AI Marketing Boom Threatened by Consumer Trust Crisis - Om Softwares

AI has moved from hype to habit in marketing. Today, 92% of marketers use it in their daily work, transforming it from a buzzword into a business-critical tool....

AI has moved from hype to habit in marketing. Today, 92% of marketers use it in their daily work, transforming it from a buzzword into a business-critical tool. According to SAP Emarsys, which surveyed 10,000 consumers and 1,250 marketers, the technology is delivering results for businesses—but consumer trust is unraveling fast, especially around data privacy.

The Marketer’s Perspective: Speed, Creativity, and Results

The rush to integrate AI has been swift and decisive. As Sara Richter, CMO at SAP Emarsys, explains:

“AI marketing is now fully in motion: it has transitioned from the theoretical to the practical as marketers welcome AI into their strategies and test possibilities.”

And the benefits are clear:

For businesses, AI is not just a time-saver—it’s a performance booster.

The Consumer’s View: Personalisation Gap and Data Doubts

Consumers, however, are less impressed. Despite heavy AI-driven personalisation efforts, 40% of shoppers feel brands don’t understand them—a sharp rise from 25% last year. Meanwhile, 60% say marketing emails are irrelevant.

Trust in AI handling personal data is plummeting:

This “trust deficit” threatens the very personalisation AI promises.

Regulation: Guardrails or Handcuffs?

A year after the EU’s AI Act, 37% of UK marketers have restructured their approach to AI, and 44% say their practices are now more ethical. But many fear overregulation—28% worry it could stifle creativity.

Dr. Stefan Wenzell, CPO at SAP Emarsys, underscores the need for balance:

“Regulation must strike a balance – protecting consumers without slowing innovation. Responsible AI is about building trust through clarity, relevance, and smart data use.”

Success Stories: Human-Centered AI

Some brands are already proving that AI can enhance, not erode, consumer trust:

These cases show that when AI serves people—rather than simply automating tasks—it drives meaningful outcomes.

The Path Forward

AI is here to stay—64% of marketers plan to increase investment next year. But success won’t come from technology alone. Brands must:

The AI revolution in marketing is real. But its future depends on one thing: whether consumers believe brands are using it for their benefit—not just their own.