A bagel shop in the U.S. state of Vermont faced customer backlash after posting a social media promotional post made with artificial intelligence (AI).

Business Insider reported on May 16 that Myer's Bagels, a bagel specialty shop in Burlington, Vermont, drew consumer backlash after using AI-retouched composite images and review copy in promotional posts. Some users even left one-star reviews.

Myer's Bagels operates with about 22 employees who jointly handle orders, production and store operations. Jones said the shop needed social media promotion to stay competitive, but it was difficult to keep staff dedicated to the work. College student employees ran the social media account for a while, but it did not last long, and the same problem repeated, he said.

In that situation, Jones adopted an AI support service for small businesses. The service supported tasks ranging from HR and accounting analysis to scheduling Instagram posts, writing promotional copy and retouching images. Jones used AI to get graduation-season promotion ideas or to touch up photos taken in the shop.

The problem was that the AI-generated results differed from how the store actually looked. One post used a photo of an actual bagel bag for sale, but added an image of flames in the background that was unrelated to the shop, and existing review text was composited to look like a handwritten note. Another post also started from a photo of a real baker rolling dough, but added images of a wooden cutting board, flames and a kettle for boiling bagels, creating a scene unlike the actual store.

Customer reaction came quickly. Each of the two posts drew about 25 to 30 comments, and some customers left one-star ratings on Google reviews because the promotions did not match reality. Some defended it as a creative attempt by a small shop, but overall negative reactions that the AI use was inappropriate were stronger.

Jones ultimately deleted the posts himself and apologised. He then said, "Because it was the first attempt, I can say I'll do better going forward." He meant that just as the shop puts out a new bagel flavour if product response is poor, it would also change its marketing approach in line with customer response.

Jones said he does not plan to stop using AI itself. He said AI remained necessary across the business, including HR, accounting reviews and improving operational efficiency. He said the shop needs support tools to keep up with its growth pace without adding staff, and that AI is a tool that will not disappear. Jones said AI is not suitable for everything, but can help employees, business owners and consumers, and also has meaning in lowering cost burdens and price pressures.

The Myer's Bagels case shows that AI is rapidly entering even small businesses as a promotion and operations tool. Critics say that while AI can be a support tool to reduce costs and staffing burdens, it still requires careful consideration before being entrusted with the brand image consumers see.