Generative AI promises to help people work, entertain, and even socialize better, and it has quickly been adopted by consumers and employees across demograhic categories, lifestyles, and industries. Yet, we lack an understanding of how AI use influences consumers’ relationships and judgments of others. Does AI use enhance or diminish the reputation of service providers, physicians, entrepreneurs, and other employees? Seven studies (total N = 3,571, six preregistered) uncovered a consistent pattern - consumers view workers who use AI as being both less warm and less competent. These negative impressions reduce consumers’ willingness to follow the advice of doctors who use AI and support non-profit founders who use AI. The impressions are also persistent; consumers continue to perceive AI users as less warm and competent even after reading about how AI can help them better perform their work. Our research advances theory and practice by illustrating a challenge faced by businesses and employees who use AI - even when AI improves service quality, consumers may avoid using services when the providers use AI because they have a less favorable impressions of the service provider.