Why It Matters:

The majority of today’s consumers are embracing the use of AI in marketing — which is great news for retailers. Our new report unlocks valuable insights into customer perceptions of AI, and provides tips on how to best use AI to enhance the customer experience and increase lifetime customer value (LCV). 

The future looks bright for AI-driven brand marketing, according to Optimove’s 2024 Consumer Perspectives on AI-Driven Brand Marketing Report. Of the 305 U.S. citizens surveyed, more than half (55%) say they have positive feelings toward companies that use AI in marketing. Notably, 26% described their sentiments as “very positive,” highlighting a growing appreciation for AI’s role in tailoring shopping experiences to their needs. 

Personalization for the Win 

Shoppers are embracing AI-driven personalization. A solid 51% say they have positive feelings about it, with 27% finding it “very positive” because it enhances their shopping experience. The 24% who view AI personalization as “somewhat positive” acknowledge its helpfulness while noting occasional inaccuracies. Of the 24% who reported negative feelings, 13% said they found it intrusive and 11% said they prefer brands not to use AI at all. A quarter of respondents were indifferent. 

Increased AI Awareness 

While 49% of consumers say they trust brands that use AI in marketing, a remarkable 63% say they know when it is being used on them. Which means, instead of hiding it, retailers should capitalize on their customers’ enthusiasm for AI by transparently incorporating it into their marketing strategies, highlighting how it improves personalization and tailors content to their needs. 

Accurate Product Recommendations

Almost half of consumers, 46%, say they have made purchases based on AI recommendations. Among them, 25% have done so repeatedly and say that AI usually gets it right. The 21% who have only occasionally made purchases through AI recommendations are still impressed, describing the recommendations as “spot on.” 

Navigating Data Privacy Concerns 

Despite the positive sentiments, data privacy emerges as a top concern for 34% of respondents, emphasizing the need for marketers to prioritize and communicate robust data privacy measures. Additionally, 19% of consumers feel that AI recommendations are occasionally “over-personalized,” pointing to the delicate balance between customization and intrusion. 

Dive Deeper and Download the Full Report 

These are just some of the insights we uncovered in our 2024 report. To unlock the full potential of our findings — and learn how to leverage them to maximize AI use and drive customer loyalty — download the full report here.

Published on November 30th, 2023

Posted in

• Marketing AI

Rob Wyse

Rob Wyse is Senior Director of Communications at Optimove. As a communications consultant, he has been influential in changing public opinion and policy to drive market opportunity. Example issues he has worked on include climate change, healthcare reform, homeland security, cloud transformation, AI, and other timely issues.