Despite growing awareness of consumer vulnerability in contact centres, a hidden crisis persists in the UK, with many individuals remaining unaware of their own vulnerable status, leaving them at greater risk as their circumstances change.
According to the second annual customer vulnerability survey by NICE, 19% of UK consumers now identify as vulnerable, marking an increase of over one million people since 2024.
However, the real challenge lies in unrecognised vulnerability. When assessed against the Financial Conduct Authority (FCA) criteria, an estimated two-thirds of UK adults—around 35 million people—could be classified as vulnerable without realising it.
Richard Bassett, VP of Digital & Analytics at NICE International, highlights the challenge this presents for UK businesses, particularly those operating under strict regulatory frameworks like the FCA’s Consumer Duty Act and Ofgem’s Vulnerability Strategy.
“Vulnerability arises from various factors—financial pressures, personal hardships, and health concerns—making it difficult to identify, even for the individuals themselves,” says Bassett.
Subtle indicators, such as mentions of stress or personal struggles, often emerge during customer interactions. However, these cues can be overlooked or misinterpreted when handled solely by human agents. AI-driven solutions are playing a crucial role in bridging this gap by analysing customer service interactions in real-time and guiding agents to provide appropriate support.
For example, younger adults are demonstrating greater self-awareness regarding vulnerability, with 31% of those under 34 identifying as vulnerable, compared to 19% across all age groups. They are also more willing to discuss mental health issues with customer service teams.
Darren Rushworth, President of NICE International, sees this as a positive trend but warns against relying solely on self-identification.
“Not all vulnerable individuals recognise their situation or feel comfortable disclosing it. Even when vulnerabilities are flagged, the response often falls short if customer service teams lack the tools and confidence to act effectively,” he explains.
Rising energy and utility costs remain a major concern, with 35% of potentially vulnerable consumers anticipating reducing or stopping heating and hot water use in 2025 due to financial strain. Many also struggle to discuss mental health (34%) and relationship breakdowns (28%) with service providers.
Rushworth emphasises the importance of AI-powered customer support in such scenarios: “AI-powered self-service tools enable consumers to access critical information discreetly, while real-time agent guidance ensures conversations are handled with accuracy and empathy. Automation also ensures that cases involving vulnerability are escalated correctly, ensuring compliance and effective intervention.”
A growing number of vulnerable customers prefer digital channels over face-to-face interactions. 37% favour investments in AI-powered chatbots and online services, surpassing the general population’s preference (33%).
Bassett notes: “Digital channels provide a sense of anonymity and control, making it easier for customers to seek support. However, AI chatbots and virtual agents must be intelligent enough to detect vulnerability cues and escalate cases to human advisors when necessary.”
