Technologies like AI are empowering brands to collect and interpret vast amounts of customer data across different touchpoints and build incredibly detailed unified profiles for each customer. While this helps organisations better understand their customer base and deliver incredibly personalised communications, transparency in data collection and retention policies is crucial. Increased regulatory pressure for transparency in AI usage will aid adoption and reduce consumer distrust.

According to our State of Customer Engagement report, six in ten Australian consumers say protecting their data is the top way for brands to earn their trust. Globally, nearly half (49%) would trust a brand more if it disclosed how customer data is used in AI-powered interactions. The takeaway? Organisations must be transparent about their data policies, explaining retention periods, purposes, and security measures. They must also address the ethical concerns surrounding invasive third-party cookies and make the transition to first-party data collection. First-party data is consensually given to brands by their customers or generated by their interactions with them. It is therefore more ethical to collect and provides the most valuable insight when building personalised experiences. This approach benefits both organisations and consumers, fostering trust and understanding.”