Friday 15 Podcast

How Can Companies Build Trust When AI Has the Ability to Undermine It?

Brian Beck and Andy Hoar on the four foundational ways to build customer trust, why transparency about AI use increases rather than decreases confidence, and what the Tylenol crisis teaches B2B leaders about handling mistakes.

Friday 15 Podcast

Key takeaways

  • Research cited in the episode suggests that trusted brands are 1.6 times more likely to receive personal data from customers, and users are 5.5 times more likely to allow AI agents to make major purchases when they trust the underlying technology.
  • The four pillars of building trust are transparency, honesty, consistency, and product quality, each of which requires deliberate effort rather than simply claiming the attribute.
  • Companies that acknowledge mistakes quickly and comprehensively tend to recover trust faster than those that deny problems or reveal them in stages, as illustrated by the Tylenol recall of 1982 versus the Wells Fargo fake accounts scandal.
  • When polled, 77% of the Master B2B community said that a company being 100% transparent about how and where it uses AI increases their trust, while none said it decreases trust.
  • Research cited by the hosts suggests that customers are 8.5 times more likely to express high trust in a brand when they rate its AI systems as highly transparent.

The AI productivity gap between executives and employees

The hosts opened with news about a disconnect in perceptions of AI productivity. According to research cited in the episode, 40% of executives reported that AI saves them more than eight hours of work per week, while 66% of staff said AI saves them less than two hours per week or no time at all.

Andy attributed the gap to the nature of the work. Executive tasks like writing notes and conducting analysis fit AI tools well. Operational work, which often involves specific processes that AI has not been trained to handle, is more difficult to automate. In some cases, using AI for operational tasks takes longer than doing the work manually.

The hosts also noted that executives may be insulated from the realities of AI adoption. When a staffer cleans up AI output before presenting it to leadership, the executive sees only the polished result and assumes the tool worked smoothly. Brian added that there may also be wishful thinking at play, with executives eager to justify their AI investments.

Why trust matters in B2B

The hosts turned to the main topic: trust in the age of AI. Andy cited research suggesting that trusted brands are 1.6 times more likely to receive personal data from customers, users are 5.5 times more likely to allow AI agents to make major purchases when they trust the underlying technology, and 40% of consumers will stop doing business with a company immediately after a single trust violation.

If you trust this brand and the way they’re using AI, you’re one and a half times more likely to give them your data, which by the way is a lot of the gain here.

Andy Hoar, Master B2B

With AI raising new questions about what is real and what is generated, trust has become more relevant. The hosts argued that B2B companies need to understand not just that trust matters, but how to build and maintain it.

The four pillars of building trust

Andy outlined four established ways to build trust, noting that while they sound obvious, they are easier to state than to execute.

The first pillar is transparency. Companies should be open about their strengths and weaknesses. The hosts compared this to job interviews: candidates who offer a genuine answer about where they struggle are more believable than those who give a rehearsed non-answer. Companies that hide weaknesses undermine their credibility across the board.

The second pillar is honesty. In the age of AI, it is easy to twist facts or find statistics to support any position. The hosts noted that AI tools can even make a case for false statistics. Companies need to be proactive about ensuring their content is accurate, both in substance and in perception.

The third pillar is consistency. Andy cited Tom Brady’s observation that he succeeded not by being the most talented, but by being the most consistent. Trust is built through repeated delivery over time, not through a single impressive result.

The fourth pillar is product quality. None of the other elements matter if the product or service does not meet the brand promise. A brand is a promise, and companies that talk about trust while delivering a poor product create a disconnect that undermines everything else.

How to maintain trust once you have it

Building trust is not enough; companies also need to maintain it. The hosts identified three practices for sustaining trust over time.

The first is demonstrating follow-through. Andy cited the philosophy of Zingerman’s, a deli in Ann Arbor, Michigan: understand what customers want and go the extra mile. Exceeding expectations, even in small ways, reinforces the relationship.

The second is acknowledging vulnerabilities. Perfection is not relatable. Customers respond better to companies that admit limitations than to those that claim they never make mistakes. There may be legal constraints on admissions, but the principle holds: authenticity builds trust.

The third is showing up during difficult times. It is easy to maintain a relationship when everything is going well. Trust is built when a company helps a customer solve a problem they did not cause. Brian noted that Amazon exemplifies this approach, with fast delivery, clear communication, and customer-first policies.

When you see somebody who’s delivered, somebody who tells you the truth, that’s a lot more important than somebody who might be good.

