INDUSTRY // Retail. tech
New report reveals digital trust crisis in the age of AI and how brands can overcome it
As UK businesses race to adopt AI, it presents a new challenge, with consumers increasingly concerned over how their data is being used. New research from leading privacy tech company, Usercentrics, shows that the vast majority of UK consumers( 73 %) doesn’ t fully understand how businesses use their data, and over half( 58 %) are concerned about their data being used to train AI. Businesses who show transparency stand to gain a competitive advantage, as consumers rank transparency over how data is collected and used as the number one driver to increase trust with brands – followed by strong security guarantees and the ability to control or limit data sharing.
The State of Digital Trust report, based on a survey of 10,000 frequent Internet users across Europe and the USA, 2,000 of which are based in the UK, paints a sobering picture of the state of digital trust in an AI-driven world. Much of this erosion stems from a growing sense of commodification, with almost two-thirds( 61 %) of consumers feeling as though they have‘ become the product’. As awareness grows, behaviour is shifting: nearly half( 40 %) say they click‘ accept all’ less often than they did three years ago, marking a change to a more cautious engagement with businesses at the first touchpoint.
Heavily regulated industries more trustworthy but still low
While banks( 62 %) and public institutions( 47 %) still enjoy relatively high levels of trust around data collection and usage, confidence collapses in sectors such as social media platforms( 27 %), hospitality( 22 %) and automotive( 22 %). Brits are also getting increasingly aware of their rights under data privacy regulation, but only 52 % trust regulators to protect them and hold companies accountable. A quarter( 20 %) of consumers is, however, sceptical that regulators can – or will – hold companies accountable.
When consumers can feel like the product, brands that show their data practices, explaining how and why data is used, stand to build deeper trust and a more positive digital engagement.
“ This isn’ t a backlash, it’ s a reset. For too long, user data privacy has been defined as a trade-off between growth and compliance.
If privacy and consent aren’ t placed at the heart of marketing strategies, especially as AI adoption accelerates, companies risk losing consumer trust entirely,” said Adelina Peltea, CMO, at Usercentrics.
“ In the AI-driven digital landscape, speed alone isn ' t enough; accountability and a user-first approach are key. Privacy is set to define the next era of brand-consumer relationships, offering businesses a pivotal opportunity to differentiate themselves by delivering responsible, transparent, and privacy-first user experiences,” Peltea added. p
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