Brands are widely integrating AI technologies into marketing workflows, hoping to increase campaign efficiency and deepen customer loyalty. However, a widening trust gap is emerging as consumers voice concerns about how their personal data is managed. Real-world case studies, such as initiatives from Gibson and City Beach, indicate both the promise and challenges of AI adoption in crafting meaningful customer relationships. While many marketers plan to ramp up AI investments, many customers remain wary, suggesting that how AI is utilized may matter more than technological advancement itself. Transparency and tangible value for customers may become critical for sustainable marketing success in the AI era.
Several earlier reports have depicted AI as an exciting tool promising increased personalization and operational efficiency for retailers. Those accounts often highlighted rapid adoption rates and productivity gains, yet did not address the depth of consumer skepticism that has recently surfaced. Growing regulatory frameworks, such as the EU AI Act, are now compelling brands to reconsider their approaches, with new surveys suggesting a significantly steeper rise in consumer apprehension about data privacy than was acknowledged in previous analyses. Thus, the evolving conversation has shifted from AI’s technical capabilities to the importance of trust, ethical practice, and effective communication between marketers and consumers.
How Are Marketers Applying AI in Daily Operations?
New data indicates that 92% of marketing professionals, as surveyed by SAP Emarsys, rely on AI for daily decision-making and campaign execution. Marketers are finding tangible benefits such as faster campaign launches—the majority report saving over two hours per campaign—and reduced repetitive tasks, allowing more time for creative and strategic projects. SAP Emarsys’s Chief Marketing Officer Sara Richter commented,
“AI marketing is now fully in motion: it has transitioned from the theoretical to the practical as marketers welcome AI into their strategies and test possibilities.”
Brands like Gibson and City Beach have leveraged AI to not just streamline operations but also re-engage customers and support creative business needs.
Where Does Consumer Trust Stand Regarding Marketing AI?
While marketers celebrate improvements in engagement and loyalty—60% and 58%, respectively—consumers are expressing increasing discomfort with AI-powered personalization. SAP Emarsys research reveals that 63% of consumers globally, and an even higher 76% in the UK, do not trust companies with their data in the context of AI marketing. Nearly 40% feel brands misunderstand them, a notable rise from last year, and 60% consider marketing emails irrelevant despite investments in AI-driven tailoring. The proliferation of regulations such as the EU AI Act has prompted 37% of UK marketers to revise their AI strategies, attempting to address ethical concerns while remaining innovative.
Are Innovative Brands Closing the Personalization Gap?
Evidence from companies like Gibson and City Beach demonstrates that focusing AI efforts on practical problem-solving and strategic support can help bridge the gap between business aims and consumer expectations. Sterling Doak, Head of Marketing at Gibson, explained,
“If I can find a utility [AI] that can help my staff think more strategically and creatively, that’s needed because we’re a very creative business at the core.”
Meanwhile, City Beach successfully used AI to predict and reduce customer churn, recovering nearly half of lapsed customers in three months. These cases suggest that when AI initiatives prioritize utility, transparency, and individual needs, they are more likely to regain consumer confidence.
Mounting consumer unease about data privacy signals a need for honest communication and a customer-centric approach. While most shoppers agree that AI can make shopping easier and faster, their willingness to engage hinges on understanding and trusting how brands use their information. Dr Stefan Wenzell of SAP Emarsys stated,
“Regulation must strike a balance – protecting consumers without slowing innovation. At SAP Emarsys, we believe responsible AI is about building trust through clarity, relevance, and smart data use.”
As more marketers plan to increase AI spending, closing the “personalization gap” could define which brands keep customer loyalty in an increasingly digital marketplace.
Market adoption of AI tools is accelerating, driven by a quest for greater efficiency and personalization. However, many consumers now demand clear evidence that these advances benefit them without compromising privacy. For marketing professionals, long-term success may depend as much on fostering trust and offering authentic, relevant experiences as on leveraging the latest AI technology. Ensuring that data usage is both transparent and justified, and focusing on actual improvements to customer journeys, will likely be essential for bridging the trust divide. Individuals and businesses who adapt by foregrounding ethical use and client-centric outcomes could retain a competitive edge in the engagement era.
