Ethical AI key to consumer trust, Twilio report finds

CALIFORNIA, UNITED STATES — Twilio’s latest “State of Personalization Report” reveals that ethical AI use is becoming a crucial factor in shaping consumer perceptions of businesses.
The annual report, now in its fifth year, surveyed 521 business leaders across 12 countries and various industries from April 8 to May 5, 2024.
According to the report, 89% of respondents believe that the ethical use of AI can provide a competitive business advantage. This finding underscores the need for companies to balance innovation with transparency and data privacy as they leverage AI to enhance customer engagement.
“Personalization is table stakes in the world of marketing. Today’s consumer not only expects brands to understand them, but they want brands to anticipate their needs and AI is making that a reality,” said Robin Grochol, VP Product Management at Twilio.
“We found the majority of business leaders are making the shift from reactive to predictive personalization to help them deliver on increasingly sophisticated and dynamic consumer demands.”
Gen Z shaping future engagement
The report identifies Gen Z (ages 18-27) as a key demographic shaping the future of customer engagement. This tech-savvy generation’s preferences are prompting 85% of companies to adjust their marketing strategies accordingly.
“A generation of digital natives that grew up immersed in tech, Gen Z hold massive buying power and are breaking the traditional marketing funnel with their unique preferences, including higher expectations for authenticity, transparency, and engagement on their term,” the report said.
Our State of Personalization Report is live! 📣 Consider it your official roadmap to personalization's future with AI/ML technologies, guided by the experts shaping it.
Start the journey here: https://t.co/RC9dHobrjl
— twilio (@twilio) June 18, 2024
Predictive personalization at the forefront
A significant trend highlighted in the report is the move towards predictive personalization, with 86% of business leaders anticipating this shift across the industry.
Companies are increasingly using AI and machine learning to craft tailored experiences that anticipate consumer needs.
Moreover, 82% of leaders stress the importance of incorporating emotional intelligence into AI systems, enabling them to respond effectively to human emotions.
This approach is part of a broader trend towards more sophisticated personalization metrics, with 80% of marketers planning to adopt measures such as customer lifetime value and emotional engagement.
The report also reveals that AI is set to become an integral part of business operations:
- 73% of business leaders agree that AI will transform personalization and marketing strategies
- 58% believe AI chatbots will be the most impactful personalization technology in the next five years
- 59% expect their teams to use AI daily by 2025
As AI becomes more prevalent, the report emphasizes the importance of addressing consumer concerns about data privacy and ethical considerations. Over half of the business leaders surveyed (54%) are implementing robust privacy controls to address these issues.