According to Twilio's fifth annual State of Customer Engagement research, there remains a mismatch between brands and their customers about transparency, despite the growing importance of brands explaining how they use customer data to offer AI-powered experiences.

Just 40% of consumers agree with UK firms, which claim to be upfront with customers about how AI utilizes their data.

Based on a global survey of 6,300 consumers and 4,750 B2C executives across 18 countries, the report examines how brands are using AI to improve customer relationships, where brands are seeing the highest return on investment from AI, and what engagement trends matter most to consumers.


The best way to preserve trust is to strike a balance between security and consumer experience. According to a study by Twilio, 64% of UK customers believe that the best way for firms to gain their trust is by preserving their data. Additionally, about 49% of consumers worldwide stated that they would be more likely to trust a company if it disclosed the ways in which AI-powered interactions use customer data.


According to Twilio's SVP of product, Kathryn Murphy, "Today's customers want personalised experiences, and they want to know how businesses use their data to shape those experiences." It's critical that brands are transparent about their use of AI and balance its implementation with strong safeguards for consumer privacy. Being transparent is essential to establishing and preserving the confidence and loyalty of customers.

Finding this balance between security and customer experience, according to 40% of firms, is one of their top problems for this year.

Customization is still a top concern for customers.
 

The gap in customer experience is being closed by AI, but organizations are still having trouble putting the necessary data in place. Just 9% of UK consumers concur with the 27% of UK businesses that claim to offer "good" or "excellent" customer involvement.

Nearly 70% of UK businesses now use AI to personalize consumer experiences, so it's clearly beneficial. However, 69% of UK brands claim that having insufficient or erroneous first-party data poses significant obstacles to their ability to comprehend their target market. Only 19% of companies worldwide really believe they have a thorough understanding of their clientele.


If a brand doesn't provide personalization, customers are likely to go elsewhere and spend less money there. When it comes to brands that personalize engagement, 47% of UK consumers are inclined to spend more money than those that do not.

On the other hand, 78% of consumers give up on a brand completely if their experiences aren't personalized, and 45% of consumers have made repeat purchases from a firm based on the level of personalization they've received.