which come at a cost.
Setting up a quality telephone answering service for small business isn’t just about plugging in software. It means investing in long-term planning and resource to make it work.
That’s why many businesses are opting for a hybrid approach: outsourcing to providers who combine real people with smart tech. It offers the scalability of AI with the warmth of human interaction, without breaking your budget.
31% of respondents highlighted concerns around customers feeling neglected, while a further 24% cited poor service or customer experience as a leading downside of AI. That’s a strong signal that, for all its power, AI can fall short where it matters most.
AI is complex, and things can go wrong. If your phone answering system crashes during peak hours, or your chatbot misinterprets a simple query, customer frustration spikes.
Operational testing, fail-safes, and smooth integration are essential. Don’t bolt AI on as an afterthought. Whether it’s a live chat tool or a call answering service, ensure it works every time, or have a human ready to step in when needed.
If your team doesn’t understand how your AI answering service makes decisions, they can’t explain it to customers or fix it when it breaks.
That’s where explainable AI becomes crucial. Every telephone answering solution should come with clear logic and training for staff.
AI is fast, but it can’t replicate human empathy or authentic connection. Overreliance on automation can cause issues, especially in sensitive sectors like Healthcare, Finance, or Legal.
Striking the right balance is key: pair AI agents with human touch, using automation to deliver speed while relying on personal connection for nuance. A hybrid model, where an AI voice agent operates alongside real people can achieve this harmony.
Searches for terms like “telephone answering services” and “24/7 answering service for business” are surging. That’s not a coincidence, it’s a signal. Customer expectations are evolving rapidly.
We live in a world where people expect answers now; AI has accelerated this shift by raising the bar for immediacy, availability, and consistency across every channel.
If your goal is to deliver more than what is expected, think in terms of total customer experience. Businesses that invest in round-the-clock phone answering, AI receptionists, and hybrid support models, are doing more than adding convenience, they’re building loyalty, earning trust, and gaining a decisive edge over slower-moving competitors.
AI isn’t going away. But it doesn’t have to come at the cost of human connection.
For businesses, now is a turning point. The winners will be those who use AI to enhance customer service, protect trust, and stay personal in an increasingly automated world. Whether it’s an AI answering service, or live chat tool, the goal isn’t to replace people; it’s to empower them.
At Moneypenny, we believe in combining smart technology with human expertise. Our range of services, from our brand-new AI Voice Agent to real-people Telephone Answering and Live Chat solutions, can be seamlessly combined to create the ideal customer experience, helping you exceed expectations in a fast-changing world.
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