AI Age: Trust Critical for Consumers to Help Company's Regain Loyalty 51% of consumers trust companies less than they did a year ago, and 51% feel companies are reckless with their data
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In the digital age, data privacy and transparency have become important for most consumers. They are worried about the same things, especially now, when Artificial Intelligence (AI) has become more integrated into customer interactions—mostly unaware of where their data and information are going and used for.
According to Salesforce's recent "State of the AI Connected Customer" report, consumer trust in companies has significantly declined, reaching its lowest point in recent years. For 63 per cent of consumers, advances in AI make trust even more important—they want these tools to be ethical, transparent, and reliable. If a company demonstrates that its AI systems are trustworthy, it can enhance its reputation and help in gaining customer loyalty again. Nearly three-quarters (51 per cent) of consumers trust companies less than they did a year ago, and 51 per cent feel companies are reckless with their data.
"Trust is the foundation of every customer relationship, and with the rise of AI agents, companies have an unprecedented opportunity to rebuild that trust at a time when consumers need it most. This research highlights the power of trusted AI in not only enhancing convenience and personalizing experiences but also in meeting customers' heightened expectations for transparency and accountability. As we enter a new era of intelligent customer engagement, brands that prioritize trust in their AI strategies will be best positioned to deliver impactful, lasting connections," Arun Parameswaran, SVP & Managing Director, Sales and Distribution, Salesforce India explained.
A chance at redemption
The holiday season is a high-pressure time for consumers, with a focus on finding the best deals, saving time, and getting reliable services. This is looking to give companies a shot at regaining customer trust. "At a time when consumer trust is more critical than ever, having AI agents that are both intuitive and trustworthy is a real game-changer for businesses," said T V Swaminathan, Global Chief Digital Officer, Tata Consumer Products.
AI agents can play a role here by helping shoppers with tasks like price comparisons, personalized recommendations, automated purchases, and quick return processes.
The global market size of AI agents was valued at USD 3.7 billion in 2023 and is projected to reach USD 103.6 billion by 2032, growing at a compound annual growth rate (CAGR) of 44.9 per cent during the period from 2024 to 2032, according to SNS Insider data. At the time of publishing, accurate data for the Indian AI agent market size was not available.
This opportunity is greatest with Gen X (58 per cent), and Millennials (57 per cent) because both categories are more willing than Gen Z (51 per cent) and Baby Boomers (42 per cent) to use AI agents to improve their customer experience by creating more personalized, or useful content.
Additionally, 55 per cent of Gen Z and 64 per cent of millennials believe AI has raised the bar for customer experiences compared to just 53 per cent of baby boomers. As per the report, Millennials and Gen Xers in India are more willing than Gen Z and Baby Boomers to work with agents for faster and more proactive service.
