Companies are underestimating "customer backlash"

Just the past few weeks alone Meta, Intuit, and probably others I'm not aware of, announced major layoffs while stating "AI investments."

On paper it makes sense and I get some of the talking points around potential lower costs, leaner organizations, faster execution etc. etc.

But there's a risk companies may be underestimating:

Customer backlash. What happens when customers start feeling like companies no longer value people?

I asked ChatGPT to pull some surveys / data about customer perception and AI-related layoffs and here's what it came up with (it's no bueno):

• 77% of consumers are concerned AI will cause job losses. (Forbes)

• • 64% of customers say they would prefer companies NOT use AI for customer service. (Gartner)

  And even more alarming:

  • 53% say they would consider switching to a competitor if they discovered a company replaced customer service with AI. (Gartner)

  • • 84% say they would abandon companies they perceive as opaque or dishonest about their AI usage. (Relyance.ai)

    Here's the thing… when customers see mass layoffs because of AI, they don't see it as innovation or "oh I guess times are changing".

    They see it as profit over people. And perception matters.

    If you've ever worked in marketing you know brands spend decades building loyalty and trust. Just one poorly perceived AI transformation decision can damage that faster than Sr leaders expect.

    So yes the likes of Intuit and Meta might save on costs but it'll be interesting to see what kind of damage, if any, their brands have suffered because of these layoffs. And it'll be just as interesting to see what their customers do about it.