"Organisations that use chatbots in their services must always offer people the option to speak with a representative," said the Dutch Data Protection Authority (AP) in a statement.

Firms must also ensure consumers are aware they are interacting with chatbots and that the machines do not provide evasive or incorrect answers, the AP said.

The watchdog voiced concern about the growing use of AI-powered chatbots and warned that regulators would be looking into stricter rules.

"Chatbots are becoming the main point of contact and the path towards human content is fading," the AP said in a new report.

Increasingly advanced chatbot technology means consumers do not know whether they are speaking to a human or a machine, the report said.

After an initial unsatisfying interaction with a chatbot, consumers are often re-directed not to a human but to another chatbot, increasing frustration, said the AP.

Officials are seeing a "rapid increase" in complaints about chatbots, said the Dutch Authority for Consumers and Market (ACM).

"Recent research by the ACM shows that the lack of human interaction in customer service is one of the biggest annoyances."

The Dutch authorities urged the European Commission to establish clear guidelines for the design of AI-powered chatbots.

"These must be fair, recognisable, and accessible. And people must not be misled," said the AP.