Is AI The Saviour Amidst Plunging Consumer Trust?
Consumer trust is at its lowest point in recent years, and advances in AI make earning that trust more critical than ever.
As privacy continues to take the centre place in consumer mindsets, trust is the differentiating factor for brands. Businesses who ground trust and showcase complete transparency make for customers’ favourites. With brands now increasingly incorporating AI in their processes, the technology needs to show trust as well.
Research has repeatedly shown that customers are wary of the technology and prefer human agents over AI for direct communication with brands. However, with AI taking on the majority of functions, it is imperative that brands put significant focus on making customers feel comfortable about its reliance.
Salesforce’s State of the Connected Customer Report says that 60% of consumers believe advances in AI make trust even more important. And with AI agents on the rise, the findings point to real opportunities for companies to win back consumers with trustworthy AI agents this holiday season.
The research revealed that $200 billion in global online sales will be influenced by AI this holiday season. At this juncture, brands can’t afford to mess up with AI implementation. Of their target customers, GenZ offers great possibilities, with almost a third of GenZ consumers saying they’d be comfortable having an agent shop for them.
Expectations Over Trust
Consumer trust is at its lowest point in recent years, and advances in AI make earning that trust more critical than ever.
- Nearly three-quarters (72%) of consumers trust companies less than they did a year ago.
- 65% feel companies are reckless with customer data.
It’s not just about trust; consumers also expect best-in-class experiences.
- 69% of consumers expect consistent interactions across departments.
- Nearly 60% of consumers prefer using fewer touchpoints to get information or complete a task.
While better deals are a top driver for consumers to switch to a new brand, customer service experience, convenience, and consistent product or service quality drive more long-term brand loyalty.
- 43% of consumers say poor customer service experience will stop them from making a repeat purchase from a company or brand.
- More than a third of consumers say that inconvenience, such as a difficult return process or clunky purchase experience, will cause brands to lose them.
Higher AI Acceptance From Younger Customers
GenZ and millennials were found to be more willing to try AI agents over older generations.
- 43% of GenZ and millennials say AI raises the bar for customer experiences compared to just 32% of baby boomers.
Transparency Holds Significance
While younger generations show higher likeness towards interacting with AI agents for enhanced customer experiences, the uncertainty remains stemming from a lack of complete trust.
- Many consumers feel a mix of suspicion (44%) and curiosity (41%) about the future of AI.
This reveals a ripe opportunity for companies to help consumers see and understand the benefits of AI agents.
- Over a third of consumers would work with an AI agent instead of a person to avoid repeating themselves.
- 30% of consumers – even more among GenZ and millennials (37%) – would work with an AI agent instead of a person for faster service.
- A quarter of consumers — even more among GenZ and millennials (roughly one-third) – would share their personal information with an AI agent so it can better anticipate their needs.
“Retailers face a much more competitive shopping season this year, as they look to deliver higher margins in the midst of increasing customer demands. AI agents can help brands deliver consistent, personalised experiences for shoppers across every channel – deepening customer loyalty and ultimately driving more sales,” says Michael Affronti, SVP and General Manager of Commerce Cloud at Salesforce.
Customers also show good response when they’re aware of the times they are communicating with AI agents. When it comes to technology adoption, the rate of success boils down to trust enabled from transparency.
