Only 5% of Americans call corporate statements completely credible

A new survey from Resonant Advisory Group finds corporate credibility is low and getting worse, with AI-related messaging drawing the weakest response. The report says companies can improve standing by telling the truth faster, simplifying language and focusing on everyday interactions.

Why it matters: - Corporate statements are starting from a credibility deficit, and that weakens how the public receives layoffs, crisis responses and strategic messaging. - The findings suggest companies may be losing trust faster among higher-income and business-news-heavy audiences that often shape broader opinion.

What happened: - Resonant Advisory Group released a report called “The Credibility Deficit: Why Business Starts Behind, and How It Earns Its Way Back One Interaction at a Time.” - The report is based on a national survey of 1,000 U.S. adults conducted by DHM Research in partnership with Verasight. - Just 5% of Americans said corporate statements are “completely credible.” - Sixty-three percent said crisis communications have become less credible over the past year. - Across nine industries tested, none reached 10% of respondents calling their statements completely credible. - Artificial intelligence emerged as the least credible topic in corporate communication.

The details: - Nearly half of respondents, 48%, said AI in business operations is not credible. - AI adoption tied with “responsibility to shareholders to be profitable” as the least credible explanation for a hard business decision, at 27%. - Inflation and rising costs were the most accepted layoff explanation, with 45% calling them credible. - The report separates credibility from trust, arguing that trust changes slowly while credibility is earned or lost in daily interactions. - The report identifies four channels that shape credibility: company conduct, industry standing, societal engagement and community investment. - Seventy-nine percent said a company earns more credibility by disclosing bad news before others expose it. - Fifty-seven percent said one company’s poorly explained crisis worsens their view of the whole industry, not just that company. - The survey found a preference for steadier leadership traits over flashier ones in six of seven head-to-head comparisons. - Practical leadership beat visionary leadership 74% to 26%. - An employee- and stability-focused approach beat a tech-forward approach 85% to 15%, the widest margin in the survey. - A visible, socially present CEO beat a low-visibility CEO 57% to 43%, the lone exception. - The share saying crisis statements have become less credible rose from 54% among people earning under $50,000 to 70% among those earning $150,000 or more. - That same measure rose from 46% among infrequent news consumers to 65% among people who follow business news daily or most days. - Erik Moser, president of Resonant Advisory Group, said companies have stretched credibility to its limits and risk being disbelieved in critical moments. - Moser said companies should focus on daily interactions, simpler language and protecting credibility.

Between the lines: - The report argues that companies are often judged less on polished messaging than on whether their actions match their explanations. - The AI finding is especially sensitive because many companies are using AI to justify layoffs and other hard decisions while public skepticism is high. - The report also suggests that broad skepticism leaves room for candor to pay off, since many consumers keep buying from companies they do not fully trust. - The analysis implies reputational damage can spread beyond one company to an entire industry when crises are poorly handled.

What's next: - Companies are likely to face more pressure to explain layoffs, restructuring and AI adoption in plain language. - The report points toward more transparency, faster disclosure and better day-to-day interactions as the main ways to rebuild credibility. - Resonant Advisory Group frames the problem as chronic rather than cyclical, which suggests the credibility gap is not likely to close on its own.

The bottom line: - Most Americans already doubt corporate messaging, and the bar for earning credibility keeps rising.