Andy Hoar, Master B2B

Lessons from Tylenol and Wells Fargo

The hosts contrasted two case studies in crisis response. In 1982, Tylenol faced deaths linked to contaminated capsules. The company recalled 31 million units, acknowledged the problem immediately, and prioritized customer safety over short-term costs. Brian cited research suggesting that Tylenol built more customer loyalty after the crisis than it had before.

Wells Fargo, by contrast, initially denied that employees had been opening fake accounts. The drip-drip disclosure damaged trust far more than the initial misconduct. Andy emphasized that the first rule of finding yourself in a hole is to stop digging. Admitting a mistake fully and moving on is more effective than denial followed by incremental revelations.

Amazon’s approach to exceeding expectations

Andy shared a personal example. He ordered a blood pressure monitor from Amazon with a noon delivery window. When the package arrived at 12:18, he sent a message asking for an ETA. Amazon not only confirmed the delivery but also refunded the order because it was 18 minutes late, despite Andy’s insistence that a refund was unnecessary.

The hosts attributed this to a long-term customer value perspective rather than a transactional mindset. Amazon calculated that the cost of the refund was worth the loyalty it would generate from a Prime member. Companies that think in terms of lifetime value rather than individual transactions are more likely to invest in exceeding expectations.

AI transparency and trust: the poll results

The hosts polled their community with a question: if a company is 100% transparent about how and where it uses AI, how does this affect your trust? The results were clear: 77% said it increases their trust. Nobody said transparency decreases trust. A minority said it makes no difference, with one respondent noting that they assume everyone is using AI these days.

Andy closed with an additional statistic: research suggests that when customers rate an AI system as highly transparent, they are 8.5 times more likely to express high trust in the brand. As AI raises questions about what is real and what is generated, transparency may become the single most important differentiator for companies seeking to build trust.

Transparency rules. Remember that in your business.

Brian Beck, Master B2B

Frequently asked questions

What are the four ways to build customer trust?

According to the hosts, the four pillars of building trust are transparency (being open about strengths and weaknesses), honesty (avoiding manipulation of facts and figures), consistency (delivering reliably over time rather than in isolated instances), and product quality (ensuring the product or service meets the brand promise). Each pillar requires action rather than mere claims.

How does AI transparency affect customer trust?

In a poll of the Master B2B community, 77% of respondents said that a company being 100% transparent about how and where it uses AI increases their trust. None said transparency decreases trust. Research cited in the episode suggests customers are 8.5 times more likely to express high trust in a brand when they rate its AI systems as highly transparent.

What is the disconnect between executives and employees on AI productivity?

According to research cited in the episode, 40% of executives reported that AI saves them more than eight hours of work per week, while 66% of staff said AI saves them less than two hours per week or no time at all. The hosts attributed this gap to the strategic nature of executive work (which aligns well with AI) versus operational work (where AI often falls short), and to executives being insulated from the real challenges of using AI tools.

What can B2B companies learn from the Tylenol crisis?

In 1982, Tylenol faced a crisis when contaminated products led to deaths. The company recalled 31 million capsules, fully acknowledged the issue, and prioritized customer safety over short-term costs. Research cited by the hosts suggests that the brand built more customer loyalty after the crisis than it had before, illustrating that how a company responds to a serious problem can strengthen trust rather than destroy it.

How do you maintain trust once it is established?

The hosts identified three keys to maintaining trust: demonstrating follow-through by exceeding expectations and going the extra mile, acknowledging vulnerabilities rather than claiming perfection, and showing up during difficult times when customers need support. They cited Amazon's customer service practices, including refunding a delivery that arrived 18 minutes late, as an example of exceeding expectations.

Why might human verification become more important as AI use increases?

The hosts suggested that as AI becomes more prevalent, human interaction and verification will become more valuable, not less. They predicted that labels such as verified or human-approved may become standard, particularly for important decisions like medical advice. The counterintuitive result is that the more companies use AI, the more customers may value human oversight and confirmation.

Sources & methodology

  1. Research on AI productivity gap between executives and employees, cited in the episode
  2. Research on trust and customer behavior, cited in the episode
  3. Tylenol recall of 1982, cited in the episode
  4. Friday 15 Podcast, Master B2B
Andy Hoar Andy Hoar
Co-Founder, Master B2B

Andy is a Co-Founder of Master B2B, founder of Paradigm B2B and author of the book Bot2Bot: The New Future of B2B Commerce. Andy is one of the leading global authorities on B2B commerce strategy.

Brian Beck Brian Beck
Co-Founder, Master B2B

Brian is a co-founder of Master B2B, Managing Partner of Amazon agency Enceiba, and author of the book "Billion Dollar B2B Ecommerce." Brian has also been C-level digital commerce executive with two decades of experience.

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