As 2026 becomes the year of automation and information design, businesses must pause and reflect on the risks of over-reliance on AI in customer service. Efficiency matters — but when automation replaces human contact rather than supports it, customer trust, compliance and brand reputation can quietly erode.
For over a month, I dealt with delivery issues involving a medium-sized UK company and an international logistics company. I spent endless days talking to bots, waiting to be connected to a human based outside of the UK. The result? My package was never delivered, and I had to involve a third party.
Therefore, I explained to yet another bot, and I filled in some more “maximum 240 characters” explanation forms.
The result? My package has never been delivered, and I have been unable to be reimbursed.
It made me appreciate something we often overlook: small businesses frequently deliver better customer service than global corporations.
And in 2026, that matters more than ever.
Scaling with AI
The story that we hear is that humans and BOTs are working together to answer customers’ calls and engage with users, solving problems. Yet, what we usually get is quite different.
Large organisations increasingly rely on AI chatbots, automated FAQs and decentralised support hubs.
Large logistics companies, like, for example, DHL, use layered support systems designed to reduce human intervention.
On paper, this improves efficiency.
In reality, it can:
- Delay resolution of complex issues
- Create frustration when queries don’t fit predefined flows
- Obscure accountability
- Increase reputational risk
AI works brilliantly for simple, repetitive queries. But when customers face legal questions, delivery failures, or emotional stress, automation often becomes a barrier rather than a solution.
Additionally, in many cases, customer support is outsourced or geographically decentralised.
The issue is not location — it is the lack of continuity, ownership and contextual awareness that can make customers feel unheard.
Why SMEs Have a Competitive Advantage (If They Use It Wisely)
This is not an argument against AI.
Most SMEs use chat tools, automated booking systems, CRM workflows and FAQs. They should. Automation saves time, filters routine queries and supports growth. The mistake is not the adoption of AI but the over-reliance on it.
Small and micro-companies have something large corporations struggle to replicate:
- Direct accountability
- Faster decision-making
- Contextual awareness
- Accessible leadership
For an SME, customer service should not be a cost to minimise — it should be a differentiator to maximise. Just think in these terms: in a world where everyone has a chatbot, being reachable is no longer a basic service; it becomes a major competitive positioning.
If and when a customer knows they can move seamlessly from a chatbot to a named person — someone who understands their order, their location, and their history — trust increases. This interaction can happen via email, phone or even in the chat space on your website but you are fully aware that there is someone who is looking into a matter for you.
That trust becomes:
- Repeat business
- Referrals
- Positive reviews
- Reduced dispute risk
- Higher lifetime value
Large organisations optimise for efficiency. SMEs can optimise for relationship. “Jenny”, who answers the phone and follows up personally, is not a cost centre. She is brand equity in a world that is shining with automated, outsourced and sterile customer service.
Innovation Does Not Mean Imitation
History shows us something important about markets.
When fast food dominated, slow food emerged — not by rejecting speed entirely, but by redefining value.
When high fashion became inaccessible, fast fashion scaled access — using a different structure, not a different dream.
Alternatives don’t win by refusing progress but by designing around a different priority.
Customer service can follow the same logic.
If large organisations optimise for automation at scale, SMEs can optimise for intelligent hybrid service — where AI filters, organises and supports, but humans remain visible, empowered and accountable. And this very decision becomes strategic differentiator
Rethinking Customer Service as a Strategic Asset
For many SMEs and microbusinesses, the perceived barrier is cost:
“We can’t afford a full customer service department.” But you don’t need one. In smaller organisations, roles can be fluid. A team member handling operations, sales or logistics can also be trained to manage customer enquiries during quieter periods. When demand surges — as many experienced during the Covid years — temporary staff, local job centres and agencies can provide structured support without permanently inflating payroll.
Customer service capacity does not have to be static.
It can be adaptive.
What matters is not having dozens of agents.
It is having:
- Clear escalation paths
- Authority to resolve issues
- Continuity of communication
- Ownership of outcomes
In fact, some of the most resilient SMEs operate on exactly this model: when there are no calls, everyone contributes elsewhere. When service demand rises, it becomes the priority.
The Opportunity for SMEs in 2026
As automation becomes the default, human-centred service becomes distinctive.
The question for SMEs is not whether to use AI. It is about using AI to enhance the customer experience while managing costs and optimising performance.
Because customer service decisions have consequences. A poorly handled experience does not simply create frustration — it quietly redirects future business elsewhere.
In a market saturated with bots, responsiveness is memorable. Clarity is valuable, and accountability builds loyalty. Customer service should not be an afterthought but it can be a positioning strategy.
Because in every era of acceleration, there is space for a smarter alternative. And often, that alternative belongs to smaller, more agile businesses willing to design service intentionally — not simply automate it.
