Trust and transparency have become increasingly important as AI reshapes customer service, especially with billions in sales expected this holiday season. Salesforce’s AI Connected Customer report shows that 63% of consumers globally believe that advances in AI have increased the importance of trust. In India, Millennials (57%) and Gen X (58%) are more open to AI-powered customer service than Gen Z (51%) and Baby Boomers (42%).
AI’s growing impact on consumer behavior amid trust and privacy concerns
Despite the rapid growth of AI, consumer trust has reached its lowest point in eight years, with 51% of respondents expressing less trust in companies than a year ago. Concerns about data privacy have fueled this skepticism, as more than half of consumers believe businesses treat customer data carelessly. Still, the impact of AI on consumer behavior is undeniable, with predictions that it will last $200 billion in online sales This holiday season, the growing role of AI agents in customer service has been highlighted.
AI agents are gaining popularity due to their ability to handle conversations without human involvement. Most consumers (53%) prefer AI agents to avoid repeating themselves, while 51% value prompt service provided by AI. Additionally, 46% are willing to share personal information with AI agents to enhance their service, indicating cautious optimism about the technology’s potential.
Challenges in AI Adoption: The Need for Transparency and Trust
Widespread adoption of AI faces many challenges, with transparency being a major concern. 68% of consumers want to be informed when interacting with AI, while 59% want clear explanations of AI decision-making processes. Additionally, 56% prefer the option to escalate issues to humanitarian support, underscoring the importance for businesses to prioritize transparency and open communication.
AI perceptions are also shaped by generational differences. Young consumers, especially Millennials and Gen Z, see AI as a tool to improve customer experience and personalization. However, despite these positive trends, 42% of consumers are neutral about AI, and 27% are skeptical. To build trust, companies must focus on transparency, data security, and providing a clear growth path.
Summary:
AI is reshaping customer service, but trust and transparency remain critical, especially with sales expected to exceed $200 billion this holiday season. Despite the growth of AI, consumer confidence has fallen to an 8-year low due to privacy concerns. To foster trust, businesses should prioritize transparency, data security, and clear enhancement options for AI interactions.