Key findings from Consumers:
- 22% would hang up immediately if they realized they were talking to AI
- Close to half want that disclosure immediately
- 37% would lose trust in a company that hides AI
- 40% are more likely to trust transparent companies
- 15% would go as far as to boycott the brand entirely
From Small Businesses:
- 62% fear financial losses if customers abandon AI-driven calls
- 43% worry about long-term trust damage if AI isn’t disclosed properly
More than half of consumers (55%) react negatively if AI identifies itself mid-call, as nearly a third (22%) hang up immediately, while 28% demand a human agent.
For businesses, the stakes couldn’t be higher. Consumers increasingly expect disclosure for ethical and transparency reasons, and with many states already mandating it, its nationwide adoption is almost certain. For businesses that rely on these interactions as their lifelines, the financial impact is clear: choosing human support is the safer path forward.
Examining one million calls handled by Answering Service Care’s live-human agents over three months, the average abandonment rate across industries was just 4%. In sectors such as medical, home services, and legal, where hundreds of thousands of calls came in, rates consistently stayed between three and five percent. That level of stability shows how ASC keeps customers on the line even in high-volume, high-stakes situations.
The contrast with AI disclosure is stark. While ASC maintains abandonment rates under five percent, disclosed AI drives them up to nearly 25%. This increase affects industries like healthcare, finance, real estate, and technology. That difference translates directly into outcomes: more patients reaching a hospital, more clients retained by law firms, and more opportunities secured by contractors and small businesses.
There’s no single U.S. federal law for AI transparency in customer service, but states are beginning to act, and The Keep Call Centers in America Act of 2025introduces an important opportunity to enshrine AI disclosure at the federal level, linking transparency with job protection in US-based call centers.
California leads with the AI Transparency Act (SB-942), which mandates disclosure during AI-powered calls and carries penalties of up to $7,500 per violation. California’s two-party consent law already demands that both parties be informed of call recordings.
Elsewhere, states are advancing their own AI-specific laws. Utah has already passed a broad AI disclosure requirement, Colorado will enforce strict rules on high-risk AI systems in 2026, and Texas has targeted AI-generated voices in political calls. Together, these measures signal a clear direction that AI transparency is no longer just a technology debate but a consumer rights issue. With states leading the charge, pressure is mounting for a consistent federal framework that protects both businesses and customers nationwide.
The fix is simple: make disclosure the default, not the exception.
Just like we notify callers when a conversation is being recorded (“This call may be monitored or recorded”), AI use should carry the same transparency. Consumers have a right to know how and by whom their interactions are being handled.
Answering Service Care is calling for mandatory AI disclosure in their new petition. Modeled on call recording and privacy laws, clear disclosure standards would protect consumers, reduce abandonment, and give small businesses consistency instead of compliance guesswork. Clear disclosure could sound like: “You’re speaking with an AI assistant today, I’ll do my best to answer your questions quickly.“
“AI disclosure is no longer just a tech issue – it’s a consumer rights issue,” said Logan Shooster, VP of Answering Service Care. “Transparency is the simplest way to protect both customer loyalty and business revenue.”
Download our pre-written constituent or small business letter and send it to your local officials to see where your state stands on AI disclosure laws and to urge stronger protections for consumers and businesses.
