Disclosure of AI use to boost consumer trust in PHL brands
BRANDS’ disclosure of how their data is used for artificial intelligence (AI) is expected to increase consumer trust and revenues, consumer engagement platform Twilio said.
“Their ability to move beyond personalization will lead to greater trust being built in those brands. By default, what should flow from there is increased revenue and profits,” Nicholas Kontopoulos, vice-president of marketing in Asia-Pacific and Japan at Twilio, told BusinessWorld on July 18.
Mr. Kontopoulos said informing users on AI use could signal responsibility and be a differentiator for the brand, as this would build rapport, transparency, and accountability.
Twilio’s 2024 State of Customer Engagement Report showed 77% of Filipino consumers demand transparency on how their data is being used in AI, which was the highest percentage among 18 countries surveyed.
This stems from digital maturity among customers and businesses, which shows the importance of data and how these will affect businesses going forward, Mr. Kontopoulos said.
However, the report showed that only 53% of local brands are meeting this expectation. These brands are also less likely to inform consumers when interacting with AI (41%) and disclose with whom customer data is shared (30%).
Twilio’s study also showed that 33% of consumers surveyed will spend more if AI improves customer service. Meanwhile, 78% reported they are likely to stop using a platform that doesn’t personalize engagement.
Among brands, e-commerce retail store Zalora employs Twilio’s AI-powered customer data platform Segment to provide its users with a personalized shopping experience.
Meanwhile, logistics application Lalamove uses AI in its chat system to connect its delivery drivers with customers without compromising personal data, Twilio added.
For entities planning to disclose their use of AI to consumers, Mr. Kontopoulos said they should also consider how they do it.
“There’s no one-size-fits-all approach, but I would start thinking about developing a framework like the Nutrition AI Guide, making sure a customer is aware that they’re talking to an AI when they’re engaging with a chatbot,” he said.
Firms should also include their AI use policy, he added.
Twilio’s survey covered 4,750 business-to-consumer executives and 6,300 consumers. Its platform is used by over 300,000 global enterprises, digital disruptors, and more than 10 million developers worldwide. — Aubrey Rose A. Inosante