A it presents a new challenge, with consumers increasingly concerned over how their data is being used. New research from leading privacy tech company, Usercentrics, shows that the vast majority of UK consumers( 73 %) doesn’ t fully understand how businesses use their data, and over half( 58 %) are concerned about their data being used to train AI. Businesses who show transparency stand to gain a competitive advantage, as consumers rank transparency over how data is collected and used as the number one driver to increase trust with brands – followed by strong security guarantees and the ability to control or limit data sharing.
INDUSTRY RETAIL. TECH
New report reveals digital trust crisis in the age of AI and how brands can overcome it
s UK businesses race to adopt AI,
A it presents a new challenge, with consumers increasingly concerned over how their data is being used. New research from leading privacy tech company, Usercentrics, shows that the vast majority of UK consumers( 73 %) doesn’ t fully understand how businesses use their data, and over half( 58 %) are concerned about their data being used to train AI. Businesses who show transparency stand to gain a competitive advantage, as consumers rank transparency over how data is collected and used as the number one driver to increase trust with brands – followed by strong security guarantees and the ability to control or limit data sharing.
The State of Digital Trust report, based on a survey of 10,000 frequent Internet users across Europe and the USA, 2,000 of which are based in the UK, paints a sobering picture of the state of digital trust in an AI-driven world. Much of this erosion stems from a growing sense of commodification, with almost two-thirds( 61 %) of consumers feeling as though they have‘ become the product’. As awareness grows, behaviour is shifting: nearly half( 40 %) say they click‘ accept all’ less often than they did three years ago, marking a change to a more cautious engagement with businesses at the first touchpoint.
Heavily regulated industries more trustworthy but still low
While banks( 62 %) and public institutions( 47 %) still enjoy relatively high levels of trust around data collection and usage, confidence collapses in sectors such as social media platforms( 27 %), hospitality( 22 %) and automotive( 22 %). Brits are also getting increasingly aware of their rights under data privacy regulation, but only 52 % trust regulators to protect them and hold companies accountable. A quarter( 20 %) of consumers is, however, sceptical that regulators can – or will – hold companies accountable.
When consumers can feel like the product, brands that show their data practices, explaining how and why data is used, stand to build deeper trust and a more positive digital engagement.
“ This isn’ t a backlash, it’ s a reset. For too long, user data privacy has been defined as a trade-off between growth and compliance. If privacy and consent aren’ t placed at the heart of marketing strategies, especially as AI adoption accelerates, companies risk losing consumer trust entirely,” said Adelina Peltea, CMO, at Usercentrics.
For too long, user data privacy has been defined as a trade-off between growth and compliance.
“ In the AI-driven digital landscape, speed alone isn’ t enough; accountability and a user-first approach are key. Privacy is set to define the next era of brand-consumer relationships, offering businesses a pivotal opportunity to differentiate themselves by delivering responsible, transparent, and privacy-first user experiences,” Peltea added.
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