New Research Exposes the Privacy-Personalization Conflict in AI-Driven Customer Experience

New Research Exposes the Privacy-Personalization Conflict in AI-Driven Customer Experience

CX and digital professionals embrace AI, balancing innovation with privacy considerations, Glassbox survey shows

Glassbox, the premier provider of AI-fueled customer intelligence solutions, unveiled a new research report surveying digital professionals, “AI in Personalization and Privacy,” which 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.

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“They need to fully understand how they will use data to improve CX and be exceptionally transparent with their customers about it.”

Key Findings from the Report:

  • Personalization is Paramount: A striking 96% of digital professionals agree that personalization is crucial for delivering high-quality digital customer experiences.
  • Increased Investments: Over the past year, 74% of companies have boosted their investments in personalization efforts.
  • AI Integration: 66% of digital professionals are utilizing AI in their roles, with 39% deeming it essential to their job functions.
  • Security Concerns: 77% of AI users believe that companies need to do more to address AI-related data privacy concerns.
  • Data-Driven Insights: Nearly half (49%) of AI users leverage customer data for AI-driven insights.
  • Privacy Compliance Worries: Among those using customer data for AI insights, 57% worry about maintaining compliance with data privacy laws.

“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. “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.”

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The survey further revealed that professionals at AI companies are 80% more likely to believe their company is not using AI responsibly compared to those at non-AI companies. This highlights 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,” added Yaron Gueta, CTO of Glassbox. “They need to fully understand how they will use data to improve CX and be exceptionally transparent with their customers about it.”

Based on a survey of 601 digital professionals in the United States, the report provides valuable insights for businesses looking to leverage AI for personalization while addressing growing privacy concerns.

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