Only 39% of Customers Trust Brands Using AI to Understand Their Needs, Cites Privacy Concerns – Salesforce Report Reveals

The Salesforce “State of the AI Connected Customer” Report has highlighted a significant trust gap between customers and brands leveraging AI for personalized experiences.

Despite the rapid advancements in AI-driven personalization, the report reveals that only 39% of customers feel comfortable with brands using AI to understand their needs. This hesitation stems largely from concerns surrounding data protection and privacy.

While half of the customers express optimism about AI’s potential to enhance product quality and efficient services, a significant number of them worry about how their personal information is collected, stored, and used by AI-powered systems. With increasing reports of data breaches and unethical data handling, trust in AI remains fragile. Customers are worried that AI-driven insights could lead to excessive data tracking, intrusive advertising, and even potential misuse of sensitive information.

Furthermore, the lack of transparency in Al’s decision-making processes adds to consumer skepticism. Many customers are unsure how Al reaches conclusions about their preferences or whether their data is being shared with third parties without explicit consent.

AI Advancements Make Trust Even More Critical

As companies embrace the benefits of Al advancements like agents, 61% of customers stressed the need for companies to be trustworthy, yet less than half currently trust businesses to use Al ethically. This gap highlights a significant opportunity for companies to stand out by prioritizing transparency, fairness, and responsible Al practices.

Forty-two percent of customers trust businesses to use Al ethically. Paralleling the growth of the technology and its adoption, concerns around the ethical use of Al have steadily risen since 2020. The percentage of customers who strongly agree they are concerned about unethical AI use has significantly increased from 22% to 37%, revealing heightened anxieties around AI misuse.

The Foundations of Ethical And Trusted AI Practices

Both business buyers and consumers agree on the essential steps needed to build trust in Al, with transparency emerging as the top priority. When users have a clear understanding of how Al is utilized and the benefits it offers, they are more likely to trust its outcomes.

Establishing this trust requires a thoughtful balance between human oversight and Al systems. Key measures include continuous monitoring and optimization of Al outputs, providing customers with easy access to human support, and enabling users to report any errors made by Al.

71% of customers believe that human validation of Al-generated outputs is crucial. Interestingly, while some trust-building actions are favored more than others, none were selected by a majority of respondents. This underscores the need for a comprehensive, multi-faceted approach to effectively address customer concerns.

Notably, transparency, along with the assurance that a customer can jump in when needed and an understanding of how Al makes decisions, is key. Human collaboration mitigates concerns about the limitations of Al and provides a safety net for complex or sensitive issues. Additionally, customers want to understand how conclusions are reached, which builds trust in how these systems work.

A pivotal European Commission study shows that transparent Al operations can reduce user anxiety and increase acceptance, fostering reliability and fairness perceptions. As Al advances, adoption depends on creating transparent, trustworthy systems.

Final Thoughts

The report underscores that while AI presents significant opportunities for businesses, customer trust remains a key challenge. It is however worth noting that Brands that prioritize ethical AI use, transparency, and security will be better positioned to build lasting relationships with their customers in the age of AI-driven personalization.