The AI Marketing Boom Meets a Trust Deficit

AI has fully embedded itself in the marketing world. A staggering 92 percent of marketing professionals are now using AI in their daily work, moving the technology from hype into practical reality. Businesses are seeing real benefits: campaigns are launched faster, repetitive tasks are reduced, and creative energy is freed up. According to SAP Emarsys, marketers save an average of two hours per campaign, with 72 percent saying they now focus more on strategy and creativity.

Benefits for brands, frustration for shoppers

The results are impressive on paper—60 percent of marketers report higher customer engagement and 58 percent say loyalty has increased. But consumers tell a different story. Despite sophisticated AI-driven personalisation, 40 percent of shoppers believe brands don’t understand them—a sharp rise from 25 percent the year before. Even worse, 60 percent find most of the marketing emails they receive irrelevant.

A growing crisis of data trust

Beneath these frustrations lies a deeper issue: consumer trust in data handling. Globally, 63 percent of people don’t trust AI with their personal information, compared to 44 percent just a year earlier. In the UK, the number jumps to 76 percent. This trust gap risks undermining the very foundations of personalised shopping experiences.

Regulation reshaping strategies

The introduction of the EU’s AI Act has already pushed many marketers to rethink their strategies. More than a third of UK marketers have overhauled their AI use, while 44 percent say they’ve made it more ethical. Still, over a quarter worry that strict rules could suppress innovation. The challenge is clear: build transparency and accountability into AI systems without killing creativity.

When AI truly adds value

Despite widespread scepticism, consumers aren’t rejecting AI outright. Over half agree it makes shopping easier and faster, whether they’re discovering products, comparing prices, or brainstorming gift ideas. The appetite for useful AI is there—but it must come with assurances around privacy and data clarity.

Lessons from successful brands

Some companies are striking the right balance by focusing on people rather than just the technology. Guitar maker Gibson uses AI to give staff more creative bandwidth, while Australian retailer City Beach applies AI to predict and prevent customer churn—winning back nearly half of departing customers in just three months. These cases highlight that AI works best when it solves real human problems.

Closing the gap

The message for brands is clear: AI isn’t the issue—it’s how it’s applied. To succeed, retailers need to bridge the gap between technical personalisation and meaningful customer connection. That means delivering true value, being transparent about data use, and showing shoppers that sharing information actually improves their experience.

The AI revolution in marketing is here, but its success depends on one crucial element: trust. Without it, the technology risks turning from a powerful tool into a liability.

Source: https://www.artificialintelligence-news.com/news/marketing-ai-boom-faces-crisis-of-consumer-trust/

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