New research from Twilio reveals the complicated landscape of (artificial intelligence) AI-driven customer engagement, highlighting the challenges businesses in the Philippines encounter regarding transparency and customer data privacy.
Twilio’s fifth annual State of Customer Engagement Report includes insights from 18 countries including the Philippines and delves into the growing role of AI in fostering personalized interactions between businesses and consumers.
While businesses increasingly harness AI to curate tailored experiences, a gap emerges concerning transparency and data usage disclosures. According to the report, 77% of Filipino consumers advocate for a clear explanation of how their data powers AI applications. However, only 53% of brands fulfill this expectation, emphasizing a pronounced transparency deficit.
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“Customers today expect personalized experiences and want to understand how businesses use their data to shape those experiences,” Kathryn Murphy, SVP Product at Twilio, said in a media release. “It’s imperative for brands to be clear about how they use AI, ensuring that they balance how they deploy it with equally robust measures to protect customer privacy.”
AI adoption
Murphy emphasized that transparency is not optional but a critical component of building and maintaining customer trust and loyalty.
Despite strides in AI adoption, businesses grapple with data accessibility and tool adequacy. While 70% of Filipino businesses invest in customer relationship management (CRM) tools, only 54% report possessing the requisite tools for comprehensive customer understanding. Reliance on third-party cookies has dwindled from 87% in 2022 to 57% in 2023, signaling evolving data acquisition strategies.
AI-driven personalization emerges as a potent tool for augmenting customer engagement and bolstering the bottom line. The report underscores that consumers reward personalized experiences with increased spending, underscoring the pivotal role of personalization in consumer-brand relationships. However, Filipino businesses lag in prioritizing personalization, with only 8% treating it as a primary concern.
As Filipino businesses navigate the AI landscape, the Twilio report highlights addressing transparency deficits and boosting data protection measures. By aligning AI deployment with robust privacy safeguards, businesses can cultivate enduring customer trust and loyalty in an increasingly digitized marketplace.