What a dilemma we have. Consumers want personalized messaging from brands, and they expect their data to remain secure and protected. But these two expectations have brought businesses to a conflicting crossroads of mutual exclusivity—the more personalized and targeted brand communications are, data privacy is likely to be more vulnerable. And the more secure the data is, the specificity of message targeting will probably suffer. And in the relative infancy of AI, still unmastered and unregulated, how much risk do brands dare to take?
A new research report from customer intelligence solutions firm Glassbox, AI in Personalization and Privacy, based on a survey of 600 digital professionals, offers critical insights into the adoption and impact of AI technologies in digital marketing and customer experience (CX) roles. The results demonstrate the immense value that AI can deliver for digital marketing leaders and professionals, while also emphasizing the need for strong data privacy policies and protections.
“As AI becomes more interwoven with digital personalization efforts, it is essential for brands to balance the value it brings with the responsible application of data privacy,” said Yaron Morgenstern, CEO of Glassbox, in a news release. “Our research stresses the need for businesses to invest in the compliance, usability and reliability of their digital data management systems to build customer trust, as they work to enhance customer experiences through the thoughtful deployment of secure AI solutions.”
With new frontiers come new challenges:
Key findings from the report:
Personalization is paramount
A striking 96 percent of digital professionals agree that personalization is crucial for delivering high-quality digital customer experiences.
Increased investments
Over the past year, 74 percent of companies have boosted their investments in personalization efforts.
AI integration
Two-thirds (66 percent) of digital professionals are utilizing AI in their roles, with 39 percent deeming it essential to their job functions.
Security concerns
About three-quarters (77 percent) of AI users believe that companies need to do more to address AI-related data privacy concerns.
Data-driven insights
About half (49 percent) of AI users leverage customer data for AI-driven insights.
Privacy compliance worries
Among those using customer data for AI insights, 57 percent worry about maintaining compliance with data privacy laws.
The survey further revealed that professionals at AI companies are 80 percent more likely to believe their company is not using AI responsibly compared to those at non-AI companies—highlighting the urgent need for stricter cybersecurity measures and greater transparency in AI implementation.
“To build customer trust in a cautious market, while enhancing CX with AI, companies must empathize with their customers,” said Yaron Gueta, CTO of Glassbox, in the release. “They need to fully understand how they will use data to improve CX and be exceptionally transparent with their customers about it.”
Download the full report here.
The findings are based on a survey of 601 digital professionals in the United States.
