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Data Distrust: Growing concerns over brands’ use of data and AI

As global leaders gathered in the UK last week to discuss the future of AI Safety, new data from Braze reveals consumer trust is low when it comes to brands collecting and processing their data.

Only half (53%) of consumers are confident that companies will use their data responsibly and over a third (38%) saying they’re not comfortable with AI technology such as ChatGPT being used by brands to create a more personalized experience, compared to just 29% who are comfortable. This is at a time when 61% of marketers claim to be using AI in their marketing activities.

At a time when marketers are looking to harness first-party data ahead of Google’s cookie phaseout in Q1, the data shows consumers’ lack of trust is driving them to withhold their information from brands online. Nearly three-quarters (71%) say they are most likely to click ‘Ask App Not to Track’ when visiting a mobile app, and 22% of mobile website visitors reject requests for their data to be tracked online.

The study also reveals that this reticence to share data could stem from a lack of consumer understanding. Just a quarter of consumers say that when they use websites or apps that request their permission to track or collect data they have a good understanding of what they’re consenting to.

However, the report also reveals a huge opportunity for brands that build trust with their customers around data collection. The majority (70%) of consumers are willing to share personal data with brands in exchange for a highly personalised experience. And a third (33%) will prioritise brand trust and product quality when they make a repeat purchase from a brand.

James Manderson, SVP of Global Customer Success at Braze, said “Even in this data-conscious era, it’s clear that consumers still want personalised experiences from brands. However, people are looking for transparency around how that data and AI are being used in this process and reassurances their information is being used for the good. Marketers can play a crucial role in fostering consumer trust and confidence by being clear about how data is collected and used, as well as how it will ultimately benefit the consumer. This human touch will be vital in building relationships with customers to create truly personalised experiences that inspire loyalty for years to come.”